Page 310 – Safeguard Properties

Fannie Mae: Mortgage Assistance Options for Areas Affected by the California Wildfires

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
October 13, 2017

WASHINGTON, DC – Fannie Mae (FNMA/OTC) is reminding those impacted by the California wildfires of the options available for mortgage assistance. Under Fannie Mae’s guidelines for single-family mortgages:

Homeowners impacted by the California wildfires are eligible to:
stop making mortgage payments for three-month intervals (up to 12 months)
will not incur late fees during this temporary payment break
will not have delinquencies reported to the credit bureaus
Servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact with the homeowner if the servicer believes the homeowner has been affected by a disaster. Additional payment forbearance of up to 12 months is available in many circumstances.
Servicers must suspend foreclosure and other legal proceedings if the servicer believes the homeowner has been impacted by a disaster.

“Our thoughts are with the families and communities impacted by the devastating California wildfires,” said Carlos Perez, Senior Vice President and Chief Credit Officer at Fannie Mae. “We urge people to stay safe during this challenging time. If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible.”

Homeowners can reach out to Fannie Mae directly by calling 1-800-2FANNIE (1-800-232-6643). For more information, please visit www.knowyouroptions.com/relief.

Source: Fannie Mae

Additional Resource:

Safeguard Properties (California Wildfires All Client Alert summary page)

Fannie Mae: Correction: New sales tax line item in LoanSphere Invoicing

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
Ocotber 9, 2017

A new line item (Sales Tax for Legal Costs) for loans originating in Hawaii and New Mexico will be available in LoanSphere Invoicing™ in the near future. The availability date provided in a recent Servicing News email was incorrect, but we will announce the date as soon as possible. Reference the Servicer Expense Reimbursement Line Items in LoanSphere Invoicing job aid for a list of servicer expense categories and subcategories for conventional loans.

We apologize for any inconvenience this may cause.

Source: Fannie Mae

CFPB: Interim Final Rule To Help Mortgage Servicers Communicate With Certain Borrowers At Risk Of Foreclosure

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
October 4, 2017

Bureau Also Seeks Comment on Separate Proposed Rule Modifying Timing Requirements for Bankruptcy Periodic Statements

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued an interim final rule and a proposed rule to provide mortgage servicers more flexibility and certainty around requirements to communicate with certain borrowers under the Bureau’s 2016 mortgage servicing amendments. The interim final rule gives servicers more flexibility regarding when to communicate about foreclosure prevention options with borrowers who have requested a cease in communication under federal debt collection law. The proposed rule would provide more certainty for mortgage servicers about when to provide periodic statements to consumers in connection with their bankruptcy case.

“Today’s action should make it easier for mortgage borrowers to receive timely information from their mortgage servicers about available options for saving their home, even if they have submitted a request to cease communication,” said CFPB Director Richard Cordray. “In addition, we are proposing changes to clear up confusion about when to provide periodic statements with important loan information to borrowers in bankruptcy.”

In 2016, the Bureau made changes to the mortgage servicing rules to require mortgage servicers to send written notices, referred to as early intervention notices, to certain consumers at risk of foreclosure who have requested a cease in communication under the Fair Debt Collection Practices Act. Under this law, consumers have the option to request that companies stop contacting them except for limited purposes. Once these borrowers become delinquent, the Bureau’s 2016 amendments generally require that mortgage servicers send notices to these consumers every 45 days to inform them of available foreclosure prevention options but prohibit servicers from sending the notices more than once in a 180-day period. The Bureau has heard concerns that once a servicer sends a notice to one of these borrowers, the rule requires servicers to provide the next notice exactly on the 180th day after the prior one, regardless of whether it is a weekend or a holiday.

To alleviate these concerns, the interim final rule issued today gives servicers a longer, 10-day window to provide the modified notices. The Bureau believes that this change offers greater certainty for servicers’ ability to comply with the rule, without undermining important borrower protections. The interim final rule becomes effective on Oct. 19, 2017, the same date that the related 2016 rule provisions become effective. The Bureau is seeking comment on this rule and will consider whether to revisit it in the future.

The Bureau has also learned that certain technical aspects of the 2016 amendments regarding the timing for servicers to provide periodic statements in connection with a borrower’s bankruptcy case may create unintended challenges and be subject to different legal interpretations. Thus, the Bureau is also seeking public comment on a proposed rule that would provide greater certainty for mortgage servicers regarding the timing for providing periodic statements in those circumstances. The proposed effective date for the proposed rule is April 19, 2018, the same date that the sections of the 2016 rule that the proposal would amend become effective.

The comment period on both the interim final rule and the proposed rule will close 30 days after publication in the Federal Register.

The interim final rule on mortgage servicer communication flexibility is available at: ?http://files.consumerfinance.gov/f/documents/201710_cfpb_amendments-to-2016-Servicing-Rule_interim-final-rule.pdf ?

