Safeguard Properties

Fannie Mae: SVC-2019-06: Servicing Guide Updates

Posted on by Ashley Shepherd

Investor Update
September 11, 2019

Source: Fannie Mae

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

• Foreclosure and Bankruptcy Allowable Attorney Fees*
• Miscellaneous Revisions
o Guide Updates for Maximum Servicing Fee for UMBS Loans**
o Reporting Bankruptcy Notifications to Fannie Mae**
o Document Custodian Timing Requirements for Post-Delivery Servicing Transfers

*Policy change applies only to HomeKeeper® loans and is not applicable to Home Equity Conversion Mortgage (HECM) loans.
**Policy change not applicable to reverse mortgage loans.

Foreclosure and Bankruptcy Allowable Attorney Fees
We are updating the maximum allowable foreclosure attorney fees in all jurisdictions except Maine, New Hampshire, Washington (foreclosures for e-Notes only), Hawaii, Iowa (non-judicial foreclosures), and South Dakota. We determined that fees do not need to be adjusted at this time for those states. Additionally, we are updating the following maximum allowable bankruptcy attorney fees for legal services provided on mortgage loans we own or securitize:

▪ Motion for Relief for Chapter 7, 11, 12, and 13 cases;
▪ Proof of Claim Preparation and Plan Review for Chapter 11, 12, and 13 cases;
▪ Objection to Plan for Chapter 12 and 13 cases; and
▪ Response to Final Cure Payment Notice for Chapter 13 cases.

Updated Servicing Guide Exhibits
▪ Allowable Foreclosure Attorney Fees
▪ Allowable Bankruptcy Attorney Fees

Effective Date
The allowable fee updates are effective as follows:

▪ The new allowable foreclosure fees apply to all matters referred to counsel for initiation of foreclosure proceedings, regardless of referral date, if the matter is still active as of September 11, 2019. Servicers are encouraged to implement the new fees for the impacted states immediately, but must do so no later than December 1, 2019.
▪ The new allowable bankruptcy fees apply to all legal services performed on or after December 1, 2019.

Servicers may exercise reasonable discretion in determining how to implement the changes, including working as needed with the law firm or an applicable invoicing technology provider.

Miscellaneous Revisions
Guide Updates for Maximum Servicing Fee for UMBS Loans. To support the Uniform Mortgage-Backed Securities (UMBS), we previously announced new maximum servicing fees for fixed-rate mortgage loans delivered on or after June 1, 2019 in Lender Letter LL-2019-03. We are now incorporating these changes into the following topics of the Servicing Guide:
▪ F-2-09, Servicing Fees for MBS Mortgage Loans
▪ F-2-10, Servicing Fees for Portfolio Mortgage Loans

Reporting Bankruptcy Notifications to Fannie Mae. Currently, servicers must notify us when they learn after the foreclosure sale date that a borrower has filed for bankruptcy. In response to servicers’ feedback and to resolve confusion, we have created the Bankruptcy Notification Template to clarify the information that servicers must provide to us in connection with bankruptcy filings identified after the foreclosure sale date.

Updated Servicing Guide Topics
▪ E-2.3-07, Responding to Bankruptcies Identified After Foreclosure Sale
▪ F-4-01, References to Fannie Mae’s Website
▪ F-4-03, List of Contacts

Effective Date
Servicers are encouraged to use the template immediately, but must do so by December 1, 2019.

Document Custodian Timing Requirements for Post-Delivery Servicing Transfers. To enable timely and accurate recertification of custodial documents, we have updated A2-7-03, Post-Delivery Servicing Transfers to require that when a post-delivery servicing transfer occurs, the transferor servicer must advise the transferor document custodian maintaining possession of the custodial documents within 30 days of the transfer effective date.

Effective Date
Servicers are encouraged to implement this change immediately, but must do so for post-delivery servicing transfers that occur on or after January 1, 2020.

