Safeguard Properties

HUD: Secretary Carson Launches New Financial Controls to Enhance Department’s Fiscal Strength and Integrity

Posted on by Safeguard

Investor Update
March 15, 2018

Source: HUD

New Chief Financial Officer to lead effort to improve system of checks and balances

WASHINGTON – U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson today announced new measures to protect the financial integrity of the agency and correct lax internal processes and controls. Secretary Carson directed HUD’s newly appointed Chief Financial Officer, Irving Dennis, to design and implement a transformation plan and lead an internal taskforce to combat waste, fraud and abuse.

In a statement announcing these measures, Secretary Carson said the Department’s current financial controls are outdated:

“We simply need to do better. An updated system of internal controls will provide our agency with greater certainty that the dollars we spend are spent in a manner that satisfies all laws and regulations, and most importantly, the American people. We will approach this as any business would by increasing transparency and accountability. In the end, we will also support a culture that respects the fact that HUD funds belong to the public.”

As a former partner at the internationally recognized accounting firm Ernst & Young, Dennis will institute new processes and controls, empower employees, and strengthen compliance and enforcement-related functions at HUD.

“I’m excited to apply a business acumen to a task that is necessary for us as an Agency,” said Dennis. “These new internal controls and management practices must be embedded into our organization to help prevent misuse and misappropriation of assets. The goal is to create more robust processes and systems of checks and balances to ensure our expenditures not only meet all of our requirements but pass a common sense ‘smell test.’”

HUD’s new plan will consist of:

  • Agency-wide Governance: Implementing an Agency-wide governance structure that allows for more oversight, transparency, monitoring and accountability;
  • Finance Transformation: Developing a plan to restore discipline and accountability in the financial and reporting systems across the Agency.
  • Grant Modernization: Developing a holistic grant modernization plan to improve grant processes and reporting, including improved IT systems; and
  • Process Improvement: Promoting a HUD culture focused on documented and repeatable process with a focus on transparency and cost reasonableness.

As part of this effort, HUD’s Office of the CFO, with support from the Agency’s Office of the General Counsel, are currently reviewing processes to ensure HUD is within all guidelines and utilizing resources effectively.

HUD: FHA INFO #18-12: Extension of HECM Foreclosure Timelines for Properties Impacted by Hurricane Maria in Affected Areas in Puerto Rico and the U.S. Virgin Islands

Posted on by Safeguard

Investor Update
March 19, 2018

Source: HUD (FHA INFO #18-12 full version)

Today, the Federal Housing Administration (FHA) announced that due to the extensive damage caused by Hurricane Maria in Puerto Rico and the U.S. Virgin Islands, the U.S. Department of Housing and Urban Development (HUD) has exercised its authority to extend foreclosure timelines through May 18, 2018, for Home Equity Conversion Mortgages (HECM) on impacted properties in those Presidentially-Declared Major Disaster Areas (PDMDAs).

This extension is applicable only to those counties declared eligible for Individual Assistance by the Federal Emergency Management Agency (FEMA). It applies to both the initiation of foreclosures and foreclosures already in process on HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse.

This guidance is effective immediately and is applicable to all homeowners with FHA-insured HECM mortgages whose property or place of employment is in the PDMDAs for Puerto Rico’s Hurricane Maria (FEMA-DR-4339) and U.S. Virgin Islands’ Hurricane Maria (FEMA-DR-4340).

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: FHA INFO #18-11: Training Opportunity

Posted on by Safeguard

Investor Update
March 15, 2018

Source: HUD (FHA INFO #18-11 full version)

Webinar Title: NEW Mortgagee Letter 18-01: Loss Mitigation Policy Changes for Disaster-Affected Borrowers

Date/Time: Tuesday, March 20, 2018 – 11:00 AM (Eastern)
                   Thursday, March 22, 2018 – 2:00 PM (Eastern)
                   Tuesday, April 3, 2018 – 11:00 AM (Eastern)
                   (This is the same webinar offered on different days and times. You are invited to attend
                   the session that best fits your schedule.)

