Safeguard Properties

CFPB: Advisory Committee Member Announcement

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Industry Update
October 3, 2019

Source: CFPB

WASHINGTON, D.C. – Consumer Financial Protection Bureau Director Kathleen L. Kraninger today announced the appointment of members to the Consumer Advisory Board (CAB), Community Bank Advisory Council (CBAC), Credit Union Advisory Council (CUAC), and Academic Research Council (ARC). These experts advise Bureau leadership on a broad range of consumer financial issues and emerging market trends.

“The Bureau is able to protect consumers in the financial marketplace better when it receives input from a wide range of experts and stakeholders,” said Director Kraninger. “With the enhancements we made earlier this year to the structure of the advisory committee program, I am confident that these groups will be able to hit the ground running in their efforts to provide meaningful feedback on Bureau policy and regulations. I look forward to working with them.”

In spring 2019, Director Kraninger announced a series of enhancements to the Bureau’s advisory committee charters, including: expanding the focus of the meetings to cover broad policy matters; increasing the frequency of in-person meetings from two times a year to three times a year for the CAB, CBAC, and CUAC; elevating the ARC to a Director-level advisory committee and increasing its meeting frequency; and increasing term lengths from one year to two years, among other enhancements.

The CAB is mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act to advise and consult with the Bureau’s Director on a variety of consumer financial issues. The Bureau also created three additional discretionary councils: the CBAC, CUAC, and ARC. The CBAC and CUAC advise and consult with the Bureau on consumer financial issues related to community banks and credit unions. The ARC advises the Bureau on its strategic research planning process and research agenda and provides feedback on research methodologies, data collection strategies, and methods of analysis, including methodologies and strategies for quantifying the costs and benefits of regulatory actions.

The following members will serve on each of their respective committees:

Consumer Advisory Board (CAB)

  • Chair of the CAB – Brent Neiser, Senior Director, National Endowment for Financial Education (Denver, CO)
  • Nikitra Bailey, EVP, Center for Responsible Lending (Durham, NC)
  • Nadine Cohen, Managing Attorney, Greater Boston Legal Services (Boston, MA)
  • Sameh Elamawy, CEO, Scratch Services, Inc. (San Francisco, CA)
  • Manning Field, COO, Acorns (Irvine, CA)
  • Clint Gwin, President & CEO, Pathway Lending (Nashville, TN)
  • Ronald Johnson, Former President, Clark Atlanta University (Atlanta, GA)
  • Tim Lampkin, CEO, Higher Purpose Co. (Clarksdale, MS)
  • Eric Kaplan, Director – Housing Finance Program, Milken Institute (Washington, DC)
  • Sophie Raseman, Director of Product, Brightside (San Francisco, CA)
  • Rebecca Steele, President/CEO, National Foundation for Credit Counseling (Washington, DC)
  • Tim Welsh, Vice Chairman Consumer and Business Banking, U.S. Bank (Minneapolis, MN)

Community Bank Advisory Council (CBAC) 

  • Chair of the CBAC – Aubrey Hulings, VP, Operations Manager, The Farmers National Bank of Emlenton (Emlenton, PA)
  • J. Erik Beguin, Founder, CEO and President, Austin Capital Bank (Austin, TX)
  • Maureen Busch, VP Compliance and CRA Officer, The Bank of Tampa (Tampa, FL)
  • Patrick Ervin, EVP, Independent Bank (Troy, MI)
  • Shan Hayes, President and CEO, Heartland Tri-State Bank (Elkhart, KS)
  • Bruce Ocko, Senior VP Director of Mortgage & Consumer Lending, Bangor Savings Bank (Bangor, ME)
  • Valerie Quiett, SVP and Chief Legal Officer, Mechanics and Farmers (M&F) Bank (Durham, NC)
  • Heidi Sexton, EVP/Chief Compliance and Risk Officer, Sound Community Bank (Seattle, WA)

Credit Union Advisory Council (CUAC)

