Page 297 – Safeguard Properties

Fannie Mae: New Qs in the Project Insurance Requirement FAQs; plus Updates to AMN/HSSN and AAA Matrices

Posted on September 13, 2018 by Safeguard

Investor Update
March 21, 2018

Have a question about condo project insurance?

Condo project insurance is a hot topic, so we’ve added new and updated questions to the Project Insurance Requirements FAQs. Visit the Condo, Co-op, and Planned Unit Development Eligibility page to find these FAQs, recently updated Project Standards FAQs, new Project Eligibility Review Service materials, and other resources to help you meet our requirements.

AMN/HSSN Release Notes for March 24 update

This weekend we will update the Asset Management Network (AMN)/HomeSaver Solutions? Network (HSSN) application. To implement this release, AMN/HSSN will be unavailable for processing from 7 a.m. ET until 1:30 p.m. ET on Saturday, March 24. For more information, please review the release notes.

AAA matrix updates

We have updated AAA matrices in Alabama, Colorado, Georgia, Guam, Maryland, Michigan, Minnesota, Missouri, Montana, North Carolina, Rhode Island, Texas, and Virginia to align with the Allowable Foreclosure Attorney Fees Exhibit revision effective March 14. To view the updated matrices, visit the Excess Attorney Fee/Cost Guidelines page.

Join us at these upcoming events:

View more events.

You may also be interested in…

Focusing on Native American homeownership under Duty to Serve
Originating mortgages on tribal lands can be tricky for lenders. Here are some inroads being planned under Duty to Serve. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Research: Who should manage digital financial identities? Financial institutions? The government? None of the above? We asked consumers who they think can keep their information safe. #EXP18
http://bit.ly/2DGGUa5

Mar. 21

@D2_Duncan expects the recently passed stimulus bill to power additional economic growth in 2018 and 2019, despite a temporary downshift in the first quarter. Read more in our latest Economic and Housing Outlook:
http://bit.ly/2DEuteR

Mar. 19

Fannie Mae: Servicing Guide Is Updated

Posted on September 13, 2018 by Safeguard

Investor Update
March 14, 2017

Source: Fannie Mae

Announcement SVC-2018-02: Servicing Guide Updates

The Fannie Mae Servicing Guide has been updated with changes that:

Revise HomeStyle® Renovation mortgage requirements by reinforcing servicer responsibilities related to contractor and subcontractor licenses, inspections, escrow closings, appraisals, and documentation. These changes align with Selling Guide Announcement SEL-2018-02.
Increase the maximum allowable foreclosure attorney fees for several non-judicial states and update the fee for adjournment of foreclosure sales in Michigan to align with industry standards.
Clarify the guidelines for servicers to make post-disaster monthly principal and interest (P&I) payments similar to post-disaster P&I payments under Fannie Mae’s Cap and Extend Modification for Disaster Relief.

For a summary of key updates in Servicing Guide Announcement SVC-2018-02, view the executive perspectives video presented by Jenise Hight, Director of Servicing Policy, and the executive overview from Carlos Perez, Chief Credit Officer for Single-Family.

Line item updates in LoanSphere Invoicing

The LoanSphere Invoicing™ application, which allows servicers to submit qualified expenses for reimbursement, has been updated with new line items. For details, see the LoanSphere Invoicing Line Item Updates on the Servicer Expense Reimbursement page.

Join us at these upcoming events:

March 18-21 | Capital Markets Cooperative Annual Summit | Miami
March 19-21 | Ellie Mae Experience 2018 | Las Vegas
March 20-22 | 2018 Tunica Manufactured Housing Show | Robinsonville, MS

View more events.

You may also be interested in…

Affordable housing a platform for healthy and stable communities
Healthy homes and sustainable communities are important to our nation’s future. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

We announced our first sale of reperforming loans for 2018. Interested bidders can learn more and register for whole loan sales here:
http://bit.ly/2p8WMh0

Mar. 13

Find out what our Chief Economist @D2_Duncan says about the housing confidence falling, in this month’s #HPSI:
http://bit.ly/2DmdDkJ

Mar. 12

Fannie Mae: Lender Letter Extends Some Foreclosure Sale Suspensions; Updated Form 2001; and More

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
March 7, 2018

Source: Fannie Mae

Lender Letter LL-2018-01: Extension of Foreclosure Sale Suspension in Puerto Rico and the U.S. Virgin Islands

As we continue to stand with the victims of Hurricanes Irma and Maria, we are extending the suspension of all foreclosure sales through May 31 for mortgages secured by properties in Puerto Rico and the U.S. Virgin Islands located in FEMA-declared disaster areas as a result of these hurricanes. Review Lender Letter LL-2018-01, Extension of Foreclosure Sale Suspension in Puerto Rico and the U.S. Virgin Islands, and visit our Disaster Relief page, for more information.

