Safeguard Properties

MHA HAMP Update: Revised MHA Loan State Change Request Process Posted

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Investor Update
February 1, 2018

Revised reporting guidance for the MHA Loan State Change Request Process has been posted. Updates to the latest guidance include:

Report & Process Updates:

  • Process Step 8: Loan State Change Review Results – New Attributes Added
  • Process Step 11:
    1. Loan State Change Summary – New Attributes Added
    2. Additional Details – MHA-PA update to Tier 2 NANA Reason Code

Guidance has been incorporated at the link below which can be viewed within the Data Reporting tab, under the MHA Loan State Change Request Process section on the secure side of HMPadmin.com (login required).

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

Source: MHA

MHA HAMP Update: Presidents’ Day Holiday Support and System Availability

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Investor Update
February 12, 2018

Due to the observance of Presidents’ Day, the HAMP Reporting System response files will not be available between 3:00 p.m. ET on Friday, February 16, 2018 and 8:00 a.m. ET on Tuesday, February 20, 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 will be closed on Monday, February 19, 2018 and will resume operations at 9:00 a.m. ET on Tuesday, February 20, 2018. Servicers may contact the center at any time; however, messages will be held in queue until the center reopens on Tuesday.

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

Source: MHA

HUD: FHA INFO #18-08: Revised Loss Mitigation Policies for Affected Borrowers in Certain Presidentially-Declared Major Disaster Areas/Industry Briefing Call on March 1, 2018

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Investor Update
February 22, 2018

Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2018-01 entitled, “Loss Mitigation Policy Changes for Hurricanes Harvey, Irma, and Maria and certain California Wildfires that occurred in October 2017 (FEMA-DR-4344), or certain California Wildfires, Flooding, Mudflows, and Debris Flows that occurred in December 2017 (FEMA-DR-4353).”

This ML, which is designed to provide immediate loss mitigation and other relief options to FHA borrowers in certain designated Presidentially-Declared Major Disaster Areas (PDMDAs) allows for the use of streamlined income documentation and other requirements to expedite loss mitigation relief for affected borrowers. It also introduces a new “Disaster Standalone Partial Claim” option to help eligible borrowers on forbearance plans to resume their predisaster mortgage payments — helping to avoid payment shock — as well as keeping their interest rate and payment terms the same.

This new and revised guidance applies to all FHA Title II forward mortgages for those disaster-affected borrowers whose property or employment is in the following PDMDAs:

  • Louisiana – Hurricane Harvey (DR-4345);
  • Texas – Hurricane Harvey (DR-4332);
  • Florida – Hurricane Irma (DR-4337);
  • Georgia – Hurricane Irma (DR-4338);
  • Puerto Rico – Hurricane Irma (DR-4336) and Hurricane Maria (DR-4339);
  • South Carolina – Hurricane Irma (DR-4346);
  • U.S. Virgin Islands – Hurricane Irma (DR-4335) and Hurricane Maria (DR-4340); and the
  • California Wildfires (DR-4344) or California Wildfires, Flooding, Mudflows, and Debris Flows (FEMA-DR-4353).

To facilitate the implementation of the Disaster Standalone Partial Claim option, changes will be necessary to certain FHA systems and claims processing procedures. These changes will be communicated in the coming weeks.

FHA-approved mortgagees must begin implementing these policies no later than May 1, 2018; however, they can begin using them immediately. These amended policies will expire on May 1, 2019.

Mortgagees are strongly encouraged to read ML 2018-01 in its entirety to ensure they understand — and are ready to implement — the revised policies and new loss mitigation option no later than May 1, 2018.

Industry Briefing Conference Call on March 1, 2018

An industry briefing call will be conducted on Thursday, March 1, 2018. Because of the technical nature of the information being disseminated, the call is geared toward FHA-approved servicers, although other stakeholders can dialin if they so choose. During this call, FHA subject matter experts will provide a detailed overview of the provisions contained in the Mortgagee Letter.

  • Title: Revised Loss Mitigation Policies for Impacted Borrowers in Certain Presidentially-Declared Major Disaster Areas
  • Date: Thursday, March 1, 2018
  • Time: 11:30 AM – 12:30 PM (Eastern)
  • Dial-in: 800-260-0712
  • Access Code: 445331

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

Additional Resource:

HUD (FHA Expands Foreclosure Relief for Victims of 2017 Disasters)

HUD: $243 Million Awarded to Help U.S. Virgin Islands Recover From Hurricanes Irma and Maria

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Investor Update
February 2, 2018

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today awarded $242.7 million to help the U.S. Virgin Islands to recover from Hurricanes Irma and Maria. HUD’s Deputy Secretary Pamela Hughes Patenaude announced the disaster recovery grants with Governor Kenneth E. Mapp during a tour of damaged homes in St. Thomas.

These recovery funds awarded today are provided through HUD’s Community Development Block Grant – Disaster Recovery (CDBG-DR) Program and will support long-term recovery, including infrastructure, seriously damaged housing, and economic recovery in the Territory.