  • Chair of the CUAC – Sean Cahill, President & CEO, TrueSky Credit Union (Oklahoma City, OK)
  • Arlene Babwah, VP Risk Management, Coastal Federal Credit Union (Raleigh, NC)
  • Teresa Campbell, President & CEO, San Diego County Credit Union (San Diego, CA)
  • Rick Durante, VP, Director of Corporate Social Responsibility and Government Affairs, Franklin Mint Federal Credit Union (Chadds Ford, PA)
  • Doe Gregersen, Vice President & General Counsel, Landmark Credit Union (New Berlin, WI)
  • Brian Holst, General Counsel, Elevations Credit Union (Boulder, CO)
  • Racardo McLaughlin, VP Mortgage Originations/Operations (TwinStar Credit Union, Lacey, WA)
  • Rick Schmidt, President & CEO, WestStar Credit Union (Las Vegas, NV)

Academic Research Council (ARC) 

  • Michael Baye, Bert Elwert Professor of Business Economics, Indiana University (Bloomington, IN)
  • Karen Dynan, Professor of the Practice of Economics, Harvard University (Cambridge, MA)
  • Terri Friedline, Associate Professor, University of Michigan (Ann Arbor, MI)
  • John Lynch, Jr., Director of the Center for Research on Consumer Financial Decision Making and Senior Associate Dean for Faculty and Research, University of Colorado Boulder (Boulder, CO)
  • Brigitte Madrian, Dean/Marriott Distinguished Professor, Brigham Young University (Provo, UT)
  • Tom Miller, Professor of Finance and Jack R. Lee Chair, Mississippi State University (Mississippi State, MS)
  • Joshua Wright, Professor, Scalia Law School at George Mason University (Arlington, VA)

 

 

Earthquake Insurance on Shaky Ground

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Industry Update
September 27, 2019

Source: DS News

The July 4th weekend in Ridgecrest, California, was met with a series of quakes that rattled rural western California, along with sections of Nevada and Arizona.

Ridgecrest—located approximately 122 miles northeast of Los Angeles—felt three quakes of magnitude 6.4, 5.4, and 7.1. The first quake occurred at 10:33 a.m. PDT and was followed by 1,400 aftershocks.

Two quakes followed early in the morning of July 5, measuring 5.4 and 7.1. The final quake is the most powerful earthquake to hit California in the past 20 years.

While these quakes posed no immediate danger to many residents, Steven Steckler, President of Sentry Claims Group, said the July 4 tremors brought attention to the issues surrounding earthquake insurance and how technology is used to track them.

According to information provided by Steckler, the San Andreas fault in California experienced 307 earthquakes during a 24-hour period in August, and there is a 31% chance a 7.5-magnitude earthquake strikes Los Angeles.

“We were lucky this time … You felt some shaking in some of the outer suburbs of Los Angeles. But it was nothing like it would be if it was a direct hit. That would be catastrophic,” Steckler said.

The last major earthquake in the Golden State was 1994’s Northridge earthquake, impacting Los Angeles and the surrounding areas. The 6.7-magnitude quake caused $25 billion in damages, killed 72, and injured 9,000. Steckler said in today’s money, damages associated to the Northridge quake could have been upwards of $300 billion.

Steckler, however, noted that despite the constant dangers in California from earthquakes, fewer people are taking the necessary steps to protect their home. He noted, that the state sponsored the Earthquake Brace and Bolt Program, operated by the California Earthquake Authority. The program would give grant money to earthquake-proof homes built before 1980.

The grant money would be used to shore up properties, and the grants ranged from $3,000 to $7,000 depending on the size and location of your home. However, Steckler added that the program’s explanatory YouTube video had only 5,600 page views.

He added that out of all the residents in California, fewer than 10% have any type of earthquake coverage.

Steckler said it is his belief that many people have been priced out of earthquake insurance, with deductibles ranging from 5% to 20%. He added that 90% of the claims are below the deductible, and if you filed a claim on a $300,000 home, the deductible could be as high as $60,000 before any coverage kicks in.

“Most of the homeowners cannot meet those deductibles or make the necessary repairs,” Steckler said. “The banks have trouble lending money unless a person either has a strong financial statement or a lot of home equity. So what happens is that you have all of these properties that cannot be repaired and this causes a domino effect. The homes are inhabitable; they have mortgages and people just abandoned them.”

