Safeguard Properties

VA: Circular 26-19-07: Special Relief Following Alabama Severe Storms, Straight-line Winds and Tornadoes

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Investor Update
March 8, 2019

Source: VA

1. Purpose. This Circular expresses concern about the Department of Veterans Affairs (VA) home loan borrowers affected by severe storms, straight-line winds and tornadoes in the state of Alabama, 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.FR. 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 April 1, 2020.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

FHFA: Foreclosure Prevention Report

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Investor Update
March 21, 2019

Source: FHFA

Fourth Quarter 2018 Highlights

The Enterprises’ Foreclosure Prevention Actions:

•The Enterprises completed 41,062 foreclosure prevention actions in the fourth quarter, bringing the total to 4,283,836 since the start of conservatorships in September 2008. Of these actions, 3,591,985 have helped troubled homeowners stay in their homes, including 2,314,121 permanent loan modifications.

•Twenty-eight percent of modifications in the fourth quarter were modifications with principal forbearance.  Modifications with extend-term only accounted for 65 percent of all loan modifications during the quarter.

•There were 1,781 completed short sales and deeds-in-lieu during the quarter, bringing the total to 691,851 since the conservatorships began in September 2008.

The Enterprises’ Mortgage Performance: 

•The percentage of 60+ days delinquent loans dropped from 1.13 percent at the end of the third quarter to 1.08 percent at the end of the fourth quarter.

•The Enterprises’ serious (90 days or more) delinquency rate decreased to 0.73 percent at the end of the fourth quarter. This compared with 3.8 percent for Federal Housing Administration (FHA) loans, 2.0 percent for Veterans Affairs (VA) loans, and 2.1 percent for all loans (industry average).

The Enterprises’ Foreclosures:

•Foreclosure starts increased 11 percent to 36,002 while third-party and foreclosure sales decreased 8 percent to 11,510 in the fourth quarter.

For an interactive online map that provides state data, click on the following link: Fannie Mae and Freddie Mac State Borrower Assistance Map 

Related News Release

Attachments: Foreclosure Prevention Report – 4Q 2018

Freddie Mac: FHLMC Guide Bulletin 2019-6

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Investor Update
March 13, 2019

Source: Freddie Mac

Single-Family Seller/Servicer Guide (Guide) Bulletin 2019-6 [pdf] announces:

•The Freddie Mac Servicer Honors and Rewards Program (SHARP)℠.

•Updates to our Servicer requirements for REO properties.

•Changes to the Servicer Success Scorecard.

•Updates to the Investor Reporting Change Initiative.

For more information:

•Read Guide Bulletin 2019-6 [pdf].

•Visit the Freddie Mac SHARP webpage.

Freddie Mac: UMBS to be Issued Based on Revised TBA Guidelines

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Investor Update
March 11, 2019

Source: Freddie Mac

With the approval of revised guidelines for the “To-Be-Announced” (TBA) market, we announced today that we are set to issue the first Freddie Mac 55-day payment delay, TBA-eligible Uniform Mortgage-Backed Security™ (UMBS™) on June 3, 2019.

Our announcement follows the recent update to the Securities Industry and Financial Markets Association’s (SIFMA) good delivery guidelines to enable trading of UMBS issued by Freddie Mac and Fannie Mae in the TBA market.

As a reminder, we will no longer issue new Gold Participation Certificates (PCs) with a 45-day payment delay after May 31, 2019.

For More Information on Single Security

•Single Security Market Adoption Playbook [pdf]

•Single Security Readiness Checklist for Seller/Servicers [pdf]

•Single Security Webpage

FHFA: Refinance Report

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Investor Update
March 14, 2019

Source: FHFA

•Total refinance volume in January 2019 was similar to December as mortgage rates fell in December after rising in previous months.  Mortgage rates decreased in January: the average interest rate on a 30‐year fixed rate mortgage fell to 4.46 percent from 4.64 percent in December.

In January 2019:

•Borrowers completed 438 refinances through HARP, bringing total refinances from the inception of the program to 3,494,833.

•HARP volume represented 1 percent of total refinance volume.

•Five percent of the loans refinanced through HARP had a loan‐to‐value ratio greater than 125 percent.

•Borrowers with loan‐to‐value ratios greater than 105 percent accounted for 21 percent of the volume of HARP loans.

•Thirty-one percent of HARP refinances for underwater borrowers were for shorter‐term 15‐ and 20‐year mortgages, which build equity faster than traditional 30‐year mortgages.

