Page 312 – Safeguard Properties

FHFA: Refinance Report – July 2017

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

Investor Update
September 14, 2017

Total refinance volume decreased in July 2017 as mortgage rates in June remained above the lows observed in 2016. Mortgage rates increased in July: the average interest rate on a 30-year fixed rate mortgage rose to 3.97 percent from 3.90 percent in June.

In July 2017:

Borrowers completed 2,305 refinances through HARP, bringing total refinances from the inception of the program to 3,473,109.
HARP volume represented 2 percent of total refinance volume.
Seven percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.

Year to date through July 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 6 or more percent of total refinances in Nevada, and Florida, double the 3 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 60 percent of the Nation’s HARP eligible loans with a refinance incentive as of March 31, 2017.

Attachments: July 2017 Refinance Report

Source: FHFA

FHA INFO #17-39: Guidance for FHA-Approved Mortgagees and Servicers Regarding Presidentially-Declared Major Disaster Areas

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

Investor Update
September 11, 2017

Guidance for FHA-Approved Mortgagees and Servicers Regarding Presidentially-Declared Major Disaster Areas

Today, the Federal Housing Administration (FHA) is issuing a reminder to mortgagees about its guidance for originating and/or servicing forward and reverse mortgages in areas covered by a Presidentially-Declared Major Disaster Area (PDMDA). The following guidance applies to all areas covered by a PDMDA, including current PDMDA designations in Texas resulting from Hurricane Harvey, and any PDMDA designations resulting from Hurricane Irma:

FHA-insured mortgages secured by properties in a PDMDA are subject to a 90-Day foreclosure moratorium following the disaster.
In PDMDAs only, HUD provides mortgagees an automatic 90-Day extension from the date of the foreclosure moratorium expiration date to commence or recommence foreclosure action or evaluate the borrower under HUD’s Loss Mitigation Program.

Mortgagees should review complete servicing guidance in the Single Family Housing Policy Handbook 4000.1 (SF Handbook), Sections III.A.2 and III.A.3.c relating to the servicing of mortgages in PDMDAs.

In preparation for assisting homeowners with longer-term recovery efforts, mortgagees should also review:

FHA’s 203(h) Mortgage Insurance for Disaster Victims requirements in Section II.A.8.b of the SF Handbook. The 203(h) program allows FHA to insure mortgages for victims of a major disaster who have lost their homes and are in the process of rebuilding or buying another home.
FHA’s 203(k) Rehabilitation Mortgage Insurance Program requirements in Section II.A.8.a of the SF Handbook. The 203(k) program provides mortgage financing or refinancing which includes the cost of home repairs – both structural and non-structural – into the loan amount.

Mortgagees can find more information about the policies referenced above and other FHA PDMDA policies on the FHA Resource Center’s Online Knowledge Base.

Quick Links

Review HUD’s August 28, 2017, press release at https://portal.hud.gov/hudportal/HUD?src=/press/press_releases_media_advisories/2017/HUDNo_17-068
Access the SF Handbook in online or portable document format from HUD’s Client Information Policy Systems Handbooks web page at:
https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

Resources

Contact the FHA Resource Center:

Visit our online knowledge base to obtain answers to frequently asked questions 24/7 at:
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-CALLFHA (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 Resources:

Safeguard Properties (Hurricane Maria All Client Alert summary page)

Safeguard Properties (Hurricane Irma All Client Alert summary page)

Safeguard Properties (Hurricane Harvey All Client Alert summary page)

Federal Housing Finance Agency FHFA: Input on FHFA’s Draft Strategic Plan For Fiscal Years 2018-2022

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

Investor Update
September 27, 2017

Washington, D.C. – The Federal Housing Finance Agency (FHFA) is requesting input on FHFA’s Strategic Plan: Fiscal Years 2018-2022. FHFA’s draft strategic plan reflects the Agency’s priorities as regulator of the Federal Home Loan Bank System and as regulator and conservator of Fannie Mae and Freddie Mac (the Enterprises). FHFA is requesting input from Members of Congress, the public, and interested stakeholders in accordance with the Government Performance and Results Modernization Act of 2010.

FHFA’s draft strategic plan sets forth three goals for the Agency:

1.Ensure Safe and Sound Regulated Entities;

2.Ensure Liquidity, Stability and Access in Housing Finance; and

3.Manage the Enterprises’ Ongoing Conservatorships.

Input on FHFA’s draft strategic plan is due in 30 days by Oct. 27, 2017 and should be addressed to the Federal Housing Finance Agency, Office of Budget and Financial Management, 400 7th St., SW, Washington, D.C. 20219 or submitted via www.FHFA.gov.

