Page 201 – Safeguard Properties

VA: VALERI Servicer Newsflash

Posted on February 14, 2020 by Safeguard

Investor Update
February, 14 2020

Source: VA

Important Information

Circular 26-20-2 – Special Relief Following Puerto Rico Earthquakes, was issued on January 23, 2020. The Federal Emergency Management Agency’s declared disaster counties are: Adjuntas, Arecibo, Cabo Rojo, Ciales, Corozal, Guanica, Guayanilla, Hormigueros, Jayuya, Juan Diaz Lajas, Lares, Las Marias, Maricao, Mayaguez, Morovis, Orocovis, Penuelas, Ponce, Sabana Grande, San German, San Sebastian, Utuado, Villalba, and Yauco. The circular is located at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Inactive User Deactivation – Beginning February 25, 2020, users who have not logged into VALERI over the past 90 days will be automatically deactivated. Reactivation of a deactivated user requires the user to complete the registration and approval process again.

VALERI Announcements – This message board is a new functionality in VALERI and is accessible by selecting the Home icon located next to “VALERI” at the top left corner. Users are highly encouraged to regularly view the announcements for informational awareness.

Redeemed Properties – Servicers must refer to Circular 26-15-9 and Circular 26-15-9, Change 1 for general redemption procedures and follow the instructions located at https://www.benefits.va.gov/HOMELOANS/servicers_valeri_guides.asp. Redeeming of a property by the borrower does not impact the terminated loan in VALERI. Servicers must not report any events (Invalid Sales Results or Improper Transfer of Custody) in VALERI. The loan must remain in “Terminated” status, allowing the servicer to submit the basic claim event.

Homeowner’s Association Notices and Utility Bills After Conveyance – Documents should be sent to VA’s property management contractor, Vendor Resource Management, at VA_utilitytaxhoapayoffs@vrmco.com. The “Title Documentation, Insurance and Timeframe Requirements” document has been updated to include this information and is located at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Technician and Regional Loan Center (RLC) Contact Information – The VALERI Technician contact list has been combined with the RLC contact list. The new contact list has three tabs: 1) VALERI Technicians 2) RLC Escalations and 3) General RLC Contacts (RLC jurisdictions, Loan Production and Construction and Valuation). The updated contact list is located as a Knowledge Article in VALERI and also at https://www.benefits.va.gov/homeloans/servicers_valeri.asp. The assigned loan technician should continue to be the first point of contact (VA Servicer Handbook M26-4, Chapter 1). Servicers should refer to the contact list and ensure the correct email address is being used, as there may be more than one VA employee with the same name.

Reminders

Accessing VALERI – The new VALERI application must be accessed with the Google Chrome browser.

Bulk Uploads – Servicers must use the new version 20.0 of the bulk upload templates. All inquiries related to upload issues must include the uploaded spreadsheet and the auto-generated error message received and be directed to the VALERI Data Quality team at valeridataquality.vbaspl@va.gov

VALERI Helpdesk

VA Central Office Loan Management

CFPB: Testimony of Kathleen L. Kraninger

Posted on February 14, 2020 by Safeguard

Industry Update
February 6, 2020

Source: CFPB

Chairwoman Waters, Ranking Member McHenry, and distinguished Members of the Committee, thank you for the opportunity to present the Consumer Financial Protection Bureau’s (Bureau’s) most recent Semi-Annual Report to Congress.

Today, I am happy to present the Bureau’s Fall 2019 Semi-Annual Report (April 1, 2019, to September 30, 2019) to Congress and the American people in fulfillment of our statutory responsibility and commitment to accountability and transparency. My testimony is intended to highlight the contents of this Semi-Annual Report (Report).

Since I last appeared before the Committee, I had the pleasure of marking my first year at the Bureau. It is an honor and privilege to serve and protect American consumers. In this last year, the Bureau greatly enhanced consumer protection by more effectively and comprehensively utilizing the agency’s resources to meet our mission. I remain committed to strengthening the Bureau’s ability to use all of the tools provided by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), and I have established and communicated clear priorities to Bureau staff for our work using the authorities provided by the Dodd-Frank Act to protect consumers.

