Safeguard Properties

Freddie Mac Confirms Disaster Relief Policies for Homeowners Affected by Hurricane Sally and Wildfires

Posted on by Safeguard

Investor Update
September 16, 2020

Source: Freddie Mac

Safeguard Properties Disaster Alert Center:
Hurricane Sally Reporting
Western Wildfire Reporting

McLEAN, Va., Sept. 16, 2020 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today reminded mortgage servicers of its disaster relief policies for homeowners amid Hurricane Sally and the ongoing wildfires threatening California and the Western states. Freddie Mac’s disaster relief options are available to homeowners whose homes or places of employment are located in presidentially-declared Major Disaster Areas where federal individual-assistance programs are made available to affected individuals and households.

“The priority is for homeowners to get themselves and their loved ones safely out of harm’s way,” said Bill Maguire, Freddie Mac’s Vice President of Single-Family Servicing Portfolio Management. “Once out of harm’s way, homeowners whose homes or places of employment are impacted should contact their mortgage servicer—the company they send their monthly mortgage payments to— so they can learn about available relief options. Freddie Mac stands ready to ensure mortgage relief is made available to homeowners affected by these natural disasters.”

Mortgage servicers may immediately leverage Freddie Mac’s short-term forbearance programs to provide mortgage relief to homeowners that have been affected by the natural disasters. Affected homeowners currently on a COVID-19 related forbearance or other relief plan should contact their servicer to discuss options.

News Facts:

• Freddie Mac Single-Family disaster relief policies authorize mortgage servicers to help affected borrowers in eligible disaster areas: those federally-declared Major Disaster Areas where federal individual assistance programs have been extended. A list of these areas can be found on the FEMA’s website.

•Freddie Mac mortgage relief options for affected homeowners in eligible disaster areas include:

    • Suspending foreclosures by providing forbearance for up to 12 months;
    • Waiving assessments of penalties or late fees against homeowners impacted by an eligible disaster.

•Freddie Mac is reminding Single-Family servicers to consider homeowners who are impacted by the hurricane or wildfires, but who live or work outside of an eligible disaster area, for Freddie Mac’s standard relief policies, which include forbearance and mortgage modifications.

• Affected homeowners should immediately contact their mortgage servicer—the company to which they send their monthly mortgage payment.

• See http://www.freddiemac.com/singlefamily/service/natural_disasters.html for a description of Freddie Mac’s Single-Family disaster relief policies.

Fannie Mae: Reminder of Assistance Options for Borrowers Affected by Hurricane Sally and West Coast Wildfires

Posted on by Safeguard

Investor Update
September 16, 2020

Source: Fannie Mae

Additional Resource:

Safeguard Properties Disaster Alert Center:
Hurricane Sally Reporting
West Coast Wildfire Reporting

WASHINGTON, Sept. 16, 2020 /PRNewswire/ — Fannie Mae (OTCQB: FNMA) is reminding those impacted by Hurricane Sally and the West Coast Wildfires of available mortgage assistance and disaster relief options. Under Fannie Mae’s guidelines for single-family mortgages impacted by a natural disaster:

• Homeowners may request mortgage assistance by contacting their mortgage servicer following a disaster

• Mortgage servicers are authorized to suspend or reduce a homeowner’s mortgage payments for up to 90 days – even without establishing contact – if the servicer believes the homeowner was affected by the disaster

• Homeowners affected by a disaster are often eligible to reduce or suspend their mortgage payments for up to 12 months

• During this temporary payment break:

    • Homeowners will not incur late fees
    • Foreclosure and other legal proceedings are suspended

There are a number of options available to potentially help homeowners catch up on missed payments

In addition, homeowners currently on a COVID-19-related forbearance plan who are subsequently impacted by the storm or fires should contact their mortgage servicer to discuss options.

Fannie Mae also offers help navigating the broader financial effects of a disaster to homeowners with a Fannie Mae-owned mortgage and renters living in Fannie Mae-financed properties through its Disaster Response Network*, including:

• A needs assessment and personalized recovery plan

• Help requesting financial relief from FEMA, insurance, and other sources

• Web resources and ongoing guidance from experienced disaster relief advisors

Homeowners and renters can call 877-833-1746 to access Fannie Mae’s Disaster Response Network™* or other available resources.

