Safeguard Properties

FHFA: Refinance Report – First Quarter 2018

Posted on by Safeguard

Investor Update
May 15, 2018

Source: FHFA

First Quarter 2018 Highlights

  • Total refinance volume decreased in March 2018 as mortgage rates rose in February, continuing a trent first observed in October 2017.  Mortgage rates increased in March: the average interest rate on a 30?year fixed rate mortgage rose to 4.44 percent from 4.33 percent in February, reaching levels last observed in 2014.

In the first quarter of 2018:

  • Borrowers completed 4,139 refinances through HARP, bringing total refinances from the inception of the program to 3,488,165.
  • HARP volume represented 1 percent of total refinance volume.
  • Borrowers with loan?to?value ratios greater than 105 percent accounted for 16 percent of the volume of HARP loans.
  • Thirty-four 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 — triple the 1 percent of total refinances nationwide over the same period.
  • In March, 6 percent of the loans refinanced through HARP had a loan?to?value ratio greater than 125 percent.
  • 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. terriitory accounted for over 70 percent of the nation’s HARP eligible loans with a refinance incentive as of December 31, 2017.

Related News Release

Attachments: Refinance Report – First Quarter 2018

FHFA: 2017 Report to Congress

Posted on by Safeguard

Investor Update
May 23, 2018

Source: FHFA

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its 2017 Report to Congress.  The statutorily-required report provides information about FHFA’s 2017 examinations of Fannie Mae, Freddie Mac (the Enterprises), 11 Federal Home Loan Banks (FHLBanks) and the FHLBanks’ Office of Finance.  The report also describes FHFA’s actions as conservator of the Enterprises during the year and it describes the Agency’s regulatory guidance, research and publications.   

Link to 2017 Report to Congress
 
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.1 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn.  

Contacts:  
Media: Stefanie Johnson (202) 649-3030 / Corinne Russell (202) 649-3032

Consumers: Consumer Communications or (202) 649-3811

FHFA: Foreclosure Prevention Report – February 2018

Posted on by Safeguard

Investor Update
May 10, 2018

Source: FHFA

February 2018 Highlights

The Enterprises’ Foreclosure Prevention Actions:

  • The Enterprises completed 19,932 foreclosure prevention actions in February, bringing the total to 4,084,139 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
  • There were 10,606 permanent loan modifications in February, bringing the total to 2,173,383 since the conservatorships began in September 2008.
  • Forty?six percent of modifications in February were modifications with principal forbearance. Modifications with extend term only accounted for 42 percent of all loan modifications during the month.
  • There were 794 short sales and deeds?in?lieu of foreclosure completed in February, down 23 percent compared with January.

The Enterprises’ Mortgage Performance:

  • The serious delinquency rate decreased slightly from 1.17 percent at the end of January to 1.16 percent at the end of February.

The Enterprises’ Foreclosures:

  • Third?party and foreclosure sales decreased from 5,000 in January to 4,311 in February.
  • Foreclosure starts decreased from 16,003 in January to 15,246 in February.

Attachments: Foreclosure Prevention Report – February 2018

Fannie Mae: Updates to High LTV Refi Option and More

Posted on by Safeguard

Investor Update
May 23, 2018

Source: Fannie Mae

High LTV refi option: Updated LTV floor, plus pricing and delivery info

Yesterday we announced an update regarding the high loan-to-value (LTV) refinance option, which will be available for refinance applications received on or after Nov. 1. As a reminder, this option is for Fannie Mae borrowers who are making their mortgage payments on time, but whose LTV ratios exceed our maximum allowed for standard limited cash-out refinance transactions. This update provides loan-level price adjustment information and changes the minimum LTV ratio to 97.01% for a one-unit, principal residence. For more information, including details about pricing and delivery requirements, read Lender Letter LL-2018-02.

Update to excess attorney foreclosure fees for Puerto Rico and the U.S. Virgin Islands

We will reimburse a one-time excess legal fee of $530 for additional legal work undertaken by servicers in Puerto Rico and the U.S. Virgin Islands whose loans were affected by Servicing Guide Section D1-3-01 and Lender Letter LL-2017-11 (as modified and extended by Lender Letter LL-2018-01). Law firms should request excess fee approval for each impacted mortgage loan by following the process in the Puerto Rico AAA Matrix or Virgin Islands AAA Matrix and use the Non-Standard Other Legal IPA Category.

Reminder: Notify document custodians for servicing transfers

After Fannie Mae has approved a servicer’s Form 629: Request for Approval of Servicing or Subservicing Transfer, the transferor servicer must notify the transferor document custodian of the servicing transfer with a final list of all transferred loans. Please note: Notification must occur even if the document custodian does not change. Review the list of active document custodians.

Join us at these upcoming events:

June 5-6 | Indiana MBA State Convention | Indianapolis
June 6-8 | LendingQB User Conference | Newport Beach, CA
June 19-22 | NAFCU Annual Conference and Solutions Expo | Seattle

View more events.