Through continued, robust engagement with all stakeholders, I remain resolved that the most productive use of Bureau resources is the prevention of harm to consumers in concert with our many partners. Empowering consumers to protect and further their own interests is where our efforts begin. The Bureau’s mission, as you are aware, is to ensure access to fair, transparent, and competitive markets for consumers, and we are committed to executing the mission through:

Empowering Consumers and Turning Financial Education in Action
Ensuring Clear Rules of the Road
Ensuring a Culture of Compliance
Holding Bad Actors to Account and Deterrence through Enforcement

Preventing harm to consumers, I believe, is the most effective, efficient way to carry out our mission of ensuring consumer access to a fair, transparent and competitive market. To me, prevention of harm comes through helping consumers gather financial know-how, fostering a culture of industry compliance where consumers know their rights and industry knows their responsibilities and limitations, and maintaining a back stop of enforcement.

To access full testimony, please click the source link above.

MBA: Mortgage Delinquencies Decrease in Fourth Quarter of 2019

Posted on February 14, 2020February 14, 2020 by Safeguard

Industry Update
February 11, 2020

Source: MBA

WASHINGTON, D.C. (February 11, 2020) – The delinquency rate for mortgage loans on one-to-fourunit residential properties decreased to a seasonally adjusted rate of 3.77 percent of all loans outstanding at the end of the fourth quarter of 2019, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.

The delinquency rate was down 20 basis points from the third quarter of 2019 and 29 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the fourth quarter remained unchanged at 0.21 percent.

“The mortgage delinquency rate in the final three months of 2019 fell to its lowest level since the current survey series began in 1979,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “Mortgage delinquencies track closely to the U.S. unemployment rate, and with unemployment at historic lows, it’s no surprise to see so many households paying their mortgage on time.”

Added Walsh, “Signs of healthy conditions were seen in other parts of the survey. The foreclosure inventory rate – the percentage of loans in the foreclosure process – was at its lowest level since 1985. Furthermore, states with lengthier judicial processes continued to chip away at their foreclosure inventories, and it also appears that with home-price appreciation and equity accumulation, distressed borrowers have had alternative options to foreclosure.”

Key findings of MBA’s Fourth Quarter of 2019 National Delinquency Survey:

• Compared to last quarter, the seasonally adjusted mortgage delinquency rate decreased for all loans outstanding. By stage, the 30-day delinquency rate decreased 3 basis points to 2.17 percent, the 60-day delinquency rate decreased 5 basis points to 0.70 percent, and the 90-day delinquency bucket decreased 12 basis points to 0.90 percent.

• By loan type, the total delinquency rate for conventional loans decreased 18 basis points to 2.82 percent over the previous quarter. The FHA delinquency rate increased 16 basis points to 8.38 percent, and the VA delinquency rate decreased by 29 basis points to 3.64 percent over the previous quarter.

• On a year-over-year basis, total mortgage delinquencies decreased for all loans outstanding. The delinquency rate decreased by 37 basis points for conventional loans, decreased 27 basis points for FHA loans and decreased 7 basis points for VA loans from the previous year.

• The delinquency rate includes loans that are at least one payment past due, but does not include loans in the process of foreclosure. The percentage of loans in the foreclosure process at the end of the fourth quarter was 0.78 percent, down 6 basis points from the third quarter of 2019 and 17 basis points lower than one year ago. This was the lowest foreclosure inventory rate since the third quarter of 1985.

• The seriously delinquent rate, the percentage of loans that are 90 days or more past due or in the process of foreclosure, was 1.76 percent – a decrease of 5 basis points from last quarter – and a decrease of 30 basis points from last year. This is the lowest rate since the third quarter of 2000. The seriously delinquent rate decreased 9 basis points for conventional loans, increased 8 basis points for FHA loans, and increased 5 basis points for VA loans from the previous quarter. Compared to a year ago, the seriously delinquent rate decreased 34 basis points for conventional loans, decreased 29 basis points for FHA loans and decreased 4 basis points for VA loans.

