Safeguard Properties

Fannie Mae: MI Termination Updates; Disaster Policy Reminder Lender Letter; and More

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Investor Update
July 18, 2018

Source: Fannie Mae

Coming soon! New streamlined process for MI termination

Updated requirements for the termination of conventional mortgage insurance (MI) will simplify the process of evaluating borrower-initiated requests and result in a better customer experience for both servicers and borrowers. Servicers are encouraged to implement these changes as early as Jan. 1, 2019 (when Automated Property Service™ and the Valuation Management System become available); however, implementation is required by March 1, 2019.

Lender Letter LL-2018-04: Disaster Policy Reminders and Updates

Fannie Mae continues to support servicers with borrowers impacted by recent and future disasters, such as hurricanes and wildfires. Today, we published Lender Letter LL-2018-04: Disaster Policy Reminders and Updates, to remind servicers that:

  • We will reimburse for inspections required to confirm repairs on properties with an insured loss event for both current and delinquent mortgage loans.
    Note: For properties inspected after the date of this Lender Letter, we will increase the maximum reimbursement limit of insured loss repair inspections from $30 to $60.
  • We will reimburse servicers up to our existing allowable reimbursement limits for the costs to inspect properties impacted by a disaster for both current and delinquent mortgage loans when necessary to determine the extent and nature of the damage.
  • The Fannie Mae Extend Modification for Disaster Relief (Extend Mod) and hazard loss draft proceeds disbursement policies found in Lender Letter-2017-09 remain in effect until further notice.

Visit the Assistance in Disasters page for additional information and resources, including previous disaster-related Lender Letters, FAQs, and more.

HSSN job aid and SMDU updates for Extend Modification for Disaster Relief

On July 14, we released a HomeSaver Solutions™ Network (HSSN) update related to creating and submitting a closed loan modification case for Extend Modification for Disaster Relief. Together with a Servicing Management Default Underwriter™ (SMDU™) update on July 21, these updates introduce a simplified process that allows borrowers to enter $0.00 in the delinquent interest field, instead of using the $0.01 workaround. You are encouraged to implement the new process immediately; all active cases using the workaround will be adjusted Aug. 1. Use the revised HSSN job aid for detailed guidance on the update. Please direct any questions to your Fannie Mae Servicing Account Manager.

Enhancements to SMDU coming this weekend

This weekend, we will implement enhancements to SMDU. Please refer to the release notes for more information. SMDU will be unavailable to process transactions during implementation from 10 p.m. ET on Friday, July 20 until 11 a.m. ET on Saturday, July 21. If you have questions about this release, please contact your Fannie Mae Servicing Account Manager.

Changes to Servicers Loan Activity Reporting (LAR) coming soon!

To help simplify servicing, we’re introducing a change to the Transaction Type (Tran 83) payment recast process. Effective July 21, servicers will be able to report Loan Activity Report 96 (LAR 96) and Transaction Type 83 (Tran 83) with the changed principal and interest (P&I) constant in the same month. Review our detailed scenarios of how payment recasting will be simplified for Scheduled/Scheduled loans.

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

Join us tomorrow to learn how the HomeReady #mortgage can help you grow your business and close more loans. Sign up for the live webinar:
http://bit.ly/2uJ7pcl

July 18

Our latest reperforming loan sale transaction included the sale of approximately 26,900 loans totaling $6.14 billion in unpaid principal balance.
http://bit.ly/2uJT6o6 #capitalmarkets

July 18

CFPB: Acting Deputy Director Announced

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Investor Update
July 9, 2018

Source: CFPB

WASHINGTON, D.C. — Today, Bureau of Consumer Financial Protection (Bureau) Acting Director Mulvaney today announced he has selected Brian Johnson, who currently serves as Principal Policy Director at the Bureau, to assume the responsibilities of Acting Deputy Director.

“Brian Johnson is the first person I hired at the Bureau and has been an indispensable advisor,” said Acting Director Mulvaney. “Brian knows the Bureau like the back of his hand.  He approaches his role as a public servant with humility and unsurpassed dedication.  His steady character, work ethic, and commitment to free markets and consumer choice make him exactly what our country needs at this agency.”

