Page 205 – Safeguard Properties

Fannie Mae: Servicer Expense Reimbursement Job Aid Now Available

Posted on December 19, 2019December 19, 2019 by Safeguard

Investor Update
December 18, 2019

The following updates have been made to the Servicer Expense Reimbursement Job Aid:

• Servicers may see claims copied and resubmitted on their behalf by Fannie Mae
• A “Not Yet Recovered” option is being added to the non-recoverable drop-down for all like items outside of the known non-recoverables
• Servicers are not responsible for paying HOA, COA & Co-Op dues for REO properties active as of July 1, 2019
• Effective February 2020, servicers must provide a paid date for HOA, COA & Co-Op dues
• Servicers must cancel property and flood insurance policies within 14 days of the foreclosure sale or acceptance of an executed Mortgage Release for all properties foreclosed after February 2020

For more information, reference the Servicer Expense Reimbursement Job Aid. For additional guidance, visit the Servicer Expense Reimbursement page.

MHA HAMP Update: Martin Luther King, Jr. Holiday Support and System Availability

Posted on December 19, 2019January 17, 2020 by Safeguard

Investor Update
January 16, 2020

Source: MHA

In observance of the Martin Luther King, Jr. Holiday, the HAMP Reporting System response files will not be available between 4:00 p.m. ET on Friday, January 17, 2020 and 9:00 a.m. ET on Tuesday, January 21, 2020; they will be sent as soon as the system is available.

During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

The HAMP Solution Center will be closed on Monday, January 20, 2020 and will resume monitoring of the support@hmpadmin.com mailbox at 9:00 a.m. ET on Tuesday, January 21, 2020.

NY Governor Signs “Zombie Property Remediation Act”

Posted on December 19, 2019December 19, 2019 by Safeguard

Legislation Update
December 18, 2019

Source: The New York State Senate

Additional Resource:

WRGB CBS 6 (Governor Cuomo signs legislation, addressing plague of zombie properties)

Sponsor Memo:

SPONSOR: SKOUFIS

TITLE OF BILL: An act to amend the real property actions and proceedings law, in relation to authorizing municipalities to compel mortgagees either to complete a mortgage foreclosure proceeding pursuant to article 13 of the real property actions and proceedings law or to issue a certificate of discharge of the mortgage for any property which has been certified abandoned pursuant to section 1971 of the real property actions and proceedings law

PURPOSE:

Permits a municipality to compel a mortgagee to either complete a mortgage foreclosure proceeding or to issue a certificate of discharge of the mortgage for any property which has been certified abandoned pursuant to real property actions and proceedings law section 1971. Thousands of abandoned properties are blighting communities throughout the State of New York. Complicating the efforts of local government officials to deal with these properties that depress surrounding property values and put on a strain on municipal resources are zombie properties. Zombie properties sit in legal foreclosure limbo for years, frequently abandoned by the property owners, generally deteriorating sometimes to the point that the buildings must be demolished while the mortgagee fails to complete the foreclosure process.

SUMMARY OF PROVISIONS:

Section 1 of the bill sets forth the Act’s title: “Zombie Property Remediation Act of 2019”.

Section 2 adds a new section 1392 of the real property actions and proceedings law which authorizes local governments to commence judicial proceedings in courts of competent jurisdiction to compel mortgagees to either complete mortgage foreclosure actions or to issue certificates of discharge for the mortgage for properties that have been certified as abandoned pursuant to real property actions and proceedings law section 1971.

JUSTIFICATION:

By enacting this legislation, municipalities will be able to better address the “zombie properties” that are plaguing communities across the state.

LEGISLATIVE HISTORY:

Assembly
2015-16: A9655-A – Referred to Judiciary
2017: A1563-A – Referred to Judiciary
2018: A1563-A – Referred to Judiciary; Reported, referred to Codes

Senate
2016: S7295 – Referred to Housing, Construction and Community Development

FISCAL IMPLICATIONS:

None to the State. This legislation should financially benefit municipalities in allowing them to reclaim and redevelop “zombie properties”in order to return them to the property tax rolls.