The states with the largest decreases in their foreclosure inventory rate over the previous quarter include: New York (27 bps); Maine (27 bps); Hawaii (17 bps); New Jersey (15 bps); New Mexico (14 bps); and Vermont (14 bps). All of these states except Hawaii have judicial foreclosure processes; Hawaii has both judicial and non-judicial processes.

Relentless Storms Roll Across Southern U.S.

Posted on February 13, 2020February 19, 2020 by Safeguard

Updated 2/18/20: WSFA NBC 12 issued a report outlining a statewide emergency declaration issued by Alabama Governor Kay Ivey in response to widespread flooding.

Gov. Ivey declares State of Emergency after Alabama flooding

Additional Resources:

Office of Alabama Governor Kay Ivey (Governor Ivey Issues State of Emergency to Aid in Alabama Flooding Recovery Efforts)

Associated County ZIP Code List (Statewide)

Updated 2/17/20: Time published an article offering the latest updates on severe flooding that has occurred in Mississippi and Tennessee.

Mississippi and Tennessee Have Been Deluged With Near-Record Levels of Flooding. Here’s What to Know

Approximate locations sustaining home damage:

Tennessee
Morris Chapel (Hardin County, 38361)
*Landslide
Savannah (Hardin County, 38372)
*Flooding

Updated 2/17/20: The Weather Channel issued a report detailing river flooding in Jackson, Miss., that has led to home damage.

Mississippi Flooding Continues As Pearl River Nears Crest; Dozens of Homes Already Damaged

Additional Resources:

Mississippi Emergency Management Agency (MEMA): Governor Reeves Issues State of Emergency

Associated County ZIP Code List (Statewide)

MEMA: Preliminary Damage Report for Feb. 10-14 (Pearl River Flood Event)

Approximate locations sustaining home damage (flooding):

Mississippi
Jackson (Hinds County)
39201
39202
39203
39204
39205
39206
39207
39208
39209
39210
39211
39212
39213
39215
39216
39217
39218
39225
39232
39236
39250
39269
39271
39272
39282
39283
39284

Disaster Alert
February 13, 2020

Source: The Weather Channel

Additional Resource:

Office of Virginia Governor Ralph S. Northam (Eo-50 Declaration of a State of Emergency Due to Extreme Flooding)

Associated County ZIP Code List (Statewide)

Approximate locations sustaining home damage (tornadoes) or flooding:

Florida
Pinellas Park (Pinellas County, 33781, 33782)
*Concentrated tornado damage in Palm Grove Mobile Home Community)

Georgia
Folsom (Bartow County, 30103)
*Damage from unconfirmed tornado

Kentucky
Dayhoit (Harlan County, 40824)
*Flooding

Mississippi
Carthage (Leake County, 39051)
Pickens (Holmes County, 39146, 39179)
Yazoo City (Yazoo County, 39194)
*Wind damage/flooding

South Carolina
Spartanburg (Spartanburg County, 29301, 29302, 29303, 29306, 29307, 29316)

Virginia
Leesburg (Loudoun County, 20175, 20176)
Richlands (Tazewell County, 24641)

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

A train pulling 96 cars loaded with ethanol was burning Thursday morning after being derailed by a rockslide in Kentucky.

The train derailed about 7:05 a.m. in Draffin, Kentucky, about 125 miles southeast of Lexington, according to a statement from CSX.

The rockslide derailed two locomotives and an unknown number of rail cars into the Big Sandy River near Pond Creek Road, the statement said. Some diesel fuel made it into the river, WYMT reported.

Pike County Emergency Management Director Doug Tackett said the two people were taken to a hospital in “pretty good shape,” according to a Kentucky Department of Transportation Facebook post.