•HARP refinances represented 2 percent of total refinances in Illinois compared to 1 percent of total refinances nationwide over the same period.

•Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program.

•Nine states and one territory accounted for over 70 percent of the nation’s HARP eligible loans with a refinance incentive as of June 30, 2018.

Attachments: Refinance Report – January 2019

HUD: FHA INFO #19-08: Training Opportunities

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Investor Update
March 15, 2019 

Source: HUD

Webinar Title: NEW
Webinar I: Overview HUD Early Delinquency Activities and Loss Mitigation Programs
Date/Time: Wednesday, April 3, 2019, 2:00 PM to 4:00 PM (Eastern)
Event Location: On-line Webinar — No Fee
Jurisdictional Host: National Servicing Center
Registration Link: https://attendee.gotowebinar.com/register/854713457607514114
Description: Representatives from the Federal Housing Administration (FHA) will provide an overview of FHA-approved servicer requirements to include: early delinquency activity; timelines; general loss mitigation; evaluation of the borrower’s financial condition; and collections best practices.
Audience: This webinar is open to FHA servicing industry participants.
Special Instructions: A valid company email address is required at the time of registration. For additional information, please email: stacey.a.brown@hud.gov

For full list of opportunities, please click the source link above.

Historic Midwest Flooding Forces Hundreds from Homes

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Updated 6/17/19: FEMA issued a Presidential Major Disaster Declaration for the Ponca Tribe of Nebraska as a result of severe storms and flooding that took place March 13 to April 1, 2019.

Link to FEMA Alert

Updated 6/11/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Iowa affected by severe storms and flooding that took place March 12 to May 16, 2019.

Link to FEMA Alert

Updated 5/31/19: FEMA issued an update to an Emergency Declaration for areas in Kansas affected by tornadoes and flooding beginning on May 9, 2019 and continuing.

Link to declaration (designated areas)

Associated County ZIP Code List

Updated 5/29/19: FEMA issued an Emergency Declaration for areas in Louisiana affected by flooding beginning on May 10, 2019 and continuing.

Link to Declaration

Associated County ZIP Code List

Updated 5/28/19: FEMA issued an Emergency Declaration for areas in Kansas affected by flooding beginning on May 9, 2019 and continuing.

Link to Declaration

Associated County ZIP Code List

Updated 5/10/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Iowa affected by severe storms and flooding beginning on March 12, 2019 and continuing.

Link to FEMA Alert

Updated 5/8/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Iowa affected by severe storms and flooding beginning on March 12, 2019 and continuing.

Link to FEMA Alert

Updated 5/7/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Iowa affected by severe storms and flooding beginning on March 12, 2019 and continuing.

Link to FEMA Alert

Updated 5/6/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Nebraska affected by a severe winter storm, straight-line winds and flooding that took place March 9 to April 1, 2019.

Link to FEMA Alert

Updated 5/6/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Alabama affected by severe storms, straight-line winds, tornadoes, flooding and landslides that took place February 19 to March 20, 2019.

Link to FEMA Alert

Updated 4/15/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Iowa affected by severe storms and flooding beginning on March 12, 2019 and continuing.

Link to FEMA Alert

Updated 4/15/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Nebraska affected by a severe winter storm, straight-line winds and flooding that took place March 9 to April 1, 2019.

Link to FEMA Alert

Updated 4/10/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Nebraska affected by a severe winter storm, straight-line winds and flooding that took place March 9 to April 1, 2019.

Link to FEMA Alert

Updated 4/8/19: On April 8, the VA issued a circular that expresses concern about VA home loan borrowers affected by floods in Nebraska, and describes measures mortgagees may employ to provide relief.

Link to Investor Update

Updated 4/5/19: The U.S. Department of Housing and Urban Development (HUD) announced the approval of disaster assistance for the state of Nebraska and will provide support to homeowners and low-income renters forced from their homes in areas affected by severe winter storms, straight-line winds, and flooding.

Link to Investor Update

Updated 4/5/19: The U.S. Department of Housing and Urban Development (HUD) announced that 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.

Link to Investor Update

Updated 3/30/19: FEMA issued an update to a Presidential Major Disaster Declaration for areas in Nebraska affected by a severe winter storm, straight-line winds and flooding beginning March 9, 2019 and continuing.

Link to FEMA Alert

Updated 3/29/19: The U.S. Department of Veterans Affairs (VA) issued a circular that expresses concern about VA home loan borrowers affected by severe storms and flooding in Iowa and describes measures mortgagees may employ to provide relief.