EFFECTIVE DATE:
This act shall take effect immediately.

Multiple Tornadoes Plow Across Deep South

Posted on December 17, 2019December 18, 2019 by Safeguard

Disaster Alert
December 17, 2019

Source: The Weather Channel

Additional Resources:

WTVA.com (Gov. Phil Bryant declares state of emergency following Monday’s tornado outbreak)*
*Declaration not yet available. Associated county ZIP code list to be provided once published.

Approximate locations sustaining structural damage

Alabama
– Cambridge Road, Athens Limestone County, 36513)
– Hatfield Lake Road, Athens (Limestone County, 36511)
– Colbert Heights (Colbert County, 35674)
– Harvest (Madison County, 35749)
– Monrovia (Madison County, 35806)
– Sarah Jane Drive, Madison (Madison County, 35757)
– Salt Well (Marengo County, 36732)
– Town Creek (Lawrence County, 35672)

Georgia
– Mystic (Irwin County, 31769)
– Ocilla (Irwin County, 31774)

Louisiana
– Cotton Valley (Webster Parish, 71018)
– Cravens/Marlow/Pitkin (Vernon Parish, 70656)
– John Brewer and Borel Roads, DeRidder (Vernon Parish, 70634)

Mississippi*
– Edwards (Hinds County, 39066)
– Guntown (Lee County, 38849)
– Silver Creek (Lawrence County, 39663)
– Sumrall (Lamar County, 39482)

* Mississippi Emergency Management Agency (MEMA): Home damage reported in the following additional counties (specific locations not available):
– Amite
– Clarke
– Jefferson Davis
– Simpson
– Smith
– Prentiss
– Tishomingo
– Union
County ZIP Code List

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

At a Glance

Storms in the Deep South produced dozens of tornado reports on Monday.
Mississippi governor declared a state of emergency.
One person was killed in Vernon Parish, Louisiana, and two others in Town Creek, Alabama.
A long-track tornado barreled across northwest portions of Alexandria, Louisiana.
People were reportedly trapped in homes northeast of DeRidder, Louisiana.

Tornado warnings continued Tuesday in the Deep South as a severe weather outbreak that has killed four people and damaged dozens of homes pushed to the east.

The NOAA Storm Prediction Center had received at least 27 preliminary reports of tornadoes in Louisiana, Mississippi and Alabama as of Monday evening. Several of these were already confirmed by the National Weather Service.

Mississippi Gov. Phil Bryant said the tornado outbreak injured more than a dozen people and caused damage in at least 25 counties, according to WAPT. He said he has declared a state of emergency for the affected areas.

The storm system claimed a fourth life on Tuesday morning. Kentucky State Police Trooper Bobby King told The Associated Press rescue crews were called to Greenup County about 8 a.m. for a water rescue involving two people. He confirmed one of the people died, and crews were still trying to rescue another person.

Three other people were killed on Monday.

In Alabama, Lawrence County Coroner Scott Norwood said a husband and wife were killed and four other people, including a 7-year-old boy, were seriously hurt in Town Creek, The Associated Press reported.

In Louisiana, Vernon Parish chief deputy Calvin Turner confirmed that one person was killed in a storm-damaged home on Monday afternoon.

More Tornadoes and Flooding on Tuesday

The storm system continued to spin tornadoes on Tuesday. A strong tornado was confirmed by radar over Mystic, Georgia, shortly before noon, according to the National Weather Service office in Tallahassee, Florida. An Irwin County dispatcher told WALB they were being swamped with calls.

Most of the damage was being reported in Mystic, Ocilla and the rest of the northwest side of the county. Damage was also reported in Ben Hill County.

For full report, please click the source link above.

Severe Thunderstorms Damage Buildings, Topple Trees in Florida

Posted on December 17, 2019December 17, 2019 by Safeguard

Disaster Alert
December 14, 2019

Source: The Weather Channel

Additional Resources:

Approximate locations sustaining structural damage

Florida

– Palm Coast (Flagler County, 32137, 32143, 32164)
– Bunnell/Korona (Flagler County, 32110)
– Elkton (St. Johns County, 32033)

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

At a Glance

The storms spawned at least two tornadoes.
Homes were damaged in Palm Coast.
Buildings were also damaged in Putnam County.

