Safeguard Properties

Fannie Mae: Bringing Simplicity and Certainty to Servicing

Posted on by Safeguard

Investor Update
January 10, 2018

Come see how we’re bringing simplicity and certainty to servicing

During the MBA National Mortgage Servicing Conference & Expo, stop by our booth in THE HUB. We’ll share with you our innovative solutions for near real-time access to master servicing data, a one and done approach to claims processing, and more. Drop by on Tuesday, Feb. 6 from 6 to 7 p.m., Wednesday, Feb. 7 from 10 a.m. to 6 p.m., and Thursday, Feb. 8 from 10:30 a.m. to 4 p.m. See you in Texas!

Updated criteria for servicer expense reimbursement submissions

New reimbursement criteria have been established for servicer expenses related to foreclosure attorney fees and sale publication costs, property inspections, legal sales tax, and non-recoverable advances. Additionally, line items have been updated in LoanSphere Invoicing™.

For criteria details, review the updated Servicer Expense Reimbursement Job Aid. Refer to the Reimbursement Updates Notification for detailed line item updates and the LoanSphere Line Items Job Aid for a list of all servicer expense categories and subcategories for conventional loans that are available in LoanSphere Invoicing.

You can find servicer expense reimbursement training on the Servicer Expense Reimbursement page.

Make your voice heard on credit score models

We’ve been working with the Federal Housing Finance Agency (FHFA) and Freddie Mac since 2015 to evaluate whether to change the current industry standard credit score model. FHFA has published a Request for Input (RFI) to gather feedback from interested parties potentially impacted by a possible change in our credit score requirements. The Credit Score RFI discusses the credit score models under consideration by FHFA; industry use of credit scores; credit score competition; and operational, timing, and other considerations. It asks for input on credit score usage, operational impacts of the options under consideration, issues related to competition in the credit score market, and possible changes to the tri-merge credit report requirement.

We encourage industry participants to review the RFI and consider providing input. Any change to our credit score requirements will have a significant impact on the industry and will impact all aspects of the loan lifecycle. Please make your opinions known. The deadline to respond to the RFI is Feb. 20, 2018.

Final Duty to Serve Plan now available

We have published our final Duty to Serve Underserved Markets Plan outlining a three-year effort to improve access to affordable housing in three markets facing persistent challenges — manufactured housing, affordable housing preservation, and rural housing. The final Plan reflects extensive input by housing stakeholders, the public, and FHFA. Learn more on our Duty to Serve page.

Join us at these upcoming events:

Jan. 22-25 | MBA Independent Mortgage Bankers Conference | Amelia Island, FL
Feb. 6-7 | Texas MBA Southern Secondary Market Conference | Houston
Feb. 6-9 | MBA National Mortgage Servicing Conference & Expo | Grapevine, TX

View more events.

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Our 5 favorite stories from 2017
2017 had a lot of good news for our industry. Here are our favorite posts. Read more

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Source: Fannie Mae

CFPB: Request for Information on Civil Investigative Demands

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Investor Update
January 24, 2018

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today published the Request for Information (RFI) about the Bureau’s Civil Investigative Demands (CIDs) that was announced as part of Acting Director Mick Mulvaney’s call for evidence last week. This RFI will provide an opportunity for the public to submit feedback and suggest ways to improve outcomes for both consumers and covered entities. The CFPB will begin accepting comments once the RFI is printed in the Federal Register, which is expected to occur on Friday, January 26.

The RFI on Civil Investigative Demands is available at: http://files.consumerfinance.gov/f/documents/cfpb_rfi_civil-investigative-demands_012018.pdf ?

The press release on the call for evidence is available at: https://www.consumerfinance.gov/about-us/newsroom/acting-director-mulvaney-announces-call-evidence-regarding-consumer-financial-protection-bureau-functions/

Source: CFPB

VA: John Bell, III Named as Deputy Director of VA’s Loan Guaranty Service

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Investor Update
December 11, 2017

Dear Colleagues-
 
It is with great honor that I announce the selection of Mr. John Bell, III as Deputy Director of the Veteran’s Affairs Loan Guaranty Service.  Although John has worked with Loan Guaranty in various positions for nearly 8 years, he came to the Department of Veterans Affairs as a seasoned professional in the mortgage industry.  His resume includes over 20 years of progressively higher level positions with a number of top lending and financing firms. 
 
Mr. Bell rapidly moved through the Loan Guaranty ranks with his most recent position as the Assistant Director of Loan Policy and Valuation for six years.  In managing three distinct business sections, John was responsible for creating, planning, and implementing numerous initiatives designed to transform Loan Guaranty’s delivery of benefits by embracing technology and automation.  John has served as a senior leader for VA at the joint agency collaboration between Housing and Urban Development, Department of Agriculture, Consumer Financial Protection Bureau, Fannie Mae, and Ginnie Mae to address topics specific to the Federal housing industry.
 