Link to Investor Update

Updated 3/27/19: Fannie Mae issued a news release reminding homeowners and servicers impacted by flooding across the Missouri River Basin of available mortgage assistance options.

Link to Investor Update

Updated 3/27/19: Freddie Mac issued a news release reminding mortgage servicers of its disaster relief policies for borrowers affected by flooding in the Midwest.

Link to Investor Update

Updated 3/25/19: The Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the state regulators issued a joint statement encouraging financial institutions operating in affected Midwest flood areas to meet the financial services needs of their communities.

Link to Investor Update

Updated 3/23/19: FEMA issued a Presidential Major Disaster Declaration for areas in Iowa affected by severe storms and flooding beginning on March 12, 2019 and continuing.

Link to FEMA Alert

Updated 3/21/19: FEMA issued a Presidential Major Disaster Declaration for areas in Nebraska affected by a severe winter storm, straight-line winds and flooding beginning March 9, 2019 and continuing.

Link to FEMA Alert

Updated 3/21/19: Governor Kim Reynolds requested an expedited FEMA Presidential Major Disaster Declaration for areas in Iowa affected by severe storms and flooding beginning on March 12, 2019 and continuing.

FEMA Coverage

Associated County ZIP Code List

Updated 3/21/19: Missouri Governor Michael L. Parson issued a statewide emergency declaration as a result of severe weather and river flooding beginning on March 11, 2019 and continuing.

Link to declaration

Associated County ZIP Code List

Updated 3/20/19: The Weather Channel issued a report outlining initial Midwest flood damage estimates.

Link to report

Updated 3/20/19: Governor Pete Ricketts requested an expedited FEMA Presidential Major Disaster Declaration for areas in Nebraska affected by flooding, rain, high water, wind-driven rain, hail, lightning, straight-line winds and winter storms beginning on March 9, 2019 and continuing.

Media Coverage (KMTV CBS 3)

Associated County ZIP Code List

Please be advised of the following tribal areas included in the above request:

  • Omaha Tribe of Nebraska (Public Assistance; Thurston, Cuming, Burt counties)
  • Ponca Tribe of Nebraska (Public Assistance; Knox County)
  • Sac and Fox Nation (Public Assistance; Richardson County)
  • Santee Sioux Nation (Individual/Public Assistance; Knox County)
  • Winnebago Tribe (Public Assistance; Thurston, Dixon counties)

NOTE: This has NOT yet been declared a FEMA Disaster.

Updated 3/20/19: The Nebraska Emergency Management Agency (NEMA) announced additional counties covered under an emergency declaration.

NEMA on Twitter (declaration updates)

Updated County ZIP Code List

Flood damage estimates/information (NEMA)

Updated 3/19/19: The Weather Channel issued a report offering an update on extreme river flooding affecting the Midwest.

Link to report

Updated 3/19/19: Iowa Governor Kim Reynolds issued a supplemental emergency proclamation adding five additional counties impacted by flooding and flash flooding.

Link to proclamation

Updated County ZIP Code List

Updated 3/19/19: The Nebraska Emergency Management Agency (NEMA) announced additional counties covered under an emergency declaration.

NEMA on Twitter (declaration updates)

Updated County ZIP Code List 

NOTE: This is independent from any FEMA Disaster Declaration.


Disaster Alert
March 17, 2019 

Source: NBC News

Additional Resources: 

Related Governor Emergency Declarations:

Iowa
Declaration (3/14/19)

Supplemental Declaration (3/15/19)

Associated County ZIP Code List


Kansas
Declaration (KPR 3/17/19)

Associated County ZIP Code List


Nebraska
Declaration (3/15/19)

Associated County ZIP Code List


South Dakota 
Declaration (3/15/19)

Associated County ZIP Code List


Wisconsin
Declaration (3/15/19)

Associated County ZIP Code List

NOTE: The above declarations are independent from any FEMA Disaster Declaration.

Flood warnings and advisories remained in effect Sunday evening across eastern Nebraska, southern Wisconsin and parts of Iowa. The NWS said major flooding was expected to continue across the region as late as Wednesday.

The Missouri River reached 30.2 feet in Fremont County in far southwestern Iowa on Sunday, breaking the record by 2 feet and topping levees in the towns of Bartlett and Thurman. A levee was breached on the Platte River near North Bend, northwest of Omaha, Nebraska, on Sunday afternoon; authorities urged all residents to move to higher ground immediately.

Nebraska Emergency Management Agency said Sunday it was monitoring 17 flood locations across the state and expected more record crests in the next 24 to 48 hours.

