Safeguard Properties

VA: Circular 26-18-17: Special Relief Following Hurricane Lane

Posted on by Safeguard

Investor Update
August 30, 2018

Source: VA

1. Purpose. This Circular expresses concern about the Department of Veterans Affairs (VA) home loan borrowers affected by Hurricane Lane, 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 Hurricane Lane. 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 VA-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 any termination action, VA has requested on its website (https://www.benefits.va.gov/homeloans) that holders establish a 90day 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 VA-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 October 1, 2019.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

OCC: BULLETIN 2018-26: Updated Comptroller?s Handbook Booklet

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Investor Update
August 31, 2018

Source: OCC

Summary

The Office of the Comptroller of the Currency (OCC) today issued the updated1 “Other Real Estate Owned” booklet of the Comptroller’s Handbook, which provides guidance to examiners on banks’ acquisition, reporting, management, and disposition of other real estate owned (OREO). The updated booklet includes accounting changes for foreclosed property under contract, in accordance with the Financial Accounting Standards Board’s Accounting Standards Codification Subtopic 360-20, Subtopic 610-20, and Topic 606. Other updates were made to the booklet, as summarized in the “Highlights” section of this OCC Bulletin and in the “Table of Updates Since Publication” section of the OREO booklet.

Rescissions

The updated booklet replaces the booklet of the same title issued in September 2013. Also replaced is OCC Bulletin 2013-20, “Other Real Estate Owned: Comptroller’s Handbook Revisions and Rescissions.”

Note for Community Banks

This booklet applies to the OCC’s supervision of all national banks, federal savings associations (FSA), and federal branches and agencies (collectively, banks).

Highlights

The updated bookle

  • details changes to the accounting for sales of OREO by public business entities. The changes became effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years.
  • details changes to the accounting for sales of OREO by non-public business entities. The changes become effective for fiscal years beginning after December 15, 2018, and interim reporting periods within fiscal years beginning after December 15, 2019.
  • provides interim guidance on the OREO holding period for FSAs as a result of the integration of FSAs into 12 CFR 3.
  • includes clarifications regarding supervisory guidance, sound risk management practices, and legal language
  • clarifies the roles of the bank’s board of directors and management.
  • reflects the integration of FSAs into 12 CFR 7, subpart A, and 12 CFR 34, subpart C.
  • references third-party risk management guidance issued since the booklet’s last publication.

Further Information

Please contact the Commercial Credit Risk Policy Division at (202) 649-6670.

Grace E. Dailey
Senior Deputy Comptroller for Bank Supervision Policy and Chief National Bank Examiner

Related Links

Fannie Mae: Document-Free Expense Reimbursement; Know Your Options Training; and More

Posted on by Safeguard

Investor Update
September 5, 2018

Source: Fannie Mae

Coming soon – document-free expense reimbursement and self-service reporting

Expense reimbursements are about to get faster and easier. On Sept. 24, we’re introducing a new approach to expense reimbursement as part of our commitment to Simplifying Servicing™. In addition to document-free reimbursement claim submissions, you’ll soon have access to a new expense reimbursement dashboard, which will provide a single location for centralized reporting of claim, inquiry, and excess fee approval information. Visit the Simplifying Servicing page to stay up to date on these exciting enhancements.

Know Your Options Customer CARE live training

By popular demand, our Know Your Options™ Customer CARE (KYOCC) 7-step call flow training is now available to all servicers. Please join us for this interactive learning opportunity that will offer managers guidance on establishing consultative customer relationships by developing rapport, maintaining quality right party contact, and properly positioning available workout solutions. Space is limited, so sign up today for the Sept. 11 webinar.

Join us at these upcoming events:

Sept. 8-11 | NAHREP National Convention | San Diego
Sept. 12-14 | New England Mortgage Bankers Conference | Newport, RI
Sept. 17-18 | Digital Mortgage 2018 | Las Vegas

View more events.

Recent Tweets

From stabilizing our company to helping our customers better serve Americans, we’ve come a long way under our CEO Tim Mayopoulos. Via @HousingWire: https://t.co/3cBMnVMYr9

Sept. 5

Simplify your lending journey from day 1. Find out how #Day1Certainty can help with asset, income, and employment validation. http://bit.ly/2NjFeMs

Sept. 5

USDA: Proposed Rule – Streamlining the Loss Claims Process

Posted on by Safeguard

Investor Update
August 23, 2018

Source: USDA

On August 23, 2018, a Proposed Rule was published in the Federal Register seeking comments on proposed changes to streamline the loss claim process for lenders who have acquired title to property through voluntary liquidation or foreclosure; clarify that lenders must comply with applicable laws, including those within the purview of the Consumer Financial Protection Bureau; and better align loss mitigation policies with those in the mortgage industry.  Instructions for providing comments are included in the Federal Register Notice.
 