“We are monitoring these situations, and we urge those in the path of the storm and fires to focus on their safety,” said Malloy Evans, Senior Vice President and Single-Family Chief Credit Officer, Fannie Mae. “Along with our lending and servicing partners, Fannie Mae is committed to ensuring assistance is available to homeowners in need. We encourage residents whose homes, employment, or income are impacted by this storm and fires to seek available assistance as soon as possible.”

*Operated by Clearpoint Credit Counseling Solutions, a division of MMI, through its Project Porchlight program

FEMA Declared Disaster Oregon

Posted on by Safeguard

FEMA Alert Update
November 16, 2020

FEMA issued an update to a Presidential Major Disaster Declaration for areas in Oregon affected by wildfires and straight-line winds beginning on September 7, 2020 and continuing. The action closes the incident period on November 3, 2020.

Oregon Wildfires and Straight-Line Winds (DR-4562 Amendment 3)

 

FEMA Alert
September 15, 2020

FEMA issued a Presidential Major Disaster Declaration for areas in Oregon affected by wildfires and straight-line winds beginning on September 7, 2020 and continuing. The following counties have been approved for assistance:

Individual Assistance

  • Clackamas
  • Douglas
  • Jackson
  • Klamath
  • Lane
  • Lincoln
  • Linn
  • Marion


Public Assistance

  • Benton
  • Clackamas
  • Columbia
  • Coos
  • Deschutes
  • Douglas
  • Jackson
  • Jefferson
  • Josephine
  • Klamath
  • Lake
  • Lane
  • Lincoln
  • Linn
  • Marion
  • Multnomah
  • Tillamook
  • Wasco
  • Washington
  • Yamhill

 

Oregon Wildfires and Straight-Line Winds (DR-4562)

FEMA Declared Disaster Oregon: ZIP Code List

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

FEMA Declared Disaster Sac & Fox Tribe of the Mississippi in Iowa

Posted on by Safeguard

FEMA Alert
September 10, 2020

FEMA issued a Presidential Major Disaster Declaration for the Sac & Fox Tribe of the Mississippi (Iowa) as a result of a derecho that took place on August 10, 2020. The following tribal area is eligible for assistance:

Public Assistance

  • Sac & Fox Tribe of the Mississippi in Iowa (Tama County, 52339)

NOTE: Tribal areas are approximate and may be incomplete.

FEMA Release: Declared Disaster for Sac & Fox Tribe of the Mississippi in Iowa

ZIP Code List for FEMA Declared Disaster for Sac & Fox Tribe of the Mississippi in Iowa

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Remnants of Hurricane Sally Head Offshore Into Atlantic

Posted on by Safeguard

Updated 1/13/21: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Alabama affected by Hurricane Sally from September 14-16, 2020.

Alabama Hurricane Sally (DR-4563 Amendment 5)

Updated 10/14/20: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Florida affected by Hurricane Sally beginning on September 14, 2020 and continuing. The action closes the incident period on September 28, 2020.

Florida Hurricane Sally (DR-4564)

Updated 10/13/20: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Florida affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Florida Hurricane Sally (DR-4564)

Updated 10/13/20: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Alabama affected by Hurricane Sally from September 14-16, 2020.

Alabama Hurricane Sally (DR-4563)

Updated 10/9/20: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Alabama affected by Hurricane Sally from September 14-16, 2020.

Alabama Hurricane Sally (DR-4563)

Updated 10/9/20: FEMA issued a Presidential Major Disaster Declaration for areas in Alabama affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Alabama Hurricane Sally (DR-4563)

Updated 10/2/20: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Florida affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Florida Hurricane Sally (DR-4564)

Updated 9/23/20: FEMA issued a Presidential Major Disaster Declaration for areas in Florida affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Florida Hurricane Sally (DR-4564)

Updated 9/20/20: FEMA issued a Presidential Major Disaster Declaration for areas in Alabama affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Alabama Hurricane Sally (DR-4563)

Updated 9/18/20: USA Today issued a report offering the latest on Hurricane Sally, which has lost all characteristics of a tropical storm and is moving into the Atlantic Ocean.

