Investor Update
November 19, 2019
Source: FHFA
FHFA: Key Hires Announced
Investor Update
November 20, 2019
Source: FHFA
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that Thaya Knight recently joined FHFA as Senior Counsel for Policy and Regulation, and that Lydia Mashburn joined the Agency as Deputy Chief of Staff.
HUD: FHA INFO #19-57: Annual Report To Congress
Investor Update
November 14, 2019
Source: HUD
Today, the Department of Housing and Urban Development (HUD) released its Federal Housing Administration (FHA) Annual Report to Congress on the financial status of FHA’s Mutual Mortgage Insurance Fund (MMIF) for fiscal year (FY) 2019. As detailed in the report:
• The MMIF Capital Ratio for FY 2019 was 4.84 percent, the highest level since FY 2007.
• FHA had insurance-in-force on single family mortgages valued at almost $1.3 trillion at the end of this past fiscal year.
• The performance of the forward book of business posted a stand-alone capital ratio of 5.44 percent.
• The Home Equity Conversion Mortgage (HECM) reverse mortgage portfolio continues to show a negative stand-alone capital ratio, but improved substantially from a negative (-) 18.83 percent capital ratio in FY 2018, to negative (-) 9.22 percent in FY 2019.
Read today’s Press Release.
Quick Links
• Read today’s Press Release at: https://www.hud.gov/press
• Review the complete report at: https://www.hud.gov/fhammifrpt
Resources
Contact the FHA Resource Center:
• Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at: https://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-CALL-FHA (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.
FEMA Declared Disaster South Dakota
FEMA Alert Update
January 8, 2020
FEMA issued updates to a Presidential Major Disaster Declaration for areas in South Dakota affected by severe storms, tornadoes and flooding that took place September 9-26, 2019.
The following counties are eligible for assistance:
Individual Assistance (Amendment 1)
|
Public Assistance (Amendment 2)
|
South Dakota Severe Storms, Tornadoes And Flooding (DR-4469 Amendment 1)
South Dakota Severe Storms, Tornadoes And Flooding (DR-4469 Amendment 2)
FEMA Declared Disaster South Dakota: ZIP Code List (Updated with Amendments 1 and 2)
FEMA Alert
November 18, 2019
FEMA issued a Presidential Major Disaster Declaration for areas in South Dakota affected by severe storms, tornadoes and flooding that took place September 9-26, 2019.
The following counties are eligible for assistance:
Individual Assistance
|
Public Assistance
|
|
Please be advised of the following tribal areas eligible for Individual/Public Assistance:
- Flandreau Indian Reservation (Moody County)
- Yankton Indian Reservation (Charles Mix County)
South Dakota Severe Storms, Tornadoes And Flooding (DR-4469)
FEMA Declared Disaster South Dakota: ZIP Code List
Additional Resources
FEMA’s web site
FEMA’s Disaster Declaration Process
Safeguard Properties Industry Alerts
VA’s Policy Regarding Natural Disasters
Freddie Mac: FHLMC Guide Bulletin 2019-23: Updates on Servicing Gateway
Investor Update
November 13, 2019
Source: Freddie Mac
Single-Family Seller/Servicer Guide (Guide) Bulletin 2019-23 announces updates related to the following:
• Freddie Mac Servicing Gateway
• Resale restrictions and right of first refusal
• Reimbursement of legal fees and costs
• Flood insurance
The Bulletin also includes other servicing updates that may be important to your business.
For more information
• Watch our video on the servicing changes.
• Review Guide Bulletin 2019-23
• Register for the webinar Entering the Servicing Gateway: Access Your Servicing Tools.
• Contact your Freddie Mac representative.
Need help looking for a requirement in our Guide? Try Cobrowse.
Fannie Mae: SVC-2019-07: Servicing Guide Updates
Investor Update
November 13, 2019
Source: Fannie Mae
The Servicing Guide has been updated to include changes or clarifications related to the following:
• Canceling Property and/or Flood Insurance When Fannie Mae Acquires the Property
• Reporting Anti-Money Laundering Activity
• Miscellaneous Revisions
• Consolidation of Application and Approval of Seller/Servicer Policy
• Update to Contacts
Canceling Property and/or Flood Insurance When Fannie Mae Acquires the Property
To simplify the servicer’s process and support our collateral management strategies, we are updating and streamlining our requirements related to canceling property insurance and flood insurance, if applicable, when a property is acquired.