Steckler said most wealthy homeowners can self-insure and afford those costs, but middle-tier homeowners have a hard time coming up with the funds needed to repair their home due to the large deductibles. He added that some plans for earthquake coverage that once cost $400 per year have new projections of up to $2,000 annually

“I don’t understand it. What could be done?” Steckler said in regard to the lack of people without earthquake coverage. “Public awareness, public broadcasting, maybe subliminal ads on television. Something must be done to increase the amount of homeowners with insurance.”

Another issue, Steckler added, is the continued population growth in California. He said while many people want to live along the coast these areas are located directly over major faults. He is not sure people are prepared for the consequences of earthquakes.

The population of California in 2000 was 33.8 million. It has since grown to 39.7 million in 2019. The state’s population was just 29.7 million in 1990.

“It’s hard to say what the mindset is of the masses, but in my opinion more people are reactive than proactive,” he said. “For whatever reason, our mentality is ‘it won’t happen to me’. It’s going to take a concerted effort with local, federal and state agencies along with the insurance industry to get people to really understand the magnitude of this.”

The 116th Congress passed earlier in 2019 the Pacific Northwest Earthquake Preparedness Act. The bill requires FEMA to develop a plan for the purchase and installation of an earthquake early warning system for the Cascadia Subduction zone, which Steckler said is a 700-mile area from the coast of California and running north to Oregon and Washington.

Steckler said technology, especially using satellite imagery, can help insurance companies focus in on their policies enforced (DIF). He added that drones have been very helpful in getting a closer look at damaged and impacted areas. With this technology, including the aid of drones, we are getting faster at viewing areas that have been impacted from structural damage.

However, Steckler said “there is nothing that will replace the human element at this time.”

While noting how lucky California is that 99% of the area impacted by the Ridgecrest quake hit rural areas, he knows the state dodged a bullet—this time.

“The true cost of an earthquake of this magnitude would be tens of billions of dollars, not including the human toll. Picture this: All infrastructure–roads, overpasses, pipelines—all of these factors would hinder support teams being able to respond.” Steckler said if the same quake had struck Los Angeles. “Another thing to consider is the sheer volume of claims that would be needed—this would require teams such as medical professionals, emergency support vehicles, engineers, contractors, insurance adjusters. The list goes on and on—it would put a tremendous drain on the system as a whole.”

Kearns To Fight Proposed Zombie Property Plans

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Industry Update
September 10, 2019

Source: Spectrum News

The City of Buffalo’s newly revised tax foreclosure process is drawing criticism from Erie County leaders who would no longer get their piece of the pie.

The plan is under fire from Erie County Clerk Mickey Kearns less than a month away now from the tax foreclosure auction.

Kearns, along with the Western New York Law Center, expressed concern to the city’s finance committee.

Under a newly revised policy, the city will keep all of the funds after a property is sold, instead of hanging on to what it’s owed and forwarding any surplus funds to the county.

Kearns says the city has already budgeted $4.8 million in revenue from the new procedure — funds Kearns says are vital to the former property owners who, under the former policy, were able to apply for some of those funds back to help get the back on their feet.

City leaders say people in good standing would be entitled to those profits but those opposed say there’s nothing in writing outlining that process.

“Unfortunately sometimes people lose their homes for many different reasons. That surplus funding is really important. Why kick people when they’re down? They’re going through a tough time, they could use those surplus funds to transfer into maybe a rental property,” Kearns (D) said.

“We believe the plan needs a lot more work and is not ready to be implemented next month. And we would ask for the council’s support in urging the city to hold off and hash these issues out a little more thoroughly,” said Amy Gathings, of the WNY Law Center.

Kearns says if the policy stands, the city would also take ownership of zombie properties in Buffalo as well, and would be charged with taking care of them.

City leaders don’t have a lot of time to rehash the issue, as the auction is set for October 8.

