Page 190 – Safeguard Properties

Updated 9/9/20: The USDA updated a previous announcement regarding immediate measures it is taking to help rural residents, businesses and communities affected by the COVID-19 outbreak. The announcement now highlights guidance issued by the Centers for Disease Control and Prevention ordering a halt in tenant residential evictions (marked with an asterisk*).

USDA Implements Immediate Measures to Help Rural Residents, Businesses and Communities Affected by COVID-19 (Updated Version)

Updated 9/1/20: The USDA re-issued a previous announcement regarding immediate measures it is taking to help those impacted by COVID-19. In the edited version, an asterisk (*) has been added next to new/updated items.

USDA Implements Immediate Measures to Help Rural Residents, Businesses and Communities Affected by COVID-19 (Updated Version)

Investor Update
August 28, 2020

Source: USDA

WASHINGTON, Aug. 28, 2020 – USDA Rural Development has taken a number of immediate actions to help rural residents, businesses and communities affected by the COVID-19 outbreak. Rural Development will keep our customers, partners and stakeholders continuously updated as more actions are taken to better serve rural America.

Visit www.rd.usda.gov/coronavirus for information on Rural Development loan payment assistance, application deadline extensions and more.

COVID-19 Resources

On April 13, 2020, USDA unveiled a one-stop-shop of federal programs that can be used by rural communities, organizations and individuals impacted by the COVID-19 pandemic. The COVID-19 Federal Rural Resource Guide (PDF, 349 KB) is a first-of-its-kind resource for rural leaders looking for federal funding and partnership opportunities to help address this pandemic.

On May, 4, 2020, USDA released a summary of key service changes to increase the use of telehealth in response to the COVID-19 pandemic. These changes will help ensure that more rural residents can access care when and where they need it during this pandemic. This summary is intended to help interested parties understand the telehealth changes that have been made and explore new ways to support health care providers as they increase or transition to virtual care services.

For full announcement, please click the source link above.

USDA: Foreclosure and Eviction Moratorium Extension

Posted on August 28, 2020December 21, 2020 by Safeguard

Investor Update
December 21, 2020

Source: USDA

The purpose of this announcement is to inform lenders of additional guidance to provide support to borrowers impacted by the Presidentially declared COVID-19 National Emergency.

Moratorium Extension:

The foreclosure and eviction moratorium announced by USDA, Single Family Housing Guaranteed Loan Program (SFHGLP) on March 19, 2020, is extended until February 28, 2021.

The moratorium does not apply in cases where the servicer has documented the property is vacant or abandoned.

Forbearance Requirements:

Lender should continue to provide impacted borrowers relief in accordance with the CARES Act by offering forbearance of the borrower guaranteed loan payment for up to 180 days. In addition, the initial forbearance period may be extended up to an additional 180 days at the borrower’s request. Lenders should outline potential solutions that may be available at the end of the forbearance payment and explain to borrowers that a lump sum payment of the arrearage will not be required.

During the forbearance options outlined above, no accrual of fees, penalties or interest may be charged to the borrower beyond the amounts calculated as if the borrower had made all contractual payments in a timely fashion.

Lenders may approve the initial 180-day COVID-19 Forbearance no later than the earlier of the termination date of the national emergency declared by the President on March 13, 2020 or February 28, 2021.

Post Forbearance Options:

Upon completion of the forbearance, the lender shall work with the borrower to determine if they can resume making regular payments and, if so, either offer an affordable repayment plan or term extension to defer any missed payments to the end of the loan. If the borrower is unable to resume making regular payments, the lender should evaluate the borrower for all available loss mitigation options outlined in HB-1-3555. The special relief measured that are outlined in Chapter 18 Section 5 “Assistance in Natural Disasters” will apply. These options include Term Extensions, Capitalization and Term Extensions, and a Mortgage Recovery Advance.

Questions regarding program policy and this announcement may be directed to the National Office Division at sfhglpServicing@usda.gov or (202) 720-1452.