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 Bulletin 2016-20: Flood Disaster Protection Act

Posted on by Safeguard

Investor Update
August 27, 2019

Source: OCC

Summary

The Task Force on Consumer Compliance of the Federal Financial Institutions Examination Council1 (FFIEC) adopted revised interagency examination procedures for the Flood Disaster Protection Act (FDPA). The revised procedures reflect the amendments to the regulations regarding loans in areas having special flood hazards to implement the private flood insurance provisions of the Biggert-Waters Flood Insurance Reform Act of 2012 (Biggert-Waters Act). The amendments to the regulations were issued by the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Farm Credit Administration, and the National Credit Union Administration and published in the Federal Register on February 20, 2019.2

This bulletin makes available on the OCC website the revised interagency FDPA examination procedures that reflect the private flood insurance requirements, which are effective July 1, 2019.

Rescission

The “Flood Disaster Protection Act” booklet of the Comptroller’s Handbook is rescinded with the issuance of the interagency examination procedures. OCC examiners will rely on the interagency procedures. This bulletin also rescinds OCC Bulletin 2017-35, “Flood Disaster Protection Act: Revised Comptroller’s Handbook Booklet.”

Note for Community Banks

The interagency examination procedures apply to examinations of all national banks, federal savings associations, and federal branches and agencies of foreign banking organizations.

Highlights

The FFIEC members developed these examination procedures to promote consistency in the examination process and communication of supervisory expectations. The new regulatory requirements are effective on July 1, 2019. The interagency procedures reflect regulatory provisions that

◾ require a regulated lending institution to accept private flood insurance policies that meet the definition of  “private flood insurance” in satisfaction of the flood insurance purchase requirement.

◾ include a compliance aid to facilitate a regulated lending institution’s determination that a policy meets the definition of  “private flood insurance.”

◾ permit a regulated lending institution to exercise its discretion to accept a flood insurance policy issued by a private insurer that does not meet the definition of  “private flood insurance,” subject to certain restrictions.

◾ permit a regulated lending institution to exercise its discretion to accept flood coverage provided by a mutual aid society, subject to certain restrictions.

Further Information

Please contact Paul R. Reymann, Director for Consumer Compliance Policy, at (202) 649-5470.

Grovetta N. Gardineer
Senior Deputy Comptroller for Bank Supervision Policy

Related Link

◾ “Interagency Flood Disaster Protection Act Examination Procedures”

1 The FFIEC comprises the following six voting members: a member of the Board of Governors of the Federal Reserve System; the Chairman of the Federal Deposit Insurance Corporation; the Director of the Consumer Financial Protection Bureau; the Comptroller of the Currency; the Chairman of the National Credit Union Administration; and the Chairman of the State Liaison Committee.

2 Refer to 84 Fed. Reg. 4953.

 

VA: VALERI Servicer Newsflash

Posted on by Safeguard

Investor Update
September 9, 2019

Source: VA

IMPORTANT INFORMATION

Transfer of Custody (TOC) – Some TOC events reported via servicing system nightly files are not being generated in VALERI. In these instances, the event should be reported manually on the Events Bulk Upload Template. The template and the VALERI Servicer User Guide are available at https://www.benefits.va.gov/HOMELOANS/servicers_valeri_guides.asp. If the TOC event is rejected and the only business rule that fails is for late event reporting (15 days), the appeal link will be enabled.

Claim and Incentive Payments (Update from 8/15/19 Newsflash) – Issue with payments not generating on some incentives has been resolved. The claim payment generation issue is still pending.

Analytics Reports (Update from 8/15/19 Newsflash) – The system issue affecting reported events not reflecting in reports as of July 12, 2019, and June 15 through June 21, 2019, has been resolved.

Supplemental Claims – A system issue was identified where servicers are receiving an error message when attempting to submit a supplemental claim. Additional information will be provided at a later date.

