Safeguard Properties

Fannie Mae: AAA Matrix Updates

Posted on by Safeguard

Investor Update
August 1, 2018

Source: Fannie Mae

AAA matrix updates

We have revised AAA matrices to include the foreclosure-related title cost guidance issued June 6, which is effective for referrals on or after Sept. 1. Please note that the title search allowable cost and/or title update standard excess cost may have changed. To view the updated matrices, visit the Excess Attorney Fee/Cost Guidelines page.

Go ahead, Ask Poli!

Check out Ask Poli, a new tool that uses natural language processing to quickly find answers to your Fannie Mae policy questions. Sellers and servicers can give Ask Poli a spin at AskPoli.fanniemae.com or on the Selling and Servicing Guide pages.

Join us at these upcoming events:

  • Aug. 5-8 | Lenders One Summer Conference | Salt Lake City
  • Aug. 19-21 | The Mortgage Collaborative Summer Conference | Chicago
  • Sept. 8-11 | NAHREP National Convention | San Diego

View more events.

Recent Tweets

A disaster can strike at any time. Do you #KnowYourOptions for special mortgage relief if you’re impacted?
http://bit.ly/2vqajmH

July 31

As a part of our ongoing effort to reduce taxpayer risk, we’re announcing two Credit Risk Transfer (CIRT) transactions that will cover $22 billion in loans. More here:
http://bit.ly/2OnqPN4

July 27

HUD: U.S. Virgin Islands’ $243 Million Disaster Recovery Plan Approved

Posted on by Safeguard

Investor Update
July 10, 2018

Source: HUD

Funding will target housing, infrastructure and economic development

WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson today announced he is approving a disaster recovery plan to help citizens in the U.S. Virgin Islands to recover from Hurricanes Irma and Maria. In November, HUD allocated $243 million to the U.S. Virgin Islands to support long-term recovery efforts.

The U.S. Virgin Islands’ action plan approved today is funded through HUD’s Community Development Block Grant-Disaster Recovery (CDBG-DR) Program which requires grantees to develop a thoughtful recovery program informed by local residents. Learn more about CDBG-DR and the State’s role in long-term disaster recovery (en español).

“Planning is critical to recovery. Today, we begin the process of putting this plan to work,” said Secretary Carson. “HUD will continue to stand shoulder-to-shoulder with our partners on the ground to help the citizens of the U.S. Virgin Islands to recover and rebuild their homes and their lives.”

U.S. Virgin Islands Governor Ken Mapp said. “This is a great day for the U.S. Virgin Islands. HUD’s approval of our action plan marks a major milestone in our recovery. The approvals we received today will enable us to move forward quickly on major recovery activities across the Territory including the dredging of our harbors. I want to express my personal thanks to President Donald Trump and HUD Secretary Ben Carson for their tremendous support of the people of the Virgin Islands.”

To address unmet needs, the U.S. Virgin Islands identified several housing, infrastructure and economic development recovery needs arising from Hurricanes Irma and Maria. The following programs have been designed to address those unmet needs and assist in the recovery:

  • Homeowner Rehabilitation and Reconstruction Program ($10 million) – This program is available to eligible homeowners for properties that were damaged by Hurricanes Irma or Maria.
  • New Construction for Homeownership Opportunity and First Time Homebuyer Assistance ($10 million) – This program is designed to address post-disaster housing affordability challenges and enable renters to become homeowners.
  • Rental Rehabilitation and Reconstruction ($5 million) – This program provides funds for the repair or replacement of damage to rental housing owned by the Virgin Islands Housing Authority, Virgin Islands Housing Finance Agency, and private landlords.
  • Public & Affordable Housing Development ($32 million) – These funds are targeted for the redevelopment and creation of new affordable housing, including subsidized and mixed-income rental units.
  • Supportive Housing & Sheltering Programs ($15 million) – The U.S. Virgin Islands recovery plan includes an effort for the rehabilitation, reconstruction, and development of housing for vulnerable populations, particularly among low-income seniors and those persons and families experiencing homelessness. This program also includes the development of emergency shelters for individuals and families who cannot shelter in place during disasters. The emergency shelter housing would also serve persons who require short-term housing because they are temporarily displaced.
  • Infrastructure ($125,549,800) – These funds are targeted for three infrastructure activities: 1) Local Match for Federal Disaster Relief Programs ($50,549,800) to help finance educational facilities, energy, hospitals, telecommunications, transportation, waste management, and water/wastewater management; 2) Infrastructure Repair and Resilience ($30,000,000) and 3) Electrical Power Systems Enhancement and Improvement ($45,000,000).
  • Economic Revitalization ($33 million) – Through this program, the U.S. Virgin Islands seeks to revitalize the post-disaster economy, including ($23 million) for Ports and Airports Enhancements, including harbor dredging to allow for larger cruise ships; 2) a Workforce Development Program to train low- and moderate-income residents to fill the construction and other jobs coming from recovery investments ($5,000,000); and 3) the Tourism Industry Support Program ($5,000,000), which will require a waiver by HUD, for marketing to communicate that the USVI is open for business.

