Safeguard Properties

FHFA: Refinance Report

Posted on by Safeguard

Investor Update
January 16, 2018

November 2017 Highlights

  • Total refinance volume increased in November 2017 as mortgage rates in October remained below the levels observed at the beginning of the year. Mortgage rates increased in November: the average interest rate on a 30?year fixed rate mortgage rose to 3.92 percent from 3.90 percent in October.

In November 2017:

  • Borrowers completed 2,123 refinances through HARP, bringing total refinances from the inception of the program to 3,482,023.
  • HARP volume represented 1 percent of total refinance volume.
  • Five percent of the loans refinanced through HARP had a loan?to?value ratio greater than 125 percent.

Year to date through November 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 5 or more percent of total refinances in Nevada and Florida ?? more than double the 2 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 June 30, 2017.

Attachments: 

Refinance Report – November 2017

Source: FHFA

FHFA: Foreclosure Prevention Report – October 2017

Posted on by Safeguard

Investor Update
January 18, 2018

October 2017 Highlights

The Enterprises’ Foreclosure Prevention Actions:   

  • The Enterprises completed 18,034 foreclosure prevention actions in October, bringing the total to 3,990,723 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
  • There were 11,010 permanent loan modifications in October, bringing the total to 2,129,220 since the conservatorships began in September 2008.
  • Thirty nine percent of modifications in October were modifications with principal forbearance. Modifications with extend-term only accounted for 44 percent of all loan modifications during the month.
  • There were 1,147 short sales and deeds-in-lieu of foreclosure completed in October, down slightly compared with September.

The Enterprises’ Mortgage Performance:

  • The serious delinquency rate remained flat at 0.95 percent at the end of October.

The Enterprises’ Foreclosures:

  • Third-party and foreclosure sales decreased from 4,905 in September to 4,776 in October.
  • Foreclosure starts increased from 12,830 in September to 13,601 in October.

Attachments: 

Foreclosure Prevention Report – October 2017

Source: FHFA

FHA INFO #18-03: Disaster Related Policy Waivers Related to Early Payment Default Loan Level File Review Requirements, and Limited 203k in Puerto Rico; Reminder Regarding FHA Forbearance Agreement for FHA Borrowers Affected by Disasters

Posted on by Safeguard

Investor Update
January 24, 2018

FHA Issues Disaster-Related Policy Waiver for Early Payment Default Loan-Level File Review Requirements

Today, the Federal Housing Administration (FHA) issued a waiver of its policy regarding early payment default (EPD) review requirements found in the Single Family Housing Policy Handbook 4000.1 (SF Handbook), Sections V.A.3.a.i.(C) and V.A.3.a.iv.(B)(2). This waiver applies to FHA-insured mortgages located in Presidentially-Declared Major Disaster Areas (PDMDAs) affected by Hurricane Harvey in Louisiana and Texas; Hurricane Irma in Florida, Georgia, Puerto Rico, South Carolina, and the Virgin Islands; Hurricane Maria in Puerto Rico and the Virgin Islands; and the wildfires in California.

  • As a result of the disasters associated with the wildfires and Hurricanes Harvey, Irma, and Maria, FHA anticipates an increase in EPDs—FHA-insured mortgages that become 60 days delinquent within the first six payments—in the listed PDMDAs. FHA believes EPDs on loans closed prior to the disaster are most likely a result of unforeseen circumstances associated with these disasters, such as loss of employment and/or income, property damage and repairs, forced relocation, and other contributing factors.
  • Current policy requires that mortgagees select all EPDs for review on a monthly basis and perform a loan file compliance review to ensure compliance with FHA Single Family origination and underwriting requirements. Given the likelihood of an increase in EPDs in these disaster areas, solely as a result of these disasters, FHA is waiving the requirement that all of these EPDs be selected and reviewed.
  • The current policy is being waived for FHA-insured mortgages in the listed PDMDAs that:
    — have a mortgage Closing Date before the start date for the respective Incident Period as determined by
         the Federal Emergency Management Agency (FEMA);
    — meet the definition of an early payment default (SF Handbook, Section V.A.3.a.iv.(B)(1)); and
    — became early payment defaults between September 1, 2017, and February 28, 2018.
  • If in compliance with the waiver requirements above, mortgagees do not need to include EPDs in the origination and underwriting loan file compliance review activities found in Section V.A.3.c of the SF Handbook for FHA insured mortgages in the listed PDMDAs.
  • Mortgagees must continue to meet the loan file selection requirements in Section V.A.3.a.i.(A) Pre-Closing Reviews; (B) Post-Closing Reviews; and (D) Servicing Reviews, of the SF Handbook.