Appeals – Servicers must upload documents and select the ‘Submit’ button to complete the appeal submission.
Loan Technician Contact Information – Loan Technician contact information is now located as an article in ‘Knowledge’ in VALERI. It is also still available at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

REMINDERS

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

VALERI Assistance – The assigned loan technician should continue to be the first point of contact (VA Servicer Handbook M26-4, Chapter 1). VALERI system related inquiries for loans that are unassigned must be directed to valeri.vbaco@va.gov. Loan Management 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.

HUD: FHA INFO #19-47: Training Opportunities

Posted on by Safeguard

Investor Update
September 4, 2019 

Source: HUD

Webinar Title: NEW Mortgagee Letter (ML) 2019-14: Updates to FHA’s Loss Mitigation Options for Borrowers in Presidentially-Declared Major Disaster Areas (PDMDA)

Date/Time: This webinar will be offered twice. Select the date and time of your choice:

• Thursday, September 12, 2019 2:00 PM to 3:00 PM (Eastern) or
• Thursday, September 26, 2019 2:00 PM to 3:00 PM (Eastern)

Event Location: On-line Webinar – No Fee

Jurisdictional Host: National Servicing Center

Registration Link: https://attendee.gotowebinar.com/register/2291915896603259907

Description:

This free, on-line webinar will provide attendees with a detailed overview of the loss mitigation policies announced in ML 2019-14. Additionally, it will highlight the amended loss mitigation procedures referenced in Section III.A.3.c. iv. of FHA’s Single Family Housing Policy Handbook 4000.1 for disaster-affected borrowers whose FHA-insured property or place of employment is in a PDMDA.

Audience:

This webinar is targeted primarily to FHA servicing industry participants; however, other stakeholders may also benefit from attending.

Special Instructions: For additional information, contact Stacey Brown at: stacey.a.brown@hud.gov.

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.

USDA: Post-Closing Lender Self Report

Posted on by Safeguard

Investor Update
September 4, 2019

Source: USDA

Revisions to HB 3555-1, Chapter 4, “Lender Responsibilities,” were published on June 28, 2019. Paragraph 4.12 provides guidance on submitting post-closing lender self-reports and refers lenders and loan servicers to Attachment 16-C of Chapter 16 of the handbook for additional information. Attachment 16-C provides the following:

A self‐report must include:

• Borrower ID/GUS Application ID and last name to select the correct file
• Description of the issue
• Provide supporting documentation, if applicable
• Lender/Servicer Contact information

Submit this information via email SFHGLD.Compliance@usda.gov. Response time is dependent on the issue and number of submissions received by USDA. It is the responsibility of the lender to ensure their investor will accept responses from USDA for investor delivery.

The revised Chapter 16 will be published at a later date. However, an advance copy of Chapter 16 with the new Attachment 16-C is available in the USDA LINC Training and Resource Library.

A Procedure Notice (PN) will be issued at least 30 days prior to publication of HB 1-3555, Chapter 16.

Questions regarding this announcement may be directed to the National Office Division at
(202) 720-1452 or via email to SFHGLD.Compliance@usda.gov.

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)

HUD: FHA INFO #19-46: FHA Strengthens Permanent Disaster Loss Mitigation Options

Posted on by Safeguard

Investor Update
August 29, 2019 

Source: HUD

Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2019-14, Updates to FHA’s Loss Mitigation Options for Borrowers in Presidentially-Declared Major Disaster Areas (PDMDA). This ML strengthens and expands FHA’s loss mitigation options to homeowners located in all PDMDAs by adding new options and improving several existing options that were originally put in place in 2018 as temporary provisions for specific PDMDAs. Read today’s Press Release, issued by the Department of Housing and Urban Development (HUD), for more on the topic.

Effective immediately, FHA will now make permanent:

– The Disaster Standalone Partial Claim option to help eligible borrowers on a forbearance plan resume their pre-disaster mortgage payments and avoid payment shock;

– Streamlined income documentation and revised loss mitigation procedures for a Disaster Loan Modification option and Disaster Standalone Partial Claim option; and

– A Trial Payment Plan as an alternative to providing income documentation for these disaster loss mitigation options.

