Safeguard Properties

Winter Storm Prompts Governor Declaration in Oregon

Posted on by Safeguard

Disaster Alert
February 28, 2019

Source: Office of Oregon Governor Kate Brown

Additional Resource:

Associated County ZIP Code List

Salem, OR—Governor Brown today declared a state of emergency in ten Oregon counties due to severe winter storm conditions: Coos, Curry, Deschutes, Douglas, Jackson, Josephine, Klamath, Lane, Linn, and Marion. This declaration comes at the request of local officials and is based on the recommendations of the Oregon Office of Emergency Management (OEM).

“As our state and local authorities continue to work hard to clear roads, reconnect power, and ensure the safety of the community, this declaration will provide additional resources and the potential for federal highway system funds in the future,” said Governor Brown. “I urge all Oregonians to follow the recommendations of local authorities, and avoid travel while ODOT crews work on the roads and restore core services.”

Governor Brown’s declaration directs OEM to coordinate the deployment of the Oregon Department of Transportation (ODOT), Oregon State Police, and the Oregon National Guard to support local communities as needed. OEM will facilitate the access and use of state resources, personnel, and equipment to protect communities, property, and the environment, and aid in the recovery from heavy snow and ice accumulation, high winds, flooding, and landslides. The declaration will also enable ODOT to activate the Federal Highway Administration Emergency Relief Program to help repair transportation systems. The state of emergency will be in effect for 30 days, unless terminated sooner by the Governor.

The Office of Emergency Management will continue to provide regular updates, which will be made available here: https://twitter.com/oregonoem}(https://twitter.com…

Ogdensburg Land Bank Up and Running

Posted on by Safeguard

Land Bank Update
February 14, 2019

Source: The Journal

OGDENSBURG — The Ogdensburg Land Bank Corporation officially acquired 13 tax delinquent properties from the city on Monday, marking a historic first step in the fledgling organization’s effort to fight neighborhood blight and improve the community’s tax base.

City officials were notified by Empire State Development in May 2018 that the municipality had been accepted into the state Land Bank Program. Since then the state has also awarded the city $600,000 to get the program up and running.

Land banks are public nonprofit authorities designed specifically to deal with vacant, abandoned and tax-delinquent properties. Once a state land bank is approved in a municipality, special state funding is made available to rehabilitate delinquent properties, making them more appealing to prospective buyers.

Ogdensburg City Council voted unanimously Monday to sell 13 municipal properties acquired for non-payment of taxes to the Ogdensburg Land Bank at a price of $1, plus attorney and filing fees.

For full article, please click the source link above.

Land Bank Will No Longer Oversee Beleaguered Detroit Demo Program

Posted on by Safeguard

Land Bank Update
March 7, 2019

Source: Detroit Free Press

The Detroit Land Bank Authority will no longer oversee the city’s demolition program by the end of this year, Mayor Mike Duggan announced Thursday during his annual budget presentation, saying demos will transition to being fully administered by the city.

The move represents a major shift for the beleaguered program, which has faced intense scrutiny in recent years for its practices.

The program has been fueled by more than $250 million in Hardest Hit Fund dollars from the U.S. Department of Treasury and is currently jointly overseen by the Detroit Building Authority and Land Bank. So far, more than $176 million has actually been spent but Duggan said the remaining dollars will be disbursed by the end of the year.

A timeline of the transition period wasn’t immediately clear.

“The Land Bank will be out of the demolition business,” Duggan said, while addressing the City Council. “At this point … we’re done.”

For full article, please click the source link above.

Pottstown Land Bank Getting Underway

Posted on by Safeguard

Land Bank Update
March 7, 2019

Source: The Mercury

POTTSTOWN — The new land bank in town is getting underway, adopting guidelines and selecting staff.

Peggy Lee-Clark, the director of PAID, Pottstown’s economic development organization, will also be the director of the land bank.

Although her appointment is not yet formalized, Borough Manager Justin Keller confirmed the arrangement and was discussed in January, according to the minutes of the Jan. 28 land bank board meeting.

The law firm of Wolf-Baldwin Associates, which employs Borough Solicitor Charles D. Garner Jr., will also provide legal services to the land bank and Assistant Borough Solicitor Matthew Hovey was at the Feb. 25 land bank board meeting fulfilling that role.