Kentucky State Police spokesman William Petry said authorities were not sure whether diesel fuel or ethanol was fueling the blaze, but authorities decided to let the fire burn itself out since it did not pose a public safety threat.

“Luckily the train wasn’t going very fast, so it saved them from a major disaster,” Petry said.

The National Transportation Safety Board said it was sending team of six to investigate the derailment.

Areas in Pike County have received 5 to 7 inches of rain this month, according to weather.com meteorologist Linda Lam.

The rockslide is just one of many problems caused by a line of strong storms moving across the South this week. The system has resulted in flooding, sinkholes, downed trees, power outages and wind damage.

In Morgan County, Alabama, U.S. Highway 231 was closed indefinitely Thursday morning after it was damaged by downpours this week, the Alabama Department of Transportation said.

All lanes in both directions were closed on a portion of the highway near Lacey Springs, about 70 miles northeast of Birmingham, Alabama. A crack developed in the southbound lanes of the roadway on Tuesday, WHNT reported.

Repairs were planned for Thursday, but the road shifted overnight because of more rain, the Morgan County Sheriff’s Office said. Detours have been set up.

Damage was reported across North Alabama. A large tree fell on cars outside the Limestone County Courthouse on Wednesday night. There were three people inside one of the cars, but they were not hurt, WAAY reported.

For full report, please click the source link above.

Fannie Mae: SVC-2020-01: Servicing Guide Update

Posted on February 13, 2020February 13, 2020 by Safeguard

Investor Update
February 12, 2020

Source: Fannie Mae

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

▪ Prorated attorney fees and foreclosure milestone invoicing*: We updated the foreclosure milestone schedule and
eliminated prorated fee requirements.

▪ Delinquency exception reporting *: We clarified when delinquency status exception reports will be made available to servicers.

We are also reminding servicers of their responsibility to compensate the law firm for default-related services that are not a part of the allowable foreclosure attorney fee and would otherwise be considered a servicing function included in the servicing fee.

*Policy change not applicable to reverse mortgage loans.

For full update, please click the source link above.

Freddie Mac: FHLMC Guide Bulletin 2020-02

Posted on February 13, 2020February 13, 2020 by Safeguard

Investor Update
February 12, 2020

Source: Freddie Mac

Review today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2020-02 to learn about servicing updates related to the following:

Cooperative share loans
Voluntary partial cancellations

The Bulletin also includes other updates that may be important to your business.

Need help looking for a requirement in our Guide on our website? Try Cobrowse.

Allegany County Land Bank Aims for Busy 2020

Posted on February 12, 2020February 12, 2020 by Safeguard

Land Bank Update
February 11, 2020

Source: Olean Times Herald

BELMONT — More properties, a new partner and back-end improvements aim to make 2020 a busy year for the Allegany County Land Bank Corporation.

In a report to the Allegany County Board of Legislators on Monday, land bank Executive Director Jason Isaman spelled out how the nonprofit established by the county has — and will — keep fighting blighted properties.

New York’s first 10 land banks were established in 2012 under the New York Land Bank Act. Today, there are 25, including in Allegany, Cattaraugus and Steuben counties. The Allegany County group’s board first met March 28, 2016.

The first two properties were acquired in 2017, with 16 sites now having been acquired. Ten of those properties had structures removed, while three others have been renovated. Of those properties, eight were picked up in 2019 alone.

For full article, please click the source link above.

Washington City Considers Joining the County’s Land Bank

Posted on February 12, 2020 by Safeguard

Land Bank Update
February 5, 2020

Source: Observer-Reporter

Washington city council members continued an ongoing discussion Monday over wanting to have more leverage in any potential agreement to join the county’s land bank.

The motion to join Washington County Land Bank is on the agenda for Thursday’s meeting, but Mayor Scott Putnam said he would like to see some “language changes” to the agreement.

“I think the principal of it is a good idea, but I just want some things cleared up before the agreement is in place,” he said.

The four-party, “intergovernmental cooperation agreement,” would consist of the city, land bank, county commissioners and the city’s school district, according to Rob Phillips, assistant community development director for Redevelopment Authority of Washington County.

