Safeguard Properties

HUD: FHA INFO #18-24: FHA FAQ Website Transitions to New Platform

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Investor Update
June 5, 2018

Source: HUD

Today, the Federal Housing Administration (FHA) announced that it is transitioning its FHA Frequently Asked Questions website to a new platform. As a result, users may experience some changes in functionality. The FHA Resource Center has posted new advanced search tips to help users better navigate the new platform.

Quick Links

Resources

Contact the FHA Resource Center:

  • Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at: https://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-CALL-FHA (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: $616 Million Florida Disaster Recovery Plan Approved

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Investor Update
June 28, 2018

Source: HUD

Funding will target housing, infrastructure and economic development recovery

WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson today announced he is approving a disaster recovery plan to help Floridians recover from Hurricane Irma.  In November, HUD allocated $616 million to the Sunshine State to support long-term recovery efforts.

The Florida 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).

“This funding is part of the Trump Administration’s continued commitment to helping the residents of Florida impacted by Irma to recover and rebuild their homes and their lives,” said Secretary Carson. “As we move along the road to recovery, HUD will be right by Florida’s side to help in any way we can to make the state whole again.”

Governor Rick Scott said, “It’s great news that we were able to secure critical funding from HUD that will directly benefit the families who were most affected by last year’s storms. This $616 million will enable communities to build new affordable housing and to replace homes lost in the wake of last year’s hurricane season. Through this program, we can continue to move forward with long-term affordable housing solutions for displaced families as well as provide grants to businesses who were impacted by the storm. We won’t stop working until all of Florida’s communities have fully recovered.”

To address unmet needs, the State of Florida has identified several housing and economic development recovery needs arising from Hurricane Irma and has designed the following programs to address those unmet needs and assist in the recovery:

  • Housing Repair Program ($273.3 million) will rehabilitate housing occupied by low- and moderate-income families that was damaged by Hurricane Irma. The Florida Department of Economic Opportunity (DEO) will centrally manage the following activities on behalf of eligible homeowner and rental property owner applicants:
  • Repairs to, reconstruction or replacement of housing units damaged by Hurricane Irma, which may include bringing the home into code compliance and mitigation against future storm impacts, including elevation.
  • The completion of work to homes that have been partially repaired.
  • Repairs to, or replacement of, manufactured homes impacted by Hurricane Irma.
  • Temporary housing assistance based on individual household needs and their participation in the Housing Repair Program.
  • Workforce Affordable Rental New Construction Program ($100 million) will facilitate the creation of affordable rental housing though a partnership with DEO and the Florida Housing Finance Corporation by leveraging CDBG-DR funds with low-income housing tax credits as well using CDBG-DR funds for zero-interest loans for smaller developments.
  • Land Acquisition for Affordable Workforce Housing ($20 million) provides funding for the purchase of land for development into affordable housing, especially in areas of the state where the scarcity of developable land makes it difficult to construct properties that can be rented at an affordable rate for the community’s workforce.
  • Voluntary Home Buyout Program ($75 million) encourages risk reduction through the voluntary purchase of residential properties in high flood-risk areas. Communities that participate in this program are encouraged to develop plans for the reuse of the acquired land to further reduce flood risk and/or serve as a recreational space for the public.
  • Recovery Workforce Training Program ($20 million) will bolster workforce training throughout the state with the goal of growing the skilled labor force needed to support the long-term recovery, primarily in the housing construction field.
  • Business Recovery Grant Program ($60 million) provides funding for eligible business owners who are seeking reimbursement for the cost of replacing equipment and inventory damaged by Hurricane Irma.
  • Business Assistance to new Floridians from Puerto Rico ($6 million) provides business plan guidance, accounting services, licensing information and other resources to support assistance in assimilating to the business climate in the State of Florida.