Live coverage of Sally: Pensacola residents pick up the pieces; 320,000 still without power

Approximate locations (according to media outlets) sustaining structural flooding/wind damage (combined with previous updates):

Alabama

– Brownsville (Clay County, 35072)
– Dauphin Island (Mobile County, 36528)
– Fairhope (Baldwin County, 36532, 36533)
– Foley (Baldwin County, 36535, 36536)
– Fort Morgan/Fort Bowyer (Baldwin County, 36542)
– Gulf Shores (Baldwin County, 36542, 36547)
– Loxley (Baldwin County, 36551)
– Mobile (Mobile County)
*Concentrated damage (wind): Midtown (36606, 36607)
– Orange Beach (Baldwin County, 36561)
**Hardest hit area (home flooding)
*30 inches of rain recorded
– Robertsdale (Baldwin County, 36567, 36574)
– Silverhill (Baldwin County, 36576)
– Spanish Fort (Baldwin County, 36527, 36577)
– Theodore (Mobile County, 36582, 36590)

Florida

– Cantonment (Escambia County, 32533)
– Floridatown (Santa Rosa County, 32571)
– Fort Walton Beach (Okaloosa County, 32547, 32548, 32549)
– Freeport (Walton County, 32439)
– Gulf Breeze (Santa Rosa County, 32561, 32562, 32563, 32566)
– Inlet Beach (Walton County, 32413, 32461)
– Jay (Santa Rosa County, 32565)
– Mack Bayou (Walton County, 32459)
– Miramar Beach (Walton County, 32550)
– Milton (Santa Rosa County, 32570, 32571, 32572, 32583)
– Myrtle Grove (Escambia County, 32506, 32507, 32511, 32512)
– Navarre (Santa Rosa County, 32566)
– Panama City (Bay County, 32401, 32402, 32403, 32404, 32405, 32406, 32407, 32408, 32409, 32411, 32412, 32413, 32417, 32461)
– Pensacola (Escambia County)
*Concentrated flooding: Downtown (32501, 32591, 32502, 32504, 32507)
*30 inches of rain recorded at NAS Pensacola
– Pensacola Beach (Escambia County, 32561)
– Perdido Key (Escambia County, 32507)
– Warrington (Escambia County, 32507, 32508)
– West Pensacola (Escambia County, 32505, 32506, 32507, 32516)

South Carolina

– Millwood (Sumter County, 29556)
*Flood water reportedly reached home doorways (eight inches of rain recorded)
– Sumter (Sumter County, 29150, 29151, 29153, 29154)
*Flood waters reportedly reached home doorways (seven inches of rain recorded)

Updated 9/17/20: The Weather Channel issued a report offering the latest on Hurricane Sally, which continues to weaken as it passes through Georgia, Virginia and the Carolinas.

Sally Spreading Torrential Rainfall, Flooding to Georgia, Carolinas, Virginia

Additional approximate locations reportedly sustaining structural flooding/wind damage:

Alabama

– Fairhope (Baldwin County, 36532, 36533)
*Flooding
– Foley (Baldwin County, 36535, 36536)
*Flooding

Florida

– Fort Cantonment (Escambia County, 32533)
*Flooding
– Freeport (Walton County, 32439)
*Flooding
– Jay (Santa Rosa County, 32565)
– West Pensacola (Escambia County, 32505, 32506, 32507, 32516)
*Flooding/wind damage

Updated 9/16/20: Freddie Mac issued a release reminding mortgage servicers of its disaster relief policies for homeowners amid Hurricane Sally and the ongoing wildfires threatening California and the Western states.

Freddie Mac Confirms Disaster Relief Options for Homeowners Affected by Hurricane Sally and the Ongoing Wildfires

Updated 9/16/20: Fannie Mae issued a release reminding those impacted by Hurricane Sally and the West Coast Wildfires of disaster relief options.

Fannie Mae Reminds Homeowners and Mortgage Servicers of Assistance Options for Those Affected by Hurricane Sally and the West Coast Wildfires

Updated 9/16/20: The Weather Channel issued a report detailing initial impacts from Hurricane Sally after the storm made landfall in Alabama Wednesday.

