Safeguard Properties

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

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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

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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

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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

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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.

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

Posted on by Safeguard

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

Posted on by Safeguard

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