Severe thunderstorms and at least two tornadoes damaged buildings and downed trees in parts of Central and North Florida Saturday morning.

A severe thunderstorm with a tornado warning and radar-indicated rotation in Flagler County downed numerous trees and damaged several structures in Korona, including one home with its roof blown off and windows blown out. A tree was downed on a home in Bulowville and debris was reported across roads on the south side of Flagler Beach. Damage was also reported in Bunnell.

The National Weather Service confirmed an EF1 tornado with peak winds of 110 mph had moved across the county for about 26 minutes, in a path nearly 20 miles long.

Photos posted to social media by WESH showed roof damage, a crushed car and a camper blown over.

Buildings were damaged in a neighborhood in Palm Coast, also in Flagler County.

“Early this morning crews responded to reports of damage from an unconfirmed tornado in the area of Creek Bluff Run,” the Palm Coast Fire Department said on Twitter. “Widespread damage reported throughout the neighborhood. No injuries reported.”

To the north, in St. Johns County, a spotter reported a small tornado damaged trees and a roof just after 5 a.m. Saturday in Elkton, Florida, about 40 miles south-southeast of Jacksonville.

The National Weather Service confirmed a brief EF0 tornado with peak winds of 85 mph had moved through the Elkton area, in a path less than one-quarter mile long.

Photos and video posted to social media by WJAX showed a kitchen countertop business that was heavily damaged.

For full report, please click the source link above.

Top 10 States with Longest Foreclosure Timeline

Posted on December 13, 2019 by Safeguard

Industry Update
December 6, 2019

Source: ATTOM Data Solutions

According to ATTOM Data Solutions’ most recent quarterly U.S. Foreclosure Market Report, there were a total of 143,105 U.S. properties with foreclosure filings in the third quarter of 2019. That number was down 6 percent from the previous quarter and down 19 percent from a year ago to the lowest level since Q2 2005 — a more than 13-year low.

ATTOM’s Q3 2019 foreclosure report noted that U.S. foreclosure activity in Q3 2019 was 49 percent below the pre-recession average of 278,912 properties with foreclosure filings per quarter between Q1 2006 and Q3 2007. The third quarter of 2019 was the 12^th consecutive quarter where U.S. foreclosure activity had registered below the pre-recession average.

According to the report, foreclosure starts were down nationwide in the third quarter of 2019, but up in 30 percent of local markets, while nationwide bank repossessions saw a slight uptick from the previous quarter. The report went on to note that the average time to foreclose saw an uptick in Q3 2019 as properties foreclosed during the quarter had been in the foreclosure process an average of 841 days, up from 716 days in the previous quarter and up from 713 days in Q3 2018 to the highest level since Q4 2017.

Longest Foreclosure Timelines Include Indiana, Hawaii and Nevada

The states with the longest average foreclosure timelines for homes foreclosed in the third quarter of 2019 were Indiana (1,633 days); Hawaii (1,626 days); Nevada (1,511 days); New Jersey (1,173 days); and Georgia (1,170 days).

Rounding out the top 10 states with the longest foreclosure timelines in Q3 2019 were: Florida (1,138 days); New York (1,103 days); Washington (1,002 days); Oklahoma (950 days); and Pennsylvania (914 days).

For full article, please click the source link above.

CFPB: Kraninger Marks First Year as Director of the Consumer Financial Protection Bureau

Posted on December 13, 2019December 13, 2019 by Safeguard

Industry Update
December 10, 2019

Source: CFPB

WASHINGTON, D.C. – Today, Consumer Financial Protection Bureau Director Kathleen L. Kraninger made the following statement regarding her Dec. 11 one year anniversary leading the Bureau:

“It is an honor and privilege to serve and protect American consumers,” said Director Kraninger. “In this last year we’ve greatly enhanced consumer protection by harnessing the resources provided by Congress to be more effective and comprehensively utilized.”