“President Trump and the entire HUD family stand with the people of the Virgin Islands to help them recover from these devastating hurricanes,” said HUD Secretary Ben Carson. “These recovery funds will help with broad based economic recovery including damaged homes. As local leaders, along with their citizens, develop their recovery plans, HUD will reduce regulatory barriers and remove any unnecessary roadblocks to speed long-term recovery.”

“We are immensely grateful that HUD is helping to support the long-term recovery underway in the U.S. Virgin Islands,” said Governor Mapp. “We are developing a thoughtful plan to restore our housing stock and support our local business community – together we will rebuild smarter and stronger. I would also like to thank HUD Deputy Secretary Pam Patenaude for her personal visit and sincere interest in the Territory’s recovery effort.”

Background

On September 8, 2017, President Trump signed Public Law 115-56 which appropriated $7.4 billion in CDBG-DR funding for major disasters declared in calendar year 2017. To distribute these funds, HUD is required by law to direct the funds to the areas most impacted by qualifying disastersHUD will continue to work with the government of the US Virgin Islands to address its remaining unmet needs.

In making today’s allocation to the U.S. Virgin Islands, HUD relied upon a wide variety of disaster-related information, including data from the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA), to determine the extent of unmet housing and small business needs in the areas most impacted by the disasters. HUD’s analysis found thousands of middle – and lower-income homeowners and renters experienced serious damage to their residences and who were not adequately insured (or uninsured) for their losses. Similarly, businesses suffered serious damage that is not adequately covered by insurance or other resources. The grant announced today is designed to help meet needs not being met by private insurance or other sources of federal assistance.

CDBG-DR grants support a variety of disaster recovery activities including housing redevelopment and rebuilding, business assistance, economic revitalization, and infrastructure. Grantees are required to spend the majority of these recovery funds in “most impacted” areas as identified by HUD. HUD will issue administrative guidelines shortly for use of the funds to address grantees’ long-term recovery needs, particularly in the area of housing recovery.

Source: HUD

HUD: $1.5 Billion Awarded to Help Puerto Rico Recover From Hurricanes Irma and Maria

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Investor Update
February 1, 2018

Disaster recovery funds to help repair damaged housing and businesses

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today awarded more than $1.5 billion to help Puerto Rico to recover from Hurricanes Irma and Maria. HUD’s Deputy Secretary Pamela Hughes Patenaude announced the disaster recovery grants with Governor Ricardo Rosselló during her third visit to the island since Hurricanes Irma and Maria.

These recovery funds awarded today are provided through HUD’s Community Development Block Grant – Disaster Recovery (CDBG-DR) Program and will support long-term recovery of seriously damaged housing and local businesses in Puerto Rico.

“President Trump and the entire HUD family stand with our fellow citizens in Puerto Rico to help them recover from these devastating hurricanes,” said HUD Secretary Ben Carson. “These recovery funds will help repair damaged homes and businesses. As local leaders, along with their citizens, develop their recovery plans, HUD will reduce regulatory barriers and remove any unnecessary roadblocks to speed long-term recovery.”

Governor Rosselló added, “On behalf of the many thousands of survivors here in Puerto Rico, I want to express our appreciation to the Administration and HUD for recognizing the tremendous needs that remain in so many of our neighborhoods. This grant will make a huge difference in repairing damaged homes and businesses and facilitating the social and economic recovery here in the island.”

Congresswoman Jenniffer González-Colón said, “The $1.5 billion in CDBG-DR funding that we are announcing originates from the first Continuing Resolution (CR) that we advocated for and approved in Congress last September, out of a total of $7.4 billion that was assigned to HUD to assist in the aftermath of natural disasters. Today’s announcement is just another example of our ongoing efforts in Congress to allocate federal funding that helps mitigate the hurricanes’ disastrous effects and consequences.”

Background

On September 8, 2017, President Trump signed the Continuing Appropriations Act, 2018 and the Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2017. The Act appropriated $7.4 billion in CDBG-DR funding for major disasters declared in calendar year 2017. To distribute these funds, the Act requires HUD to direct the funds to the areas most impacted by qualifying disasters. HUD will continue to work with Puerto Rico to address its remaining unmet needs.

In making today’s allocation to Puerto Rico, HUD relied upon data from the Federal Emergency Management Agency (FEMA) and the Small Business Administration (SBA) to determine the extent of unmet housing and small business needs in the areas most impacted by the disasters. HUD’s analysis found thousands of middle- and lower income homeowners and renters experienced serious damage to their residences and who were not adequately insured (or uninsured) for their losses. Similarly, businesses suffered serious damage that is not adequately covered by insurance or other resources. The grant announced today is designed to help meet needs not being met by private insurance or other sources of federal assistance.

CDBG-DR grants support a variety of disaster recovery activities including housing redevelopment and rebuilding, business assistance, economic revitalization, and infrastructure repair. Grantees are required to spend the majority of these recovery funds in “most impacted” areas as identified by HUD. HUD will issue administrative guidelines shortly for use of the funds to address grantees’ long-term recovery needs, particularly in the area of housing recovery.

source: HUD

Freddie Mac: Are You Ready for New Imminent Default Evaluations in Workout Prospector?