Submit the updated Form 2001 electronically

We have published an updated version of Fannie Mae’s Annual Statement of Eligibility for Document Custodians (Form 2001). Please note that the form should be submitted by email, instead of by the U.S. Postal Service, and all supplemental data should be included in the embedded document. We also made minor wording updates, including differentiating between custodial agreement types. For additional information, please contact your Single-Family Custody Operations analyst.

Know the latest trends in mortgage fraud

Do you know the latest trends in mortgage fraud? As part of Fannie Mae’s commitment to detecting and preventing mortgage fraud, we have posted a new Mortgage Fraud Trends presentation with statistics about what we are seeing in the market. We plan to update it on a regular basis, so check back periodically to see what’s new. This is just one way we’re helping mortgage professionals stay alert. Visit the Mortgage Fraud Prevention page to check out our quick guide to help you identify common red flags that may point to mortgage fraud, and brush up on your knowledge with eLearning tutorials on the basics of mortgage fraud, investment club and Ponzi schemes, property flipping schemes, and other topics as well as links to other useful information sources.

Join us at these upcoming events:

March 13-17 | ICBA Community Banking Live 2018 | Las Vegas
March 18-21 | Capital Markets Cooperative Annual Summit | Miami
March 19-21 | Ellie Mae Experience 2018 | Las Vegas

View more events.

You may also be interested in…

Economy hums, but some headwinds could be ahead for mortgage servicers
Learn what the MBA’s economists shared at this year’s servicing conference. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

#HPSI falls as consumers expressed pessimism about home prices and mortgage rates. Find out more:
http://bit.ly/2HaHvmk

Mar. 7

What’s included in our latest Servicing Guide update? Find out in this quick video. #SimplifyingServicing
https://t.co/uCsSiLvzDb

Mar. 4

CFPB: Regulation X and Regulation Z Mortgage Servicing FAQs

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
March 20, 2018

Source: CFPB (Mortgage Servicing FAQs full version)

Additional Resource:

CFPB (Title XIV Rules: Mortgage Servicing web page)

Mortgage Servicing FAQs

The questions and answers below pertain to compliance with Regulation X and Regulation Z, effective April 19, 2018. These questions and answers are not a substitute for Regulation X, Regulation Z, or their official interpretations (also known as the commentary). Regulation X, Regulation Z, and their official interpretations are the definitive sources of information regarding their requirements.

Bankruptcy Periodic Statements

NOTE: For certain borrowers in bankruptcy, servicers are exempt from sending periodic statements. For other borrowers in bankruptcy, servicers are not exempt from sending periodic statements, but instead are required to send modified periodic statements. Additionally, in certain circumstances, a servicer may be required to resume sending unmodified periodic statements after a borrower’s bankruptcy case has completed. To determine if a servicer is required to send modified periodic statements to a borrower in bankruptcy, please review Regulation Z, § 1026.41(e) and (f).

CFPB: Final Rule to Help Mortgage Servicers Communicate with Certain Borrowers Facing Bankruptcy Issued

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
March 8, 2018

Source: CFPB

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (Bureau) today issued a final rule to help mortgage servicers communicate with certain borrowers facing bankruptcy. The final rule gives mortgage servicers more latitude in providing periodic statements to consumers entering or exiting bankruptcy, as required by the Bureau’s 2016 mortgage servicing rule.

The Truth in Lending Act requires mortgage servicers to provide periodic statements to borrowers, and the Bureau has developed sample forms for servicers to use. The 2016 mortgage servicing rule requires that servicers send modified periodic statements or coupon books to certain consumers in bankruptcy starting April 19, 2018. The rule also addressed the timing for servicers to transition to providing or ceasing to provide modified periodic statements to consumers entering or exiting bankruptcy. After issuing the rule, however, the Bureau learned that certain technical aspects of the timing of this transition may create unintended challenges and be subject to different legal interpretations. In October 2017, the Bureau sought public comment on a proposed rule that would provide greater certainty to help servicers comply. Today the CFPB is finalizing that proposed rule. Specifically, the final rule provides a clear single-statement exemption for servicers to make the transition, superseding the single-billing-cycle exemption included in the 2016 rule.