Currently for conventional first- and second-lien mortgage loans, the time at which the servicer must cancel an applicable property insurance policy and flood insurance policy may differ depending on the individual circumstances related to the liquidated mortgage loan. With this update, the servicer must now cancel any property insurance policy and flood insurance policy, if applicable, within 14 days after the foreclosure sale or the acceptance of an executed Mortgage Release™, regardless of whether there is an applicable waiting period, such as a redemption or court confirmation or ratification.
We are also eliminating the servicer’s post-foreclosure responsibility to complete a property inspection within 15 days after the foreclosure sale and file a flood insurance claim, when applicable. We will work with its vendors to perform these preservation activities once the property is acquired.
Updated Servicing Guide Topics
▪ E-4.3-02, Inspecting Properties Post-Foreclosure Sale
▪ E-4.4-01, Continuing or Canceling Property Insurance Coverage
▪ E-4.4-03, Canceling Flood Insurance Coverage for Acquired Properties
▪ F-1-05, Expense Reimbursement
▪ F-4-03, List of Contacts
Effective Date
Servicers are encouraged to implement these policy changes immediately, but must do so by February 1, 2020.
Reporting Anti-Money Laundering Activity
All sellers/servicers, including those not subject to the anti-money laundering provisions of the Bank Secrecy Act (BSA), must now report loan-level instances of suspicious activity using the self-report functionality in Loan Quality Connect™. This policy change was communicated in SEL-2019-08, Selling Guide Updates, on October 2, 2019.
Updated Selling Guide Topics
▪ A3-2-01, Compliance With Laws
▪ E-1-04, List of Contacts
Effective Date
Servicers are encouraged to implement this policy change immediately, but must do so by March 31, 2020.
Miscellaneous Revisions
Consolidation of Application and Approval of Seller/Servicer Policy. Servicing Guide A1-1-01, Application and Approval of Seller/Servicer has been condensed to now refer to our website.
Update to Contacts. Servicing Guide F-4-03, List of Contacts has been updated to reflect a new email address to contact us. The new address can be used for inquiries related to and to submit the Certificate of Authority, Incumbency, and Specimen Signatures (Form 360) and the Authorization for Automatic Transfer of Funds (Form 1072).
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
OCC: Deputy Comptroller for Operational Risk Named
Investor update
November 7, 2019
Source: OCC
WASHINGTON—The Office of the Comptroller of the Currency (OCC) today announced Kevin Greenfield would become the agency’s Deputy Comptroller for Operational Risk.
In this role, Mr. Greenfield will oversee development of policy and examination procedures addressing operational risk, bank information technology, cybersecurity, critical infrastructure resilience, payments systems, and corporate and risk governance. He will take on these new duties this month.
“Kevin is a top-notch professional with deep experience in understanding and assessing banks’ ability to manage the operational risks they face,” said Comptroller of the Currency Joseph Otting. “The agency and the federal banking system are fortunate to have someone with his background and expertise in this important role.”
Mr. Greenfield previously served as the OCC’s Director for Bank Information Technology for the Operational Risk Division where he managed a team responsible for developing, communicating, and interpreting policies for the OCC’s supervision of technology operations at financial institutions. He represented the OCC on several interagency groups that focus on coordination and development of information technology risk management supervisory guidance for topics such as information security, resiliency, technology operations, corporate governance, and independent risk management.
Prior to being named Director for Bank Information Technology in 2014, Mr. Greenfield spent 14 years with the OCC’s Large Bank Supervision where he examined large and complex technology operations at several of the largest U.S. financial institutions. In this role, he held various technology supervision roles at large financial institutions based in Pittsburgh, Charlotte, and New York City.
Mr. Greenfield is a graduate of the University of Dayton and holds the Certified Information Systems Auditor (CISA) professional certification.
Mr. Greenfield is filling a vacancy created when the previous Deputy Comptroller for Operational Risk Beth Dugan became a Deputy Comptroller for Large Bank Supervision.
VA: Circular 26-19-29: Special Relief Following Tropical Storm Imelda
Investor Update
November 8, 2019
Source: VA
1. Purpose. This Circular expresses concern about the Department of Veterans Affairs (VA) home loan borrowers affected by Tropical Storm Imelda and describes measures mortgagees may employ to provide relief. Mortgage servicers and borrowers alike should review VA’s guidance on natural disasters to ensure Veterans receive the assistance they need. (https://www.benefits.va.gov/homeloans/documents/docs/va_policy_regarding_natural_disasters.pdf or https://www.benefits.va.gov/WARMS/docs/admin26/m26_04/Chapter_21.docx.)