Questions regarding this announcement may be directed to SFHGLP in the Rural Housing National Office at 202-720-1452.

Help Resources

Policy Questions
Customer Service Center
Phone: 866-550-5887
Single Family Housing Guaranteed Loan Division
Phone: 202-720-1452
 
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)

USDA: Lender Electronic Status and Default Status Correction Requirement

Posted on by Safeguard

Investor Update
August 6, 2018

Source: USDA

This notification is to further remind USDA Guaranteed Loan Servicers of the new Electronic Status Reporting enhancement.  Please remember that status reports for ALL loans is now required monthly instead of quarterly.  Also, as part of the enhancement, servicers are required to complete Electronic Status and Default Report Corrections.  Please see USDA LINC Training and Resource Library for training and the ESR User Guide, which will assist you with access to the rejects needing corrections and completing the reject corrections.  
 
Authorized lenders will access the ESR Correction System using:  https://usdalinc.sc.egov.usda.gov/
 
Assistance with the ESR Correction System can be directed to RD.NFAOC.HSB@stl.usda.gov or via phone 1-877-636-3789 option 1

Help Resources

Policy Questions
Customer Service Center
Phone: 866-550-5887
Single Family Housing Guaranteed Loan Division
Phone: 202-720-1452
 
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)

MHA: Important Information on the HAMP? Reporting Tool and SSL Certificates

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Investor Update
August 6, 2018

Source: MHA

Black Knight is changing its provider of SSL certificates from Symantec to GlobalSign based upon notification that certain browser types will no longer trust certificates associated with Symantec. These changes will be applied in the Servicer Test environments (hamptest.blackknightdna.com, hampsftptest.blackknightdna.com) Thursday, August 9, 2018 and in the Production environments (hamp.blackknightdna.com, hampsftp.blackknightdna.com) on Sunday, August 12, 2018.

What is the impact for users of the HAMP Reporting Tool?
Please consult with your organization’s technical team to determine if your browser settings require the certificates to be installed to trust the certificate chain. It’s recommended this action, if necessary, be completed no later than August 12, 2018.

What must I do?
Your IT department may download and install the certificates from the following websites:

Questions?
Call 1-866-939-4469: select option 1 to indicate you are a Servicer, then option 1 for Black Knight Financial Services (BKFS).

HUD: FHA INFO #18-35: Extension of HECM Foreclosure Timelines for Properties Impacted by Hurricane Maria in Affected Areas in Puerto Rico and the U.S. Virgin Islands

Posted on by Safeguard

Investor Update
August 17, 2018

Source: HUD

Due to the extensive damage caused by Hurricane Maria in Puerto Rico and the U.S. Virgin Islands, the U.S. Department of Housing and Urban Development (HUD) is extending foreclosure timelines through September 15, 2018, for Home Equity Conversion Mortgages (HECM) on impacted properties in those Presidentially-Declared Major Disaster Areas (PDMDAs).

This extension is applicable only to those counties declared eligible for Individual Assistance by the Federal Emergency Management Agency (FEMA). It applies to both the initiation of foreclosures and foreclosures already in process on HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse.

This guidance is effective immediately and is applicable to all homeowners with FHA-insured HECM mortgages whose property or place of employment is in the PDMDAs for Puerto Rico’s Hurricane Maria (FEMA-DR-4339) and U.S. Virgin Islands’ Hurricane Maria (FEMA-DR-4340).

Quick Links

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.

HUD: FHA INFO #18-34: Revised Loss Mitigation Options and Final 30-day Disaster Foreclosure Moratorium Extension for Puerto Rico and the U.S. Virgin Islands

Posted on by Safeguard

Investor Update
August 16, 2018

Source: HUD

Today, the Federal Housing Administration (FHA) announced the publication of Mortgagee Letter (ML) 2018-05, which revises the order of loss mitigation options for borrowers with FHA-insured mortgages whose property and/or place of employment is in the Presidentially-Declared Major Disaster Areas (PDMDAs) of Puerto Rico Hurricane Maria (DR-4339) or U.S. Virgin Islands Hurricane Maria (DR-4340).

This ML changes existing policy by allowing mortgagees to evaluate borrowers in the affected areas for the Disaster Standalone Partial Claim before the disaster loan modification. FHA believes this change will enable more borrowers impacted by those specific disasters to get into a permanent loss mitigation solution and keep their mortgage in good standing.

Additionally, the ML provides a final 30-day foreclosure moratorium for certain FHA-insured mortgages in affected counties in Puerto Rico and the U.S. Virgin Islands that are still recovering from the devastation caused by Hurricane Maria. This moratorium will provide additional time for mortgagees to evaluate borrowers for the Disaster Standalone Partial Claim and other loss mitigation solutions in the waterfall.