Event Location: On-line Webinar – No Fee

Jurisdictional Host: National Servicing Center

Registration Link: https://attendee.gotowebinar.com/rt/2118081996904236034

Description: This free, on-line webinar will provide a detailed overview of the loss mitigation policies announced in Mortgagee Letter 18-01. It will highlight the Federal Housing Administration (FHA) Single Family Housing Policy Handbook 4000.1, Section III.A.3.c.iv, which references disaster-affected borrowers with Title II FHA-insured forward mortgages whose home and/or place of employment are located in the Presidentially-Declared Major Disaster Areas (PDMDAs) of: Louisiana and Texas (Hurricane Harvey); Florida, Georgia, and South Carolina (Hurricane Irma); Puerto Rico and the U.S. Virgin Islands (Hurricanes Irma and Maria); and California Wildfires or California Wildfires, Flooding, Mudflows, and Debris Flows.

Special Instructions: This webinar is open to all FHA-approved servicers and FHA-approved housing counselors. It is being offered on three different dates and times to maximize attendance. A valid company email address and the FHA 5-digit lender and/or agency ID are required at the time of registration. For more information, contact stacey.a.brown@hud.gov.

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: FHA INFO #18-09: 60-Day Extension of Foreclosure Moratorium for Hurricane Maria Affected Areas in Puerto Rico and the U.S. Virgin Islands

Posted on by Safeguard

Investor Update
March 1, 2018

Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2018-02, “Extension of Disaster Foreclosure Moratoriums for Specified Areas Impacted by Hurricane Maria,” which extends the current 180-day foreclosure moratorium in the Presidentially-Declared Major Disaster Areas (PDMDAs) for Hurricane Maria in Puerto Rico and the U.S. Virgin Islands for an additional 60 days, through May 18, 2018. Read HUD’s press release.

The U.S. Department of Housing and Urban Development (HUD) is exercising its authority to extend the current foreclosure moratorium due to the extensive damage caused by Hurricane Maria in Puerto Rico and the U.S. Virgin Islands. This extension is only for those counties that the Federal Emergency Management Agency (FEMA) has declared to be eligible for Individual Assistance, and applies to both the initiation of foreclosures and foreclosures already in process.

ML 2018-02 is effective immediately, and is applicable to all homeowners with FHA-insured Title II forward mortgages whose property or place of employment is located in the PDMDAs for Puerto Rico’s Hurricane Maria (FEMA-DR-4339) and U.S. Virgin Islands’ Hurricane Maria (FEMA-DR-4340).

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.

Source: HUD (FHA INFO #18-09 full version)

Freddie Mac: Clarification on EDR Default Action Codes for Extend Modification

Posted on by Safeguard

Investor Update
March 1, 2018

Source: Freddie Mac

In response to your feedback, we’re clarifying required Electronic Default Reporting (EDR) default action codes for notifying us that a borrower has entered a Trial Period Plan for the Extend Modification for Disaster Relief (Extend Modification). The Extend Modification was introduced, along with detailed requirements, in Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-25 [pdf].

For certain requirements already defined for all modification options, Guide Bulletin 2017-25 referred you back to the requirements included in Guide Sections 9206.11- 9206.18. However, based on conversations with some of you, the instructions in the Guide for EDR do not explicitly reference the Extend Modification.

In response to your questions, we’re clarifying the following, which will be included in a future Guide Bulletin:

  • When reporting an Extend Modification Trial Period Plan to Freddie Mac, Servicers must use EDR default action code “BF – Standard Modification Trial Period.”
  • As described in Guide Section 9206.13(a), you must continue to use the “BF” default action code when reporting:
  • Freddie Mac Flex Modifications, regardless of whether the evaluation required a complete Borrower Response Package.
  • Capitalization and Extension Modification for Disaster Relief (Disaster Relief Modification).
  • To the extent that the Servicer still has active Streamlined Modification Trial Period Plans to report, the Servicer must continue to use the “TM – Alternative Modification Trial Period” default action code.
  • NOTE: Evaluations for Streamlined Modifications must have been completed before October 1, 2017, and all evaluations after that time should be for the Flex Modification and should be reported using the “BF” default action code.

For More Information

FHLMC Guide Bulletin 2018-4: Extension of Foreclosure Sale Suspension in Puerto Rico and the U.S. Virgin Islands

Posted on by Safeguard

Investor Update
March 7, 2018

Source: Freddie Mac

Today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2018-4 [pdf] extends the suspension of all foreclosure sales in Puerto Rico and the U.S. Virgin Islands for two more months through May 31, 2018. This extends relief announced in prior Guide Bulletins to help your borrowers continue to receive the assistance they need.

Last December, we announced an extension only until March 31, 2018.

For more information on this extension read Guide Bulletin 2018-4 [pdf] or contact your Freddie Mac representative.