Legislation Addresses Crumbling Home Foundations in Connecticut

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Legislation Update
October 1, 2019

Source: Connecticut General Assembly

Additional Resource:

Patch (Oct. 1 Means New Laws, Taxes In CT: Here’s The Full List)

PA 19-192–sHB 7179
AN ACT CONCERNING CRUMBLING CONCRETE FOUNDATIONS.

To (1) require the Commissioner of Housing to establish a grant program to support the development of methods and technologies that reduce the average cost of repairing and replacing concrete foundations in this state that have deteriorated due to the presence of pyrrhotite, (2) establish an innovation board to review applications for grants filed as part of such program, (3) appropriate the sum of eight million dollars to fund grants awarded as part of such program, (4) modify the Healthy Homes Fund surcharge, and (5) redefine the term “residential building” as such term applies to various statutes concerning crumbling concrete foundations.

Similar Enacted Bills: Session Year 2019

sHB 7286
AN ACT CONCERNING HOME INSPECTORS AND APPRAISERS.

To allow certified home inspectors to inspect certain building foundations and to require appraisal management companies to compensate appraisers fairly.

Signed by Governor: 7/9/19
Effective Date: 10/1/19

Similar Proposed Bills: Session Year 2019

HB 5163
AN ACT CONCERNING DEFICIENCY JUDGMENTS AND RESIDENTIAL PROPERTIES WITH A CONCRETE FOUNDATION AFFECTED BY PYRRHOTITE.

To (1) prohibit deficiency judgments on mortgage loans where the property secured by the mortgage has a crumbling concrete foundation, (2) prohibit mortgage lenders and mortgage correspondent lenders from denying an application for a residential mortgage loan based solely on certain prior defaults, conveyances or foreclosures by the applicant, and (3) prohibit mortgage lenders and mortgage correspondent lenders from reporting to credit rating agencies that mortgage loans secured by property with a crumbling concrete foundation are subject to a deficiency judgment.

HB 5164
AN ACT PROHIBITING THE LENDER OF A HOME EQUITY LOAN FROM SEEKING A DEFICIENCY JUDGMENT AGAINST CERTAIN BORROWERS.

To protect homeowners with crumbling foundations from a deficiency judgment on a home equity loan.

HB 5432
AN ACT CONCERNING THE FORECLOSURE MEDIATION PROGRAM.

To protect a homeowner who is subject to foreclosure as the result of owning a home with a crumbling foundation.

HB 5890
AN ACT CONCERNING THE REASSESSED VALUE OF A RESIDENTIAL BUILDING WITH A FOUNDATION MADE WITH DEFECTIVE CONCRETE.

To allow an owner to request and require a municipality to apply retroactively the reassessed value of a residential building with a foundation made with defective concrete to the date such owner purchased or received such building.

HB 5969
AN ACT ESTABLISHING A COLLAPSING FOUNDATIONS LOAN PROGRAM TO PROVIDE LOW-INTEREST LOANS TO CERTAIN PROPERTY OWNERS.

To provide low-interest loans to property owners who (1) have received the maximum amount of financial assistance provided by the captive insurance company for the purpose of repairing or replacing a concrete foundation that has deteriorated due to the presence of pyrrhotite, and (2) require additional funding for such repair or replacement.

HB 6040
AN ACT REQUIRING THE INSPECTION OF CERTAIN RESIDENTIAL BUILDINGS BY A HOME INSPECTOR AND AN ENGINEER PRIOR TO THE TRANSFER OF TITLE.

To require owners of certain residential buildings to retain a home inspector and an engineer to prepare inspection reports concerning such buildings prior to transferring title to such buildings.

HB 6557
AN ACT CONCERNING THE REASSESSMENT OF RESIDENTIAL BUILDINGS MADE WITH DEFECTIVE CONCRETE.

To increase the number of assessment years for which a reassessment of the value of a residential building made with defective concrete shall be applicable.

HB 6659
AN ACT REQUIRING SELLERS OF RESIDENTIAL PROPERTY TO DISCLOSE THE PRESENCE OF PYRRHOTITE IN RESIDENTIAL CONDITION REPORTS.

To require persons selling residential property in this state to disclose the presence of pyrrhotite.