In April, HUD also allocated an additional $791 million of CDBG-DR funding to Florida for unmet need, infrastructure and mitigation purposes.  HUD will shortly issue requirements governing those funds, and Florida, along with other states, will be required to submit plans addressing their use.  Read more about the additional disaster recovery/mitigation funding to Florida.

HUD: $5 Billion Texas Disaster Recovery Plan Approved

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Investor Update
June 25, 2018

Source: HUD

Funding will target long-term housing, infrastructure and economic development recovery

WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson today approved a disaster recovery plan to help Texans recover from Hurricane Harvey. In November, HUD Deputy Secretary Pamela Hughes Patenaude announced the allocation of more than $5 billion to the Lone Star State to support long-term recovery efforts.

The Texas plan 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).

“The Trump Administration is committed to helping Texans impacted by Harvey to rebuild their homes and their lives,” said Secretary Carson. “As the State now turns to the long-term recovery of its communities, Texans can be sure that HUD will be there to help in any way we can to make the state whole again.”

To address remaining needs in hard-hit areas of the state, the Texas recovery plan includes:

  • Single-Family Homeowner Assistance Program ($1.1 billion): Provides assistance to help homeowners with rehabilitation and reconstruction after Hurricane Harvey.
  • Buyouts and Acquisitions ($275 million): To allow certain eligible homeowners to sell their damaged home to a local government.
  • Affordable Rental ($250 million): Provides funding for rehabilitation, reconstruction and new construction of affordable multi-family rent properties.
  • Homeowner Reimbursement ($100 million): Homeowners may be reimbursed up to $50,000 for certain out-of-pocket expenses incurred for home repairs, including reconstruction, rehabilitation or mitigation.
  • Partial Repair and Essential Power for Sheltering ($73 million): Provides immediate, temporary repairs to homes that sustained less than $17,000 in FEMA-verified loss. CDBG-DR will be used as matching funds to FEMA expenditures.
  • Local Infrastructure ($413 million): Supports infrastructure repairs and enhancements for local communities as part of a comprehensive long-term recovery program along with FEMA funding.
  • Economic Revitalization ($100 million): Offers interim assistance up to $250,000 to small businesses in exchange for job creation or retention.
  • Local, Regional and State Planning ($137 million): The State will fund planning studies on disaster mitigation in the impacted areas to promote sound long-term recovery.
  • Allocations to City of Houston and Harris County ($2.3 billion): The State of Texas will provide approximately $1.1 billion each to the City of Houston and Harris County, allowing these jurisdictions to address their unmet recovery needs. Plans for use of these funds will be submitted by the city and county to the State for approval.
  • State Administration ($251 million): Funding set aside for the State’s program costs, including contract administration, compliance monitoring, the provision of technical assistance to applicants and subrecipients, etc.

In April, HUD also allocated an additional $4.726 billion of CDBG-DR funding to Texas for unmet need and mitigation purposes. HUD will shortly issue requirements governing those funds, and Texas, along with other states, will be required to submit plans addressing the use of those funds. Read more about the additional disaster recovery/mitigation funding to Texas.

Freddie Mac: You’re Invited: Investor Reporting Change Initiative Webinars

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Investor Update
June 5, 2018

Source: Freddie Mac

To make your investor reporting transition as smooth as possible, we’re providing the opportunity to attend FREE webinars to help you understand and implement the upcoming remittance and reporting changes.

Webinar sessions will begin June 19, 2018. Click the registration links below to search for upcoming sessions.

Webinar 1: Investor Reporting Change Initiative Overview

This webinar provides an overview of the new requirements you’ll implement with your internal operations, processes, and technology partners. This is your opportunity to learn about the investor reporting changes, and how to effectively plan your strategy for the upcoming May 2019 conversion.

REGISTER
 
What We’ll Cover

  • Investor Reporting Change Initiative: What, Why, and When
  • Single-Family Seller/Servicer Guide (Guide) Bulletin announcements and updates
  • New reporting/drafting requirements and process timelines
  • Service Loans application changes
  • Implementation planning and transition strategy
  • Resources

Webinar 2: Investor Reporting Change Initiative Cutover Process

This webinar highlights the timeline, transition reporting, and remittance activities during and after the cutover period.