In April, HUD also allocated an additional $1.621 billion of CDBG-DR funding to the U.S. Virgin Islands for unmet need, infrastructure and mitigation purposes. HUD will shortly issue requirements governing those funds, and the U.S. Virgin Islands, along with other states, will be required to submit plans addressing their use. Read more about the additional disaster recovery/mitigation funding to the U.S. Virgin Islands.

HUD Approves $1.5 Billion Disaster Recovery Plan in Puerto Rico

Posted on by Safeguard

Investor Update
July 30, 2018

Source: HUD

Action plan focuses on housing, infrastructure and economic development

WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson today announced HUD has approved a $1.5 billion disaster recovery plan to help citizens in Puerto Rico to recover from Hurricanes Irma and Maria. Puerto Rico recently submitted the plan for HUD’s review which primarily focuses on the restoration of damaged and destroyed homes, businesses and infrastructure. Read Puerto Rico’s recovery plan.

Puerto Rico’s long-term recovery is supported through HUD’s Community Development Block Grant—Disaster Recovery (CDBG-DR) Program which requires grantees to develop thoughtful recovery plans informed by local residents. Learn more about CDBG-DR and the State’s role in long-term disaster recovery (en español).

“Today, we turn an important corner in our long-term effort to rebuild hard-hit communities in Puerto Rico,” said Secretary Carson. “This is just the beginning – billions in federal disaster recovery funding will soon be put to work and help our fellow citizens in Puerto Rico rebuild their homes and their lives.”

Background

On September 8, 2017, President Trump signed the Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2017. The Act appropriated $7.4 billion in CDBG-DR funding for major disasters declared in 2017. To distribute these funds, the Act requires HUD to direct the funds to the areas most impacted by last year’s major disasters. On February 1, 2018, HUD allocated $1.5 billion of that appropriation to Puerto Rico to address the serious unmet needs on the island. The action plan approved today will put these funds to work.

On April 10, 2018, HUD allocated another $18.5 billion to further support recovery in Puerto Rico and to rebuild communities impacted by Hurricanes Maria and Irma and to protect them from major disasters in the future. HUD will shortly publish program rules to guide Puerto Rico and others on the use of those funds.

CDBG-DR grants support a variety of disaster recovery activities including housing redevelopment and rebuilding, business assistance, economic revitalization, and infrastructure repair. Grantees are required to spend the majority of these recovery funds in “most impacted” areas as identified by HUD. HUD will issue administrative guidelines shortly for use of the funds to address grantees’ long-term recovery needs, particularly in the area of housing recovery.

To address unmet needs, Puerto Rico identified several housing, infrastructure and economic development recovery needs arising from Hurricanes Irma and Maria. Puerto Rico’s disaster recovery action plan includes the following activities:

  • Housing ($1 billion) – Puerto Rico is investing more than $1 billion to restore the island’s severely damaged housing stock.  As part of the plan, Puerto Rico intends to provide up to $120,000 to rebuild destroyed homes for each qualified homeowner and up to $48,000 to repair each eligible damaged property.  Additional housing investments include funding for rental assistance ($10,000,000), specifically for properties serving the elderly and other vulnerable households.  Puerto Rico has also proposed a $36 million Home Emergency Resilience Program that provides up to $6,000 per household for individual solar appliances to help families.
  • Economic Revitalization ($145 million) – Puerto Rico’s recovery plan provides $145 million for several activities to help revitalize the post-disaster economy, grants of up to $50,000 for eligible businesses.  The plan also targets grants of up to small business incubators and accelerators ($10,000,000) awards of up to $2,500,000 for each eligible incubator operation, a workforce training program ($10,000,000) awards of up to $2,000,000 to train eligible Section 3 residents , and a construction and commercial revolving loan program ($35,000,000) that will provide up to $1,000,000 per loan to eligible businesses.
  • Infrastructure ($100 million) – To support the repair of damaged infrastructure on the island, Puerto Rico intends to target $100 million to match federal investments through the Federal Emergency Management Agency’s (FEMA) Public Assistance and Hazard Mitigation Grant Program projects.