Link to FHFA’s Strategic Plan: Fiscal Years 2018-2022

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.9 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: Stefanie Johnson (202) 649-3030 / Corinne Russell (202) 649-3032

Consumers: Consumer Communications or (202) 649-3811

Source: FHFA

Fannie Mae: Servicing Guide Updates; Disaster Response Resources; High LTV Refi Option; and More

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

Investor Update
September 13, 2017

Announcement SVC-2017-08: Servicing Guide Updates

The Fannie Mae Servicing Guide updates continue to support our ongoing efforts to simplify servicing. These changes:

Introduce the redesigned Form 710, formerly called the Uniform Borrower Assistance Form and renamed the Mortgage Assistance Application, to simplify the workout application process and reduce the amount of information the borrower must provide in the Borrower Response Package.
Update and clarify requirements for allowable bankruptcy attorney fees for certain services.
Incorporate the Fannie Mae Flex Modification, which was previously announced to simplify modification by consolidating multiple options effective Oct. 1.

For a summary of key updates in Servicing Guide Announcement SVC-2017-08, view the executive perspectives video presented by Jenise Hight, Director of Servicing Policy, and the executive overview from Carlos Perez, Chief Credit Officer for Single-Family.

New servicer resources to help homeowners impacted by recent hurricanes

To help you provide crucial, accurate, and consistent responses and assistance to homeowners affected by the recent hurricanes, we have developed the following resources:

Webinar (Monday, Sept. 18 at 12 p.m. ET): Members of the policy and servicing teams will review disaster assistance options and answer questions to help servicers help homeowners. Register for this webinar.
Two new customer care scripts: Customize and use the scripts on the front line to help provide immediate mortgage payment relief to customers who have been impacted by recent hurricanes and to discuss longer-term loss mitigation solutions. (Fannie Mae Connect™ login credentials are required to access the scripts.)
Mortgage help flyer: This one-page document explains the mortgage assistance available to affected homeowners. Share this through your social media accounts and other business-partner channels to help ensure your customers are receiving timely and accurate information about the mortgage options available.

Additionally, further guidance will be provided in a Lender Letter later this week. Visit the Assistance in Disasters page for more resources.

New high LTV refinance option to replace HARP

As the Federal Housing Finance Agency (FHFA) announced recently, Fannie Mae and Freddie Mac are introducing a new high loan-to-value (LTV) ratio same-investor refinance option to provide continued liquidity to support eligible borrowers once the Home Affordable Refinance Program® (HARP®) ends on Dec. 31, 2018.

The new option will provide refi opportunities to borrowers with existing Fannie Mae mortgages who are making their mortgage payments on time but whose LTV ratio for a new mortgage exceeds the maximum allowed for standard refinance products. To be eligible, the note date of the mortgage being refinanced must be on or after Oct. 1, 2017 with at least 15 months seasoning. Under the new option, as with HARP, the refinance must provide a borrower benefit, such as a lower interest rate.

We’re announcing product details now to give industry stakeholders sufficient time to prepare for fall 2018 implementation. For details, read the Lender Letter and visit our website.

Modification Interest Rate adjustment exhibit

This exhibit provides our new Modification Interest Rate required for all Fannie Mae conventional mortgage loan modifications, excluding HAMP Modifications. View the updated exhibit.

Line item updates in LoanSphere Invoicing

The LoanSphere Invoicing™ application, which allows servicers to submit qualified expenses for reimbursement, has been updated with new line items. In addition, several line items will be deactivated in October. For details on the new line items, see the Release Notes available on the Servicer Expense Reimbursement page.

Sign up for a webinar to learn about Fannie Mae Invoicing

Fannie Mae Invoicing, a new web-based invoicing system, will be available to servicers offering consolidated loan-level invoices beginning Sept. 25. All servicers must be using this new system by the end of the year, as SRDBS and other manual processes will be retired. Visit the Fannie Mae Invoicing page to register for a live webinar (Sept. 14 or 19), view the updated FAQs, and more.

Register today to learn more about SMDU and the new user interface (UI)

Did you know that all Fannie Mae servicers now have easy access to the groundbreaking workout decisioning tool SMDU? Come spend an hour learning about how you can bring confidence and efficiency to your servicing business practices. We will walk you through the benefits of the SMDU UI, show you how to register, demonstrate submitting a loan for evaluation and case reporting, and provide support information.

Register for the upcoming Introduction to SMDU UI webinars on Sept. 14 and 19 and don’t delay – spaces fill up quickly! View the fact sheet or visit our website to learn more.

Join us at these upcoming events:

View more events.