VALERI Servicer Newsflash

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Investor Update
June 15, 2018

Source: VA

New VALERI Environment –Black Knight Financial Services (BKFS) currently collects all servicing data for VA. After March 2019, when VA transitions to a new VALERI environment, BKFS will no longer collect this data on behalf of VA. As part of that transition, VA needs to ensure that all servicers can continue to meet our reporting requirements by establishing the necessary connections to the new VALERI environment. VA’s transition plan encompasses all of the various ways that servicers report information to VALERI, including the following categories;

1. Servicers that use a licensed servicing system, such as MSP or FiServe that automatically reports data to VALERI;

2. Servicers that use a proprietary, or home grown, servicing system that automatically reports data to VALERI;

3. Servicers that log into the VALERI Servicer Web Portal (SWP) to manually upload data to VALERI;

4. Servicers that log into the VALERI SWP to manually enter data into VALERI.

Only servicers in category #2 need to contact VA at this time. Please provide us with the name of your organization and a point of contact with which we can discuss a transition plan. This information must be sent no later than June 21, 2018 to guarantee your ability to report data to VALERI is uninterrupted during the transition. You may direct any questions or concerns regarding the changes to Terry Cere (Therese.Cere@va.gov) or Colin Deaso (Colin.Deaso@va.gov). If you have technical questions regarding testing, please contact: John Elliott (John.Elliott@va.gov), VA Office of Information & Technology.

Redemption Quotes and Inquiries – All questions and inquiries related to redemption procedures are to be directed to vrm-redemption@vrmco.com. Redemption Instructions are located on the VALERI website at https://www.benefits.va.gov/HOMELOANS/servicers_valeri_guides.asp.

REMINDERS

Circular 26-15-9, Servicer Statutory Redemption Procedures, requires servicers to reach out to VA’s Property Management Contractor, Vendor Resource Management (VRM), to secure any amounts required for redemption funds if the property was conveyed to VA. If you have questions, please email VRM-redemption@vrmco.com.

Title Package Extensions and Escalations – Any title extension requests or title escalations must be submitted to VRM at vrm-title@vrmco.com. If you require VA’s assistance, please copy the Contract Assurance (Property Management Oversight) mailbox at nashpm.vbaco@va.gov.

DEVELOPMENT UPDATES

On Saturday, June 16, 2018, VALERI Manifest 18.2 will be released. The following enhancements will be included:

CQ 13380 – Updates the Claim Bulk Upload template to reflect the addition of “State Pre-Foreclosure Fee” line item. The new version of the template and the VALERI Fee Cost Schedule will both be available at https://www.benefits.va.gov/homeloans/servicers_valeri.asp on Monday, June 18, 2018.

CQ 12765 – Updates claims logic to disallow Title V Septic fee for Massachusetts properties if VA did not accept custody and pay acquisition for the property.

VA Circular 26-18-16: Special Relief Following Maine Severe Storm and Flooding

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Investor Update
June 14, 2018

Source: VA

1. Purpose. This Circular expresses concern about the Department of Veterans Affairs (VA) home loan borrowers affected by a severe storm and flooding in the State of Maine, 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. (http://www.benefits.va.gov/homeloans/documents/docs/va_policy_regarding_natural_disasters.p df)

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 (CFR), section 36.4311 allows the reapplication of prepayments to cure or prevent a default. Also, 38 CFR 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 (http://www.benefits.va.gov/homeloans) that holders establish a 90-day moratorium from the date of a disaster on initiating new foreclosures on loans affected by major disasters. VA regulation 38 CFR 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. Because of 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 July 1, 2019.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director
Loan Guaranty Service

VA: Circular 26-16-14 Change 1: Title Requirements for Conveyance of Real Property

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Investor Update
June 11, 2018

Source: VA

Additional Resource:

VA (Circular 26-16-14)

1. Purpose. The purpose of this Circular is to extend the rescission date of the original Circular.

2. Therefore, Circular 26-16-14 is changed as follows:

Page 1, paragraph 4: Delete “July 1, 2018.” and insert “July 1, 2020.”

3. Rescission: This Circular is rescinded July 1, 2020.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

USDA: NEW ESR RESOURCES! Electronic Status Reporting (ESR) User Guide and Trainings Available Online!

