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HUD: Disaster Assistance for Iowa Storm Victims

Posted on April 8, 2019April 8, 2019 by Safeguard

Investor Update
April 5, 2019

Source: HUD

Foreclosure protection offered to displaced families

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced it will speed federal disaster assistance to the State of Iowa and provide support to homeowners and low-income renters forced from their homes in areas affected by severe storms and flooding.

On March 23rd, President Trump issued a major disaster declaration for Fremont, Harrison, Mills, Monona, and Woodbury counties.

The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in these counties. HUD is:

• Providing immediate foreclosure relief – HUD’s automatic 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages commenced for the Iowa counties covered under the Presidential declaration on the date of the declaration. For assistance, call your loan servicer or FHA’s Resource Center at 1-800-304-9320;

• Making mortgage insurance available – HUD’s Section 203(h) program provides FHA insurance to disaster victims whose homes were destroyed or damaged to such an extent that reconstruction or replacement is necessary and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;

• Making insurance available for both mortgages and home rehabilitation – HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and

• Making information on housing providers and HUD programs available – The Department will share information with the Federal Emergency Management Agency (FEMA) and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

Read about these and other HUD programs designed to assist disaster victims.

Mitigating Risks Through Technology

Posted on April 5, 2019December 23, 2019 by Safeguard

Safeguard in the News
March 28, 2019

Source: DS News

On Thursday, April 11, from 1–2 p.m. EDT, DS News will host a webinar to explore the increased risks facing servicers and mortgage professionals. The webinar, titled “Risky Business: Using Data and Analytics to Protect Properties,” is presented by Safeguard Properties and will include insights from Tim Rath, AVP, Business Development, Safeguard Properties; Jason Heckman, AVP, Mobile and Analytics, Safeguard Properties; and John Thibaudeau, Director, Single-Family Real Estate, Fannie Mae.

Managing foreclosed properties can be a challenge without proper procedures in place. With the help of technology, the risks can be efficiently targeted, helping to identify solutions and significantly lower costs. Our panel of experts will discuss the latest property management innovations and how they can protect your investment.

Discussing how industry professionals can mitigate risks, Heckman told DS News, “Analyzing the property data reported from the field helps the mortgage servicing industry make informed business decisions that benefit their bottom line. By providing insight into trends, we can detect potential risks and help mitigate some of the biggest challenges threatening our clients’ assets.”

By utilizing it effectively and safely, technology can be a vital asset to your business.

“Data and technology are so powerful in helping me manage my business,” Thibaudeau said. “It helps my team make better decisions, reduces costs, and enables my team to conduct business more quickly in providing a better experience for our customers.”

While you’ll have to register and tune in to see how the full discussion unfolds on April 11, Rath offers some questions to consider:

What has been the evolution of technology in the servicing space?
How can data and analytics be utilized to manage risks to properties such as crime, vandalism, and emergency preparedness?
What are the challenges and benefits of incorporating new technology into existing systems?
Concerning cost and ROI, what is the value of investing in technology now?
What future innovations in technology in the servicing space are on the horizon?

Dive deeper into these questions and more—register for the webinar here.

OCC: Maryann Kennedy Named Senior Deputy Comptroller for Large Bank Supervision

Posted on April 5, 2019April 5, 2019 by Safeguard

Investor update
April 1, 2019

Source: OCC

WASHINGTON— The Office of the Comptroller of the Currency (OCC) today named Maryann Kennedy its next Senior Deputy Comptroller for Large Bank Supervision.

In this role, Ms. Kennedy will direct nearly 800 men and women who supervise the country’s largest national banks and federal branches and agencies, which hold more than $10 trillion in total consolidated assets. She will also serve as a member of the agency’s Executive Committee. She assumes these duties in April 2019.

She fills the vacancy left by Morris Morgan who became the OCC’s Chief Operating Officer in January 2019.

“Maryann brings great experience and talent to this new role as well as a passion for the OCC and its people to our Executive Committee team,” said Comptroller of the Currency Joseph Otting.

During her OCC career, Ms. Kennedy has supervised banks of all types and sizes. She served as Deputy Comptroller for Large Bank Supervision since June 2015, overseeing the examination teams of a portfolio of large banks and previously served as Examiner-in-Charge for JPMorgan Chase and TD Bank.

Ms. Kennedy started at the OCC in 1991 in the Philadelphia field office after eight years in the banking industry and was commissioned a National Bank Examiner in 1997. As a field examiner, she worked in community, midsize, and large banks and has held a variety of management roles, including Assistant Deputy Comptroller for the Wilkes-Barre and the Washington, D.C., field offices.

Maryann is a graduate of the Ohio State University.

VA: Circular 26-19-10: Special Relief Following Iowa Severe Storms and Flooding

Posted on April 5, 2019 by Safeguard

Investor Update
March 29, 2019

Source: VA

1. Purpose. This Circular expresses concern about the Department of Veterans Affairs (VA) home loan borrowers affected by severe storms and flooding in Iowa, 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)

2. Forbearance Request. VA encourages holders of VA-guaranteed loans to extend forbearance to borrowers in distress as a result of severe storms and flooding. 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 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 April 1, 2020.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

FHFA: Statement of Acting Director Joseph Otting

Posted on April 5, 2019 by Safeguard

Investor Update
April 4, 2019

Source: FHFA

“I congratulate Mark Calabria on his confirmation by the U.S. Senate to serve as Director of the Federal Housing Finance Agency (FHFA). I am confident that Mark will do a great job leading the FHFA, as he recognizes the need to work toward a housing finance system that protects taxpayers and meets our nation’s housing needs.”