Freddie Mac: Servicing Guidance for Mortgages Impacted by Eligible Disasters

Posted on by Safeguard

Investor Update
July 18, 2018

Source: Freddie Mac

In today’s Industry Letter, we’re reminding Servicers to follow our requirements in Chapter 8404 of the Single-Family Seller/Servicer Guide (Guide) when servicing mortgages affected by eligible disasters.

We’re also informing Servicers that the following temporary servicing requirements for mortgages impacted by eligible disasters announced in Guide Bulletins 2017-21 [pdf] and 2017-25 [pdf] will remain in effect:

  • Property inspection reimbursement
  • Freddie Mac Extend Modification for Disaster Relief
  • Changes to requirements for distribution of insurance loss settlements

Review our Industry Letter [pdf] for complete details.

FHLMC Guide Bulletin 2018-11: Subsequent Transfers of Servicing and Intra-Servicer Portfolio Moves

Posted on by Safeguard

Investor Update
July 6, 2018

Source: Freddie Mac

Single-Family Seller/Servicer Guide (Guide) Bulletin 2018-11 announces that updates to the Service Loans application originally scheduled for July 23, 2018 have been postponed and will now be implemented on August 13, 2018.The updates are related to:

  • Requests for subsequent transfers of servicing (STOS)
  • Requests by a Servicer that wishes to move the servicing related to specific mortgages from one Seller/Servicer number to another (“intra-servicer portfolio move”)

As a result, the temporary moratorium on STOS and intra-servicer portfolio move requests and updates to existing requests has been moved to July 30, 2018 through August 12, 2018.

A few things to know about the moratorium

  • Any Freddie Mac-approved STOS request with an effective date of transfer of August 16, 2018 will not be impacted by the temporary moratorium.
  • If you would like to request a STOS with an effective date of September 16, 2018, please submit Form 981 no later than July 29, 2018.
  • If you would like to request an intra-servicer portfolio move with an effective date of September 16, 2018, please submit Form 982 no later than July 29, 2018.
  • The moratorium will only affect STOS and intra-servicer portfolio move processing in the Service Loans application. This functionality will be disabled, under the “Create New TOS Request”.
  • You’ll be able to use all other functions of the Service Loans application, such as cash remittance reporting and EDR reporting, as these will not be impacted during the moratorium.

For More Information

  • Refer to Guide Bulletin 2018-11 [pdf]
  • Contact your Freddie Mac representative

FHFA: Refinance Report – May 2018

Posted on by Safeguard

Investor Update
July 17, 2018

Source: FHFA

May 2018 Highlights

  • Total refinance volume decreased in May 2018 as mortgage rates rose in April, continuing a trend first observed in October 2017.  Mortgage rates increased in May: the average interest rate on a 30-year fixed rate mortgage rose to 4.59 percent from 4.47 percent in April, reaching levels last observed in 2011.

In May 2018:

  • Borrowers completed 1,077 refinances through HARP, bringing total refinances from the inception of the program to 3,490,261.
  • HARP volume represented 1 percent of total refinance volume.
  • Six percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.

Year to date through May 2018:

  • Borrowers with loan-to-value ratios greater than 105 percent accounted for 16 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 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.
  • Nine states and one U.S. territory accounted for over 70 percent of the nation’s HARP eligible loans with a refinance incentive as of December 31, 2017.

Attachments: Refinance Report – May 2018

FHFA: Foreclosure Prevention Report – April 2018

Posted on by Safeguard

Investor Update
July 12, 2018

Source: FHFA

April 2018 Highlights

The Enterprises’ Foreclosure Prevention Actions:

  • The Enterprises completed 21,371 foreclosure prevention actions in April, bringing the total to 4,130,007 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
  • There were 14,094 permanent loan modifications in April, bringing the total to 2,201,404 since the conservatorships began in September 2008.
  • Thirty percent of modifications in April were modifications with principal forbearance. Modifications with extend term only accounted for 49 percent of all loan modifications during the month.
  • There were 851 short sales and deeds-in-lieu of foreclosure completed in April, down 10 percent compared with March.