The effective date for the rule is April 19, 2018, the same date that the other sections of the 2016 rule relating to bankruptcy-specific periodic statements and coupon books become effective.

The final rule on the timing requirements for bankruptcy periodic statements is available at: ?https://files.consumerfinance.gov/f/documents/cfpb_mortgage-servicing_final-rule_2018-amendments.pdf

VALERI Servicer Newsflash

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
February 27, 2018

Servicer Handbook Update – Revisions to multiple chapters and appendices have been posted in M26-4 and are reflected on the transmittal document dated February 1, 2018. They can be accessed at http://www.benefits.va.gov/WARMS/M26_4.asp.

Circular 26-18-3, Department of Veterans Affairs (VA) Acceptance of Properties, was issued on February 23, 2018, and is located on the VALERI internet at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Circular 26-15-2, Change 1, Reconveyance Dispute Process, was issued on February 6, 2018, and is located on the VALERI internet at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Circular 26-15-9, Change 1, Servicer Statutory Redemption Procedures, was issued on February 6, 2018, and is located on the VALERI internet at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Scheduling Reports – When selecting a report destination, please do not select “Email.” Selecting this option will cause scheduled reports to fail. Either “Default Enterprise Location” or “Business Object Inbox” should be selected as the destination option (VALERI Scheduling Reports Quick Reference Guide).

Source: VA

VA Circular 26-18-5: Department of Veterans Affairs Property Management and Servicing Contract

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
February 27, 2018

1. Purpose. This Circular provides details concerning operational matters related to VA’s Real Estate Owned (REO) and direct loan portfolio, also known as VA’s National Portfolio, performed by Vendor Resource Management (VRM) under the U.S. Department of Veterans Affairs (VA) REO and Portfolio Servicing Contract (RPSC).

2. Background. In connection with the termination of loans guaranteed by VA, servicers have the option to convey to VA the properties acquired at liquidation sales. VA manages these properties (known as REO) through disposition, which includes management, marketing, and disposition activities. VA has sold those acquired properties with seller financing, known as a Vendee loan, which required loan servicing by VA. In addition, VA has, from time to time, acquired or refunded VA-guaranteed loans from private servicers in order to modify the loans at terms beyond the capability of the private servicers so that Veteran borrowers will be able to retain their homes. These loans are known as repurchase loans (4600 or loans repurchased under 38 C.F.R. 36.4600) and refunded loans (loans acquired under 38 Code of Federal Regulations [C.F.R.] 36.4320), respectively. VA also makes direct loans to Native American Veterans on trust lands under the Native American Direct Loan (NADL) program. In aggregate, these four loan prducts are known as the National Portfolio. The servicing of the National Portfolio is one of the components that is outsourced to a private contractor under the RPSC contract. This contract was awarded to Vendor Resource Management (VRM) on June 1, 2017, with an effective date of July 1, 2017, for up to 10 years. This contract also includes the facilitation and management of United States Department of Agriculture (USDA) properties. Through this contract, VRM subcontracts the mortgage servicing of VA’s National Portfolio. Effective December 1, 2017, mortgage servicing will be subcontracted by VRM to BSI Financial Services.

3. Submission of Title Documents. Title documents for new properties conveyed to VA under 38 C.F.R. 36.4323 shall be emailed to title-va@vrmco.com. Documents must be provided no later than 60 days after the liquidation sale in most jurisdictions. VA previously provided advice concerning additional time for title submission in certain jurisdictions, and that advice remains in effect, as shown in the Title Documentation, Insurance and Timeframe Requirements link on the VA Loan Electronic Reporting Interface (VALERI) webpage (http://www.benefits.va.gov/HOMELOANS/servicers_valeri.asp).

4. Insurance on Conveyed Properties. VA regulation 38 C.F.R. 36.4323(d)(2) requires servicers to request endorsements on all insurance policies in force at termination, naming as an assured The Secretary of Veterans Affairs. Endorsement requests should be sent to insurance-va@vrmco.com. In addition, information about the insurance policy should appear in the Transfer of Custody (TOC) event submitted in VALERI. Servicers should include endorsements with the title packages on properties conveyed to VA, or, if endorsements are received after title packages have already been submitted, they may be identified with the VA loan identification number (VA LIN) and sent to VRM at the email address in this paragraph. Notices of cancellation on homeowners or force-placed policies will be handled in a similar manner. If insurers cancel policies, servicers must properly account for any unearned premiums refunded by the insurer.

5. Purchasing VA REO. VRM is responsible for the disposition of VA REO. VA REO inventory can be found at https://listings.vrmco.com/.

