Safeguard Properties

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

FHFA: Refinance Report – April 2018

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Investor Update
June 14, 2018

Source: FHFA

Total refinance volume decreased in April 2018 as mortgage rates rose in March, continuing a trend first observed in October 2017.  Mortgage rates increased in April: the average interest rate on a 30?year fixed rate mortgage rose to 4.47 percent from 4.44 percent in March, reaching levels last observed in 2013.

In April 2018:

  • Borrowers completed 1,017 refinances through HARP, bringing total refinances from the inception of the program to 3,489,182.
  • HARP volume represented 1 percent of total refinance volume.
  • Three percent of the loans refinanced through HARP had a loan?to?value ratio greater than 125 percent.

Year to date through April 2018:

  • Borrowers with loan?to?value ratios greater than 105 percent accounted for 15 percent of the volume of HARP loans.
  • Thirty?three 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 – April 2018

FHFA: New “Snapshots” of Fannie Mae and Freddie Mac’s Duty to Serve Plans to Help Stakeholders Identify Opportunities Published

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Investor Update
June 28, 2018

Source: FHFA

Fannie Mae and Freddie Mac (the Enterprises) engaged extensively with stakeholders to develop their respective Duty to Serve Plans (DTS), which went into effect on January 1, 2018.  The Plans provide detailed information on how the Enterprises will provide leadership and facilitate a secondary market for very low-, low-, and moderate-income families in three specified areas as directed by statute: manufactured housing, affordable housing preservation, and rural housing.

The DTS Plans detail opportunities for financial services organizations, nonprofits and other industry participants to work with the Enterprises to better serve the three target markets.  FHFA is committed to facilitating these opportunities, so to help simplify the process and help stakeholders find the most relevant part of each Plan, we’ve created 11 Snapshots that further break down the three main markets so interested parties can quickly find a topic or opportunity of interest. 

We hope that the 11 DTS Snapshots, available on FHFA’s website, will serve as a handy guide for stakeholders:

If there are additional topics – potential engagement opportunities included in the Enterprises’ DTS Plans – that are not included and would be helpful to add, or if you have comments regarding existing Snapshots, please contact us via email at DutytoServeStakeholders@FHFA.gov.
 
Tagged: Duty to Serve; Multifamily/Rentals; rural housing; manufactured housing; single-family rentals; chattel; Affordable Housing; affordable housing preservation; energy efficiency

FHFA: Foreclosure Preventions Top 4.1 Million In FHFA’s 2018 First Quarter Report”

Posted on by Safeguard

Investor Update
June 21, 2018

Source: FHFA 

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its first quarter 2018 Foreclosure Prevention Report, which shows that Fannie Mae and Freddie Mac (the Enterprises) completed 68,378 foreclosure prevention actions in the first quarter of 2018, bringing the total number of foreclosure prevention actions to 4,108,636. The Enterprises’ serious delinquency rate dropped to 1.1 percent at the end of the first quarter. 

FHFA’s report includes data on the Enterprises’ mortgage performance, delinquency data by state, and real estate owned (REO) inventory.  FHFA publishes the report data in an online, interactive Borrower Assistance Map on FHFA.gov. 

Link to Report

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

Consumers: Consumer Communications or (202) 649-3811

FHFA: Fifth Report on Non-Performing Loan Sales Released

Posted on by Safeguard

Investor Update
June 13, 2018

Source: FHFA

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its fifth report providing information about the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises).  The Enterprise Non-Performing Loan Sales Report includes information about NPLs sold through December 31, 2017, and reflects borrower outcomes as of December 31, 2017 on NPLs sold through June 30, 2017.  The sale of NPLs reduces the number of delinquent loans in the Enterprises’ portfolios and transfers credit risk to the private sector.  FHFA and the Enterprises impose requirements on NPL buyers designed to achieve more favorable outcomes for borrowers than foreclosure. 

This fifth report shows that, through December 31, 2017, the Enterprises sold 90,921 NPLs with a total unpaid principal balance (UPB) of $17.4 billion.