Thank you for your support of the Single-Family Housing Guaranteed Loan Program!

Links to websites:

SFHGLP Lending Partner Webpage: https://www.rd.usda.gov/page/sfh-guaranteed-lender

SFHGLP webpage: https://www.rd.usda.gov/programs-services/single-family-housing-guaranteed-loan-program

USDA LINC Training and Resource Library:
https://www.rd.usda.gov/programs-services/lenders/usda-linc-training-resource-library

Procedure Notices: https://www.rd.usda.gov/resources/directives/procedures-notices

Help Resources

Policy Questions

Customer Service Center

Phone: 866-550-5887

Single Family Housing Guaranteed Loan Division

Phone: 202-720-1452

USDA ITS Service Desk Support Center

For e-Authentication assistance

Email: eAuthHelpDesk@ftc.usda.gov

Phone: 800-457-3642, option 1 (USDA e-Authentication Issues)

Rural Development Help Desk

For GUS system, outage or functionality assistance

Email: RD.HD@STL.USDA.GOV

Phone: 800-457-3642, option 2 (USDA Applications); then option 2 (Rural Development)

VA: Circular 26-20-29: Extended Eviction Moratorium for Borrowers Affected by COVID-19

Posted on August 27, 2020August 27, 2020 by Safeguard

Investor Update
August 24, 2020

Source: VA

Additional Resource:

Circular 26-20-30 (Foreclosure Announcement)

1. Background and Purpose. On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), Public Law 116-136. The CARES Act protects borrowers with Federally backed mortgage loans who are experiencing financial hardship due to the COVID-19 national emergency. The purpose of this Circular is to extend the eviction moratorium.

2. Moratorium on Eviction. The CARES Act prohibited any filing with the court of jurisdiction to initiate a legal action to recover possession of the dwelling for a 120-day period beginning March 18, 2020. Department of Veterans Affairs (VA) then extended the eviction moratorium through August 31, 2020. Per Executive Order 13945, Section 2, of August 8, 2020, it is the policy of the United States to minimize, to the greatest extent possible, residential evictions and foreclosures during the ongoing COVID–19 national emergency. In light of the ongoing COVID-19 national emergency, and its impact on Veteran borrowers, properties secured by VA-guaranteed loans, including those loans currently in VA’s Real Estate Owned (REO) portfolio are subject to a moratorium on evictions through December 31, 2020.

3. Executive Order 13891 Disclosure: The contents of this document are part of the guaranty contract and therefore are intended to have the force and effect of law and are meant to bind the public.

4. Rescission: This Circular is rescinded April 1, 2021.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Executive Director
Loan Guaranty Service

VA: Circular 26-20-30: Extended Foreclosure Moratorium for Borrowers Affected by COVID-19

Posted on August 27, 2020August 27, 2020 by Safeguard

Investor Update
August 24, 2020

Source: VA

Additional Resource:

Circular 26-20-29 (Eviction Announcement)

2. Moratorium on Foreclosure. The CARES Act prohibited loan servicers from initiating any judicial or non-judicial foreclosure process for the 60-day period beginning March 18, 2020. Department of Veterans Affairs (VA) then extended the foreclosure moratorium through August 31, 2020. Per Executive Order 13945, Section 2, of August 8, 2020, it is the policy of the United States to minimize, to the greatest extent possible, residential evictions and foreclosures during the ongoing COVID–19 national emergency. In light of the ongoing COVID-19 national emergency and its impact on Veteran borrowers, properties secured by VA-guaranteed loans are subject to a moratorium on foreclosure through December 31, 2020. The moratorium applies to the initiation of foreclosures, and to the completion of foreclosures in process.

3. Executive Order 13891 Disclosure: The contents of this document are part of the guaranty contract and therefore are intended to have the force and effect of law and are meant to bind the public.