Sally Floods Homes, Businesses in Alabama, Florida; Damages Chunk of Pensacola Bridge

Approximate locations reportedly experiencing structural flooding/wind damage:

Alabama

– Brownsville (Clay County, 35072)
– Dauphin Island (Mobile County, 36528)
– Fort Morgan/Fort Bowyer (Baldwin County, 36542)
– Gulf Shores (Baldwin County, 36542, 36547)
– Loxley (Baldwin County, 36551)
– Mobile (Mobile County)
*Concentrated damage (wind): Midtown (36606, 36607)
– Orange Beach (Baldwin County, 36561)
**Hardest hit area (homes flooded, emergency services cutoff)
– Silverhill (Baldwin County, 36576)
– Spanish Fort (Baldwin County, 36527, 36577)
– Theodore (Mobile County, 36582, 36590)

Florida

– Fort Walton Beach (Okaloosa County, 32547, 32548, 32549)
– Miramar Beach (Walton County, 32550)
– Panama City (Bay County, 32401, 32402, 32403, 32404, 32405, 32406, 32407, 32408, 32409, 32411, 32412, 32413, 32417, 32461)
– Pensacola (Escambia County)
*Concentrated flooding: Downtown (32501, 32591, 32502, 32504, 32507)
*24 inches of rain recorded at NAS Pensacola
– Pensacola Beach (Escambia County, 32561)
– Perdidio Key (Escambia County, 32507)

Updated 9/16/20: The Weather Channel issued a report offering the latest on Hurricane Sally, which has made landfall in Alabama.

Hurricane Sally Lashing Gulf Coast With Flooding Rain, Storm Surge and Damaging Winds After Making Landfall

Updated 9/15/20: FEMA issued an Emergency Declaration for areas in Florida affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Florida Hurricane Sally (EM-3546)
Associated County ZIP Code List (13 Counties)

Updated 9/15/20: AccuWeather published a report offering the latest forecast information on Hurricane Sally, which is poised to make landfall along the U.S. Gulf Coast within the next 24 hours.

Hurricane Sally could dump 30 inches of rain on parts of Gulf Coast

Updated 9/14/20: FEMA issued an Emergency Declaration for areas in Mississippi affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Mississippi Hurricane Sally (EM-3544)
Associated County ZIP Code List (24 Counties)

Updated 9/14/20: FEMA issued an Emergency Declaration for areas in Louisiana affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Louisiana Hurricane Sally (EM-3543)
Associated County ZIP Code List (Statewide)

Updated 9/14/20: FEMA issued an Emergency Declaration for areas in Alabama affected by Hurricane Sally beginning on September 14, 2020 and continuing.

Alabama Hurricane Sally (EM-3545)
Associated County ZIP Code List (Statewide)

Disaster Alert
September 13, 2020

Source: The Weather Channel

Additional Resources:

Louisiana Governor John Bel Edwards (Gov. John Bel Edwards Declares State of Emergency in Advance of Tropical Storm Sally)
Associated Parish ZIP Code List (Statewide)

Mississippi Governor Tate Reeves (GOVERNOR REEVES DECLARES STATE OF EMERGENCY IN PREPARATION FOR TROPICAL STORM SALLY)
Associated County ZIP Code List (Statewide)

Alabama Governor Kay Ivey (State of Emergency: Tropical Storm Sally)
Associated County ZIP Code List (Statewide)

NOTE: This has not yet been declared a FEMA Disaster.

At a Glance

  • Tropical Storm Sally is expected to strengthen into a hurricane before striking the northern Gulf Coast.
  • Sally’s slow movement will result in prolonged impacts on the Gulf Coast.
  • Life-threatening storm surge is expected, particularly in parts of southeast Louisiana, Mississippi and Alabama.
  • Flooding rain is a major threat from Sally on the Gulf Coast and farther inland across the Southeast this week.
  • Damaging winds are expected near where Sally’s center crosses the coast.

Tropical Storm Sally is expected to intensify into a hurricane as it tracks into the northern Gulf Coast, where it will bring an extremely dangerous storm surge, flooding rainfall and damaging winds early this week. Sally will also pose a threat of flooding rainfall farther inland across parts of the Southeast.

Sally will produce a deadly duo of human-height storm surge and a foot or more of rainfall in parts of Louisiana, Mississippi and Alabama. Nearly 90% of deaths caused by hurricanes are the result of a combination of rainfall flooding, storm surge and rip currents.

Preparations for Sally’s impacts should be rushed to completion. Follow the advice of local officials if you are ordered to evacuate.

A hurricane warning has been issued for portions of southeastern Louisiana east of Morgan City, Louisiana eastward to the Mississippi/Alabama border, including Lake Pontchartrain, Lake Maurepas and metropolitan New Orleans. Hurricane conditions (winds 74 mph or greater) are expected in some parts of this area by late Monday and Tuesday.

Hurricane watches and tropical storm warnings and watches are in effect to west and east of this hurricane warning, including parts of Louisiana, Mississippi, Alabama and the Florida Panhandle.