You may also be interested in…

Lenders, GSEs must work together to support homeownership gains among African-Americans
While still lower than all other groups, African-American homeownership is on the rise. Read more

Lenders aware they must provide a seamless customer service experience to stay competitive
Making the mortgage process seamless for consumers is the goal. It’s just a matter of how best to get there. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

@D2_Duncan on what happens when @federalreserve begins its Great Unwind. Via @NatMortgageNews:
http://bit.ly/2wmQLOC

Sept. 12

If you or someone you know has been impacted by Hurricanes #Harvey & #Irma, this page contains info & resources:
http://www.fanniemae.com/relief

Sept. 11

Source: Fannie Mae

Additional Resource:

Safeguard Properties (Hurricane Irma All Client Alert summary page)

Fannie Mae: Lender Letter LL-2017-07: Reimbursement for Property Inspections and Additional Servicing-Related Reminders

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

Investor Update
September 22, 2017

We have issued Lender Letter LL-2017-07 to provide updates and reminders related to properties impacted by recent hurricanes, including the inspection cost reimbursement process.

Also, we are extending the disaster policies communicated in this and other recent lender letters to all hurricanes occurring in the U.S. and its territories on or after Aug. 25, 2017 and throughout the 2017 hurricane season.

Both lenders and servicers must promptly determine the condition of properties securing loans in disaster-impacted areas. To help ease the burden on our customers and their borrowers dealing with widespread hurricane damage, Fannie Mae will reimburse inspection costs. Here are the key things to know:

We will cover specified property inspection costs for both newly originated and currently serviced loans.
The Lender Letter reiterates the actions required and describes the process for making reimbursement claims through the LoanSphere Invoicing™ system.
For newly originated, closed loans secured by properties that may have been damaged by a disaster, the originator or designated servicer must take action to determine if the property condition has changed before delivering the loan to Fannie Mae.
Servicers of existing loans on properties that may have been damaged by a disaster must determine the extent and nature of the damage, if any, and take action according to Servicing Guide policy.
We encourage servicers to work with borrowers to begin removing damaged walls, carpeting, and household items as quickly as possible to mitigate additional, expensive damage to the home’s structure.

View Lender Letter LL-2017-07: Reimbursement for Property Inspections and Additional Servicing-Related Reminders for details of required seller/servicer actions and the inspection cost reimbursement process.

We will continue to monitor the situation in the impacted areas and alert you to any additional policy updates. For additional resources, visit our Assistance in Disasters page and contact your Fannie Mae customer delivery team with any questions

Source: Fannie Mae

Additional Resources:

Safeguard Properties (Hurricane Maria All Client Alert summary page)

Safeguard Properties (Hurricane Irma All Client Alert summary page)

Safeguard Properties (Hurricane Harvey All Client Alert summary page)

Fannie Mae: Lender Letter LL-2017-06: Additional Clarifications for Mortgage Loans Impacted by Hurricanes Harvey and Irma

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

Investor Update
September 13, 2017

As the damage assessment from Hurricanes Harvey and Irma continues, we are committed to supporting sellers, servicers, and homeowners. Today, we published Lender Letter LL-2017-06: Additional Clarifications for Mortgage Loans Impacted by Hurricanes Harvey and Irma to help you originate and service loans for properties located in areas affected by these disasters. This letter contains both selling and servicing policy guidance, including updated information about:

Disaster areas
Property eligibility
Reimbursement of property inspection costs
Disaster relief, forbearance, and more

Source: Fannie Mae

Additional Resource:

Safeguard Properties (Hurricane Irma All Client Alert summary page)

Fannie Mae: Invoicing Is Here; Disaster Assistance Resources; New Quarterly Compass; and More

Posted on September 13, 2018 by Safeguard

Investor Update
September 27, 2017

Fannie Mae Invoicing is here!

Fannie Mae Invoicing is now available, bringing a simple, consolidated, and more efficient process to servicers. In a single application, Fannie Mae Invoicing provides access to consolidated loan-level invoices, simple resolution of claims, and the ability to add and retrieve documentation. All new invoices, as well as existing outstanding billing data, are now being loaded into Fannie Mae Invoicing, and Servicer REAM Deficiency Billing System (SRDBS) users were automatically granted access. If you do not have SRDBS and require access to Fannie Mae Invoicing, contact your Technology Manager Administrator. Register for a live webinar to find out how to get started, and check out updated FAQs and other resources on the Fannie Mae Invoicing page.