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Investor Update
June 22, 2018

Source: USDA

The Single Family Housing Guaranteed Loan Division is pleased to offer a new Electronic Status Reporting  (ESR) User Guide and training opportunities to our servicing partners.  The ESR User Guide and four new on-demand ESR training modules are available online 24 hours a day for maximum convenience.  The guide, trainings, and handouts are located on the USDA LINC Training and Resource Library. 

ESR Training modules include:

  • ESR Introduction,
  • Web Reporting,
  • Electronic Data Interchange (EDI) Reporting, and
  • Rejected Records and Corrections

Training handouts are available in three formats: 
1. One full size slide per page;
2. Two slides per page; and
3. One slide per page with speaker notes.            
 
The user guide and trainings will be useful for servicing partners of all experience levels as USDA prepares to deploy the new ESR platform for monthly investor and default status reporting. 
The new ESR reporting platform will be deployed on July 1, 2018.
     
Questions regarding this announcement may be directed to the National Office Division at (202) 720-1452.
 
Thank you for your support of the Single Family Housing Guaranteed Loan Program! 

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: Foreclosure Moratorium Extended for Areas Impacted by Hurricane Maria

Posted on by Safeguard

Investor Update
June 13, 2018

Source: USDA

USDA is extending the moratorium on property foreclosures in the Presidentially Declared Disaster (PDD) areas impacted by Hurricane Maria.  In light of the severity of the damage caused by the storm, the foreclosure moratorium will be extended until September 17, 2018.
 
This extension applies to new foreclosures as well as foreclosures already initiated.  USDA guidance outlined in “Assistance in Natural Disasters” and located in Chapter 18, Section 4, 7 CFR 3555.307 of the SFHGLP Handbook requires an initial moratorium on foreclosure actions within a PDD for ninety days following the date of each PDD declaration. The extensions are intended to provide greater relief to homeowners in the PDD areas.
 
If you have any questions, please contact the USDA Rural Development Customer Service Center at (866) 550-5887 or the 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)

MHA: HAMP Update: Independence Day Holiday Support and System Availability

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Investor Update
June 27, 2018

Source: MHA

Due to the observance of Independence Day, the HAMP Reporting System response files will not be available between 6:00 p.m. ET on Tuesday, July 3, 2018 and 9:00 a.m. ET on Thursday, July 5, 2018; they will be sent as soon as the system is available.

During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

The HAMP Solution Center will be closed on Wednesday, July 4, 2018 and will resume operations at 9:00 a.m. ET on Thursday, July 5, 2018. Servicers may contact the HSC at any time; however, messages will be held in queue until the center reopens on Thursday.

HUD: Testimony of Dr. Ben Carson

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Investor Update
June 27, 2018

Source: HUD (full testimony)

INTRODUCTION

Chairman Hensarling, Ranking Member Waters, and members of this Committee, thank you for inviting me here today to testify before the House Financial Services Committee.

HUD has made tremendous progress since I last testified in October, so I am pleased to have this opportunity to update you on those developments and to discuss other innovative solutions to our nation’s housing and community development challenges.

I want to thank the members of this Committee for your support of many of HUD’s important efforts, including our mutual determination to end homelessness, our continued commitment to helping our citizens recover from unprecedented natural disasters, and our endeavor to make safe, fair, affordable, and healthy homes the foundation for human achievement, freedom, and growth.

HUD: FHA INFO #18-27: Elimination of FHA Inspector Roster

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Investor Update
July 3, 2018

Source: HUD (FHA INFO #18-27 full version)

Today, the Federal Housing Administration (FHA) published in the Federal Register, a final rule (Docket No. FR-5457-F-02) that streamlines the inspection requirements for FHA single family mortgage insurance by eliminating the regulations for the FHA Inspector Roster (Roster).

This final rule — which follows a February 6, 2013, proposed rule — recognizes the sufficiency and quality of inspections carried out by International Code Council (ICC) certified Combination Inspectors (CI) and Residential Combination Inspectors (RCI) and other qualified individuals. As a result, FHA acknowledges there is no longer a need to maintain and administer its own standardization process for inspectors.

This final rule becomes effective August 2, 2018.

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.