During his tenure with the Department, John has shown himself to be a tireless advocate for Veterans in pursuit of home ownership.  In his new capacity, Mr. Bell will continue to uphold the Loan Guaranty mission of assisting Veterans to obtain, retain, and adapt homes.  Due to Mr. Bell’s ongoing role as the Executive Management Officer with VA’s Office of Economic Opportunity, it is anticipated he will begin his full duties as Deputy Director during the second quarter of the fiscal year.  Please join me in congratulating John for this wonderful accomplishment.
 
Most sincerely,
Jeff London
Director
Loan Guaranty Service

Source: VA

VA Circular 26-17-42: Special Relief Following California Wildfires

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Investor Update
December 12, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by the California wildfires, 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 at the following link: (http://www.benefits.va.gov/homeloans/documents/docs/va_policy_regarding_natural_disasters.pdf).

2. Forbearance Request. VA encourages holders of guaranteed loans to extend forbearance to borrowers in distress as a result of the California wildfires. 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 (C.F.R.), section 36.4311 allows the reapplication of prepayments to cure or prevent a default. Also, 38 C.F.R. 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. VA Disaster Loan Modification. The VA Disaster Loan Modification allows servicers to extend permanent payment relief to impacted delinquent borrowers. All impacted borrowers should have an opportunity to be considered for a VA Disaster Loan Modification as long as eligibility requirements are met. Servicers are encouraged to continue VA Disaster Loan Modification Solicitation efforts throughout the delinquency and the foreclosure process, up to 12 months after the federally-declared disaster. Servicers should refer to VA Servicer Handbook, M26-4, Chapter 21, for eligibility requirements and additional guidance. The handbook can be found on VA’s website at the following link: (https://www.benefits.va.gov/WARMS/M26_4.asp)

4. 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 C.F.R. 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 California wildfires, 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.

5. 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.

6. 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.

7. 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.

8. Rescission: This Circular is rescinded January 1, 2019.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

Senate Confirms Paul Compton as HUD General Counsel

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Investor Update
December 19, 2017

On Monday evening, the United States Senate confirmed J. Paul Compton, Jr. to serve as General Counsel of the U.S. Department of Housing and Urban Development (HUD). HUD Secretary Ben Carson said that Compton’s confirmation comes at a critical time as the Department continues to deal with the aftermath of Hurricanes Harvey, Irma, and Maria, as well as other natural disasters such as the California wildfires.

Secretary Carson said, “Paul’s extensive background in real estate and housing finance will be a tremendous asset to this Department as we continue to support our nation’s housing markets and our state and local partners recovering from recent disasters. I look forward to adding Paul’s expertise to our highly experienced senior team.”

Paul Compton has extensive legal expertise in the areas of multifamily affordable housing finance, tax credit transactions, and residential mortgage securitization.  According to the press release, Compton is “a former partner of the Birmingham-based law firm of Bradley Arant Boult Cummings, LLP, Compton is listed by Chambers USA as one of America’s leading business lawyers on issues related to banking, finance and regulatory matters.” Compton served as a legal advisor to the Alabama Affordable Housing Association (AAHA), “a trade organization for developers, property managers, lenders, investors and service providers for affordable housing.”

Source: DS News

Additional Resource:

HUD (Senate Confirms Paul Compton as HUD’s General Counsel)

OCC: OCC Allows National Banks and Federal Savings Associations Affected by Wildfires in California to Close

Posted on by Safeguard

Investor Update
December 7, 2017

WASHINGTON — The Office of the Comptroller of the Currency (OCC) today issued a proclamation allowing national banks and federal savings associations affected by wildfires in California to close.

In issuing the proclamation, the OCC expects that only those bank offices directly affected by the extreme emergency conditions to close. Those offices should make every effort to reopen as quickly as possible to address the banking needs of their customers.

OCC Bulletin 2012-28 “Supervisory Guidance on Natural Disasters and Other Emergency Conditions” provides guidance on actions bankers could consider implementing when their bank or savings association operates or has customers in areas affected by a natural disaster or other emergency.

Related Links

Source: OCC

OCC: Examiner Guidance for Institutions Affected by Major Disasters Released

Posted on by Safeguard

Investor Update
December 15, 2017

WASHINGTON — The Office of the Comptroller of the Currency (OCC) issued guidance for examiners of national banks and federal savings association outlining the supervisory practices for assessing the condition of national banks, federal savings associations, and federal branches and agencies of foreign banks directly affected by a disaster that results in a Presidential declaration of a major disaster.

The OCC encourages any bank the operations or condition of which was adversely affected by a major disaster to contact and discuss remediation plans with its examiners. The guidance also applies to institutions that may be located outside the area declared a major disaster, but have loans to or investments in individuals or entities located in the area declared a major disaster. The guidance is being jointly issued with the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, and the National Credit Union Administration and in consultation with the Conference of State Bank Supervisors.