More webinars to help you help disaster-impacted homeowners

Be sure to sign up for the Thursday, Sept. 28 webinar to help servicers help homeowners affected by recent hurricanes. Our policy experts and members of our servicing teams will provide an overview of available disaster assistance resources. We’ll allocate time to answer your questions and make sure you have the information you need to effectively respond to those impacted by these disasters. The webinar will begin at 12 p.m. ET and last for 30 minutes; audio will stream via computer. Register here . A recording of this webinar will be available next week.

New Quarterly Compass

Our Quarterly Compass provides timelines and summarizes relevant technology, policy, and training information to help you do business with us. To highlight Q3 2017 happenings, we’ve updated the Quarterly Compass to bring you the latest in delivering, originating/underwriting, servicing, affordable lending, and other news and information.

Enhancements to SMDU coming soon

During the weekend of Oct. 7, we will implement enhancements to Servicing Management Default Underwriter™ (SMDU™), with new functionality and updates described in the SMDU 7.4 Release Notes. To implement this release, SMDU will be unavailable to process transactions from 10 p.m. ET on Oct. 6 until 2 p.m. ET on Oct. 7. If you have questions about this release, please contact your Fannie Mae Servicing Account Manager.

Sign up for a free loss mitigation webinar

Did you know that we provide participating servicers with free loss mitigation training? Our Know Your Options™ Customer CARE (Connect, Assess, Resolve, and Execute) team will present two live webinars in October. Sign up to learn how to leverage your own servicer model to develop rapport and establish consultative customer relationships, communicate more effectively with borrowers about their options to avoid foreclosure, increase your workout percentage, and more. Learn more and register today.

We’re building something together — find out more at MBA Annual

Together, we’re building a better mortgage process — one that’s more certain, simple, and dynamic. Visit us in THE HUB at the MBA’s Annual Convention & Expo, Oct. 22-25, and share your ideas on how to keep the momentum going.

Don’t forget to register.

See you tomorrow in San Francisco

If you’re joining us for Digital Mortgage 2017 in San Francisco tomorrow and Thursday, visit us in the Innovation Hall, kiosk #35. And don’t miss Cindy Keith, Director of Product Management, as she shares how you can transform the Borrower Experience through Data Validation.

View more events.

You may also be interested in…

Encouraging homeownership by easing student loan debt
Refinance option for eligible homeowners who want to tap into home equity to pay down or pay off student loan debt. Read more

VIDEO: Preserving 5,000 affordable rental units in downtown Manhattan
Stuyvesant Town has been called an “Oasis Near the East River” by The New York Times. Our video captures why. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Q3 #MLSS: Fewer lenders reported purchase mortgage demand growth over prior 3 months compared w/Q3’16 and Q3’15.
http://bit.ly/2wlkWX8

Sept. 27

Scam artists may offer assistance & services to those affected by a disaster. Beware of scams:
http://bit.ly/2wV4MDD #KnowYourOptions

Sept. 26

Source: Fannie Mae

Additional Resources:

Safeguard Properties (Hurricane Maria All Client Alert summary page)

Safeguard Properties (Hurricane Irma All Client Alert summary page)

Safeguard Properties (Hurricane Harvey All Client Alert summary page)

Fannie Mae: Invoicing Coming Monday; New Disaster Assistance Resources; and More

Posted on September 13, 2018October 29, 2018 by Safeguard

Investor Update
September 20, 2017

Start using Fannie Mae Invoicing on Monday

Fannie Mae Invoicing will be available starting Monday to provide servicers with enhanced options and flexibility to resolve claims, access to loan-level invoices, and more. All SRDBS users will receive automatic access based on their credentials; new users must have their Technology Manager Administrators request access on their behalf. Reference the updated FAQs for details on role access and how to get started. A new user guide, job aids, and other information are available on the Fannie Mae Invoicing page.

New SMDU Disaster Modification Submission Job Aid available

The Servicing Management Default Underwriter™ (SMDU™) Disaster Modification Submission Job Aid helps servicers evaluate a borrower for mortgage relief due to a disaster-related hardship. It reminds servicers of policy when offering forbearance of mortgage payments and provides guidance during the subsequent evaluation of disaster-related modifications in SMDU. For more information, view the SMDU page or the Assistance in Disasters page.

More webinars to help you help impacted homeowners

We’re offering more webinars to help servicers help homeowners impacted by recent hurricanes. Our policy experts and members of our servicing teams will provide an overview of available disaster assistance resources. Time will be allocated to answer your questions to make sure you have the information you need to effectively respond to those impacted by these disasters. All webinars will begin at 12 p.m. ET and last for 30 minutes. Click on the link to register:

Expense reimbursement line item changes in LoanSphere

Effective Nov. 1, LoanSphere Invoicing™ will require servicers to include service dates for the majority of expenses requested for reimbursement. Most expense line items will require a “Completed Date” (also known as the “Service From Date”). Some expenses will require the “Service From Date” and the “Service To Date.” Some expenses will not require any service dates. Review the Release Notes for more information on populating these date fields.