  • In 2017, 18,419 NPLs were sold, compared to 44,169 sold in 2016.
  • NPLs sold had an average delinquency of 3.2 years and an average current loan-to-value ratio of 95 percent.
  • NPLs in New Jersey, New York and Florida represented nearly half (46 percent) of the NPLs sold.  These three states accounted for 47 percent of the Enterprises’ loans that were one year or more delinquent as of December 31, 2014, prior to the start of NPL program sales in 2015.

The borrower outcomes in the report are based on the 79,638 NPLs that were settled by June 30, 2017 and reported through December 31, 2017.  These outcomes reflect the following:

  • Compared to a benchmark of similarly-delinquent Enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark. 
  • NPLs on homes occupied by borrowers had the highest rate of foreclosure avoidance outcomes (25.7 percent foreclosure avoided versus 11.5 percent for vacant properties).
  • NPLs on vacant homes had a much higher rate of foreclosure, nearly double the foreclosure rate of borrower-occupied properties (59.5 percent foreclosure versus 24 percent for borrower occupied properties).  Foreclosures on vacant homes typically improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.
  • Twenty one percent of the permanent modifications of NPLs provided arrearage and/or principal forgiveness.  The average forgiveness earned per loan to date was $51,452 (with the potential to earn an average forgiveness of $73,361).

FHFA will continue to provide reporting on NPL sales borrower outcomes on an ongoing basis.

Link to Non-Performing Loan Sales Report

Link to NPL page on FHFA.gov
 
Contacts: 
Media: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030

Consumers: Consumer Communications or (202) 649-3811

Fannie Mae: Servicing Guide Updates; New Consolidated Forbearance Plan; and More

Posted on by Safeguard

Investor Update
June 13, 2018

Source: Fannie Mae

Announcement SVC-2018-04: Servicing Guide updates

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

  • Provide forbearance plan options that:
  • Assist borrowers experiencing a short-term hardship; and
  • Remove the requirement for servicers to grant separate relief during the 90-day period when attempting to contact a borrower impacted by a disaster.  
  • Respond to servicer feedback by removing the time frame associated with servicer reimbursements for escrow advances on delinquent loans.
  • Clarify servicer requirements for submitting Form 1022, the Servicemembers Civil Relief Act (SCRA) Reporting and Disbursement Form.

For a summary of key updates in Servicing Guide Announcement SVC-2018-04, 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.

New consolidated forbearance plan

We continue to look for ways to bring simplicity and certainty to servicing by streamlining our current forbearance plan workout options into a single policy. This change will simplify the overall forbearance plan offerings into one program to create a better experience for servicers. Servicers are encouraged to implement these policy changes immediately, but no later than Dec. 1. Please contact your Fannie Mae Servicing Account Manager with any questions.

SMDU enhancements coming this weekend

This weekend, we will implement enhancements to Servicing Management Default Underwriter™ (SMDU™). Please refer to the release notes for more information. During implementation, SMDU will be unavailable to process transactions from 10 p.m. ET on Friday, June 15 through 11 a.m. ET on Saturday, June 16. Visit the SMDU web page or contact your Fannie Mae Servicing Account Manager for more information.

New UI enhancements to SURF

Servicer’s Reconciliation Facility™ (SURF™) will be upgraded on July 7 to enhance the software and the appearance of the application. In addition, users will no longer be required to configure browser settings to Internet Explorer 8 to receive the exception messages. Google Chrome will also be compatible with this enhancement. View additional Fannie Mae technology requirements.

Updated CRS remittance codes

As a component of Simplifying Servicing™, we updated the Cash Remittance System (CRS) remittance codes. A revised list of the CRS 300 series code names and descriptions is available on the CRS page.

Join us at these upcoming events:

June 19-22 | NAFCU Annual Conference and Solutions Expo | Seattle
June 20-21 | MBA of Florida 65th Annual Convention | St. Petersburg
June 21-22 | NEXT Women’s Mortgage Conference | Dallas

View more events.

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