Freddie Mac: New eMortgage Resources

Posted on April 5, 2019April 5, 2019 by Safeguard

Investor Update
April 1, 2019

Source: Freddie Mac

Good news! We’ve got new and updated eMortgage resources to share with you. These resources were designed with your business needs in mind – to help you better understand how digital mortgages provide a streamlined and more efficient home financing experience for you and your borrowers.

The new and updated resources include:

• Updated FAQs that address common questions related to implementing eMortgages.

• Pre-recorded, self-paced webinars that you can view at your convenience, including

• Access to the Closepin* database of closing agents that allows you to quickly locate agents who are ready to conduct your desired type of eClosing (hybrid eClosing, remote online eClosing).

For more information on getting started with eMortgages contact the Freddie Mac eMortgage team.

*Closepin is a third-party service provider and has no affiliation to Freddie Mac. The decision to use the Closepin service is voluntary and not required by Freddie Mac.

Judicial Foreclosure Proposed in New Hampshire

Posted on April 3, 2019April 3, 2019 by Safeguard

Legislation Update
April 1, 2019

Source: New Hampshire General Court (HB 270 information/full text)

METHODOLOGY:

The proposed bill would repeal and reenact RSA 479:25 to provide that foreclosure of a mortgage would be by a civil action in the superior court in the county in which the mortgaged premises or any part of it is located. It would also repeal the provisions for power of sale mortgages. As such, all mortgage foreclosures would take place following a civil action in the superior court. The judicial branch has no information on how many actions to foreclose a mortgage will be brought in the superior court pursuant to the proposed version of RSA 479:25. The Judicial Branch does have information on the cost of processing such cases. The New Hampshire Judicial Needs Assessment done by the National Center for State Courts in 2005 classifies mortgage foreclosures as routine equity cases in the superior court. The estimated cost of an average routine equity case in the superior court will be $265 in fiscal year 2020, and $269 in fiscal year 2021. These amounts do not consider the cost of any appeals that may be taken following trial. It should be noted that average case cost estimates for FY 2020 and FY 2021 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types.

The Banking Department states this bill would have no fiscal impact on the Department. The Department indicates it would not require additional personnel or resources as a result of this bill and it would not receive any additional revenue.

VA: VALERI Servicer Newsflash

Posted on April 2, 2019April 2, 2019 by Safeguard

Investor Update
April 1, 2019

Source: VA

Additional Resources:

Servicer Handbook M26-4

Transmittal of Change 8 to M26-4, Servicer Handbook (2/19)

IMPORTANT INFORMATION

Circular 26-19-8, Special Relief Following Alaska Earthquakes, was issued on March 1, 2019, and is located on the VALERI internet at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Circular 26-19-7, Special Relief Following Alabama Severe Storms, Straight-line Winds and Tornadoes, was issued on March 8, 2019, and is located on the VALERI internet at
https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Servicer Handbook Update – Revisions to multiple chapters and appendices have been posted in M26-4 and are reflected on the transmittal document dated February 26, 2019. They can be accessed at
https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Appraisal Fee Changes – Appraisal fees for numerous states have recently been updated. The changes will be reflected on the VALERI Fee Cost Schedule, which is located at
http://www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.

Fee Cost Schedule Updates – Effective March 8, 2019, the max allowable for the Posting Notice of Sale fee in Texas has been updated. This change is reflected on the VALERI Fee Cost Schedule, which is located at
http://www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.

Assumptions – Guidance on Assumptions can be found in the M26-1, Chapters 2, Sections 5 and 6, and the Lender’s Handbook, Chapter 5, Section 7, which is located at https://www.benefits.va.gov/WARMS/Site_Map.asp.

REMINDER

Redemption Instructions – Redemption instructions are located on the VALERI internet at
https://www.benefits.va.gov/HOMELOANS/servicers_valeri_guides.asp. All questions and inquiries related to redemption procedures are to be directed to vrm-redemption@vrmco.com.

Vacant Assets – The removal of hazardous materials from the exterior and interior of properties is a requirement prior to transferring custody of vacant properties, as outlined in M26-4 Appendix G located on the VALERI internet at https://www.benefits.va.gov/HOMELOANS/servicers_valeri_guides.asp.

VALERI Access – Individuals requiring assistance with VALERI access must contact their company administrator within their organization. The VALERI Helpdesk does not reset passwords or edit/create/activate/deactivate servicers’ user profiles. These types of requests should not be submitted to the VALERI Helpdesk (VA Servicer Handbook, M26-4, Chapter 2).

FEMA Declared Disaster Cahuilla Band of Indians

Posted on March 29, 2019March 29, 2019 by Safeguard

FEMA Alert
March 28, 2019

FEMA issued a Presidential Major Disaster Declaration for the Cahuilla Band of Indians (California) as a result of severe storms and flooding that took place on February 14, 2019. The following tribal area is eligible for assistance:

Public Assistance

Cahuilla Indian Reservation (Riverside County, 92536, 92539)

NOTE: Tribal areas are approximate and may be incomplete.

FEMA Release: Declared Disaster for Cahuilla Band of Indians

ZIP Code List for FEMA Declared Disaster for Cahuilla Band of Indians

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

FEMA Declared Disaster La Jolla Band of Luiseno Indians

Posted on March 28, 2019March 29, 2019 by Safeguard

FEMA Alert
March 26, 2019

FEMA issued a Presidential Major Disaster Declaration for the La Jolla Band of Luiseno Indians (California) as a result of severe storms, flooding, landslides and mudslides that took place February 14-15, 2019. The following tribal area is eligible for assistance:

Public Assistance