Also on Sunday, Iowa Gov. Kim Reynolds said 38 counties have received a disaster proclamation and more than 110 homes were damaged by floods in the western city of Hornick. She and the governors of Nebraska and Wisconsin all declared states of emergency.

For full article, please click the source link above.

Tornadoes, Severe Storms Ravage Areas from Ohio Valley Through Lower Mississippi Valley

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Disaster Alert
March 15, 2019

Source: AccuWeather

Additional Resource:

Detroit Free Press (More Than 70 Homes Damaged by Mid-Michigan Tornadoes)

Approximate locations containing home damage:

Alabama
Springville  (St. Clair County, 35146)
White City (Autauga County, 35077)

Kentucky
Paducah (McCracken County, 42001, 42002, 42003)

Michigan
Vernon Township (Shiawassee County, 48476)

NOTE: This has not yet been declared a FEMA Disaster.

Severe thunderstorms steadily marched across the Ohio and lower Mississippi valleys on Thursday, spreading showers and thunderstorms that produced damaging wind gusts and tornadoes.

“An unusually warm air mass ahead of a strong cold front helped lead to widespread severe thunderstorms, reaching as far north as Michigan,” AccuWeather Metrorologist Brett Rathbun said.

“There was enough rotation in the atmosphere for several thunderstorms to either be tornado warned or produce tornadoes.”

A tornado just missed hitting the National Weather Service forecast office in West Paducah, Kentucky, during the late-morning hours on Thursday. Tornadoes were also reported in central Alabama and at least one in central Michigan late Thursday afternoon.

For full report, please click the source link above.

Storm Damage Reported Throughout New Mexico and Texas

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Updated 3/13/19: AccuWeather issued a report outlining tornadic activity in New Mexico.

Link to report

Approximate locations containing home damage:

New Mexico
Dexter (Chaves County, 88230)

NOTE: This has not yet been declared a FEMA Disaster.

Disaster Alert
March 13, 2019

Source: CBS 11

Approximate locations containing home damage:

Texas
Godley (Johnson County, 76044)

NOTE: This has not yet been declared a FEMA Disaster.

(CBSDFW.COM) – It was a rude awakening for North Texans Wednesday morning as severe weather and powerful winds moved through the area.

Throughout the early morning hours, residents said they heard emergency sirens wailing to warn of the threat of damaging winds. There were no tornado warnings issued in the Metroplex during the round of storms.

There were reports of damage throughout the area due to the damaging winds that reportedly reached up to 70 miles per hour in parts of North Texas.

Emergency officials reported damage to homes in Johnson County and tweeted pictures of a mobile home that overturned on to a car near Bramblett Road and Highway 4, southeast of Cleburne. One person inside the home was injured and taken to the hospital.

For full article, please click the source link above.

Ohio Governor Declares State of Emergency in Response to Flooding

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Disaster Alert
March 11, 2019

Source: Office of Ohio Governor Mike DeWine

Additional Resource:

Associated County ZIP Code List

(COLUMBUS, Ohio)— Ohio Governor Mike DeWine announced today that he has declared a state of emergency in 20 Ohio counties impacted by damaging flooding last month.

Ohio counties included in the governor’s emergency proclamation include: Adams, Athens, Brown, Gallia, Guernsey, Hocking, Jackson, Jefferson, Lawrence, Meigs, Monroe, Morgan, Muskingum, Noble, Perry, Pike, Ross, Scioto, Vinton, and Washington.

“Many of these counties were still recovering from last year’s severe flooding when they were hit hard yet again,” said Governor DeWine. “This is a key step in getting these 20 counties the assistance they need.”

The counties suffered from significant infrastructure damage as heavy rains poured down on already-saturated soils, damaging public infrastructure like roads and culverts. Beginning February 5 and lasting through February 13, severe storms and excessive rainfall created “dangerous and damaging conditions affecting the health, safety and welfare of the citizens of Ohio,” according to the governor’s proclamation.

The state of emergency proclamation authorizes various state departments and agencies to coordinate the state and federal response and to assist local government in protecting the lives, safety, health, and property of the residents of Ohio.

Representatives from FEMA and the Ohio Emergency Management Agency will be meeting with county and township officials in each of the 20 counties this week to assess the extent of damages in a process called a “joint damage assessment.”

Heavy rains and severe storms in February 2018 led to an emergency proclamation and a Major Presidential Disaster in 20 Ohio counties (14 of which are included in this year’s proclamation).