HB 6750
AN ACT EXPANDING THE DEFINITION OF “RESIDENTIAL BUILDING” IN STATUTES PROVIDING ASSISTANCE TO CERTAIN HOMEOWNERS.

To revise the definition of “residential building” to include any condominium unit or dwelling in a planned unit development.

SB 907
AN ACT CONCERNING THE RESIDENTIAL DISCLOSURE REPORT AND CRUMBLING CONCRETE FOUNDATIONS.

To require a seller to disclose to a purchaser in the “Residential Condition Report” any facts that are within the seller’s actual knowledge concerning (1) the presence of pyrrhotite in the concrete foundations located on the seller’s property, (2) any testing or inspection done by a licensed professional to determine whether such foundations contain pyrrhotite, (3) any foundation deterioration, problems or settling caused by the presence of pyrrhotite in such foundations, and (4) any repairs to remedy such deterioration, problems or settling.

Managing a Counter-Cyclical Business

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Editorial
September 30, 2019

Source: DS News (Managing a Counter-Cyclical Business PDF)

In 2011, during the height of the U.S. recession and housing crisis, the Washington Post published an article about the mortgage field services industry with the headline, “Good business for bad times: Mortgage field services.” Featuring Safeguard Properties, the article explained that when the economy is faltering and foreclosures increase, these types of companies tend to flourish.

It is the nature of the business. When the U.S. housing crisis hit in 2008, national field services companies such as Safeguard experienced a huge influx of work from their mortgage servicing clients as the volume of foreclosures elevated.

But it works both ways. In good economic times, mortgage field services companies can see declining revenue as foreclosure and vacant housing volumes decrease significantly. These periods serve as the best time to evaluate processes, be innovative, and make improvements that benefit default servicing clients.

Over the past few years, Safeguard has remained the industry leader by developing best practices and investing in innovative technology. We have taken a closer look at our business practices and identified the top five areas of default management that mortgage field services companies should evaluate when the economy is at its peak.

Streamlining Vendor Management—In any field services industry, your boots-on-the-ground network is the backbone of the business. Thousands of inspectors and contractors work diligently every day to ensure orders are completed properly and timely, and that vacant properties are protected and secured. When foreclosure volumes are high, they rely on well-tested processes established by their mortgage field services provider to ensure the highest level of quality assessment and results.

When the economy is healthy and volumes have leveled off, a comprehensive review of workflow and business processes can help identify areas needing improvement. This is beneficial to not only the property preservation company, but also to the vendor network and mortgage servicing clients. By seeking vendor suggestions and feedback, Safeguard was able to tweak its processes to streamline the vendor’s workflow, making it easier to complete work and reduce errors. This review also helped to improve timeliness without compromising quality of our services for our clients.

Perfecting the Bidding Process—Getting bids approved to mitigate damages or other issues at a vacant or abandoned property outside of allowables in any stage of the foreclosure process can be a challenge for a property preservation vendor. Guidelines and work order-level rules that differ by mortgage servicer or investor can potentially lead to missed protocols or information. Taking time to work with investors to define best practices on avoiding denials due to missing or inaccurate information is key to getting bids approved. This gives the mortgage field services company an opportunity to set expectations and adjust internal systems to require specific information when vendors are in the field and identify damages.

Tackling the Federal Housing Administration (FHA) Process—Reconveyances are one of the biggest challenges mortgage servicers face. Coupled with changes in leadership, guidelines, HUD vendors, and the interpretations of regulations, property preservation companies and their mortgage servicing clients face some significant hurdles with completing work at properties with FHA loans. Examining new ideas that will help avoid reconveyances and exploring ways to improve the FHA post-sale process allow work to be completed timely and accurately. Utilize this period of decreased volumes to add controls and increased visibility for your mortgage servicing clients around the FHA process. This allows them to have full case management around any property issues and access to real-time reporting.

Implementing New Technology—Technology changes so rapidly and often when foreclosure volumes are at their peak, it can be difficult to make significant upgrades. However, updating and testing new technology is an important endeavor. Safeguard has implemented video and panoramic photo capabilities to our mobile platforms in recent years. We also enhanced our workflow through the new SafeView Field Services platform, including developing continuous improvements to our client integrated system to allow for greater understanding of a property/loan at a glance.

