Investor Update
January 31, 2020
Source: FHFA
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today proposed updated minimum financial eligibility requirements for Fannie Mae and Freddie Mac Seller/Servicers.
Contacts:
Media: Raffi Williams (202) 649-3544 / Stefanie Johnson (202) 649-3030
Investor Update
January 30, 2020
Source: FHFA
Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) announced a realignment that will further bolster FHFA’s capacity as a world-class regulator of Fannie Mae and Freddie Mac (the Enterprises) and the Federal Home Loan Banks. The realignment of its structure is designed to ensure that the Agency is well-positioned for the Enterprises to responsibly exit conservatorship.
“The changes we are implementing today will solidify FHFA as a world-class regulator,” said FHFA Director Mark Calabria. “The revised structure and appointments of highly qualified senior leaders will ensure that FHFA continues to protect taxpayers from future bailouts and deliver on our obligation to create a competitive, liquid, efficient and resilient housing finance market.”
Realignment actions include:
• Establishing three new units that report directly to the Director: The Division of Research and Statistics (DRS) headed by Deputy Director Lynn Fisher, the Division of Accounting and Financial Standards (DAFS) headed by Deputy Director Nina Nichols, and the Office of Equal Opportunity and Fairness (OEOF);
• Hiring a new Deputy Director, Paul Miller, and Associate Director, Scott Valentin, for the Division of Enterprise Regulation (DER);
•Elevating four key positions:
• In the Office of General Counsel, Christopher Curtis will be Principal Deputy General Counsel, and Sean Dent will be Senior Deputy General Counsel;
• In DRS, Anju Vajja will be Senior Associate Director for Policy Research; and
• In the Office of Minority and Women Inclusion, Paul Priest will be Associate Director for Diversity and Inclusion and Administration;
•Renaming the Division of Conservatorship (DOC) to the Division of Resolutions (DOR); and
• Recruiting an OEOF Director, a Chief Economist, a Senior Associate Director for Data, and a Chief Operating Officer.
Contacts:
Media: Raffi Williams (202) 649-3544 / Stefanie Johnson (202) 649-3030
Industry Update
January 30, 2020
Source: CFPB
Washington, D.C. — The Consumer Financial Protection Bureau (Bureau) today announced additions to its executive team. The leadership positions are:
Susan M. Bernard will serve as Assistant Director for Regulations in the Research, Markets and Regulation Division. Before joining the Bureau, she served as the Director of the Office of Regulations and Policy in the Center for Food Safety and Applied Nutrition at the U.S. Food and Drug Administration. Dr. Bernard earned her doctorate and master’s degrees in public health from the Johns Hopkins Bloomberg School of Public Health at Johns Hopkins University in Baltimore, Maryland and J.D. from Northeastern University School of Law in Boston, Massachusetts.
Donna Roy will serve as Chief Information Officer in the Bureau’s Operations Division. Ms. Roy has more than 18 years of Federal service. Before joining the Bureau, she served as Executive Director, Information Sharing and Services Office at the U.S. Department of Homeland Security where she was focused on innovative solutions for identity management, national scale collaboration and trust platforms, and scalable data infrastructure solutions to customers within a dynamic environment. Ms. Roy is a United States Marine Corps veteran. She is a graduate of Wades College in Dallas, Texas.
Rachelle Vaughan will serve as Chief Procurement Officer in the Bureau’s Operations Division. Ms. Vaughan has more than 11 years of Federal service. Before joining the Bureau, she served as Director of Procurement Services for the Corporation for National and Community Service where she was the executive procurement officer and oversaw the agency’s entire acquisition portfolio. Ms. Vaughan earned her bachelor’s degree from Virginia State University in Petersburg, Virginia, her master’s degree from Argosy University in Arlington, Virginia, and her doctor of education from Argosy University in Phoenix, Arizona. She has also earned an associate’s certificate in contract management and a master’s certificate in government contracting both from The George Washington University in Washington, D.C.
Thomas G. Ward will serve as Assistant Director of Enforcement in the Supervision, Enforcement & Fair Lending Division. Before joining the Bureau, he served as a Deputy Assistant Attorney General in the Civil Division at the U.S. Department of Justice. Prior to this appointment, Mr. Ward was a litigation partner at Williams & Connolly LLP in Washington, DC, where his practice focused on financial and securities litigation and investigations, and a corporate associate at Sullivan & Cromwell LLP in New York City. Mr. Ward clerked for the Honorable Diarmuid F. O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit and earned his law degree from Columbia Law School in New York City.