You may also be interested in…

The Fight for Fair Housing
To commemorate the 50th anniversary of the Fair Housing Act and to explore its legacy, Fannie Mae interviewed civil rights activists and housing policy experts about the Act’s history and its future. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Consumer spending appears poised to gain momentum, while downside risks to our ESR Group’s economic forecasts are rising. Read why 1) our 2018 growth projections remain unchanged despite a weak Q1; and 2) our forecast for 2019 growth was downgraded:
http://bit.ly/2IZbnXG

May 22

Stay up-to-date on the Single Security Initiative. FHFA announced that implementation is planned for June 3, 2019. #MBASecondary18
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Fannie Mae: LAR 83 Changes Coming Soon; New Fraud Alert in California; and More

Posted on by Safeguard

Investor Update
May 30, 2018

Source: Fannie Mae

Coming soon: Changes to LAR 83 processing

We are Simplifying Servicing by introducing a change to Loan Activity Reporting (LAR) 83 payment recast processing. This change, which will go into effect July 21, will allow servicers to request a change to the borrower’s monthly mortgage payment resulting from a curtailment in the current reporting period on Scheduled/Scheduled loans, with an effective date of the subsequent month. This means servicers will now be able to report LAR 96 and LAR 83 transactions with the changed P&I constant in the same month.

No action is required by servicers and we’ll provide a detailed example 30 days before the change goes into effect. If you have questions about this upcoming change, please contact Master Servicing at 1-800-2-FANNIE.

New fraud alert: Misrepresentation of Borrower Employment

We have issued a new fraud alert identifying 34 apparently fictitious employers being used on loan applications in Southern California. View the fraud alert and other resources on our Mortgage Fraud Prevention page.

We’re working to innovate America’s housing

Data and innovation drive progress. We believe that forward motion — coupled with our efforts to work hand-in-hand with lenders, servicers, investors, and other housing partners — is helping create safe, affordable housing for more Americans. Read more about how we’re addressing the challenges and leveraging the opportunities that come with adoption of new technologies, creating new opportunities in housing, serving the communities that serve America, and more in the 2017 America’s Housing Partner report.

Join us at these upcoming events:

  • June 5-6 | Indiana MBA State Convention | Indianapolis
  • June 6-8 | LendingQB User Conference | Newport Beach, CA
  • June 19-22 | NAFCU Annual Conference and Solutions Expo | Seattle

View more events.

You may also be interested in…

The Fight for Fair Housing
To commemorate the 50th anniversary of the Fair Housing Act and to explore its legacy, Fannie Mae interviewed civil rights activists and housing policy experts about the Act’s history and its future. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Discover how a shared-risk model has enabled speed, certainty, and better pricing in multifamily mortgage financing. #PartnersForHousing
http://bit.ly/2shYDld

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See the positive impacts @nvtrp is having on a child’s life, and how some of our employees were able to play a part. #7Days2SERVE
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May 29

Fannie Mae: AMN/HSSN Updates This Weekend

Posted on by Safeguard

Investor Update
May 9, 2018

Source: Fannie Mae 

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 a.m. ET until 4 p.m. ET on Saturday, May 12. For more information, please review the release notes. 

Join us at these upcoming events: 

  • May 10 | Maryland Mortgage Bankers and Brokers Association Annual Conference | Annapolis, MD 
  • May 16-17 | NAR Legislative and Trade Expo | Washington, DC 
  • May 20-23 | MBA National Secondary Market Conference & Expo | New York 

View more events. 

You may also be interested in…

Building Equity: The Legacy, Impact, and Future of the Fair Housing Act
Fannie Mae and The Atlantic recently partnered to mark the 50th anniversary of the Fair Housing Act. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Congratulations to Kimberly Johnson on becoming our new Chief Operating Officer. Get to know Kimberly in this piece by @peterahigh.
http://bit.ly/2Ivu70N

May 9

New analysis shows Millennials have been busy buying homes, even as their homeownership rate has declined. What’s going on?
http://bit.ly/2wtsifS

May 9

VALERI Servicer Newsflash

Posted on by Safeguard

Investor Update
April 18, 2018

Source: VA

IMPORTANT INFORMATION

VA Title Training – VA’s Property Management contractor, Vendor Resource Management (VRM), has developed a VA Title training module for loan servicers. To obtain access to the training, servicers must complete and submit the training request form (Exhibit A) to VRM. To maintain a level of efficiency, servicers are strongly encouraged to compile and submit as few forms as possible rather than submitting one form per person. Upon completion, please email the spreadsheet to: training@vrmco.com. VRM will register the users, email login credentials, and assign the course. Users will normally have access to the course in less than 48 business hours. If there are any questions, please feel free to contact training@vrmco.com.

Appraisal Fees – VALERI enhancement CQ 12670, completed on March 17, 2018, added functionality to the VALERI Fee Cost Schedule to include maximum allowable fees at the county level. Therefore, appraisal fees in higher cost counties no longer require appeals. The changes are reflected on the VALERI Fee Cost Schedule, which is located at http://www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.

