Safeguard Properties

VALERI Servicer Newsflash

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Investor Update
March 15, 2017

Source: VA 

IMPORTANT INFORMATION

VALERI Down Time – On Saturday, March 17, 2018, the VALERI application will be intermittently unavailable from 8:00 AM EST to 12:00 PM EST and completely unavailable from 7:00 PM EST to 12:00 AM. Electronic file submissions will not be impacted.

Loan Modification Interest Rate Rounding – Per VA Regulation Title 38 §36.4315, the rate “may not exceed the most recent Freddie Mac Weekly Primary Mortgage Market Survey Rate for 30-year fixed-rate conforming mortgages (U. S. Average), rounded to the nearest one-eighth of one percent (0.125%), as of the date the Modification Agreement is approved, plus 50 basis points.” It should not be rounded “up” to the nearest one-eighth as currently indicated in Chapter 5 of the VA Servicer Handbook M26-4.

Circular 26-17-23, Change 2, Special Relief Following Hurricane Harvey, was issued on March 5, 2018, and is located on the VALERI internet at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Circular 26-17-27, Change 2, Special Relief Following Hurricane Irma, was issued on March 1, 2018, and is located on the VALERI internet at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Circular 26-17-28, Change 2, Special Relief Following Hurricane Maria, was issued on March 1, 2018, and is located on the VALERI internet at https://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Circular 26-18-5, Department of Veterans Affairs (VA) Property Management and Servicing Contract, was issued on February 27, 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. In addition, you must complete all prompts and not leave as “null”, as this also will cause your report to fail. (VALERI Scheduling Reports Quick Reference Guide).

DEVELOPMENT UPDATES

On Saturday, March 17, 2018, VALERI Manifest 18.1 will be released. The following enhancements will be included:

CQ 12670 – Adds functionality to VALERI’s Fee Cost Schedule to include maximum allowable fees at the county level.

CQ 12929 – Changes the Basic and Supplemental Claim timeliness business rule logic to include the 365th day.

CQ 13171 – Adds the following appeal types to the Appeal History tab in the Servicer Web Portal Appeal page: Denied Claim, Late Claim, Paid Acquisition, Denied Acquisition, Late Acquisition, Denied Incentive, Regulatory Infractions.

CQ 13306 – Updates the redemption states list on the Transfer of Custody event.

USDA: Handbook-1-3555 Chapter 18 Changes – Advance Notice

Posted on by Safeguard

Investor Update
March 7, 2018

Source: USDA

On May 1, 2018, Chapter 18, HB-1-3555 will be updated to amend guidance around servicing of non-performing loans.  Details on these changes are provided in this advanced copy of Chapter 18 that will be published and effective May 1, 2018.
 
Questions regarding this announcement may be directed to Richard Kane in the Rural Housing National Office at 202-720-1452 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: Foreclosure Moratorium Extended for Areas Impacted by Hurricane Maria

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Investor Update
March 8, 2018

Source: USDA

USDA is extending the moratorium on property foreclosures in the Presidentially Declared Disaster (PDD) areas impacted by Hurricane Maria.  In light of the severity of the damage caused by the storm, the foreclosure moratorium will be extended until June 19, 2018.
 
This extension applies to new foreclosures as well as foreclosures already initiated.  USDA guidance outlined in “Assistance in Natural Disasters” and located in Chapter 18, Section 4, 7 CFR 3555.307 of the SFHGLP Handbook requires an initial moratorium on foreclosure actions within a PDD for ninety days following the date of each PDD declaration. The extensions are intended to provide greater relief to homeowners in the PDD areas.
 
If you have any questions, please contact the USDA Rural Development Customer Service Center at (866) 550-5887 or the National Office at (202) 720-1452.

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: Revised Official Monthly Reporting – OMR Job Aid Posted

Posted on by Safeguard

Investor Update
March 23, 2018

Source: MHA

The Official Monthly Reporting – OMR Job Aid has been revised to provide reporting guidance to address scenarios in which a borrower in a permanent HAMP Modification completes a Federally Declared Disaster (FDD) Forbearance Plan.

The updated guidance includes:

  • HAMP Reporting Tool Modification Status Upon Forbearance Plan Exit; and
  • Resumption of Official Monthly Reporting Upon Forbearance Plan Exit

The revised document is available at the link below, which can be viewed within the Learning Center Tab under Job Aids in the HAMP Section on HMPadmin.com.

  • Official Monthly Reporting – OMR

Additionally, we remind Servicers that, effective May 2018, the HAMP Reporting Tool will only accept Official Monthly Reports through the Sixth Business Day (BD6) each month.

Questions?

Email the HAMP Solution Center at Support@hmpadmin.com

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