Updating Disaster Protocols—While natural disasters pose a problem for mortgage servicers’ portfolios in the affected areas, the industry has made great strides to implement plans to prepare properties in the line of a storm and manage damages once it subsides. For mortgage field services providers, ensuring their vendor networks in surrounding areas are equipped to handle the influx of work is key. This includes taking on orders for occupied properties with current loans. A critical area to review is your insurance loss inspection process. Having the ability to consistently re-evaluate this practice can be beneficial in both mitigating damages and ensuring the affected properties are being repaired properly.

While some officials suggest the U.S. may be heading for another recession, it remains clear that mortgage field services companies need to remain proactive and utilize the good economy to re-evaluate systems and processes. Take this opportunity to be innovative and make improvements to benefit your vendor networks and default servicing clients.

Tim Rath is the AVP of business development for Safeguard Properties, the mortgage field services leader. Many of these tips for improvements in good times are discussed during the annual National Property Preservation Conference. This year’s event takes place from Nov. 3-5 at The Mayflower Hotel in Washington, D.C. For more information or to register, visit NPPConf.com.

FEMA Declared Disaster South Carolina

Posted on by Safeguard

FEMA Alert
September 30, 2019

FEMA issued a Presidential Major Disaster Declaration for areas in South Carolina affected by Hurricane Dorian from August 31 to September 6, 2019.

The following counties are eligible for assistance:

Public Assistance

  • Beaufort
  • Berkeley
  • Charleston
  • Colleton
  • Dillon
  • Dorchester
  • Georgetown
  • Horry
  • Jasper
  • Marion
  • Williamsburg

South Carolina Hurricane Dorian (DR-4464)

FEMA Declared Disaster South Carolina: ZIP Code List


Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Examining the Single-Family Rental Market

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Safeguard in the News
September 23, 2019

Source: DS News

On Monday, the Five Star Conference began with the third Single-Family Rental (SFR) & Investment Roundtable, a hyper-focused event that allowed attendees to learn more about the available opportunities that can help SFR investors meet their objectives. Attendees also heard valuable insights from industry experts on how they could continue to meet their performance objectives by partnering with the right investors and lenders.

The day-long event saw expert panels give insights into rehab, acquisition, funding, market overview, due diligence, and technology innovations in SFR.

Opening the proceedings, Jeffrey Tesch, CEO, RCN Capital and the Event Director for the Roundtable, said that the U.S. currently has the highest rate of investment since 1999; 11% of all investment properties are bought by single-family investors.

“This is truly monumental. It’s amazing how far we’ve come in a short time,” Tesch said.

The first session—titled, “Latest and Greatest: Cutting-Edge Lending Strategies for SFR & Investment Markets,” and moderated by Tesch—focused on the options and instruments available for investors to improve their return on investment (ROI). The session featured Glen Mather, CEO, NuView IRA; Alex Offutt, Managing Director, Constructive Loans; Chase Scott, Head of Servicing and Asset Management, LendingHome; and Dennis Spivey, VP, CoreVest Finance, all of whom gave insights into new lending products and financing strategies that could be the best fit for an SFR investor.

“Single-family rental has transformed over the past few years moving from large corporations to small investors with a minimal number of properties,” Spivey said, explaining how this market has now become available to every investor.

“A lot of it in this particular space is more of a knowledge share, so if you could create what we mentioned [during the panel] was a membership profile so you don’t have to underwrite, it allows [the borrowing process] to be more seamless on the upfront,” Scott suggested.

During the session on asset rehab strategies, moderated by Rebecca McLean, Executive Director of National REIA and featuring John Gordon, Director National Accounts, Home Depot Pro; Kevin Jonas, SVP, Bayview Loan Servicing; and Bill McGee, VP Sales & Strategic Partnerships, Alacrity Services, the panel discussed why smart rehab was key to effective SFR investments and the best, cost-effective strategies to increase the value of a property.

Martin Kay, Founder & CEO, Entera, turned the spotlight on the evolution of residential real estate and how technology like big data was changing the future of homebuying.