“I commend the Bureau employees who work tirelessly to achieve our mission. We will continue to use all of our tools to not only go after bad actors that break the law, but also to prevent harm in the first place by building a culture of compliance throughout the financial system. This culture of compliance can only be built by having smart and clear rules of the road as well as a robust supervisory examination process. I look forward to our continued work in the next four years on behalf of American consumers.”

During her first year, Director Kraninger met with over 800 consumers, consumer groups, state and local government officials, military personnel, financial institutions, academics, non-profits, and former and current Bureau advisors, and traveled to 17 states.

To access full news release, please click the source link above.

VA: VALERI Servicer Newsflash

Posted on December 13, 2019December 13, 2019 by Safeguard

Investor Update
December 10, 2019

Source: VA

IMPORTANT INFORMATION

Circular 26-19-29 – Special Relief Following Tropical Storm Imelda, was issued on November 8, 2019. The Federal Emergency Management Agency’s declared disaster counties in Texas are: Chambers, Harris, Jefferson, Liberty, Montgomery, Orange, and San Jacinto. The circular is located at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Appraisal Fee Changes – Effective December 1, 2019, appraisal fees have changed in Alaska, Arkansas, Colorado, Idaho, Louisiana, Montana, Oklahoma, Oregon, Texas, Utah, Washington, and Wyoming. The changes are reflected on the VALERI Fee Cost Schedule located at http://www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.

Appeals – A system defect was identified where the appeal expiration date is in the future, but the appeal is displayed as having ‘Expired,’ which prevents servicers from completing the appeal submission. The issue was resolved as of Monday, December 9, 2019. Loans impacted by this defect will have a new expiration date of December 22, 2019.

VALERI Reports – Some users may encounter the following error message when accessing reports: “An error has occurred in the following section: [Exception, HandledFormatterQueryServletException]. Salesforce.com has been notified of this error.” This issue is tentatively scheduled to be resolved with the system release on January 31, 2020. Servicers may contact the assigned loan technician to obtain the data needed on an individual loan basis until the issue has been resolved.

Servicer Department Contacts in VALERI – Servicer administrators can create and update point of contact (POC) information for each business area by selecting the “MORE” tab and selecting “Servicer Departments.” VA loan technicians rely on this information to complete their tasks timely. Missing or inaccurate POC information may cause delays for both the technician and servicer. Please routinely update the accurate servicer department POCs.

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

Contacting VA – The assigned loan technician should continue to be first the point of contact (VA Servicer Handbook M26-4, Chapter 1). The Loan Technician contact list is located in VALERI as a Servicer Knowledge Article. It is also available at https://www.benefits.va.gov/homeloans/servicers_valeri.asp. 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.

If a matter requires escalation beyond the loan technician, please refer to the RLC contact list located at https://www.benefits.va.gov/homeloans/servicers_valeri.asp to identify the correct VA management representative. It is not necessary to copy the VALERI Helpdesk when contacting the assigned loan technician/Regional Loan Center (RLC).

Only VALERI system related inquiries should be directed to the VALERI Technical team at valeri.vbaco@va.gov. Policy inquiries should still be directed to the VALERI Helpdesk at valerihelpdesk.vbaco@va.gov. When submitting inquiries related to upload issues, servicers must provide the uploaded spreadsheet and the auto-generated error message received.

Fannie Mae: SVC-2019-08: Servicing Guide Announcements

Posted on December 13, 2019 by Safeguard

Investor Update
December 11, 2019

Source: Fannie Mae

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

• Payment Shortage Tolerance*
• Fidelity Bond and Errors and Omissions Mailbox
• Miscellaneous Revisions*

*Policy change not applicable to reverse mortgage loans.

Payment Shortage Tolerance
To help reduce the number of deficient monthly mortgage loan payments that need to be returned to borrowers, we are introducing a $50 payment shortage tolerance in Servicing Guide C-1.1-02, Processing Payment Shortages or Funds Received When a Mortgage Loan Modification Is Pending. The servicer is now authorized to accept a payment that is deficient by $50 or less for up to three monthly payments during a 12-month period.