2. Forbearance Request. VA encourages holders of guaranteed loans to extend forbearance to borrowers in distress as a result of the disaster. Careful counseling with borrowers should help determine whether their difficulties are related to this disaster, or whether they stem from other sources that must be addressed. The proper use of authorities granted in VA regulations may be of assistance in appropriate cases. For example, Title 38, Code of Federal Regulations (C.F.R.), section 36.4311 allows the reapplication of prepayments to cure, or prevent a default. Also, 38 C.F.R. 36.4315, allows the terms of any guaranteed loan to be modified without the prior approval of VA, provided conditions in the regulation are satisfied.
3. Moratorium on Foreclosure. Although the loan holder is ultimately responsible for determining when to initiate foreclosure and for completing termination action, VA has requested on its website (https://www.benefits.va.gov/homeloans) that holders establish a 90-day moratorium from the date of a disaster declaration on initiating new foreclosures on loans affected by major disasters. VA regulation 38 C.F.R. 36.4324(a)(3)(ii) allows additional interest on a guaranty claim when eventual termination has been delayed due to circumstances beyond the control of the holder, such as VA-requested forbearance. Due to the widespread impact of the disaster, holders should review all foreclosure referrals to ensure that borrowers have not been affected significantly enough to justify delay in referral. Any questions about impact should be discussed with the VA Regional Loan Center (RLC) of jurisdiction.
4. Late Charge Waivers. VA believes that many servicers plan to waive late charges on affected loans, and encourages all servicers to adopt such a policy for any loans that may have been affected.
5. Credit and VA Reporting. In order to avoid damaging credit records of Veteran borrowers, servicers are encouraged to suspend credit bureau reporting on affected loans. VA will not penalize affected servicers for any late default reporting to VA as a result. Please contact the appropriate RLC with any questions.
6. Activation of the National Guard. Members of the National Guard may be called to active duty to assist in recovery efforts. VA encourages servicers to extend special forbearance to National Guard members who experience financial difficulties as a result of their service.
7. Rescission: This Circular is rescinded January 1, 2021.
By Direction of the Under Secretary for Benefits
Jeffrey F. London
Director, Loan Guaranty Service
HUD: FHA INFO #19-56: Training Opportunities
Investor Update
November 8, 2019
Source: HUD
—There is no charge for training courses and webinars offered by the Federal Housing Administration —
Webinar Title: NEW FHA Quality Assurance Update
Date/Time: Wednesday, November 20, 2019, 2:00 PM to 3:00 PM (Eastern)
Event Location: On-line Webinar – No Fee
Jurisdictional Host:Office of Lender Activities and Program Compliance
Registration Link: https://easthillmedia.zoom.us/webinar/register/WN_3gFK0FSCTcmfy8IRUfokpw
Description:
This free, online webinar will provide an update of the Federal Housing Administration’s (FHA) quality assurance results for the most recent quarter, as well as specific information on the FHA Compare Ratio. There will also be a live Question and Answer session at the end of the webinar.
Audience:
Although open to all stakeholders, this webinar is intended primarily for compliance, risk management, and quality control staff of FHA-approved mortgagees.
Special Instructions:
Attendance for this online webinar is free of charge and open to all FHA-approved mortgagees and their auditors, as well as all other stakeholders; however, advance registration is required by November 19, 2019. Registered attendees will receive the link to access the webinar and other details with their registration confirmation.
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.
REO Auctions Attracting Competing Bids
Industry Update
November 11, 2019
Source: Auction.com
Share of REO Auctions with Competing Bidders Rises to Highest Level in Last Seven Quarters
Three out of four bank-owned properties that sold at online auction in Q3 2019 attracted competing bids from at least two unique bidders, according to an analysis of bidder behavior on the Auction.com platform.
The analysis was based on data from more than 38,000 bank-owned (REO) homes sold between Q1 2018 and Q3 2019 on Auction.com, which has 5.2 million registered users who are potential bidders. Sold properties were considered to have multiple competing bids when at least two bidders bid on the same property during the same auction event. Over the course of multiple auction events, 93 percent of properties received bids from multiple bidders during the quarter.
The analysis also showed an average 6.3 unique bidders and an average of 24.0 bids for each REO sold on the Auction.com platform in Q3 2019 — up from an average 6.2 bidders and 23.7 bids per REO sold in the third quarter of 2018.
The 76.3 percent competing-bidder share for REO auction sales stands in stark contrast to multiple-offer activity in the retail housing market. Just 11.1 percent of offers submitted by Redfin agents faced competing offers from other prospective buyers in September — up from an eight-year low of 10.4 percent in August but still down from 41.3 percent a year earlier, according to the real estate brokerage
For full report, please click the source link above.