The next session dived deep into due diligence and its importance in SFR investments. Moderated by Lori Eshoo, President & CEO, National Tax Search, the panel consisting of Rob Dewald, Co-Founder & CEO, Precedent Management; Lee Rogers, President, realprotect; and Brandon Winters, CEO, eMerge Property Solutions. Together, they gave insights into the factors that can affect the value of a transaction, as well as the potential impact of HOAs, insurance, property tax, and valuation.

In “Bringing in Help,” moderator Charles Tassell, COO, NREIA, along with his fellow panelists Aaron DiCaprio, CEO, Rent Rescue; Scott Heimel, VP, Property Frameworks; and Tucker McDermott, VP of Sales, Real Estate, SMS Assist, then delved into the factors and trends that SFR investors must consider before they bring in outside property managers.

“If you want to scale as an entrepreneur, you better have third-party management. That’s first and foremost,” Tassell said during the event. “After that are some very specific questions to ask.” The panel covered factors such as cost, background, and certifications.

“When it comes to third-party management, know what you actually need,” he added.

Stuart DenyerIn an afternoon keynote, Stuart Denyer, CEO, Sherman Bridge Lending, took the audience through the fundamentals of the housing market and how they can impact an investor’s bottom line. He also focused on the trends that were likely to impact the SFR market in particular and the steps that investors should take to adapt to changing market conditions.

“Everyone in this section of the industry needs to stay aware of changing horizons,” Denyer said. “The whole market is changing. The way business is done and handled is all moving quickly, and it’s important to stay as up-to-date as possible.”

Next, a session on tech innovations was moderated by Zach Bassett, VP, Field Operations, Property Masters, and featured Inaas Arabi, VP of Single-Family, General Manager, Propertyware; Jeff Cline, Executive Director – Principal, SVN; and Tim Rath, AVP, Business Development & Marketing, Safeguard Properties. The panel discussed the technology that is available for entry-level investors and how it can support the growth of their portfolio.

Zach Bassett’s biggest takeaway from the panel was the availability of ways to increase productivity.

“Obviously the technology is helping with everyone’s productivity, but at the end of the day we still need humans,” Bassett said. “It’s great because we can keep our jobs, but we couldn’t be near as successful with paper maps and landlines.”

The day ended with a panel discussion on how investors can adapt to a changing environment. The session was moderated by Johnny Pannell, Senior Advisor, Enterprise Sales Manager, 5arch and featured and Lou Brown, CEO, Certified Affordable Housing Provider; Chris Clothier, Partner & VP of Sales & Marketing, Memphis Invest; Bryan McLain, Founder & CEO, McLain Companies; and Josh McLeod, VP, American Homes 4 Rent.

Star Sponsorship for the Single-Family Rental and Investment Roundtable was provided by CoreVest Finance, Home Depot Renovation Services, and RCN Capital. Corporate Sponsoship for the event was provided by Ark Forecast, Certified Affordable Housing Provider, Constructive, eMerge Property Solutions, Globus, Memphis Invest, Property Frameworks, Property Masters, and Rent Rescue.

HUD: FHA INFO #19-48: HECM Policy Updates

Posted on by Safeguard

Investor Update
September 23, 2019 

Source: HUD

The Federal Housing Administration today published multiple policy updates to its Home Equity Conversion Mortgage (HECM) program. Today’s updates include the HECM Mortgagee Optional Election (MOE) Assignment Options for non-borrowing spouses and the continuation of the HECM collateral risk assignment requirements. See below for details.

FHA Issues Updated Guidance on Home Equity Conversion Mortgage (HECM) Mortgagee Optional Election Assignment Options

Today, under the Reverse Mortgage Stabilization Act (RMSA) authority, the Federal Housing Administration (FHA) issued Mortgagee Letter (ML) 2019-15, Updates to Mortgagee Optional Election (MOE) Assignment for Home Equity Conversion Mortgages (HECMs) with FHA case numbers assigned prior to August 4, 2014. This ML — in addition to providing updated guidance — eliminates all interim deadlines for MOE Assignments that were outlined in ML 2015-15 for HECM case numbers issued prior to August 4, 2014.