FHFA: Report Details Progress on the 2017 Scorecard for Fannie Mae and Freddie Mac

Posted on by Safeguard

Investor Update
March 29, 2018

Source: FHFA

Washington, D.C. – The Federal Housing Finance Agency (FHFA) issued a Progress Report today summarizing the 2017 activities of Fannie Mae and Freddie Mac (the Enterprises) to further FHFA’s three strategic objectives as conservator: Maintain, Reduce, and Build.  

The Report describes efforts taken by the Enterprises during 2017 to address factors limiting access to mortgage credit for creditworthy borrowers, to mitigate and prevent foreclosures, and to responsibly reduce severely-aged delinquent loans, nonperforming loans, and real estate owned properties. The Report describes Enterprise activities to reduce taxpayer risk, including efforts to expand single- and multi-family credit risk transfer transactions and activities to reduce the Enterprises’ retained portfolios. The Report also highlights progress made on the Single Security Initiative and on the Common Securitization Platform.  In addition, the Report describes the Enterprises’ ongoing efforts to promote diversity and inclusion in all Scorecard activities.

“This is the fifth annual report detailing the significant steps taken by FHFA, in collaboration with Fannie Mae, Freddie Mac, and Common Securitization Solutions, to meet our conservatorship objectives,” said FHFA Director Melvin L. Watt.   “It also underscores our continuing commitment to transparency and to meeting these objectives in a safe and sound manner.”

Interested parties are invited to provide input on this Report.   Feedback can be submitted electronically, or to the Federal Housing Finance Agency, Office of Strategic Initiatives, 400 7th Street, S.W., Washington, DC 20219.

Link to Progress Report
 
The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.0 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: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030

Consumers: Consumer Communications or (202) 649-3811

FHFA: Refinance Report – January 2018

Posted on by Safeguard

Investor Update
March 15, 2018

Source: FHFA

January 2018 Highlights

  • Total refinance volume decreased in January 2018 as mortgage rates in December rose, continuing a trend first observed in October. Mortgage rates increased in January: the average interest rate on a 30?year fixed rate mortgage rose to 4.03 percent from 3.95 percent in December.

Additional January highlights include the following:

  • Borrowers completed 1,557 refinances through HARP, bringing total refinances from the inception of the program to 3,485,583.
  • 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.
  • Borrowers with loan-to-value ratios greater than 105 percent accounted for 15 percent of the volume of HARP loans.
  • Thirty 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 Georgia and Illinois — triple the 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 September 30, 2017.

Attachments: Refinance Report – January 2018

FHFA: Foreclosure Prevention Report – Fourth Quarter 2017

Posted on by Safeguard

Investor Update
March 22, 2018

Source: FHFA

Fourth Quarter 2017 Highlights

The Enterprises’ Foreclosure Prevention Actions:

  • The Enterprises completed 67,569 foreclosure prevention actions in the fourth quarter of 2017, bringing the total to 4,040,258 since the start of conservatorships in September 2008. Of these actions, 3,357,722 have helped troubled homeowners stay in their homes including 2,150,946 permanent loan modifications.
  • Forbearance plans rose significantly to 24,935 during the quarter, driven by the disaster-related forbearance offered to homeowners affected by Hurricanes Harvey, Irma and Maria.
  • Forty two percent of modifications in the fourth quarter were modifications with principal forbearance.  Modifications with extend-term only also accounted for 42 percent of all loan modifications during the quarter.
  • There were 3,119 completed short sales and deeds-in-lieu during the quarter, bringing the total to 682,536 since the conservatorships began in September in 2008.

The Enterprises’ Mortgage Performance:

  • The percentage of 60+ days delinquent loans rose from 1.32 percent to 1.65 percent at the end of the fourth quarter primarily as a result of the impact of Hurricanes Harvey, Irma, and Maria.
  • The Enterprises’ serious (90 days or more) delinquency rate increased to 1.18 percent at the end of the fourth quarter. This compared with 4.8 percent for Federal Housing Administration (FHA) loans, 2.4 percent for Veterans Affairs (VA) loans, and 2.9 percent for all loans (industry average).

The Enterprises’ Foreclosures:

  • Foreclosure starts increased 6 percent to 45,203, and third-party and foreclosure sales decreased 14 percent to 13,448 in the fourth quarter.

For an interactive online map that provides state data, click on the following link: Fannie Mae and Freddie Mac State Borrower Assistance Map

Related News Release
 
Attachments: Foreclosure Prevention Report