For now, the borough is covering the legal costs for the land bank as well as providing $25,000 worth of seed money, Keller said.

For full article, please click the source link above.

USDA: Help Resources

Posted on by Safeguard

Investor Update
March 8, 2019

Source: USDA

In order to provide our lenders and servicers with the highest level of customer service, we encourage use of the USDA LINC Training and Resource Library at https://www.rd.usda.gov/programs-services/lenders/usda-linc-training-resource-library. Lenders and servicers will find almost every issue addressed in the library including web-based training on origination and servicing issues, Frequently Asked Questions (FAQs), and user guides for our information technology systems {ex. GUS, Electronic Status Reporting (ESR), and Annual Fee}.

If you are unable to find the information on USDA LINC, please send an email outlining your question to: sfhgld.program@wdc.usda.gov. Do not send specific applicant or borrower information without proper protection of Personally Identifiable Information (PII). We will route your question to an employee with the appropriate skill set and availability to respond to your request. We believe that use of this central email box will allow us to respond to questions with greater accuracy and speed.

Questions regarding this notice may be directed to the Single-Family Housing Guaranteed Loan Division at (202) 720-1452.

Help Resources

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)

Fannie Mae: Lender Letter LL-2019-03: Interest Rate Spread for Fixed-Rate MBS and Servicing Fee Requirements for Fixed-Rate Loans

Posted on by Safeguard

Investor Update
March 5, 2019

Source: Fannie Mae

As we continue to prepare for the implementation of the Uniform Mortgage-Backed Security (UMBS™), the Federal Housing Finance Agency (FHFA) has instructed Fannie Mae and Freddie Mac (the GSEs) to undertake activities that promote aligned investor cash flows for their TBA-eligible mortgage-backed securities. Pursuant to FHFA’s instruction we are changing the allowable interest (note) rate spread in fixed-rate MBS and changing the maximum servicing fee permitted for fixed-rate loans.

Interest Rate Spread
For most fixed-rate loans the maximum allowable interest rate is 250 basis points above the pool’s pass-through-rate. We are updating this policy to limit the interest rate for each fixed-rate loan in a pool to no more than 112.5 basis points above the pass-through rate of the pool.

This updated policy is effective for loans delivered into pools with issue dates on or after June 1, 2019.

FHFA has instructed the GSEs to monitor the weighted-average coupon (WAC) of MBS and take actions as appropriate such that MBS WAC would be generally consistent with historical WAC levels. FHFA and the GSEs are working to determine an appropriate target MBS WAC, such as 80 bps or slightly higher (given current guaranty fees and minimum servicing levels).

Servicing Fee
We are updating our servicing fee policies to limit the servicing fee to a maximum of 50 basis points for all fixed-rate loans delivered to us. In other words, the maximum servicing fee shall not be more than 25 basis points above the standard 25 basis point servicing fee. The 50-basis point maximum is inclusive of any lender-paid mortgage insurance (LPMI) premium.

This updated policy is effective for whole loans delivered, and loans delivered into pools with issue dates, on or after June 1, 2019.

NOTE: We will publish these changes in the Selling and Servicing Guides in future updates.

Lenders who have questions about this Lender Letter should contact their Fannie Mae account team.

Carlos T. Perez
Senior Vice President and
Chief Credit Officer for Single-Family

Fannie Mae: Modification Interest Rate Adjustment Update

Posted on by Safeguard

Investor Update
March 7, 2019

Source: Fannie Mae

The Fannie Mae Modification Interest Rate is subject to periodic adjustments based on an evaluation of prevailing market rates. The servicer must use the current Fannie Mae Modification Interest Rate indicated below when evaluating a borrower for a conventional mortgage loan modification.

NOTE: As a reminder, the interest rate used to determine the final modification terms must be the same fixed interest rate that was used when determining eligibility for the Trial Period Plan and calculating the Trial Period Plan payment.