4. Rescission: This Circular is rescinded January 1, 2021.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Executive Director
Loan Guaranty Service

HUD: Mortgagee Letter 2020-27: Extension of Foreclosure and Eviction Moratorium

Posted on August 27, 2020 by Safeguard

Investor Update
August 27, 2020

Source: HUD

Subject: Extension of Foreclosure and Eviction Moratorium in Connection with the Presidentially-Declared COVID-19 National Emergency

Purpose: The purpose of this Mortgagee Letter (ML) is to inform mortgagees of an extension to the foreclosure and eviction moratorium originally issued in ML 2020-4, extended in ML 2020-13, and further extended in ML 2020-19 for borrowers with FHA-insured Single Family mortgages covered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act for an additional period through December 31, 2020.

Effective Date: The extension of the moratorium announced in this ML is effective immediately upon the expiration of the moratorium announced in ML 2020-19 for all FHA-insured mortgages except for FHA-insured mortgages secured by vacant or abandoned properties.

For full letter, please click the source link above.

FHFA: Foreclosure and REO Eviction Moratorium Extension

Posted on August 27, 2020 by Safeguard

Investor Update
August 27, 2020

Source: FHFA

Washington, D.C. – Today, to help borrowers at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least December 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on August 31, 2020.

“To help keep borrowers in their homes during the pandemic, FHFA is extending the Enterprises’ foreclosure and eviction moratoriums through the end of 2020,” said Director Mark Calabria. “This protects more than 28 million homeowners with an Enterprise-backed mortgage.”

Currently, FHFA projects additional expenses of $1.1 to 1.7 billion will be borne by the Enterprises due to the existing COVID-19 foreclosure moratorium and its extension. FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed. To understand the protections and assistance offered by the government to those having trouble paying their mortgage, please visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website at cfpb.gov/housing.

Freddie Mac: Single-Family Foreclosure Sales and Eviction Moratorium Extension

Posted on August 27, 2020September 8, 2020 by Safeguard

Investor Update
August 27, 2020

Source: Freddie Mac

Additional Resource:
FHLMC Guide Bulletin 2020-34: COVID-19 Foreclosure Moratorium Extension and Disaster Forbearance Updates

MCLEAN, Va., Aug. 27, 2020 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today extended its nationwide suspension of single-family foreclosures and evictions on mortgages and real estate owned or guaranteed by the company through Dec. 31, 2020. The suspension of evictions applies only to homes owned by Freddie Mac and does not apply to tenants in homes that have not been foreclosed. Made in conjunction with the Federal Housing Finance Agency (FHFA), the announcement extends the timeline of the current foreclosure moratorium, which was set to expire on Aug. 31.

“The extension of our eviction and foreclosure moratorium is just one part of the comprehensive assistance we’re providing borrowers and communities impacted by COVID-19,” said Donna Corley, executive vice president and head of Freddie Mac’s Single-Family business. “We are committed to helping families affected by the pandemic, and we have instructed servicers to work with borrowers who are unable to make their mortgage payments to ensure they are evaluated for a forbearance plan or other appropriate assistance.”

In addition to suspending foreclosure activity and evictions, Freddie Mac has directed servicers to offer COVID-19-related mortgage relief for borrowers, including:

• Providing forbearance for up to 12 months;

• Waiving assessments of penalties or late fees;

• Offering loan modification options to provide mortgage payment relief or keep those payments the same after the forbearance period; and

• Offering a payment deferral solution in which deferred payments will be due at the end of the loan

Borrowers are eligible for forbearance regardless of whether their property is owner occupied, a second home or an investment property.

Borrowers who may be experiencing financial challenges due to COVID-19 are strongly encouraged to contact their mortgage servicer – the company they send their monthly mortgage payment to – so they can explore one of the Freddie Mac workout options.

Freddie Mac has helped more than 1.3 million financially troubled borrowers avoid foreclosure since 2009. For more information on Freddie Mac mortgage relief, visit My Home by Freddie Mac^sm. For information on sustaining homeownership in a crisis, see Freddie Mac’s #helpstartshere interactive guide.