Examiners should expect management at affected banks to conduct initial risk assessments and have a process for refining such assessments as more complete information becomes available and recovery efforts proceed. The guidance advises examiners to consider the extent to which weaknesses in a bank’s financial condition are caused by external problems related to a major disaster and its aftermath.

The guidance released today complements OCC Bulletin 2012-28, “Responding to a Declaration of a Legal Holiday or a Natural Disaster: Supervisory Guidance on Natural Disasters and Other Emergency Conditions” (September 21, 2012), which addresses actions banks can take after a disaster has occurred to help customers and communities. The guidance released today is more detailed and focuses on how examiners should consider rating banks that have been adversely affected by a natural disaster in declared major disaster areas.

Related Links

Source: OCC

MHA: Making Home Affordable Program Handbook Version 5.2; Administrative Clarifications Issued

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Investor Update
December 21, 2017

As of today, December 21, 2017, servicers can download Version 5.2 of the Making Home Affordable Program Handbook for Servicers of Non-GSE Mortgages (Handbook) from HMPadmin.com. The Handbook is a consolidated reference outlining the requirements and guidelines of the Making Home Affordable Program for mortgage loans that are not guaranteed by Fannie Mae or Freddie Mac.

Unlike Supplemental Directives (SDs), which outline specific policy topics only, the Handbook is organized so servicers can easily find program information in one convenient guide.

Version 5.2 of the Handbook incorporates and supersedes in its entirety SD 17-01 and concurrently incorporates the guidance set forth in SD 17-02, which accompanies today’s issuance of the Handbook.

Administrative clarifications in SD 17-02 and incorporated in Version 5.2 of the Handbook include:

  • Borrower Eligibility & Compliance Portal and Alert Process
  • Federally Declared Disasters
  • Matured Loans
  • Borrower Solicitation
  • Borrower Notices
  • Post-Modification Counseling Solicitation during an FDD Forbearance
  • Official Monthly Reporting

See SD 17-02: Making Home Affordable Program – Handbook for Servicers Version 5.2 and Administrative Clarifications for more information regarding these updates.
 
Source: MHA

MHA HAMP Update: Upcoming HAMP Reporting Tool User Interface Outage

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Investor Update
December 4, 2017

Black Knight will be performing connectivity testing from 6:00 a.m. ET to 9:00 a.m. ET on the following dates:

  • Sunday, December 10, 2017
  • Sunday, January 21, 2018
  • Sunday, February 11, 2018

During these tests, all Black Knight applications including the HAMP Reporting Tool user interface will be unavailable. If users attempt to access a Black Knight application during this maintenance, they can expect to see connection errors. If you have questions, call 1-866-939-4469; to reach Black Knight Financial Services (BKFS), select option 1, then option 5.

HMPadmin.com and NPV Portal Security Update

As part of our ongoing effort to provide a high level of security, HMPadmin.com and the NPV Transaction Portal will be updated for required changes to internet security protocols for Transport Layer Security (TLS).

These changes will be applied on Sunday, December 10, 2017 from 6:00 a.m. ET to 12:00 p.m. ET. The updates may affect some users’ ability to access HMPadmin.com and the NPV Transaction Portal during this time. It is strongly recommended that users update their internet browsers to the most current version and ensure all security patches have been applied.

What Is The Impact For Users?
Users of older browsers (Internet Explorer (IE) 6 and lower versions) and older operating systems (Windows XP and lower versions) will no longer be able to access HMPadmin.com or the NPV Transaction Portal.

What Must I Do?
Upgrade your browser to at least IE 7. Upgrade the operating system on your computer to at least Windows 7 or a later version.

We appreciate your understanding and cooperation as we strive to continually enhance users’ experience.

Questions?
Email or call the HAMP Solution Center at 1-866-939-4469.

Source: MHA

MHA HAMP Update: New Year’s Day Holiday Support and System Availability

Posted on by Safeguard

Investor Update
December 20, 2017

Due to the observance of New Year’s Day, the HAMP Reporting System response files will not be available between 6:00 p.m. ET on Friday, December 29, 2017 and 8:00 a.m. ET on Tuesday, January 2, 2018; they will be sent as soon as the system is available.

During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

The HAMP Solution Center (HSC) will close at 3:00 p.m. ET on Friday, December 29, 2017 and will resume operations at 9:00 a.m. ET on Tuesday, January 2, 2018. Servicers may contact the HSC by phone or email at any time; however, phone messages and emails will be held in queue until the center reopens on Tuesday.

The NPV Transaction Portal will be available for normal processing during this period.

Questions?
For more information, email the HAMP Solution Center or call 1-866-939-4469.

Source: MHA