6. Submission of NADL, Repurchase (4600), and Vendee Custodial Documents by the VA Regional Loan Centers (RLCs) for all National Portfolio Loans. VRM is responsible for maintaining the custodial file for all National Portfolio Loans in accordance with VA’s Records Control Schedule. Documents typically found in the custodial file include, but is not limited to, the following: Note, Deed/Mortgage, Modification Agreements, origination documents, closing documents, Assignments, as applicable. RLCs shall ship all documents within 90 days of loan boarding to BSI Financial Services, Attn: Collateral Department (VRM), 314 South Franklin Street, 2nd Floor, Titusville, PA 16354. Applicable custodial documents will be inventoried by the RLC, and organized in a loan file in the proper stacking order listed in the table titled Exhibit A, Shipment of Custodial Documents, followed by any other documents that can be obtained. RLCs must email shipment tracking information and provide a list of documents included in the shipm nt to va-docs@vrmco.com prior to shipment. The email should include identifying information such as borrower name and loan identification number. RLCs must notify VRM using this email address when unable to ship the files within 120 days of loan boarding, and every 30 days thereafter, providing status and justification for the delay.

7. Submission of Refunded Custodial Documents by VA Servicers to the RLCs and from the RLCs to BSI Financial. Servicers are required to submit the original Refund Custodial documents to the RLCs within 60 days of refund approval. At that time, VA requires services to also submit an electronic copy of the documents, in pdf format, for timely and efficient loan boarding. Documents typically found in the custodial file include, but is not limited to the following: Note, Deed/Mortgage, Modification Agreements, origination documents, closing documents, assignments, as applicable. Upon receipt, custodial documents will be inventoried by the RLC and organized in a loan file in the proper stacking order listed in the table titled Exhibit A, Shipment of Custodial Documents, followed by any other documents that can be obtained. RLCs will then ship the loan file with original documents to BSI Financial Services Attn: Collateral Department (VRM), 314 South Franklin Street, 2nd Floor, Titusville, PA 16354. RLCs must email shipment tracking information and provide a list of documents included in the shipment to va-docs@vrmco.com prior to shipment. The email should include identifying information such as borrower name and loan identification
number.

8. Concerning the boarding of NADL, Refunded, and Repurchased Loans. Prior to approving a NADL, Refunded or Repurchased loan, RLCs must collect the requisite custodial documents. These documents are used to validate the setup sheet that is manually completed by the RLCs. Upon receipt, documents will be inventoried by the RLC and uploaded to the Contract Assurance SharePoint site at https://vaww.portal2.va.gov/sites/Loan%20Guaranty%20Service/oversight/PLOU/Boarding/Forms/AllItems.aspx. Contract Assurance will validate receipt of required documentation so the loan can be boarded. The setup sheet will be accompanied by an electronic custodial file. Any setup sheet not accompanied by a complete electronic custodial file, or found to be incomplete or determined unacceptable, will not be forwarded to ALAC for boarding and will be returned by Contract Assurance to the RLC for immediate action/follow up. See Exhibit B, Electronic Version of Custodial Documents, for a list of required documents needed for boarding.

9. Insurance on 4600 and Refunded Loans. Insurance policies on loans refunded (acquired) or repurchased by VA will be endorsed to The Secretary of Veterans Affairs, c/o BSI Financial Services ISAOA/ATIMA, PO BOX 961260, Fort Worth, TX 76161. Copies of letters requesting endorsement may be included with the title packages sent to the VA Loan Technician (refunded loans) or the St. Paul RLC (4600 loans).

10. Reconveyance Implications. VA presently pays for a property upon acceptance of the Transfer of Custody (TOC) event in VALERI and then waits for acceptable title documents to be provided. Since holders should be able to verify the validity of sales prior to conveyance, upon reconveyance of a property, VA will demand reimbursement of the amount paid for the property and all expenses incurred while the property was in VA’s custody. This policy will continue with little variation. VA incurs expenses and fees, known as a Management and Marketing Fee (MMF) and a Property Preservation Fee (PPF), as soon as a conveyance is accepted in VALERI. Those expenses will gradually increase over time, as provided in Appendix A. Holders should be prepared to reimburse VA for the fees provided in the table below, any expenses incurred and the amount paid for conveyance of the property. The longer the time until an erroneous conveyance is discovered, or it is determined that acceptable title documents cannot be provided or d emed unacceptable, then the more likely that additional expenses will incurred and owed to VA. When a Bill of Collection is not paid promptly, the amount due will be offset from a future payment, including, but not limited to claims, acquisition and/or incentive payments.