A storm surge warning is also in effect from Port Fourchon, Louisiana, to the border between Alabama and Florida, including Mobile Bay, Lake Pontchartrain, Lake Maurepas and Lake Borgne. This means there will be a danger of life-threatening inundation from storm surge within the warning area in the next 36 hours.

For full report, please click the source link above.

FEMA Declared Disaster Puerto Rico

Posted on by Safeguard

FEMA Alert
September 9, 2020

FEMA issued a Presidential Major Disaster Declaration for areas in Puerto Rico affected by Hurricane Isaias from July 29-31, 2020. The following municipalities have been approved for assistance:

Individual Assistance

  • Aguada
  • Hormigueros
  • Mayaguez
  • Rincon

Puerto Rico Hurricane Isaias (DR-4560)

FEMA Declared Disaster Puerto Rico: ZIP Code List

 

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

VA: Circular 26-20-12: Extended Relief Under the CARES Act for those Affected by COVID-19

Posted on by Safeguard

Investor Update
August 24, 2020

Source: VA (Circular 26-20-12 Change 1)

Additional Resource:

Circular 26-20-12: Extended Relief Under the CARES Act for Those Affected by COVID-19

1. Purpose. The purpose of this Circular is to clarify the loan modification option, VA Purchase option, and remove a reference to a lump sum payment.

2. Therefore, Circular 26-20-12 is changed as follows:

Page 1, paragraph 1: Add “and Circular 26-20-8, Foreclosure Moratorium for Borrowers Affected by COVID-19” after “Special Relief for those Potentially impacted by COVID-19”

Page 2, paragraph 5a.2: Add “Traditional” before “Loan modifications”

Page 2, paragraph 5b: Remove “if it is paid back at the end of the loan or”

Page 2, paragraph 5c: Add “potential” after “home has” and replace “loan refunding” and “refunding” with “VA Purchase.”

Page 2, paragraph 6: Remove “for not less than the 60-day period beginning on March 18, 2020” and replace with “through December 31, 2020”.

3. Rescission: This Circular is rescinded July 1, 2021.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Executive Director
Loan Guaranty Service

FHA INFO #20-66: HERMIT System Submissions for COVID-19 Related Extensions

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Investor Update
September 10, 2020 

Source: HUD

Today, the Federal Housing Administration (FHA) announced software updates to the Home Equity Reverse Mortgage Information Technology (HERMIT) system, which allows servicers to submit extensions related to the Presidentially -Declared COVID-19 National Emergency for Home Equity Conversion Mortgages (HECM). The extension of the foreclosure and eviction moratorium were published in Mortgagee Letter 2020-27.

Servicers are required to use the COVID-19 extensions for HECMs per the details in HERMIT System Changes – Release 6.1 immediately. In addition, stakeholders should review the HERMIT User Guide and the HERMIT System & Resources for more information.

Quick Links:
• View Mortgagee Letter 2020-27 and all other archived Mortgagee Letters at:
https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
• View the HERMIT System & Resources page at:
https://www.hud.gov/program_offices/housing/comp/hecm_hermit

Resources
Contact the FHA Resource Center:
• Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at:
www.hud.gov/answers.
• E-mail the FHA Resource Center at: answers@hud.gov. Emails and phone messages will be responded to during normal hours of operation, 8:00 AM to 8:00 PM (Eastern), Monday through Friday on all non-Federal holidays.
• Call 1-800-CALL-FHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.

For full announcement, please click the source link above.

VA: Circular 26-20-34: Special Relief Following Hurricane Laura

Posted on by Safeguard

Investor Update
September 4, 2020

Source: VA

1. Purpose. This Circular expresses concern about the Department of Veterans Affairs (VA) home loan borrowers affected by Hurricane Laura, and describes measures mortgagees may employ to provide relief. Mortgage servicers and borrowers alike should review VA’s Guidance on Natural Disasters to ensure Veterans receive the assistance they need. https://www.benefits.va.gov/homeloans/documents/docs/va_policy_regarding_natural_disasters.pdf
or https://www.benefits.va.gov/WARMS/docs/admin26/m26_04/Chapter_21.docx.)