Servicers are reminded of their obligation under HUD Regulation 24 CFR § 203.501 to evaluate borrowers for the full range of loss mitigation options permitted under FHA policy. FHA will continue to monitor servicers for compliance with this regulation.

Borrowers Considered for Disaster Standalone Partial Claim Before Disaster Loan Modification

The new policy announced under the ML permitting servicers to evaluate borrowers for a Disaster Standalone Partial Claim before a disaster loan modification provides for the following:

(1) allows borrowers to maintain their pre-disaster monthly principal and interest payment;
(2) retains their current interest rate and term of the FHA-insured mortgage;
(3) provides for the repayment of arrearages with a subordinate mortgage lien that is not repaid until the maturity of the FHA-insured mortgage, the sale of the property, or the payoff or non-FHA refinancing of the FHA-insured mortgage; and
(4) expands the borrower eligibility criteria for the Disaster Standalone Partial Claim first announced in ML 2018-01, dated February 22, 2018.

This guidance applies to all FHA Title II forward mortgages for those disaster-affected borrowers whose property and/or place of employment is in the following PDMDAs:

  • Puerto Rico – Hurricane Maria (DR-4339); and
  • U.S. Virgin Islands – Hurricane Maria (DR-4340).

FHA-approved mortgagees may immediately begin implementing the revised guidance in 2018-05; however, they must implement these policies no later than September 15, 2018. Additionally, the provisions in this ML may no longer be offered to borrowers on or after the MLs’ May 1, 2019, Sunset Date.

30-Day Foreclosure Moratorium

The ML also provides a 30-day foreclosure moratorium for certain FHA-insured mortgages secured by properties located in PDMDAs in Puerto Rico and the U.S. Virgin Islands that the Federal Emergency Management Agency (FEMA) has identified as “affected counties” resulting from Hurricane Maria.

This 30-day foreclosure moratorium is effective immediately and applies to the initiation of foreclosures and foreclosures already in process.

Mortgagees should carefully read ML 2018-05 for eligibility and other requirements. Also, refer to today’s Press Release for additional information.

Quick Links
View all Press Releases in the Press Room on hud.gov at: https://www.hud.gov/press/press_releases_media_advisories
View Mortgagee Letter 2018-05 and other Mortgagee Letters at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

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.

Freddie Mac: Reminder: Plan for MERS System Migration

Posted on by Safeguard

Investor Update
August 16, 2018

Source: Freddie Mac

MERSCORP Holdings, Inc. has informed us that the MERS® System and MERS® eRegistry will be unavailable for transactions from 10 p.m. EST Thursday, September 13 to 7 a.m. EST Monday, September 17. They will be completing their migration to the Intercontinental Exchange (ICE) data centers during this time.

Please plan your loan deliveries and transfer of servicing transactions accordingly to ensure there are no impacts to loan settlements.  

For questions on the MERS migration, please contact the ICE migration team at mers.support@theice.com or 770-999-4549.

Freddie Mac: Natural Disaster Relief Policies for Mortgage Assistance to Aid Those Affected by California Wildfires Released

Posted on by Safeguard

Investor Update
August 8, 2018

Source: Freddie Mac

Additional Resource:  

Safeguard Properties Disaster Update Center

MCLEAN, Va., Aug. 08, 2018 (GLOBE NEWSWIRE) — Freddie Mac (OTCQB:FMCC) confirmed today its disaster relief policies for people whose homes or places of employment have been affected by the ongoing, historic California wildfires. Freddie Mac’s disaster relief options are available to borrowers with homes in Federal Emergency Management Agency (FEMA)-declared disaster areas where individual assistance programs have been made available to affected individuals and households.

In areas where FEMA has not made individual assistance available, mortgage servicers may leverage Freddie Mac’s forbearance programs to provide immediate mortgage relief to their borrowers that have been affected by the devastating wildfires.

“Once out of harm’s way, we strongly encourage homeowners whose homes or businesses have been impacted by the devastating California wildfires to call their mortgage servicer—the company to which borrowers send their monthly mortgage payments,” said Yvette Gilmore, vice president of single-family servicer performance management at Freddie Mac. “We are committed to ensuring that homeowners receive the mortgage assistance they need to help them during this devastating tragedy.”

News Facts:

  • Freddie Mac disaster relief policies authorize mortgage servicers to help affected borrowers in 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 these areas include:
    Suspending foreclosures by providing forbearance for up to 12 months; and
    Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes.
  • Freddie Mac is reminding servicers to consider borrowers who work in eligible disaster areas but have homes in unaffected areas for Freddie Mac’s standard relief policies, which include forbearance or 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.

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 and taxpayers. Learn more at FreddieMac.com, @FreddieMac and Freddie Mac’s blog.

MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com