The Enterprises’ Mortgage Performance:

  • The serious delinquency rate decreased from 1.09 percent at the end of March to 1.03 percent at the end of April.

The Enterprises’ Foreclosures:

  • Third-party and foreclosure sales decreased from 4,625 in March to 4,410 in April.
  • Foreclosure starts increased from 15,116 in March to 15,308 in April.

Attachments: Foreclosure Prevention Report – April 2018

Fannie Mae: Updated Forms 2009 and 2017; and More

Posted on by Safeguard

Investor Update
July 25, 2018

Source: Fannie Mae

It’s easier than ever to complete Forms 2009 and 2017

Based on lender feedback, Form 2009, Request for Release/Return of Documents, has been updated to include revisions to the drop-down choices in the Reasons for Requesting Documents section and include increased space in certain text boxes. Additionally, Form 2017, Master Custodial Agreement, is now a form-fillable PDF.

We’re ready if the NFIP experiences a short-term authorization lapse

We are preparing for the possibility that the National Flood Insurance Program (NFIP) may experience a short-term lapse if Congress does not reauthorize it by the approaching July 31 expiration date. Should it lapse, FEMA would not be able to issue new NFIP policies, increase coverage on existing policies, or issue renewal policies. If NFIP experiences a short-term lapse, we will provide our lending partners with options for the sale of loans secured against properties located in a Special Flood Hazard Area. If needed, we may issue a lender letter with more information on how we are ensuring continued availability of mortgage financing in those areas.

Join us at these upcoming events:

  • Aug. 5-8 | Lenders One Summer Conference | Salt Lake City
  • Aug. 19-21 | The Mortgage Collaborative Summer Conference | Chicago
  • Sept. 8-11 | NAHREP National Convention | San Diego

View more events.

Recent Tweets

Fannie Mae announces new leadership structure: Company selects David Benson as President and promotes Celeste Brown to CFO.
http://bit.ly/2LkEKWo

July 24

It’s no secret that the housing market is changing. At Fannie Mae, we’re focused on leveraging technology to enable a faster, easier process for originating and delivering loans.
http://bit.ly/2JCFfoJ

July 19

Fannie Mae: New APIs Available; Updated Fraud Alert; and More

Posted on by Safeguard

Investor Update
July 11, 2018

Source: Fannie Mae

Servicing APIs now available on the Developer Portal

This month’s Developer Portal release added two new API equivalents of existing Fannie Mae Connect™ servicing reports. You can use the Whole Loan Purchase Advice and Committing and Draft Fee Notifications APIs to automate workflows and customize Fannie Mae Connect report data for your business processes. Find these and other APIs on our catalog and learn more in the Quick Start Guide.

Updated fraud alert: Misrepresentation of Borrower Employment

We have updated the Fannie Mae fraud alert, “Misrepresentation of Borrower Employment” (originally posted on May 24), which identified apparently fictitious employers being used on loan applications in Southern California. Updates include the addition of two more apparently non-existent employers, the removal of one entry on the list, and an expanded “red flags” list with sample exhibits. View the updated fraud alert and other resources on the Mortgage Fraud Prevention page.

Enhancements coming to AMN/HSSN on Saturday

This weekend, we’ll update the Asset Management Network (AMN)/HomeSaver Solutions™ Network (HSSN) application. To implement this release, AMN/HSSN will be unavailable for processing from 7:30 a.m. ET until 4 p.m. ET on Saturday, July 14. For more information, please review the release notes.

LoanSphere Invoicing simplifies expense reimbursement

Effective September 1, LoanSphere Invoicing™ will include the “Referral Date” field in the Title Cost – Foreclosure expense line item. After the update, servicers must populate the field with the foreclosure referral date, which is required for the reimbursement of foreclosure title cost expenses. Additional information is available in the Servicer Expense Reimbursement Job Aid on the Servicer Expense Reimbursement page.

Join us at these upcoming events:

July 16-18 | California’s MBA’s 46th Annual Western Secondary Market Conference | San Francisco
July 29-31 | CoreLogic EPIQ | Dana Point, CA
Aug. 5-8 | Lenders One Summer Conference | Salt Lake City

View more events.