2. Forbearance Request. VA encourages holders of guaranteed loans to extend forbearance to borrowers in distress as a result of the disaster. Careful counseling with borrowers should help determine whether their difficulties are related to this disaster, or whether they stem from other sources that must be addressed. The proper use of authorities granted in VA regulations may be of assistance in appropriate cases. For example, Title 38, Code of Federal Regulations (C.F.R.), section 36.4311 allows the reapplication of prepayments to cure or prevent a default. Also, 38 C.FR. 36.4315 allows the terms of any guaranteed loan to be modified without the prior approval of VA, provided conditions in the regulation are satisfied.

3. Moratorium on Foreclosure. Although the loan holder is ultimately responsible for determining when to initiate foreclosure, and for completing termination action, VA has requested on its website (http://www.benefits.va.gov/homeloans) that holders establish a 90-day moratorium from the date of a disaster declaration on initiating new foreclosures on loans affected by major disasters. VA regulation 38 C.F.R. 36.4324(a)(3)(ii) allows additional interest on a guaranty claim when eventual termination has been delayed due to circumstances beyond the control of the holder, such as VA-requested forbearance. Due to the widespread impact of the disaster, holders should review all foreclosure referrals to ensure that borrowers have not been affected significantly enough to justify delay in referral. Any questions about impact should be discussed with the VA Regional Loan Center (RLC) of jurisdiction.

4. Late Charge Waivers. VA believes that many servicers plan to waive late charges on affected loans, and encourages all servicers to adopt such a policy for any loans that may have been affected.

5. Credit and VA Reporting. In order to avoid damaging credit records of Veteran borrowers, servicers are encouraged to suspend credit bureau reporting on affected loans. VA will not penalize affected servicers for any late default reporting to VA as a result. Please contact the appropriate RLC with any questions.

6. Activation of the National Guard. Members of the National Guard may be called to active duty to assist in recovery efforts. VA encourages servicers to extend special forbearance to National Guard members who experience financial difficulties as a result of their service.

7. Rescission: This Circular is rescinded October 1, 2021.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Executive Director
Loan Guaranty Service

Fannie Mae: SVC-2020-04: Servicing Guide Updates

Posted on by Safeguard

Investor Update
September 9, 2020

Source: Fannie Mae

The Servicing Guide has been updated to include changes to the following:

Allowable foreclosure attorney fees*: updates the allowable foreclosure attorney fees for Hawaii.

▪ Miscellaneous revisions**:

▪ incorporates disaster payment deferral policies as well as adds references to payment deferral throughout the Servicing Guide,

▪ updates the authority to offer an initial forbearance plan of up to three months without achieving Quality Right Party Contact (QRPC) in connection with a disaster event, and

▪ removes outdated references to Master Agreements from the Selling and Servicing Guides.

*Policy change applies only to HomeKeeper® loans and is not applicable to Home Equity Conversion Mortgage
loans.

**Policy change not applicable to reverse mortgage loans.

Allowable foreclosure attorney fees

We have updated the Allowable Foreclosure Attorney Fees Allowable Foreclosure Attorney Exhibit to reflect a change to the
maximum allowable foreclosure attorney fees for mortgage loans secured by properties in Hawaii.

Effective: These new fees apply to all matters referred to counsel for initiation of foreclosure proceedings, regardless of referral date, as long as the matter is still active as of Sept. 9, 2020. Servicers are encouraged to implement new fees for the impacted files as soon as possible, but must do so no later than Dec. 1, 2020. Servicers may exercise reasonable discretion in determining how to implement the fees, including working as needed with the law firm or an applicable invoicing technology provider.

Miscellaneous revisions

Incorporation of disaster payment deferral. We have incorporated the disaster payment deferral workout option introduced on Jul. 15, 2020 in LL-2020-11, and subsequently updated on Aug. 27, 2020, into the Servicing Guide. In connection with this incorporation, we have also added references to payment deferral throughout the Guide as applicable.

Effective: As of Oct. 1, 2020, servicers must evaluate borrowers for a disaster payment deferral in lieu of Extend Modification for Disaster Relief and Cap and Extend Modification for Disaster Relief, which will be retired as of said date.

Forbearance without achieving QRPC in a disaster event. We have updated the authority to offer an initial forbearance plan of up to three months without achieving QRPC in connection with a disaster event.

Master Agreements. As a result of the simplification of our lender contract process, we no longer issue Master Agreements for the delivery or servicing of certain special mortgage loan products or other mortgage loans that are at variance with standard Fannie Mae policies. Therefore, we have removed all references to Master Agreements from our Selling and Servicing Guides.

For full update, please click the source link above.