Circular 26-15-18, Change 2, Paid in Full Notification of Loans Guaranteed for Repurchase Under the Provisions of 38 C.F.R. 36.4600 (VA Regulation 4600 Loans), was issued on March 20, 2018, and is located on the VALERI internet at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Pre-Approval Requests – Servicers may request to deviate from a VA Regulation more than once if circumstances change during the life of the loan. If there is a need to deviate from multiple regulations, servicers should submit all deviations in a single pre-approval request. It is the servicer’s responsibility to adhere to all other regulatory requirements and ensure all actions are in the best interest of the Veteran and Government (VA Servicer Handbook M26-4, Chapter 6).

USDA: Handbook-1-3555 Changes – Chapter 18

Posted on by Safeguard

Investor Update
April 10, 2018

Source: USDA

On July 1, 2018* an update to Chapter 18 will be published that provides changes to the loss mitigation waterfall as well as revised language surrounding disaster relief options available for borrowers impacted by Presidentially Declared Disasters.  To assist in identifying the changes we are providing a HB-1-3555 Revision Guide, outlining revisions implemented with this publication.

*Our original communication stated May 1, 2018; however, based on feedback from servicers, we have extended the implementation date to July 1, 2018.

Questions regarding this announcement may be directed to Richard Kane in the Rural Housing National Office at 202-720-0320 or Richard.Kane@wdc.usda.gov.

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: Expanded Guidance – USDA Modified Interest Rate Waiver

Posted on by Safeguard

Investor Update
April 2, 2018

Source: USDA

This notification provides additional guidance on the topic delivered earlier today with a subject line of “USDA Modified Interest Rate Waiver.”

In response to the rising interest rate environment, the Single Family Housing Guaranteed Loan Program (SFHGLP) is issuing a waiver for all approved loan servicers to modify loans whereby the interest rate may exceed the original guaranteed note rate.  The current policy which limits the modified maximum interest rate to the original guaranteed note rate has hindered loan servicers in their ability to offer the full range of loss mitigation alternatives to borrowers.

Loan servicers must adhere to Chapter 18 of the SFHGLP Technical Handbook when conducting a financial analysis of the borrower’s capacity to support the modified mortgage payment. The result of the financial analysis must demonstrate the borrower’s ability to support the modified mortgage payment going forward.

Effective immediately, loan servicers may consider offering a modified interest rate which does not exceed the Freddie Mac Weekly Primary Mortgage Market Survey (PMMS) rate for a 30 year fixed rate mortgage (US Average) rounded to the nearest one-eighth of one percent (0.125%) plus 50 basis points as of the date the modification is approved.  This may result in a modified interest rate which exceeds the original guaranteed note rate which is now permissible as a result of this waiver.

This waiver is in effect until rescinded by the SFHGLP.

Questions regarding this announcement may be directed to Richard Kane in the Rural Housing National Office at 202-720-0320 or Richard.Kane@wdc.usda.gov.

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: Updated MHA LPI Date Correction Request & MHA Incentive Inquiry Request Guidance Posted

Posted on by Safeguard

Investor Update
April 5, 2018

Source: MHA

MHA LPI Date Correction Request Process:

Reporting guidance and updated request template for the MHA LPI Date Correction Request Process was posted April 4, 2018.

Key Updates include:

  • The updated MHA LPI Date Correction Request Template must be used for MHA LPI Date Correction requests on or after April 12, 2018
  • If Servicer is submitting preliminary requests, MHA LPI Date Correction Requests may be submitted by the 3rd Business Day prior to End-of-Cycle (EOC-3)
  • MHA LPI Date Correction Review Results will be available on the 1st Business Day prior to End-of-Cycle (EOC-1)
  • Servicers must submit all MHA LPI Date Correction Requests by the 3rd Business Day after End-of-Cycle (EOC+3)
  • For each correction request submitted, a MHA LPI Date Correction Summary will be available on the 2nd Business Day (BD2) of the following month
  • The MHA LPI Date Correction Reporting Guidance updated references to the MHA LPI Date Correction Request Process

Additional guidance and the updated request template are provided at the links below, as well as under the Data Reporting tab‘s MHA LPI Date Correction Request Process section on the secure side of HMPadmin.com (login required).

MHA LPI Date Correction Request Process (Updated: April 4, 2018)

MHA LPI Date Correction Request Template (Updated: April 4, 2018) Note: To be used for new submissions on or after April 12, 2018

MHA LPI Date Correction Reporting Guidance (Updated: April 4, 2018)

MHA Incentive Inquiry Request Process:

Reporting Guidance for the MHA Incentive Inquiry Request Process was posted April 4, 2018.

Key Updates include:

  • The updated references to MHA LPI Date Correction Request Process

Additional guidance and the updated request template are provided at the links below, as well as under the Data Reporting tab‘s MHA Incentive Inquiry Request Process section on the secure side of HMPadmin.com (login required).

MHA Incentive Inquiry Request Process (Updated: April 4, 2018)

Questions?

Email the HAMP Solution Center at Support@hmpadmin.com