Correction: LoanSphere Invoicing line items to be deactivated in November

In last week’s Servicing News, we noted that several LoanSphere Invoicing line items will be deactivated in October. In fact, those line items will be deactivated in November. We apologize for any inconvenience. For details, view the Release Notes available on the Servicer Expense Reimbursement page.

AMN/HSSN release notes for Oct. 14 update

During the weekend of Oct. 14, we will update the Asset Management Network (AMN)/HomeSaver Solutions™ Network (HSSN) application with vendor table updates to support changes in liquidation delegation and other general updates. To implement this release, AMN/HSSN will be unavailable for processing from 8 a.m. ET to 5:30 p.m. ET on Oct. 14. For more information, review the Release Notes.

AAA matrix update

The North Carolina AAA matrix has been revised to include a fee for Amending the Notice of Hearing. The fee will be effective for services rendered Sept. 13, 2017 or later. To view the updated matrix, visit the Excess Attorney Fee/Cost Guidelines page.

Fannie Mae women are leading the way in housing

Caroline Patane, Fannie Mae’s Vice President of Compliance and Customer Evaluation, has earned top honors for women leaders in the housing industry. Caroline will be sharing her professional experiences as part of the Women in Housing Leadership Panel at the Five Star Conference & Expo in Dallas today. In addition, MReport has recognized Caroline as a “Power Player” in their 2017 Women of MPact September issue. Other MReport “Leading Ladies” from Fannie Mae include Laurissa Antonuccio, Elizabeth Barley, Joy Cianci, Maureen Davenport, and Laurel Davis.

Join us in San Francisco Sept. 28-29

Stop by and see us at kiosk #35 in the Innovation Hall at Digital Mortgage 2017. Be sure to watch Ramon Richards, Senior Vice President, Securitization and Servicing Technology, take part in a panel discussion about implementing robotics and machine learning in your organization.

Join us at these events:

View all events.

You may also be interested in…

VIDEO: Preserving 5,000 affordable rental units in downtown Manhattan
Stuyvesant Town has been called an “Oasis Near the East River” by The New York Times. Our video captures why. Read more

Lenders, GSEs must work together to support homeownership gains among African-Americans
While still lower than all other groups, African-American homeownership is on the rise. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Mortgage payment forbearance may be available to those impacted by Hurricanes #Harvey & #Irma.
http://FannieMae.com/relief

Sept. 20

Delivering a seamless consumer experience is becoming critical for lenders.
http://bit.ly/2hi1nJ4

Sept. 20

Source: Fannie Mae

Safeguard Properties (Hurricane Irma All Client Alert summary page)

Fannie Mae: Hurricane Irma Update for Sellers and Servicers

Posted on September 13, 2018 by Safeguard

Investor Update
September 7, 2017

We are closely monitoring Hurricane Irma. While we don’t yet know the extent of the storm’s impact, we will extend the flexibilities announced in our Selling and Servicing Lender Letters on Hurricane Harvey last week to areas impacted by Hurricane Irma. These flexibilities include

Reimbursement of lenders and servicers for costs associated with inspecting impacted properties for loans delivered to us; and
Extending the age of credit and appraisal documentation.

Additionally, once the storm hits, a decision about updating Desktop Underwriter® (DU®) to exclude impacted ZIP codes from Property Inspection Waivers (PIW) offers will be considered and shared.

Additional lender and servicer communications, including a Lender Letter to detail the above updates, will be provided later this month. For immediate guidance on how to respond in a disaster, refer to our list of resources at our Fannie Mae Hurricane web page, our Single-Family Disaster Assistance web page, and the press release we published earlier today about Hurricane Irma assistance and relief.

Source: Fannie Mae

Additional Resource:

Safeguard Properties (Hurricane Irma All Client Alert summary page)

VALERI Special Announcement

Posted on September 13, 2018 by Safeguard

Investor Update
August 4, 2017

VA recently discovered that terminated loans where VA accepted custody and certified acquisition between June 19, 2017, and June 20, 2017, failed to transfer to our Property Management Contractor, Vendor Resource Management (VRM), through our nightly file processing. VA has provided VRM with a list of these properties and will expect to receive title submissions in a timely manner.

The fix will be completed on August 14, 2017, with the data transfer to VRM no later than Wednesday August 16, 2017.

Thank you for your cooperation and patience during this time.

Source: VA