REGISTER
 
What We’ll Cover

  • Investor Reporting Change Initiative: What, Why, and When
  • Guide Bulletin announcements and updates
  • Cutover process and timelines
  • Principal and interest custodial validation during cutover
  • Service Loans application changes
  • Resources

For More Information

Freddie Mac: U.S. Treasury Supports the Single Security

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Investor Update
June 20, 2018

Source: Freddie Mac

Craig Phillips, U.S.Treasury Counselor to the Secretary, expressed “unambiguous support” for the Single Security. At the Single Security conference in New York on May 14, 2018, he said:

“We want to see this to come to fruition. This is exactly the right step to be doing. It’s a huge transformation that is necessary, regardless of the trading protocols of securities — to create a sounder, more sustainable housing system.”

The Treasury official emphasized that it’s now up to the private sector to take the next steps to get successfully to the June 3, 2019 Single Security go-live date.

”Housing reform is a very high priority of the administration,” Phillips added. “What can be  accomplished with the CSP (Common Securities Platform) and the Uniform Mortgage Backed Security (UMBS?) is a solid step that is reform-agnostic. We can move forward without boxing in any option.”

Bob Ryan, acting deputy director at the Federal Housing Finance Agency, reiterated the agency’s commitment to the June 3, 2019 go-live date. “We’re laser-focused. Freddie Mac, Fannie Mae and Common Securitization Solutions are on target to hit that date. This is why we are investing a huge amount of time–to provide the information necessary to get you in a position to implement in 12 months.”

You can view the entire session with Phillips and Ryan, which includes a Q&A on a variety of policy and implementation topics.

You can also view the other conference sessions through our Single Security web page. The videos are listed under the Single Security Conference Materials tab.

For More Information

Freddie Mac: Single Security Webinar: What Seller/Servicers Need to Know

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Investor Update
June 12, 2018

Source: Freddie Mac

If you missed the Single Security conference last month or want to learn more about how the Single Security may affect your day-to-day operations, the Mortgage Bankers Association (MBA) is hosting a webinar on this hot industry topic on June 27, 2018. The webinar is complimentary to MBA members. Non-members can join for a cost.

Mark Hanson, our senior vice president for securitization, will be part of the panel of leading industry experts who will share insights to help Seller/Servicers prepare for this major change in the home financing market.

This webinar will cover the following topics:

  • An overview of what is changing and when lenders can expect the changes to take place
  • How the changes will impact your day-to-day operations
  • Steps your company and staff need to take in the coming months to prepare
  • Resources that are currently available to help better understand the changes
  • What MBA has done and is doing to support the ongoing efforts

We also encourage you to contact your Freddie Mac representative if you have specific questions about the Single Security and doing business with Freddie Mac.

Here are other useful resources to help you get ready for the Single Security:

Freddie Mac: Single Security Tabletop Market Readiness Testing

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Investor Update
June 21, 2018

Source: Freddie Mac

Freddie Mac and Fannie Mae will be facilitating a walk-through of key security activities later this year for the new Uniform Mortgage-Backed Security? (UMBS). As we start hitting critical Single Security milestones this year, we want you to have a chance to better understand any impacts to your upstream and/or downstream processes prior to the June 3, 2019 go-live date.

We’re looking for interested parties, including Seller/Servicers, to join us in the planning and execution of this tabletop testing exercise. This activity will include simulating pool formation, forward pricing, TBA trading, commingling securities and exchanging Freddie Mac Participation Certificates (PCs). As a participant, you’ll have early insights and a direct view into how the UMBS will flow through your systems and processes.

The results of the exercise will be shared with the market in 4Q 2018.