Effective Date
This policy change is effective immediately; however, servicers are authorized to implement this change at their discretion and at a time of their choosing.

Fidelity Bond and Errors and Omissions Mailbox
Sellers/servicers are reminded that they must report fidelity bond and errors and omissions events to us

• within 30 days after discovery of the occurrence of a single fidelity bond or errors and omissions policy loss that is mortgage related and the amount exceeds the lesser of $250,000 or the policy’s deductible, even when no claim will be filed or when our interest will not be affected; and

• within 10 business days of receipt of a notice from the insurer regarding the intended cancellation, reduction, nonrenewal, or restrictive modification of the seller/servicer’s fidelity bond or errors and omissions policy.

The Selling Guide has been updated to include the following mailbox for reporting these events to us: fidelity_bond_and_errors_and_omissions_claims@fanniemae.com.

Updated Selling Guide Topics
• A3-5-04, Reporting Fidelity Bond and Errors and Omissions Events
• E-1-03, List of Contacts

Effective Date
Sellers/servicers are encouraged to implement this change immediately, but must do so by February 1, 2020.

Miscellaneous Revisions
Maximum Late Charge for Conventional Mortgage Loans. We have updated Servicing Guide A2-3-04, Late Charges as Compensation to provide a reference to the applicable content in the Selling Guide, which limits the late charge amount to 5%.

Effective Date
Servicers assessing a late charge on a conventional mortgage loan owned or securitized by us in an amount other than 5% of the monthly principal and interest, unless state law doesn’t permit collecting a late charge as high as 5%, must comply with the policy in the Selling Guide by April 1, 2020.

Effective Date of Fannie Mae-Initiated Drafting of Certain Remittances. We are notifying servicers that we
will begin initiating drafts of principal and interest for scheduled/scheduled and scheduled/actual portfolio mortgage loans as announced in LL-2019-07 in August 2020 based off of the prior month’s (July 2020) Loan Activity Record. Also, servicers must make all funds due to us available for drafting by the calendar day of the first month and every subsequent month as specified in LL-2019-07.

Contact your Fannie Mae account team, Portfolio Manager, or Fannie Mae’s Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643) with any questions regarding this Announcement.

Malloy Evans
Senior Vice President and
Chief Credit Officer for Single-Family

The Importance of Cybersecurity in Risk Management

Posted on December 12, 2019 by Safeguard

Safeguard in the News
December 6, 2019

Source: DS News

This week, Safeguard Properties hosted a webinar to discuss the challenges facing cybersecurity in 2019. Security, Safeguard notes, should be one of the primary focuses when implementing and developing systems and applications.

Cybersecurity remains a top concern at a majority of lending institutions, according to the 2019 Regulatory & Risk Management Indicator released by Wolters Kluwer, and 78% of lenders reported it as a top risk that will receive “escalated priority” in the next year. While cybersecurity outranks all other risks in the survey, the level is down from 81% last year.

During Safeguard’s webinar, Steve Roesing President and CEO of ASMGi, 2019 stated that the majority of data breaches from malicious attacks, with 69% of data breaches stemming from outside sources, as 51% of breaches are caused by malicious or criminal attacks.

Meanwhile, just 24% of breaches are caused by human error, while another 25% are caused by system glitches.

“It’s almost a 50-50 split,” said Roesing.

Malware attacks made up 34.4% of attacks in 2019, the largest share of any other attack type. Meanwhile, account hijacking made up 18.2% of attacks. Among financial services institutions, there were 927 reported incidents, 207 of which included confirmed data disclosure. We applications, privilege misuse, and other miscellaneous errors made up 72% of breaches.

Most malicious breaches, 88%, were reportedly done for financial reasons, while espionage made up another 10%.

Cybersecurity, Safeguard notes, requires a “holistic approach,” involving both policy and systematic controls at all levels.

Some of the trends noted in the webinar included the changing landscape of “phishing,” the increased use of mobile technology for attacks, and increased investments in cybersecurity. Going into 2020, Safeguard expects to see increased spending and a growing impact from AI and machine learning (ML) on cybersecurity.