Freddie Mac: Industry Letter Announces Updated Requirements Related to Single Security

Posted on by Safeguard

Investor Update
March 5, 2019

Source: Freddie Mac

Today, we published an Industry Letter [pdf] as a follow up to the final rule the Federal Housing Finance Agency (FHFA) adopted on February 28, 2019, supporting the Single Security Initiative.

As instructed by FHFA, Freddie Mac and Fannie Mae will modify their pooling practices for fixed-rate mortgages to enhance the fungibility of the Uniform Mortgage-Backed Security™ (UMBS™).

Our Industry Letter announces changes to our requirements to the note rate to coupon spreads and a reduction in the maximum Minimum Contract Servicing Spread for mortgages serving as collateral for UMBS and Mortgage-backed Securities (MBS).

The changes will be effective for mortgages sold under the Freddie Mac fixed-rate Guarantor program and MultiLender Swap program with settlement dates on and after June 3, 2019. These changes will be reflected in the Single-Family Seller/Servicer Guide (Guide) with the publication of a Guide Bulletin in the near future.

Please review our Industry Letter [pdf] for more details.

For more Information on the Single Security Initiative

•Review the Single Security Market Adoption Playbook [pdf]
•Check out our Single Security Readiness Checklist for Seller/Servicers [pdf]
•Visit the Freddie Mac Single Security web page
•Contact your Freddie Mac representative

Freddie Mac: We’re Re-Imagining Servicing with a New Rewards Program, and More

Posted on by Safeguard

Investor Update
March 4, 2019

Source: Freddie Mac

Announcing Reimagine Servicing – Innovation Starts Here

At Freddie Mac, we believe in loan servicing by, for and about Servicers. Our journey starts with you – we’ve heard your feedback and we’re using it as the foundation for our innovation roadmap.

Today, we’re launching our Reimagine Servicing initiative, a collective effort to transform the servicing landscape. Imagine greater speed and efficiency in our technology applications, improved data quality and collection methods, and simplified processes. We’re committed to innovating new solutions that improve efficiency and minimize credit losses, while making it easier for you to do business with us.

Over the coming weeks and months, we’ll share more about the Reimagine Servicing journey. Please continue to visit our Servicing web page for the latest news and information about specific projects and technology releases that will transform your day-to-day operations.

Together, let’s Reimagine Servicing.

Recognizing You – A New Servicing Rewards Program

As part of our Reimagine Servicing initiative, we’re proud to recognize Servicers for their successes, since success means we’re moving the industry forward together.

We’ve designed the new Freddie Mac Servicer Honors and Recognition Program (SHARP)SM offering well-deserved rewards and public recognition to our top servicing clients. This program recognizes and rewards Servicer performance through defined metrics, benchmarks and requirements.

No Action Required

If you fall into rank groups 1, 2 or 3 and meet the criteria for receiving an annual rank, you are automatically enrolled to receive rewards through Freddie Mac SHARP.

Effective January 1, 2019, Servicer performance under Freddie Mac SHARP is now tied to financial incentives. Based on a Servicer’s Servicer Success Scorecard annual ranking, you are eligible to receive rewards if certain criteria is met (see ranking specifics).

We recently announced Servicing Guide updates (see the December 12, 2018 Guide Bulletin [pdf] for details), which included the following changes to the Scorecard in relation to Freddie Mac SHARP:

•Revising how Servicers are segmented into rank groups

•Amending weights for the default management metrics.

We’ll provide additional information on these changes in the March Servicing Guide update.

Get SHARP

Access your January 2019 Scorecard (released on February 28, 2019) by logging into the Performance Profile. Don’t have access? Sign up here and start finding ways to improve your servicing performance.

Stay sharp with the latest news and information on our new web page. For questions, please contact your Servicing Relationship Manager (SRM).

HUD: Disaster Assistance for Alabama Tornado Victims

Posted on by Safeguard

Investor Update
March 6, 2019

Source: HUD

Foreclosure protection offered to displaced families in Lee County

WASHINGTON – Following the Trump Administration’s major disaster declaration in the wake of this week’s deadly tornado in Alabama, the U.S. Department of Housing and Urban Development (HUD) will provide mortgage relief and other support to homeowners and low-income renters forced from their homes in Lee County, Alabama.

The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in impacted 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 counties covered under yesterday’s 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.