Since implementation of the MOE Assignment process outlined in ML 2015-15, FHA has found that several of its requirements obstructed mortgagees’ election of the assignment option. To address these issues, and to improve the fiscal safety and soundness of the HECM program, FHA is modifying the requirements for HECM MOE Assignment claims by:

• Eliminating the interim MOE Assignment election and assessment deadlines, along with associated notification requirements;
• Eliminating the 120-day timeframe for bringing current all property charges on a HECM loan that is subject to a pre-existing loss mitigation repayment plan;
• Establishing a 180-day reasonable diligence timeframe to initiate an MOE Assignment;
• Eliminating the requirement for an eligible surviving non-borrowing spouse to obtain good and marketable title to the property that secured the HECM or demonstrate the legal right to reside in the property for life, and modification of related certifications and assignment criteria;
• Updating the definition of eligible non-borrowing spouse; and
• Requiring mortgagees to request information from borrowers to attempt to identify non-borrowing spouses.

To view full update, please click the source link above.

VA: VALERI Special Announcement

Posted on by Safeguard

Investor Update
September 26, 2019

Source: VA

The VALERI application will be unavailable on Friday, September 27, 2019, from 9:00 PM EST until Sunday, September 29, 2019, 11:59 PM EST for a system deployment. Please refrain from using the application during this time.

The deployment will include the following items:

• Launches the Review Post Audit Claim, Incentive, and Partial Release of Security process. The Post Audit Selection and Status report will be available on October 1, 2019. A list of required documents by post audit type is linked here and available in VALERI under Knowledge.

• Enables servicers to submit pre-approval requests in the Servicer Web Portal (SWP). Submission of the request notifies the assigned technician on the loan to review the pre-approval request. The Pre-Approval Status Report will be available after October 31, 2019.

• Enables servicers to appeal a Post Audit decision in SWP, via the Review Appealed Post-Audit Claim or Incentive process.

• Corrects a gap in the Supplemental Claim logic to include additional days of interest granted on previous Appeal Claims to be copied into the Supplemental Claim.

• Resolves an issue with monthly Delinquency Status Update (DSU) event generation that would miss a month under certain date conditions.

• Updates the logic in the Default Resolution Rate (DRR) Report to exclude rejected, withdrawn, and cancelled events.

If there are any questions, please feel free to contact the VALERI Help Desk at VALERIHELPDESK.VBACO@va.gov.

Thank you for your cooperation.

VALERI Helpdesk
VA Central Office Loan Management

FHFA: New Strategic Plan and Scorecard for Fannie Mae and Freddie Mac

Posted on by Safeguard

Investor Update
October 28, 2019

Source: FHFA

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released a new Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac and a new 2020 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions. The Strategic Plan provides a framework for how FHFA will guide Fannie Mae and Freddie Mac (the Enterprises) to fulfill their statutory missions, focus on safety and soundness, and prepare for a responsible end to the conservatorships. The Scorecard aligns the Strategic Plan with the Enterprises’ tactical priorities and operations, serving as an essential tool to hold the Enterprises accountable for the effective implementation of the Strategic Plan.

“Our nation’s mortgage finance system is in urgent need of reform,” said FHFA Director Mark Calabria. “The vision for reform articulated in the Strategic Plan and advanced in the Scorecard will serve borrowers and renters by preserving mortgage credit availability, protect taxpayers by ensuring Fannie Mae and Freddie Mac can withstand an economic downturn, and support a strong and resilient secondary mortgage market.”

The three objectives of this new Strategic Plan and Scorecard are to ensure that the Enterprises:

1. Focus on their core mission responsibilities to foster competitive, liquid, efficient, and resilient (CLEAR) national  ​housing finance markets that support sustainable homeownership and affordable rental housing;

2. Operate in a safe and sound manner appropriate for entities in conservatorship; and

3. Prepare for their eventual exits from the conservatorships.

Links to: 2019 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac and 2020 Scorecard for Fannie, Mae, Freddie Mac, and Common Securitization Solutions​