Interested in joining? Email Barbara Pak of Freddie Mac at barbara_pak@freddiemac.com. We’re convening a working group in July to kick off this process.

Freddie Mac: Single Security Poll ? Are You On Track?

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Investor Update
June 21, 2018

Source: Freddie Mac (full release)

At the recent Single Security conference on May 14, we polled attendees to find out where they were with their Single Security preparations. Here’s what we learned:

  • 83% have reviewed their internal systems and processes to determine impacts of the Single Security
  • 71% have contacted their vendors
  • 68% have assembled a team to work on the needed changes
  • 63% said their firm will be ready; 33.3% said they were not sure

We are encouraged by these numbers. Take the same quick poll and see how you compare with others and those who attended the May conference.

No one wants to be left behind. Make sure you’re proactively assessing and planning for impacts. Getting ready may take longer than you think.

For More Information

Freddie Mac: New Re-Employment Program to Help Financially Distressed Home Possible Borrowers Launched

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Investor Update
June 6, 2018

Source: Freddie Mac

Life happens. Too often it’s a job loss, reduced work hours or other employment difficulties that cause mortgage defaults and foreclosure. We’ve introduced a re-employment program through our partner NextJob, a national re-employment solutions company. This is a proactive solution to help financially distressed Freddie Mac Home Possible® borrowers in Duty to Serve high-needs areas address their employment challenges and prevent potential mortgage loan delinquencies and defaults.

The Power of Partnership: Helping Families Stay in their Homes

We understand that mortgage loan delinquencies and defaults can result in foreclosure, and that can be devastating to borrowers and their families. Foreclosures can also be costly and time consuming for Servicers, with charges stemming from legal fees, upkeep of vacant property, lost revenue and other expenses that add up over time.

As a nationwide re-employment solutions company with a proven track record of training borrowers on job search skills in today’s market, NextJob was the perfect choice to help launch this program.

Eligible borrowers now have access to free one-on-one job coaching sessions, job counseling webinars and proprietary online job search training tools that are covered 100 percent by Freddie Mac.

Re-employment Services Eligibility Requirements

Seller/Servicers may refer their eligible borrowers to Freddie Mac to receive NextJob re-employment services if they meet each of the following requirements:

  • The mortgage must be in a designated Duty to Serve high-needs area.
  • The borrower has a Home Possible mortgage.
  • The borrower has suffered a loss of income due to unemployment or underemployment and has applied with the Servicer for loss mitigation assistance.

For More Information

  • Look for details in our June Single-Family Seller/Servicer Guide Bulletin.
  • Contact your Freddie Mac representative.
  • See Freddie Mac’s Duty to Serve plan [pdf].

FHLMC Guide Bulletin 2018-9: Servicing Updates

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Investor Update
June 13, 2018

Source: Freddie Mac

Single-Family Seller/Servicer Guide (Guide) Bulletin 2018-9 [pdf] announces updates to help you better meet your borrowers’ needs. This Bulletin:

  • Consolidates requirements for short-term, long-term and unemployment forbearance plan offerings into a single policy.
  • Introduces NextJob re-employment services for borrowers with Freddie Mac Home Possible® mortgages in Duty to Serve high-needs areas.
  • Updates special insurance policy endorsement requirements for condominium and planned unit development projects.

Please review the Bulletin for details on the above and additional Guide updates that may be important for your business.

Other Reminders for Servicers

New Imminent Default Evaluation Process
Beginning July 1, 2018, the new imminent default evaluation business rule requirements are mandatory for imminent default evaluations. Check out our tutorial for more information.

You’re Invited: Investor Reporting Change Initiative Webinars
To make your investor reporting transition as smooth as possible, we’re providing FREE webinars to help you understand and implement the upcoming remittance and reporting changes. Sessions begin June 19, 2018. Click here to register and check for upcoming sessions.

For More Information

  • Guide Bulletin 2018-9 [pdf]
  • NextJob News Center article
  • Contact your Freddie Mac representative