David Wernecke will serve as Chief Experience Officer. Mr. Wernecke has served at the Bureau since 2013, most recently as the Section Chief in the Consumer Response Product Office. He has more than 20 years of executive experience in the financial services industry and five years in management consulting supporting Federal agencies. Mr. Wernecke earned his B.A. in political science and history from Towson University in Towson, Maryland.
Industry Update
January 24, 2020
Source: CFPB
WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today issued a policy statement providing a common-sense framework on how it intends to apply the “abusiveness” standard in supervision and enforcement matters.
The Dodd-Frank Act is the first Federal law to broadly prohibit “abusive” acts or practices in connection with the provision of consumer financial products or services. However, nearly a decade after the Act became law, uncertainty remains as to the scope and meaning of abusiveness. This uncertainty creates challenges for covered persons in complying with the law and may impede or deter the provision of otherwise lawful financial products or services that could be beneficial to consumers.
Through this policy statement, the Bureau is providing clarification on how it intends to apply abusiveness in order to promote compliance and certainty. Commencing immediately the Bureau intends to apply the following principles during supervision and enforcement work by:
• Focusing on citing or challenging conduct as abusive in supervision and enforcement matters only when the harm to consumers outweighs the benefit
• Generally avoiding “dual pleading” of abusiveness and unfairness or deception violations arising from all or nearly all the same facts, and alleging “stand alone” abusiveness violations that demonstrate clearly the nexus between cited facts and the Bureau’s legal analysis
• Seeking monetary relief for abusiveness only when there has been a lack of a good-faith effort to comply with the law, except the Bureau will continue to seek restitution for injured consumers regardless of whether a company acted in good faith or bad faith
“I am committed to ensuring we have clear rules of the road and fostering a culture of compliance – a key element in preventing consumer harm,” said CFPB Director Kathleen Kraninger. “We’ve developed a policy that provides a solid framework to prevent consumer harm while promoting the clarity needed to foster consumer beneficial products as well as compliance in the marketplace, now and in the future.”
In the policy statement, the Bureau leaves open the possibility of engaging in a future rulemaking to further define the abusiveness standard.
Last year, the Bureau held a Symposium on Abusive Acts or Practices with academics and practitioners. These experts provided a variety of perspectives on the need and benefits in developing a clearer understanding of the abusiveness standard; most agreed that the Bureau should seek to resolve the uncertainty. The symposium, along with other feedback from stakeholders, was an important part of the process leading to the Bureau’s decision to issue the policy statement. The symposium archive webcast can be found here: https://www.consumerfinance.gov/about-us/events/archive-past-events/cfpb-symposium-abusive-acts-or-practices/.
To read the policy statement please click here: https://files.consumerfinance.gov/f/documents/cfpb_abusiveness-enforcement-policy_statement.pdf .
Investor Update
January 27, 2020
Source: USDA
The Rural Housing Service (RHS or Agency) published a final rule on December 26th, 2019, implementing changes to the Single Family Housing Guaranteed loan program (SFHGLP) regulation to streamline the loss claim process for lenders who have acquired title to property through voluntary liquidation or foreclosure; clarify that lenders must comply with applicable laws, and better align loss mitigation policies with the mortgage industry. The effective date of these changes is April 24th, 2020. In order to prepare for these changes, the Agency has published advanced copies of new 3555 Handbook Chapters 18 and 19 on our training and resource website. These advanced copies are posted to assist in preparation for the April 24th effective date and should not be considered current guidance.
Changes include:
Loss Claim Process:
The previous Chapters 19 and 20 in HB-1-3555, have been combined into one newly revised Chapter 19, Loss Claims – Collecting on the Guarantee. The chapter revisions include:
• Elimination of the nine-month marketing period.
• Elimination of estimated net recovery calculation.
• Streamlined process for valuation of REO property.
• Use of Veterans Administration’s Net Value Factor for calculation of property preservation costs.
• Lenders will be required to submit a complete loss claim package within 60 days of the foreclosure, acquisition or possession date of the security property.