Phillips, who oversees the land bank for the redevelopment authority, said the purpose of the agreement is to allow the land bank to purchase city property through judicial sale, then renovate and sell the properties to get them back on the tax base.

“We target those properties because the price is fixed and it’s low,” Phillips said. “Typically, the buildings that we’re looking at need substantial renovations to bring them back to productive use.”

In the time between the property’s rehabilitation and its sale, however, the city would be responsible for maintenance, grass cutting and securing the building, Phillips said. That raised concerns for Putnam, who believes the city should at least be compensated for any repairs, boarded up windows or lawn maintenance.

“We are currently budgeting for abandoned property maintenance,” Putnam said. “But if they’re going to sell these properties and get some money for them, we’d just like some back for the maintenance.”

Phillips said the land bank board is “uncomfortable” sharing any profits made from the sale of the properties with the city.

For full article, please click the source link above.

Hartford Land Bank Announces Executive Director

Posted on February 12, 2020February 12, 2020 by Safeguard

Land Bank Update
February 5, 2020

Source: Hartford Courant

Hartford’s blight remediation director is leaving her city position after three years to lead the newly formed Hartford Land Bank, the very resource she helped develop to reclaim vacant, tax-delinquent and neglected properties.

Laura Settlemyer became Hartford’s first blight czar in 2016, bringing experience in the revitalization of distressed neighborhoods and properties in Flint, Michigan, Detroit and New Orleans. Starting this month, she’ll serve as executive director of the new nonprofit, the first such land bank in Connecticut created to return blighted properties to safe and decent condition, and get them back on the tax rolls.

The mayor plans to fill Settlemyer’s position, city spokesman Vasishth Srivastava said.

“We are excited to get the Land Bank up and running, and Laura Settlemyer is a great choice to lead its efforts,” Mayor Luke Bronin said. “In her three years with the city, she helped us reduce blight and create a framework to make an even bigger impact going forward. The City and the Land Bank will work closely not only to get properties fixed up, but also to get them into the hands of residents and people who will care for their homes and invest in our community.”

For full article, please click the source link above.

FHFA: Foreclosure Prevention Report – October 2019

Posted on February 6, 2020 by Safeguard

Investor Update
February 3, 2020

Source: FHFA

October 2019 Highlights — Foreclosure Prevention

The Enterprises’ Foreclosure Prevention Actions:

• The Enterprises completed 9,082 foreclosure prevention actions in October, bringing the total to 4,390,118 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.

• There were 5,801 permanent loan modifications in October, bringing the total to 2,379,758 since the conservatorships began in September 2008.

• Twenty-six percent of modifications in October were modifications with principal forbearance. Modifications with extend-term only accounted for 67 percent of all loan modifications during the month.

• There were 508 short sales and deeds-in-lieu of foreclosure completed in October, up 17 percent compared with September.

The Enterprises’ Mortgage Performance:

• The serious delinquency rate remained unchanged at 0.65 percent at the end of October from September.

The Enterprises’ Foreclosures:

• Third-party and foreclosure sales increased 5 percent from 3,021 in September to 3,174 in October.

• Foreclosure starts decreased from 10,975 in September to 9,678 in October.

October 2019 Highlights — Refinance Activities

• Total refinance volume increased in October 2019 as mortgage rates fell in previous months to lows last observed in 2015. Mortgage rates increased in October: the average interest rate on a 30-year fixed rate mortgage rose to 3.69 percent from 3.61 percent in September.

• In October 2019, the percentage of cashout refinances decreased to 38 percent as mortgage rates fell in previous months, creating more opportunities for non cashout borrowers to refinance at lower rates and lower their monthly payments.

• In October 2019, 2 refinances were completed through the High LTV Refinance Option, bringing total refinances through the High LTV Refinance Option from the inception of the program to 4.

Attachments: Foreclosure Prevention, Refinance, and FPM Report – October 2019