The proposed rule on periodic statements is available at: http://files.consumerfinance.gov/f/documents/201710_cfpb_amendments-to-2016-Servicing-Rule_NPRM.pdf ?

Source: CFPB

VALERI Servicer Newsflash

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
September 22, 2017

IMPORTANT INFORMATION
Circular 26-17-27, Special Relief Following Hurricane Irma was issued on September 18, 2017, and is located on the VALERI Internet at http://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Fiscal Year 2017 End-of-Year Close Out – Due to end-of-year close out processing, the Department of Veterans Affairs (VA) Financial Management System (FMS) will not be available from October 1, 2017, to October 5, 2017. This means no payments will be issued in VALERI (incentives, acquisitions, or claims) during this time. Payments will be released beginning October 6, 2017. For any payments not received within 14 days of October 6, please contact the assigned VA technician.

DEVELOPMENT UPDATES
On Saturday, September 23, 2017, VALERI Manifest 17.3 will be released. The following enhancements will be included:

CQ 12476 – Changes North Carolina to a confirmation state.

CQ 12918 – Corrects the redemption exemption date business rule logic to differentiate between redemption and non-redemption states and to accept the redemption expiration date entered, if applicable, in the TOC event.

Source: VA

VA Circular 26-17-28: Special Relief Following Hurricane Maria

Posted on September 13, 2018September 13, 2018 by Safeguard

Updated 3/1/17: The U.S. Department of Veterans Affairs (VA) issued a change to Circular 26-17-28 that extends the established moratorium on foreclosures following Hurricane Maria.

Link to Circular 26-17-28 Change 2

Updated 10/23/17: The U.S. Department of Veterans Affairs (VA) issued a change to Circular 26-17-28 that extends the established moratorium on foreclosures following Hurricane Maria.

Link to Circular 26-17-28 Change 1

Investor Update
September 27, 2017

1. Purpose. This Circular expresses concern about the Department of Veterans Affairs (VA) home loan borrowers affected by Hurricane Maria, 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.pdf)

2. Forbearance Request. VA encourages holders of guaranteed loans to extend forbearance to borrowers in distress as a result of Hurricane Maria. 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. 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. Due to the widespread impact of Hurricane Maria, 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 October 1, 2018.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

Additional Resource:

Safeguard Properties (Hurricane Maria All Client Alert summary page)

VA Circular 26-17-27: Special Relief Following Hurricane Irma

Posted on September 13, 2018September 13, 2018 by Safeguard

Updated 3/1/17: The U.S. Department of Veterans Affairs (VA) issued a change to Circular 26-17-27 that extends the established moratorium on foreclosures following Hurricane Irma.

Link to Circular 26-17-27 Change 2

Updated 10/23/17: The U.S. Department of Veterans Affairs (VA) issued a change to Circular 26-17-27 that extends the established moratorium on foreclosures following Hurricane Irma.

Link to Circular 26-17-27 Change 1

Investor Update
September 18, 2017

1. Purpose. This Circular expresses concern about the Department of Veterans Affairs (VA) home loan borrowers affected by Hurricane Irma, 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.pdf)

2. Forbearance Request. VA encourages holders of guaranteed loans to extend forbearance to borrowers in distress as a result of Hurricane Irma. 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 Hurricane Irma, 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.

7. Rescission: This Circular is rescinded October 1, 2018.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

Additional Resource:

Safeguard Properties (Hurricane Irma All Client Alert summary page)

USDA: Electronic Status Reporting Implementation Date Delayed Three Months!

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
September 1, 2017

This notification is to convey to USDA Guaranteed Loan Servicers that the implementation date for the required use of the new electronic status reporting enhancements will be delayed by three months from April 1, 2018 to July 1, 2018.

USDA Rural Development (RD) will adopt enhanced Electronic Status Reporting (ESR) on July 1, 2018. At that time, all loan servicers are required to report for the period ending June 30, 2018 using the new Electronic Data Interchange (EDI) format or by using the web screens on USDALINC (https://usdalinc.sc.egov.usda.gov/RHShome.do). Below are the new business reporting requirements:
1.    Monthly default status reporting will be enhanced to add additional data fields and default status codes. The current EDI Transaction Set 264 will continue to be used but will require many new data fields. The new default reporting structure will be similar to that of the Federal Housing Administration (FHA).
2.    Quarterly status reporting will change in frequency from quarterly reporting to monthly reporting. The EDI Transaction set 203 will continue to be used and will not change in structure. However, the statuses of all loans will now be required on a monthly basis.
3.    Loan servicers will now be required to perform corrections of their status reports, similar to what is required by FHA.

For loan servicers with a small USDA Rural Development portfolio, the web screen method of reporting will still be available in lieu of the EDI transaction sets.

The new “ESR Implementation Guide for the July 1, 2018 Effective Date” and “ESR Implementation Guide Release Notes” are located on the USDA LINC Training and Resource Library. Loan servicers will need to review the Implementation Guide and develop their EDI files in accordance with the requirements in the guide.

