Page 209 – Safeguard Properties

Hartford Land Bank Announces Executive Director

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

Land Bank Update
February 5, 2020

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

FHFA: Financial Advisor Hire

Posted on February 6, 2020 by Safeguard

Investor Update
February 3, 2020

Source: FHFA

Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) selected Houlihan Lokey Capital, Inc. (Houlihan Lokey) as a financial advisor to assist in the development and implementation of a roadmap to responsibly end the conservatorships of Fannie Mae and Freddie Mac (the Enterprises). While developing the roadmap, Houlihan Lokey will consider business and capital structures, market impacts and timing, and available capital raising alternatives, among other items as outlined in the previously published Statement of Work.

Contacts:
Media: Raffi Williams (202) 649-3544 / Stefanie Johnson (202) 649-3030

Safeguard Focuses on Innovative Technology for Industry-Leading Field Services

Posted on February 5, 2020February 5, 2020 by Safeguard

Safeguard in the News
February 3, 2020

Source: HousingWire

Additional Resource:

HousingWire (Safeguard Properties Focuses on Innovative Technologies to Provide Industry-Leading Mortgage Field Services PDF)

Expertise in fulfilling difficult FHA property preservation and conveyance requirements

Safeguard has been a leader in the mortgage field services industry for almost 30 years, building its reputation by serving as true partners to not only its financial clients, but to the local communities they work in as well.

Today, Safeguard leverages its many technological innovations and long history of customer service to provide a full suite of property services on vacant, defaulted and foreclosed properties, whether they are residential, single- and multifamily rental or commercial properties.

The company is dedicated to building and sharing industry best practices to protect the integrity and value of the nation’s housing stock, working on behalf of its clients to comply with all investor and regulatory requirements.

As a result, many of the country’s largest financial institutions rely on Safeguard for property inspections, property preservation, REO maintenance, yard maintenance and snow removal, FHA conveyance management, property registration, estimate and repairs, and code enforcement.

Safeguard’s expertise is especially helpful in fulfilling difficult FHA property preservation and conveyance requirements. The company has developed new ways to improve the FHA post-sale process, adding controls and increased visibility to give clients full case management around any property issues, as well as access to real-time reporting.

One of Safeguard’s hallmarks is using technology to elevate field services to the highest standard.

In recent years, Safeguard has added video and panoramic photo capabilities to its mobile platforms. It also has enhanced its workflow through the new SafeView Field Services platform, including continuous improvements to its client integrated system to allow for full property management.

In addition, Safeguard has examined its business practices and identified key areas of default management that can benefit from re-evaluation, conducting comprehensive reviews of its vendor management workflow and business procedures.

In the process, Safeguard has made strides in perfecting the bidding process, examined ways to avoid FHA reconveyances, implemented new technology to streamline operations and updated its disaster protocols.

Mortgage servicers face multiple challenges trying to stay up to date with frequent changes to industry, investor and insurer guidelines, as well as the critical changes to assure compliance and reduce potential out-of-pocket costs.

Recognizing these challenges, Safeguard started facilitating the yearly Property Preservation Conference 15 years ago to provide relevant, timely and strategic information to clients, vendors and the industry as a whole.

Safeguard is positioned to provide its suite of services – as well as high quality, consistent results – to portfolios of any size in all parts of the U.S., Puerto Rico, the Virgin Islands and Guam.

Alan Jaffa, Chief Executive Officer

Alan Jaffa joined Safeguard in 1995, learning the business from the ground up. He was promoted to COO in 2002 and CEO in 2010. 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. In 2013, Jaffa was named a NEO Ernst & Young Entrepreneur of the Year Award finalist.

Michael Greenbaum, Chief Operating Officer

Michael Greenbaum joined Safeguard in July 2010 as vice president of REO and has continued to take on additional duties and responsibilities, including the role of vice president of operations in 2013 and COO in 2015. Greenbaum is a distinguished graduate of the U.S. Military Academy at West Point, where he majored in quantitative economics.

Joe Iafigliola, Chief Financial Officer

Joe Iafigliola is responsible for oversight of the Control, Quality Assurance, Accounting and Information Security departments. Iafigliola is also a managing director and operating partner with SCG Partners. He 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.

FHFA: Updated Minimum Financial Eligibility Requirements for Fannie Mae and Freddie Mac Seller/Servicers

Posted on January 31, 2020 by Safeguard

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.

The updated minimum financial requirements will further strengthen the Enterprises’ Seller/Servicer requirements and provide transparency and consistency of capital and liquidity required for Seller/Servicers with different business models. A key improvement from the minimum financial requirements established in 2015 is that the new Enterprise standards establish financial requirements for the servicing of Ginnie Mae mortgages.

FHFA is releasing the proposed requirements to provide transparency and consistency to industry participants and other stakeholders. FHFA and the Enterprises will engage with servicing industry participants, regulators and other stakeholders to obtain their feedback. FHFA will receive input on these requirements for 60 days at ServicerEligibility@fhfa.gov.

After reviewing industry and stakeholder feedback, FHFA anticipates finalizing these requirements in the second quarter of 2020, and anticipates that the requirements will be effective six months after they are finalized.

Attachments: FAQs: Updated Eligibility Requirements for Enterprise Single-Family Seller/Servicers

Contacts:
Media: Raffi Williams (202) 649-3544 / Stefanie Johnson (202) 649-3030

FHFA: Realignment of Agency Structure

Posted on January 31, 2020 by Safeguard

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

CFPB: Executive Team Addition Announcement

Posted on January 30, 2020 by Safeguard

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.

CFPB: Policy Regarding Prohibition on Abusive Acts or Practices

Posted on January 30, 2020 by Safeguard

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 .

USDA: Handbook Updates: Loss Claim and Loss Mitigation

Posted on January 29, 2020 by Safeguard

Investor Update
January 27, 2020

Source: USDA

The Rural Housing Service (RHS or Agency) published a final rule on December 26^th, 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 24^th, 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 24^th 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)

FHFA: New Hire Announcement

Posted on January 29, 2020 by Safeguard

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