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Investor Update
February 26, 2018

Workout Prospector® now captures imminent default evaluations for Freddie Mac Flex Modifications®. This transparent, rules-based approach replaces our Imminent Default Indicator® tool and is one of the ways in which we’re building a better mortgage process.

You can begin using Workout Prospector today for data submissions and reporting new imminent default evaluation requirements to Freddie Mac. On and after July 1, when we retire Imminent Default Indicator, you must use Workout Prospector for new data submissions and reporting imminent default evaluation requirements to Freddie Mac. We strongly encourage you to implement these new imminent default evaluation requirements as soon as you’re able to do so.

For More Information

Source: Freddie Mac

FHLMC Guide Bulletin 2018-2: Charge Off Recommendations, Document Custody Requirements and More

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Investor Update
February 14, 2018

Charge Off Recommendations

  • Specifying when Servicers must recommend a charge off to Freddie Mac instead of proceeding with foreclosure.
  • Updating lien release requirements when Freddie Mac approves a charge off request.
  • Enhancing the Guide glossary definition of the term Risk of Property Ownership.

Document Custody Requirements and Other Updates

  • Announcing that in November 2017, we began permitting Seller/Servicers to use Wells Fargo Bank, N.A. as a designated custodian. We’re updating the Guide to reflect this change.
  • Permitting Seller/Servicers to enter into tri-party agreements with up to two document custodians, provided that one of them is a designated custodian.
  • Notifying Servicers that Freddie Mac may contract with certain document custodians to perform certification and/or verification services outside of the United States using images of original documents.
  • Informing Servicers that The Bank of New York Mellon Trust Company, N.A. will no longer automatically send Seller/Servicers notes and/or related documents for mortgages paid in full.

Forms 16SF and 1107SF

  • Updating Forms 16SF and 1107SF to give Servicers more flexibility.

For more details on these changes and other important updates, read Guide Bulletin 2018-2 [pdf] or contact your Freddie Mac representative.

System Update Reminder: Workout Prospector® will be updated on February 26, 2018, to accommodate data submissions and reporting to Freddie Mac related to the new imminent default evaluation requirements. Read Guide Bulletin 2017-27 [pdf] for more information.

Source: Freddie Mac

FHFA: Refinance Report – Fourth Quarter 2017

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Investor Update
February 14, 2018

  • Total refinance volume increased in December 2017 as mortgage rates in November remained below the levels observed at the beginning of the year. Mortgage rates increased in December: the average interest rate on a 30?year fixed rate mortgage rose to 3.95 percent from 3.92 percent in November.

In the fourth quarter of 2017:

  • Borrowers completed 6,309 refinances through HARP, bringing total refinances from the inception of the program to 3,484,025.
  • HARP volume represented one percent of total refinance volume.

Year to date through December 2017:

  • Borrowers with loan?to?value ratios greater than 105 percent accounted for 19 percent of the volume of HARP loans.
  • Twenty?six 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 five or more percent of total refinances in Nevada and Florida ?? more than double the two percent of total refinances nationwide over the same period.
  • In December, 5 percent of the loans refinanced through HARP had a loan?to?value ratio greater than 125 percent.
  • 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 – 4Q 2017

Source: FHFA

FHFA: Foreclosure Prevention Report – November 2017

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Investor Update
February 8, 2018

November 2017 Highlights

The Enterprises’ Foreclosure Prevention Actions:

  • The Enterprises completed 22,411 foreclosure prevention actions in November, bringing the total to 4,013,134 since the start of the conservatorships in September 2008.  Over half of these actions have been permanent loan modifications.
  • There were 11,264 permanent loan modifications in November, bringing the total to 2,140,484 since the conservatorships began in September 2008.
  • Forty three percent of modifications in November were modifications with principal forbearance. Modifications with extend term only accounted for 41 percent of all loan modifications during the month.
  • There were 930 short sales and deeds-in-lieu of foreclosure completed in November, down 19 percent compared with October.

The Enterprises’ Mortgage Performance:

  • The serious delinquency rate increased from 0.95 percent at the end of October to 1.05 percent at the end of November.

The Enterprises’ Foreclosures:

  • Third-party and foreclosure sales decreased slightly from 4,776 in October to 4,730 in November.
  • Foreclosure starts increased from 13,601 in October to 18,605 in November.

Attachments: 

Foreclosure Prevention Report – November 2017

Source: FHFA

FHFA: 2018-2020 Housing Goals For Fannie Mae and Freddie Mac Finalized

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Investor Update
February 6, 2018

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today published a final rule that establishes new housing goals for Fannie Mae and Freddie Mac (the Enterprises) for 2018 through 2020 in accordance with the provisions of the Housing and Economic Recovery Act of 2008.  The new goals replace the previous goals, which were in effect through the end of December 2017.

The final rule establishes single-family and multifamily housing goals.

Source: FHFA (full news release)