• Lenders will be required to submit loss claims electronically.
This new process will eliminate the need for REO disposition plans and implements a streamlined approach in processing timely loss claim payments to lenders. The change in the regulation is outlined in 7 CFR 3555.354 and 3555.356.
Loss Mitigation Process:
HB-1-3555, Chapter 18, Servicing Non-Performing Loans – Accounts with Repayment Problems, has been revised with the following:
• Greater emphasis on payment reduction as the primary driver of loss mitigation.
• Requirements on the Modified Interest Rate has been updated to match the waiver issued in April 2018.
• Mortgage Recovery Advance (MRA) option will be available as a stand-alone option.
Furthermore, 7 CFR 3555.51(b)(1) is revised to clarify that in addition to complying with Agency laws and guidance, lenders must comply with applicable federal, state and local laws including Consumer Financial Protection Bureau (CFPB), Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Acts (TILA).
Questions regarding this announcement may be directed to Richard Kane at Richard.Kane@usda.gov or by telephone at (202) 720-0320.
Thank you for your support of the Single-Family Housing Guaranteed Loan Program!
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)
Investor Update
January 21, 2020
Source: FHFA
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that Kate Tyrrell recently joined FHFA as Deputy Chief of Staff and Executive Secretary, and that George Brown joined the Agency as a Senior Congressional Affairs Advisor.
Prior to joining FHFA, Tyrrell served as the Deputy Executive Secretary at the Department of the Treasury, where she oversaw the day-to-day operations of the Office of the Executive Secretary. She has previous experience serving as the Special Counsel to Chief Judge Lee F. Satterfield and Chief Judge Robert E. Morin of the District of Columbia Superior Court. As their senior advisor, she provided strategic counsel on legal, ethical, and administrative matters and served as a liaison to partner agencies, including the U.S. Marshals Service and the U.S. Attorney’s Office. She is a graduate of the University of Maryland, where she was a member of its swim team, and she earned her law degree from the Catholic University of America. Kate and her husband, Jim, reside in Washington, D.C., with their three children.
Brown joined FHFA from the U.S. Small Business Administration (SBA), where he was Deputy Assistant Administrator for Congressional and Legislative Affairs and Associate Administrator for Intergovernmental Affairs. At SBA, Brown led efforts with members of congress, Governors and state and local lawmakers on issues impacting small businesses and the economy. Prior to SBA, he held a public policy position at Westfield Insurance, managing a portfolio of insurance, banking and financial services issues. He has also served in the offices of Ohio U.S. Senators George V. Voinovich and Rob Portman. He earned his undergraduate degree from Youngstown State University.
Contacts:
Media: Raffi Williams (202) 649-3544 / Stefanie Johnson (202) 649-3030
Investor Update
January 23, 2020
Source: VA
VALERI Downtime – The VA Loan Guaranty Technical team will be performing maintenance work on Wednesday, January 29, 2020, from 9:00 PM EST until 11:00 PM EST.
In addition, there will be a system deployment on Friday, January 31, 2020, from 9:00 PM EST until 11:00 PM EST. Deployment details will be provided in a separate announcement prior to January 31.
Users must log out of the system by 8:45 PM EST on both days.
New Bulk Upload Templates – Both the Event and Claim Bulk Upload Templates have been updated (v20) and are available for review only at https://www.benefits.va.gov/HOMELOANS/servicers_valeri_guides.asp. The new templates may not be used in VALERI until Monday, February 3, 2020. Servicers must continue to use the current versions (v19.1) until January 31, 2020.
All inquiries should be directed to the VALERI Technical team at VALERI.VBACO@VA.GOV.
Thank you for your cooperation.
Disaster Alert
January 24, 2020
Source: NBC News
Additional Resource:
Approximate locations containing home damage:
Texas
– Westbranch, Houston (Harris County, 77041)
NOTE: This has not yet been declared a FEMA Major Disaster.
A large explosion at a plant in Houston early Friday was felt for miles, left rubble scattered as far as a half-mile away and damaged nearby homes.
Reports of the explosion started coming in to Houston police around 4:15 a.m., with reports on Twitter of a boom felt across the city. A fire burned following the explosion with smoke seen hanging over the area, The Associated Press reported.