11. Concerning Vendee Mortgage Trust (VMT) Securitized Loans. VRM does not provide servicing of VMT loans. All VMT loan-level questions, including Assignment of Mortgage, Lost Note Affidavit, chain of title matters, etc., should be directed to VendeeResearch@carringtonms.com.

12. Application to become a VRM partner. VRM directly hires subcontractors including, but not limited to, property inspectors, appraisers, property managers, home repair contractors, attorneys, among other professions to fully satisfy RPSC contractual requirements. To learn more about becoming a VRM subcontractor, and to submit an application, please visit http://www.vrmco.com/join-our-network/. Questions concerning VRM subcontracting can be emailed to VRM at VRM-supplier@vrmco.com.

13. Questions. REO questions may be directed to pm.vbaco@va.gov. Loan servicing questions may be directed to nashpm.vbaco@va.gov.

14. Rescission: Circular 26-17-38 is rescinded immediately. This Circular is rescinded April 1, 2020.

By Direction of the Under Secretary for Benefits

Jeffrey F. London Director
Loan Guaranty Service

Source: VA

VA Circular 26-15-9 Change 1: Servicer Statutory Redemption Procedure

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
February 6, 2018

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

2. Therefore, Circular 26-15-9 is changed as follows:

Page 2, paragraph 5: Delete “January 1, 2018” and replace with “October 1, 2020”.

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

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

Additional Resource:

VA (Circular 26-15-9)

VA Circular 26-15-2 Change 1: Reconveyance Disputes Process

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
February 6, 2018

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

2. Therefore, Circular 26-15-2 is changed as follows:

Page 1, paragraph 4: Delete “January 1, 2018.” and replace with “October 1, 2020.”

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

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

Additional Resource:

VA (Circular 26-15-2)

USDA: Special Relief Measures for Natural Disasters

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
February 20, 2018

In response to recent natural disaster events, the 3555 Handbook, Chapter 18 Section 4: Assistance in Natural Disasters will be amended to add Special Relief Measures. Servicers may use Special Relief Measures immediately to respond to borrowers who are reaching the end of their forbearance periods. We anticipate publication of the handbook changes on May 1, 2018.

18.11 Special Relief Measures

In addition to standard workout options, eligible borrowers may be offered the following special relief measures to assist borrowers without the standard financial evaluation required subject to the following conditions:

The loan was current or less than thirty (30) days past due as of the date of the applicable Presidentially Declared Disaster (PDD);
The servicer receives verification the hardship (employment and/or property) has been resolved;
Total modified mortgage principal and interest payment is less than or equal to the payment prior to modification.

Special Relief Measures shall be considered in the following order:

Term Extension: If the servicer determines the borrower is capable of maintaining the current contractual payment including any escrow shortage created by advancements during the forbearance period (can be spread over 60 months), the loan term may be extended an equal number of months to the term of the forbearance provided. Any interest accrued during the forbearance period should be waived and the servicer may re-amortize the loan if necessary to meet any investor restrictions.
Capitalization of Delinquency and Term Extension: If the servicer determines the borrower is capable of maintaining the current contractual payment, but cannot manage the additional escrow repayment amount, the servicer may offer a Cap and Extend Modification under the following terms:

1. Capitalize the accumulated arrearages and eligible unreimbursed servicer advances, fees and costs into the modified mortgage balance;
2. Extend term up to 360 months;
3. Reduce rate down to no greater than 50 basis points greater than the most recent Freddie Mac Weekly Primary Mortgage Market Survey (PMMS) Rate for 30-year fixed-rate conforming mortgages (US Average), rounded to the nearest one-eighth of one percentage (0.125%), as of the date a plan is offered to the borrower;
4. The borrower’s post modified PITI payment must be equal to or less than their payment prior to the disaster.

Mortgage Recovery Advance: If the servicer is unable to offer the borrower either of the first two options the servicer may utilize a mortgage recovery advance to settle the borrower delinquency and return the borrower to a current status. The mortgage recovery advance is limited to an amount no greater than what is necessary to resolve any accumulated interest and unreimbursed servicer advances made during the forbearance and must meet all other requirements as explained in paragraph 6.R. of the Loss Mitigation Guide found in Attachment 18-A of this Chapter.

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!

USDA LINC Training and Resource Library: https://www.rd.usda.gov/programs-services/lenders/usda-linc-training-resource-library

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)

Source: USDA