This ML is designed to provide immediate loss mitigation and other relief options to FHA borrowers in all PDMDAs and help them stay in their homes while mitigating losses to FHA’s Mutual Mortgage Insurance Fund (MMIF). Further, the addition of these provisions to the Single Family Housing Policy Handbook 4000.1 creates clear and consistent policy applicable to borrowers whose FHA-insured property or place of employment is in a PDMDA.

Servicers may begin implementing these new policies immediately; however, they must begin implementing them no later than November 30, 2019.

Quick Links
– View today’s Press Release and other archived Press Releases at: https://www.hud.gov/press
– View Mortgagee Letter 2019-14 and all other archived Mortgagee Letters at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

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.

OCC Allows National Banks and Federal Savings Associations Affected by Hurricane Dorian in Southeast United States to Close

Posted on by Safeguard

Investor Update
August 30, 2019

Source: OCC

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today issued a proclamation allowing national banks, federal savings associations, and federal branches and agencies of foreign banks affected by severe weather conditions associated with Hurricane Dorian in the Southeast region of the United States to close.

In issuing the proclamation, the OCC expects that only those bank offices directly affected by potentially unsafe conditions will close. Those offices should make every effort to reopen as quickly as possible to address the banking needs of their customers.

OCC Bulletin 2012-28, “Supervisory Guidance on Natural Disasters and Other Emergency Conditions” (September 21, 2012), provides guidance on actions bankers could consider implementing when their bank or savings association operates or has customers in areas affected by a natural disaster or other emergency.

Related Links

Freddie Mac Confirms Disaster Relief Policies As Hurricane Dorian Approaches

Posted on by Safeguard

Updated 9/6/19: Freddie Mac issued a release reminding clients of disaster relief policies as Hurricane Dorian makes landfall on the U.S. mainland.

Hurricane Dorian and Disaster Relief Policies

Investor Update
August 29, 2019

Source: Freddie Mac

MCLEAN, Va., Aug. 29, 2019 (GLOBE NEWSWIRE) — Freddie Mac(OTCQB: FMCC) today reminded mortgage servicers of its disaster relief policies for borrowers as Hurricane Dorian approaches Florida. Freddie Mac’s disaster relief options are available to borrowers whose homes or places of employment are located in presidentially-declared Major Disaster Areas where federal individual-assistance programs are made available to affected individuals and households.

In areas where the Federal Emergency Management Agency (FEMA) has not yet made individual assistance available, mortgage servicers may immediately leverage Freddie Mac’s short-term forbearance programs to provide mortgage relief to their borrowers that have been affected by hurricane damage.

“As Hurricane Dorian approaches, we stand ready to ensure mortgage relief is made available to affected borrowers in eligible disaster areas,” said Yvette Gilmore, Freddie Mac’s Vice President of Single-Family Servicer Performance Management. “Once safely out of harm’s way, we strongly encourage homeowners whose homes or places of employment are impacted by the hurricane damage to call their mortgage servicer—the company borrowers send their monthly mortgage payments to— so they can learn about available relief options.”

News Facts:

  • Freddie Mac disaster relief policies authorize mortgage servicers to help affected borrowers in federally-declared Major Disaster Areas where federal individual assistance programs have been extended. A list of these areas can be found on the FEMA’s website.
  • Freddie Mac mortgage relief options for affected borrowers in these areas include:
  • Suspending foreclosures by providing forbearance for up to 12 months;
  • Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and
  • Not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus.
  • Freddie Mac is reminding Single-Family servicers to consider borrowers who are impacted by Hurricane Dorian, but who live or work outside of an eligible disaster area, for Freddie Mac’s standard relief policies, which include forbearance and mortgage modifications.
  • Affected borrowers should immediately contact their mortgage servicer—the company to which they send their monthly mortgage payment.
  • See http://www.freddiemac.com/singlefamily/service for a description of Freddie Mac disaster relief policies.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, @FreddieMac and Freddie Mac’s blog.

MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com

Fannie Mae: Hurricane Dorian Assistance Options Reminder

Posted on by Safeguard

Investor Update
August 29, 2019

Source: Fannie Mae

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) is reminding those impacted by Hurricane Dorian of available mortgage assistance and disaster relief options. Under Fannie Mae’s guidelines for single-family mortgages:

– Homeowners may request mortgage assistance by contacting their mortgage servicer following a disaster

– Mortgage servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days – even without establishing contact – if the servicer believes the homeowner was affected

– Homeowners affected by disaster are often eligible to reduce or suspend their mortgage payments for up to 12 months

– During this temporary payment break:

    • Homeowners will not incur late fees
    • Credit bureau reporting is suspended
    • Foreclosure and other legal proceedings are suspended

– When payments resume, a loan modification may help maintain the pre-disaster payment amount

Fannie Mae also offers help navigating the broader financial effects of a disaster to homeowners with a Fannie Mae-owned mortgage through its Disaster Response Network*, including:

– A needs assessment and personalized recovery plan

– Help requesting financial relief from FEMA, insurance, servicers, and other sources

– Web resources and ongoing guidance from experienced disaster relief advisors

Homeowners can call 877-833-1746 to access Fannie Mae’s Disaster Response Network™* or other available resources.

“We are monitoring the situation, and we urge those in the path of the storm to focus on their safety first as they prepare for the potential impact of Hurricane Dorian,” said Malloy Evans, Senior Vice President and Single-Family Chief Credit Officer, Fannie Mae. “Along with our lending and servicing partners, Fannie Mae is committed to ensuring assistance is available to homeowners and renters in need. We encourage residents whose homes, employment, or income are affected by the storm to seek available assistance as soon as possible.”

Homeowners can reach out to Fannie Mae directly by calling 1-800-2FANNIE (1-800-232-6643). For more information, please visit www.knowyouroptions.com/relief.

*Operated by Clearpoint Credit Counseling Solutions, a division of MMI, through its Project Porchlight program

VA: VALERI Servicer Newsflash

Posted on by Safeguard

Investor Update
August 27, 2019

Source: VA

IMPORTANT INFORMATION

Circular 26-19-24, Servicer Loss Mitigation Letters on Delinquent Loans, was issued on August 19, 2019, and is located on the VALERI internet at https://www.benefits.va.gov/HOMELOANS/resources_circulars_valeri.asp.

System Release – A system release is scheduled on Thursday, August 29, 2019, and the VALERI application will be unavailable from 8:00 pm to 12:00 am EST. The release will include the following:

• The Claim Bulk Upload Spreadsheet will allow the ‘Pre-Foreclosure’ expense line item.
• Users will only receive one auto generated email after uploading the Claim Bulk Upload Template.
• The Default Cured Loan Reinstated event will generate based on the payment due date (applies to nightly file processing).

Loan Technician Contact Information – Loan Technician contact information is now located as an article in ‘Knowledge’ in VALERI. It is also still available at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Imminent Default – When reporting the Electronic Default Notice (EDN) Event on loans less than 61 days delinquent, either ‘Imminent Default’ or ‘Property Problems’ must be selected as the primary reason for default. If the incorrect reason is selected, the EDN event will reject (VA Servicer Handbook M26-4, Chapter 4).

Basic Claims – The loan must be terminated prior to submitting the basic claim. If the loan is not in a terminated status, the Basic Claim Event will reject (VA Servicer Handbook M26-4, Chapter 14).

State Foreclosure Process Matrix – Typographical errors have been corrected for Minnesota and North Dakota. Updated spreadsheet is available at https://www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.

REMINDERS

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

VALERI Assistance – Any VALERI system related inquiries must be directed to 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.

Servicer Webinar – Servicers are encouraged to attend the next webinar on September 12, 2019, at 1:00 PM EST. Requests for webinar information, for those who have not previously attended, should be directed to the VALERI Helpdesk at valerihelpdesk.vbaco@va.gov, at least 48 hours prior to the webinar.