Online user training and an ESR User Guide (for the web screen reporting and correction of the status reports) will be provided on the USDA LINC Training & Resource Library in the near future. An announcement will be sent out on the GovDelivery SFH Guaranteed Servicing email updates once the training and User Guide are available. To subscribe to the SFH Guaranteed Servicing email topic, please click here.

We ask that loan servicers review both the “ESR Implementation Guide for the July 1, 2018 Effective Date” and “ESR Implementation Guide Release Notes” and should you have any questions or comments, please forward them to the following email boxes based on subject matter content:

Technical Questions: RD.GLS.PROD@one.usda.gov
Business Operational Questions: SFHGLDPROGRAM.wdc.usda.gov

For all other inquiries, you may contact us at 202-720-1452.

All Loan servicers should be preparing for the reporting changes. Many lenders may now decide to move from Web reporting to EDI reporting. Please note that reports using the new format cannot be reported prior to July 1, 2018. All reporting prior to July 1, 2018 must be in the current reporting format.
Please note that all ESR users are required to have a USDA e-Authentication Level 2 ID. As part of the Level 2 e-Authentication set up, users will be prompted with security questions. Users must remember their security questions and answers as they will be required should your password need reset.

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)

Source: USDA

HUD: Pamela Hughes Patenaude Sworn in as Deputy Secretary by Vice President Mike Pence

Posted on September 13, 2018 by Safeguard

Investor Update
September 27, 2017

WASHINGTON – Pamela Hughes Patenaude is the new Deputy Secretary at the U.S. Department of Housing and Urban Development (HUD). Following her confirmation by the U.S. Senate on September 14th, Vice President Mike Pence administered the oath of office to Patenaude yesterday evening.

As HUD’s second-ranking official, Deputy Secretary Patenaude will lead the Department’s Disaster Management Group (DMG) and will play a primary leadership and operational role in coordinating the long-term recovery efforts following Hurricanes Harvey, Irma and Maria. She will direct 16 program and support offices within HUD to help state and local governments design and execute their recovery plans to rebuild damaged housing, businesses and critical infrastructure.

Deputy Secretary Patenaude has an extensive housing and community development background and served as HUD’s Assistant Secretary for Community Planning and Development during the George W. Bush Administration, providing leadership during the recovery efforts in the wake of Hurricanes Katrina, Rita and Wilma.

For interview requests, contact HUD Public Affairs at (202) 708-0685.

Source: HUD

OCC: Federal and State Banking Agencies Issue Statement on Supervisory Practices Regarding Financial Institutions and Borrowers Affected by Hurricane Irma

Posted on September 13, 2018 by Safeguard

Investor Update
September 6, 2017

The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, and state bank regulators recognize the serious impact of Hurricane Irma on the customers and operations of many financial institutions and will provide regulatory assistance to affected institutions subject to their supervision. The agencies encourage institutions in the affected areas to meet the financial services needs of their communities.

A complete list of the affected disaster areas can be found at www.fema.gov.

Lending: Bankers should work constructively with borrowers in communities affected by Hurricane Irma. The agencies realize that the effects of natural disasters on local businesses and individuals are often transitory, and prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism. In supervising institutions affected by the hurricane, the agencies will consider the unusual circumstances they face. The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound banking practices as well as in the public interest.

Community Reinvestment Act (CRA): Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas. For additional information, institutions should review the Interagency Questions and Answers Regarding Community Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm.

Investments: Bankers should monitor municipal securities and loans affected by the hurricane. The agencies realize local government projects may be negatively affected. Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.

Regulatory Reporting Requirements: Institutions affected by Hurricane Irma that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal regulatory agency to discuss their situation. The agencies do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies’ regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of the effects of Hurricane Irma. The agencies’ staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution’s particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records.

Publishing Requirements: The agencies understand that the damage caused by the hurricane may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations. Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and state regulatory agency.

Temporary Banking Facilities: The agencies understand that many banks face power, telecommunications, staffing and other challenges in re-opening facilities after the hurricane. In cases in which operational challenges persist, the appropriate primary federal and state regulator will expedite any request to operate temporary banking facilities to provide more convenient availability of services to those affected by the hurricane. In most cases, a telephone notice to the primary federal and state regulator will suffice initially. Necessary written notification can be submitted later.

Media Contacts

Federal Reserve: Darren Gersh 202-452-2955
CSBS: Jim Kurtzke 202-728-5733
FDIC: Barbara Hagenbaugh 202-898-7192
OCC: William Grassano 202-649-6870

Source: OCC

Additional Resource:

Safeguard Properties (Hurricane Irma All Client Alert summary page)

HUD: FHA INFO #17-40: HECM: FHA Systems Updates for September 18th Release

Posted on September 13, 2018 by Safeguard

Investor Update
September 13, 2017

In this Announcement:

HECM: FHA Systems Updates for September 18th Release
HECM Counseling Certificate Changes
HECM Final Rule Policies Reminder
Training Opportunities

Source: HUD (FHA INFO #17-40 full version)