Fannie Mae: Suspension of Foreclosures and Evictions on Single-Family Mortgages Through Year-End

Posted on August 27, 2020August 27, 2020 by Safeguard

Investor Update
August 27, 2020

Source: Fannie Mae

WASHINGTON, DC – To support households impacted by COVID-19, Fannie Mae (FNMA/OTCQB) today announced an extension of the temporary moratorium on foreclosures and evictions until December 31, 2020. The moratorium, which was previously set to expire on August 31, 2020, is effective immediately and applies to properties with single-family mortgages backed by Fannie Mae. The suspension of evictions applies only to homes owned by Fannie Mae and does not apply to tenants in homes that have not been foreclosed.

“Fannie Mae, along with our lending and servicing partners, remains committed to supporting households who are experiencing job loss, a reduction in work hours or income, or other issues due to COVID-19,” said Malloy Evans, Senior Vice President and Single-Family Chief Credit Officer, Fannie Mae. “With this latest extension of the foreclosure and eviction moratorium, we can continue to help ensure distressed borrowers are able to remain in their homes during this national emergency.”

“For homeowners who may be struggling with their mortgage or facing possible foreclosure, assistance options are available and can provide much-needed relief. We encourage you to reach out to your servicer as soon as possible to get help,” said Evans.

Under Fannie Mae’s guidelines for single-family mortgages:

• Homeowners who are adversely impacted by the COVID-19 national emergency may request mortgage assistance by contacting their mortgage servicer

• Foreclosure-related activities (except as to vacant or abandoned properties) and evictions of occupants from real estate owned by Fannie Mae are suspended until December 31, 2020

• Homeowners impacted by COVID-19 are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months

• Servicers must report the status of the mortgage loan to the credit bureaus in accordance with the Fair Credit Reporting Act, including as amended by the CARES Act, for homeowners impacted by COVID-19

Homeowners in a forbearance plan will not incur late fees
After forbearance, a servicer must work with the borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including a loan modification

Homeowners can find out if they have a Fannie Mae-owned mortgage by visiting www.KnowYourOptions.com/loanlookup. Fannie Mae also offers help to homeowners navigating the broader financial effects of this crisis through the company’s Disaster Response Network*, including:

A needs assessment and personalized recovery plan
Help requesting financial relief from insurance, servicers, and other sources
Web resources and ongoing guidance from experienced disaster relief advisors

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

Here to Help
Since March, Fannie Mae has taken a number of actions to help homeowners and renters facing financial hardship due to COVID-19. In addition to suspending foreclosures and evictions affecting homeowners, Fannie Mae extended eviction protections to multifamily renters when the property owner received a forbearance, reminded homeowners they are never required to repay missed payments after a forbearance period all at once, shared tips to help homeowners avoid foreclosure fraud or scams, and announced a new COVID-19 payment deferral option to help homeowners who are ready to resume their monthly mortgage payments following a COVID-19 forbearance. These and other resources we make available are part of our ongoing Here to Help education effort, aimed at helping homeowners and renters impacted by COVID-19 understand the options available to them.

Freddie Mac Confirms Disaster Relief Policies As Hurricane Laura Approaches

Posted on August 26, 2020 by Safeguard

Investor Update
August 26, 2020

Source: Freddie Mac

Safeguard Properties Disaster Alert Center:
Hurricane Laura Reporting
California Wildfire Reporting

MCLEAN, Va., Aug. 26, 2020 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today reminded mortgage servicers of its disaster relief policies for homeowners as Hurricane Laura makes landfall and amid the wildfires threatening parts of California. 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 immediate priority is for residents to get safely out of harm’s way,” said Bill Maguire, Freddie Mac’s Vice President of Single-Family Servicing Management. “Once out of harm’s way, we strongly encourage homeowners whose homes or places of employment are impacted to call their mortgage servicer—the company they send their monthly mortgage payments to— so they can learn about available relief options. Working with our servicers, we stand 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.