Houston Police Chief Art Acevedo said one worker at the plant was unaccounted for, but a search for the person could not immediately happen until crews closed the valves that are releasing the chemical polypropylene, NBC affiliate KPRC in Houston reported.
For full report, please click the source link above.
Investor Update
January 16, 2020
Source: HUD
WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced Robert M. Couch as the Federal Financial Monitor to oversee the grant administration and disbursement process of disaster recovery funds to Puerto Rico and the U.S. Virgin Islands.
“We are glad to have Robert re-join our Department to manage our financial oversight operations in Puerto Rico,” said Secretary Carson. “He has an extensive background with decades of private and public sector experience dealing with financial reporting, risk management, and executing the law. Robert will be an asset in supporting HUD’s mission to continue aiding recovery efforts in Puerto Rico while ensuring that appropriated funds are used in a responsible manner and for their intended purpose.”
“I greatly appreciate the Secretary’s confidence in me,” said Robert Couch. “I share his dedication to the recovery from Hurricanes Irma and Maria, and his determination to ensuring that the funds entrusted to HUD by Congress for the survivors are expended as quickly as possible while still safeguarding against waste, fraud and abuse. I look forward to working with the disaster recovery teams in both locales, and I thank Olga Castellón, the Acting FFM, for paving the way so I can hit the ground running.”
Mr. Couch will join HUD as a career member of the Senior Executive Service. He previously served as HUD’s General Counsel from December 2006 to November 2008 where he acted as the chief legal advisor to the Secretary, Deputy Secretary, and other principal staff, providing advice on federal laws, regulations, and policies affecting HUD programs. Mr. Couch also served as President of the Government National Mortgage Association (Ginnie Mae), Commissioner on the Bipartisan Policy Center’s Housing Commission, and as a member of President George W. Bush’s Task Force on the Status of Puerto Rico.
Prior to his government service, Mr. Couch was President and Chief Executive Officer of New South Federal Savings Bank in Birmingham, Alabama, and acted as General Counsel and Chief Financial Officer of First Commercial Bancshares. He is a former Chairman and Member of the Board of Directors of the Mortgage Bankers Association of America, former President of the Mortgage Bankers Association of Alabama, a Certified Public Accountant (inactive), and a Certified Mortgage Banker (Master Certificate).
In August, HUD announced its intention to appoint a Federal Financial Monitor in response to reports of financial mismanagement and corruption in Puerto Rico. Pending the arrival of Mr. Couch, Ms. Olga Castellón served as the Acting Federal Financial Monitor on all matters relating to overseeing HUD’s Community Development Block Grants-Disaster Recovery efforts in Puerto Rico. She was detailed to this position from the Executive Office for U.S Attorneys (EOUSA) in October 2019.
Investor Update
January 22, 2020
Source: HUD
Today, the Federal Housing Administration (FHA) is pleased to welcome Joseph M. (Joe) Gormley as the Deputy Assistant Secretary for the Office of Single Family Housing, effective January 21.
With a broad background in financial services and housing policy, Mr. Gormley has held several positions at FHA and HUD since joining the organization in 2017. Most recently, Mr. Gormley served as Chief of Staff to Assistant Secretary for Housing and Federal Housing Commissioner Brian Montgomery, where he served as the principal advisor to the FHA Commissioner and other senior HUD leaders on strategic planning, policy, priority initiatives and resource management.
Prior to joining HUD, Mr. Gormley was Assistant Vice President and Regulatory Counsel at the Independent Community Bankers of America (ICBA) where he was the policy lead on a wide range of legal and regulatory issues, including consumer financial protection laws and regulations.
Earlier in his career, Mr. Gormley served as Associate Regulatory Counsel for the Mortgage Bankers Association and worked for the Office of Fraud Detection and Market Intelligence at the Financial Industry Regulatory Authority (FINRA).
Mr. Gormley is a graduate of Boston College and received his law degree from the University of Pennsylvania Law School.
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-CALLFHA (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.
CEO
Alan Jaffa
Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.
Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.
Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.
In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.
Esq., General Counsel and EVP
Linda Erkkila
Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.
Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.
Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.
COO
Michael Greenbaum
Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.
A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.
CFO
Joe Iafigliola
Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.
Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.
Business Development
Carrie Tackett
Business Development Safeguard Properties
