Source: Fannie Mae

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

• Homeowners impacted by Hurricane Florence are eligible to stop making mortgage payments for 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.

“We want to ensure those in the path of Hurricane Florence have peace of mind and time to focus on their safety,” said Carlos Perez, Senior Vice President and Chief Credit Officer at Fannie Mae. “Fannie Mae and our lending and servicing partners are focused on ensuring assistance is offered to individuals and families in need. We also continue to work with our Multifamily DUS® lenders and borrowers to determine appropriate actions to assist renters impacted by the storm. We urge everyone in the area to be safe, and we encourage homeowners affected by the storm to contact their mortgage servicer for 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.

Source: Freddie Mac

MCLEAN, Va., Sept. 12, 2018 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB: FMCC) today reminded Servicers of its disaster relief policies for borrowers who have been affected by Hurricane Florence. 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 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 hurricane.

“It is important for those in the Carolinas and nearby states to focus on their safety as Hurricane Florence approaches,” said Yvette Gilmore, Freddie Mac’s Vice President of Single-Family Servicer Performance Management. “Once out of harm’s way, we strongly encourage homeowners whose homes or places of employment have been impacted by Hurricane Florence to call their mortgage Servicer—the company to which borrowers send their monthly mortgage payments—to learn about available relief options. We stand ready to ensure that mortgage relief is made available.”

News Facts:

• Freddie Mac 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 servicers to consider borrowers who are impacted by the storm, 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 disaster relief policies.

Source: FHFA

July 2018 Highlights

• Total refinance volume decreased in July 2018 as mortgage rates in June remained above the levels observed in 2017.  Mortgage rates decreased in July: the average interest rate on a 30-year fixed rate mortgage fell to 4.53 percent from 4.57 percent in June.

In July 2018:

• Borrowers completed 696 refinances through HARP, bringing total refinances from the inception of the program to 3,491,836.
• HARP volume represented 1 percent of total refinance volume.
• Eight percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.
• Year to date through July 2018:
• Borrowers with loan-to-value ratios greater than 105 percent accounted for 16 percent of the volume of HARP loans.
• Thirty-three 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 3 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.
• Ten states accounted for over 70 percent of the nation’s HARP eligible loans with a refinance incentive as of March 31, 2018.

Attachments: Refinance Report – July 2018

Source: MHA

In connection with the October 2018 release of the HAMPReporting System, an updated version of the following Data Dictionary was posted on HMPadmin.com:

• HAMP Data Dictionary – 10/01/2018 Release

Source: HUD

Today, the Federal Housing Administration (FHA) is issuing this reminder to mortgagees about its guidance for originating and/or servicing FHA-insured forward and reverse mortgages in locations in the
U.S. and its territories when the President declares it a major disaster area. This declaration is made when natural or other events are of such severity that it is beyond the combined capabilities of state and local governments to respond. The following guidance applies to all areas covered by a Presidentially-Declared Major Disaster Area (PDMDA):

• FHA-insured mortgages secured by properties in a PDMDA are subject to a 90-day foreclosure moratorium following the disaster.
• FHA-insured reverse mortgages (HECMs) that become due and payable for reasons other than the death of the last surviving borrower and eligible nonborrowing spouse are subject to a 90-day extension of HECM foreclosure timelines.
• In PDMDAs only, HUD provides mortgagees an automatic 90-day extension from the date of the foreclosure moratorium expiration date to commence or recommence foreclosure action or evaluate the borrower under HUD’s loss mitigation program.

Mortgagees should review complete servicing guidance in the Single Family Housing Policy Handbook 4000.1 (SF Handbook), Sections III.A.2 and III.A.3.c relating to the servicing of mortgages in PDMDAs.

Mortgagees are reminded that they should begin reaching out to affected borrowers who may require loss mitigation assistance as soon as possible post-disaster. In preparation for assisting homeowners with longer-term recovery efforts, mortgagees should also review:

• FHA’s 203(h) Mortgage Insurance for Disaster Victims requirements in Section II.A.8.b of the SF Handbook. The 203(h) program allows FHA to insure mortgages for victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.
• FHA’s 203(k) Rehabilitation Mortgage Insurance Program requirements in Section II.A.8.a of the SF Handbook. The 203(k) program provides mortgage financing or refinancing which includes the cost of home repairs – both structural and non-structural – into the loan amount.

Mortgagees can find more information about the policies referenced above and other FHA PDMDA policies on the FHA Resource Center’s Online Knowledge Base.

Quick Links

• Access the SF Handbook in online or portable document format from HUD’s Client Information Policy Systems Housing Handbooks web page at:
  https://portal.hud.gov/hudportal/HUD?src=/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.

Source: Fannie Mae

Reverse Mortgage Loan Servicing Manual Update

The Reverse Mortgage Loan Servicing Manual has been updated to include changes related to the servicer requirement to pay ground rents, co-op fees and assessments, and property taxes for certain properties in Fannie Mae’s REO inventory. This policy change is applicable to all reverse mortgage loans.

Relieving Servicers of Additional Responsibilities for Paying Escrow-Related Expenses on Acquired Properties

We continue to review our policies in order to relieve servicers of post-foreclosure sale responsibilities, where possible. In 2017, we accepted responsibility to pay property taxes for acquired properties with a foreclosure sale date or final acceptance of an executed Mortgage Release occurring on or after July 1, 2017 for reverse mortgage loans. We are now accepting responsibility to pay property taxes for all acquired properties in REO inventory, including acquired properties with a foreclosure or Mortgage Release date that precedes the mentioned effective dates.

Additionally, to further reduce servicers’ costs and operational risk, Reverse Mortgage Loan Servicing Manual 5-04, Property Management has been further updated to remove the requirement that servicers pay co-op fees and assessments or ground rents for certain acquired properties in Fannie Mae’s REO inventory, except when directed by Fannie Mae.

Effective Date

Fannie Mae will assume responsibility for

• property taxes for all acquired properties effective on October 1, 2018, without regard to the foreclosure sale or Mortgage Release date;
• ground rents for all acquired properties effective on October 1, 2018, without regard to the foreclosure sale or Mortgage Release date; and
• co-op fees and assessments for all acquired properties with a foreclosure sale or Mortgage Release date occurring on or after October 1, 2018.

Contact your Reverse Mortgage Loan Servicing Representative in Fannie Mae’s Single-Family Servicer Support Center at
1-800-2FANNIE (1-800-232-6643) with any questions regarding this Announcement.

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