Safeguard Properties

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

Posted on 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 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.”

Contacts:

Media: Stefanie Johnson (202) 649-3030 / Corinne Russell (202) 649-3032Consumers: Consumer Communications or (202) 649-3811

Freddie Mac: New eMortgage Resources

Posted on 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 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 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 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 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

  • La Jolla Indian Reservation (San Diego County, 92061)

NOTE: Tribal areas are approximate and may be incomplete.

FEMA Release: Declared Disaster for La Jolla Band of Luiseno Indians

ZIP Code List for FEMA Declared Disaster for La Jolla Band of Luiseno 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

HUD: FHA INFO #19-09: Single Family Housing Policy Handbook 4.0001 Versions 5.0 and 5.5 Updated

Posted on by Safeguard

Investor Update
March 27, 2019

Source: HUD

Today, the Federal Housing Administration (FHA) published an update to its Single Family Housing Policy Handbook 4000.1 (SF Handbook), the first update since December 2016. With today’s update, FHA is recommitting to the industry that it will continue to maintain and enhance the SF Handbook so that it becomes a single, comprehensive source of policy guidance for lenders and other stakeholders doing single family business with FHA.

The March 27, 2019, update contains technical changes for consistency and clarity, and several policy updates. All stakeholders in FHA transactions should review and become familiar with the changes outlined in SF Handbook Transmittal, available in FHA’s Online Housing Policy Library, as revisions have been made throughout Sections I through V of the SF Handbook. Handbook changes identified in the Transmittal do not affect previously announced effective dates and are effective immediately.

FHA intends to resume regular quarterly SF Handbook updates. In addition, the Home Equity Conversion Mortgage (HECM), Title I, and Condominium Approval sections of the SF Handbook are in the development stage.

Quick Links
• Review the March 27, 2019 SF Handbook Transmittal available at:
http://www.allregs.com/tpl/public/fha_freesite.aspx
• Access the online and/or portable document format SF Handbook from HUD’s Client Information Policy Systems’ Housing  Handbooks web page at: http://portal.hud.gov/hudportal/HUDsrc=/program_offices/administration/hudclips/handbooks/hsgh

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.

Fannie Mae: Missouri River Flooding Mortgage Assistance Options

Posted on by Safeguard

Investor Update
March 27, 2019

Source: Fannie Mae

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) is reminding those impacted by flooding across the Missouri River Basin of available mortgage assistance options. Under Fannie Mae’s guidelines for single-family mortgages:

•Homeowners impacted by the Missouri River Basin flooding are eligible for payment forbearance of up to 12 months, during which time they:

    • will not incur late fees during this temporary payment break
    • will not have delinquencies reported to the credit bureaus

•Servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact with the homeowner if the servicer believes the homeowner has been affected by a disaster. Payment forbearance of up to 12 months is available in many circumstances.

•Servicers must suspend foreclosure and other legal proceedings if the servicer believes the homeowner has been impacted by a disaster.

“Our thoughts are with the impacted families and communities of the Missouri River Basin as they begin to recover from this severe hardship,” said Malloy Evans, Vice President and Chief Credit Officer at Fannie Mae. “Fannie Mae wants to ensure that all those affected are aware of their mortgage assistance options. Homeowners should always prioritize safety first, but we encourage those affected by the disaster to contact their mortgage servicer to discuss assistance options 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.

Freddie Mac: Disaster Relief Policies for Homeowners Affected by Spring Flooding

Posted on by Safeguard

Investor Update
March 27, 2019

Source: Freddie Mac

MCLEAN, Va., March 27, 2019 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today reminded mortgage servicers of its disaster relief policies for borrowers who have been affected by the spring flooding in the Midwest. 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 the flooding.

“We stand ready to ensure mortgage relief is made available to those affected by the spring season floods,” 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 have been impacted by the flooding to call their mortgage servicer—the company to which borrowers send their monthly mortgage payments—to learn about available relief options.”

News Facts:

•Freddie Mac Single-Family disaster relief policies authorize mortgage servicers to help affected borrowers in eligible disaster areas: those 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 eligible disaster 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 the flooding, but who live and 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/natural_disasters.html for a description of Freddie Mac’s Single-Family 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, investors and taxpayers. Learn more at FreddieMac.com, @FreddieMacand Freddie Mac’s blog.

MEDIA CONTACT: Chad Wandler
703-903-3974
Chad_Wandler@FreddieMac.com