FHA Issues Temporary Disaster-Related Policy Waiver for Limited 203(k) for Properties in Puerto Rico

Today, the Federal Housing Administration (FHA) issued a temporary waiver of its Limited 203(k) program policy regarding the time period in which borrowers may be prevented from occupying the property as a result of repairs in determining whether a repair is considered “major.” The temporary waiver applies to Limited 203(k) mortgages closed on or before June 30, 2018, secured by properties in the Commonwealth of Puerto Rico.

  • FHA’s Limited 203(k) program may be used to finance minor remodeling and non-structural repairs up to $35,000. Included in the Single Family Housing Policy Handbook 4000.1 (SF Handbook) is a list of eligible improvements (Section II.A.8.a.vii.(A)(1)) and a list of ineligible improvements (Section II.A.8.a.vii.(B)).
  • Under ineligible improvements, policy states that “major” rehabilitation or remodeling is not allowed. FHA defines “major” rehabilitation or remodeling, in part, as a repair that prevents the borrower from occupying the property for more than 15 days.
  • Due to the large number of properties damaged by Hurricane Maria in the Commonwealth of Puerto Rico, FHA is temporarily waiving its 15-day rehabilitation period as it relates to its definition of a “major” repair.
  • The temporary waiver will allow for the use of FHA’s Limited 203(k) program for financing of minor repairs in which the borrower is prevented from occupying the property for more than 15 days. However, FHA is not waiving the requirement that a borrower occupy the property within 60 days.

FHA Borrowers Affected by Disasters and FHA’s Forbearance Agreement

The Federal Housing Administration (FHA) supports homeowners with FHA-insured mortgage loans whose properties are impacted by a natural disaster. Specifically, upon the declaration of a Presidentially-Declared Major Disaster Area (PDMDA), an automatic 90-day foreclosure moratorium becomes effective to provide relief for FHA borrowers. FHA would like to remind mortgagees that at the end of the moratorium, mortgagees may evaluate affected borrowers for forbearance relief.

As stated in the Single Family Policy Handbook 4000.1 (SF Handbook), mortgagees may offer forbearance relief to borrowers who:

  • have a mortgaged property located within a PDMDA; and/or
  • have a place of employment located in a PDMDA.

Subject to the restrictions in Section III.A.3.c.iv.(C) of the SF Handbook, if a borrower meets one or both of the above referenced requirements, mortgagees may offer the borrower an FHA Forbearance Agreement provided, in part, that the agreement’s cumulative arrearage amount is no more than 12 months of missed monthly mortgage payments (including Principal, Interest, Taxes, and Insurance).

Quick Links

Resources
The FHA Resource Center’s Online Knowledge Base has additional information for disaster victims with FHA-insured loans. Access this Knowledge Base to learn more about FHA’s disaster policies, its 203(h) Mortgage Insurance for Disaster Victims program, and FHA’s 203(k) Rehabilitation Mortgage Insurance program.

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 #18-03 full version)

Fannie Mae: MIs to Revise Rescission Relief; Investor Reporting System Enhancements; and More

Posted on by Safeguard

Investor Update
January 17, 2018

Mortgage insurers to update rescission relief

Fannie Mae and Freddie Mac have worked with the mortgage insurers (MIs), at the direction of the Federal Housing Finance Agency (FHFA), to revise the GSE Rescission Relief Principles. The new principles will improve clarity, more closely align with the GSE Representation and Warranty Framework, and allow more rescission relief without increasing risk to the GSEs’ most significant counterparties. During 2018, the MIs will revise their master policies to reflect the new principles and obtain the required approvals from the GSEs, FHFA, and the state insurance commissioners. We expect that the new master policies will be finalized by the end of 2018. The GSEs and MIs will then coordinate an implementation date and notify lenders accordingly. The new principles can be found on our web page.

Investor reporting system enhancements coming this weekend

During the weekend of Jan. 20, we will implement enhancements in the investor reporting system. These changes will streamline Detail Reporting Loan Activity Report (LAR) processing under various scenarios. Review the release notes for details and find additional resources on the Investor Reporting page.

Reminder: Notifying document custodians about servicing transfers

After Fannie Mae has approved a servicer’s Form 629: Request for Approval of Servicing or Subservicing Transfer, both the transferor servicer and the transferee servicer must notify their document custodians of the servicing transfer. A final list of all transferred loans must be included with the notification. Please note: Notification must occur even if the document custodian does not change. Review the list of active document custodians.

Enhancements to SMDU

This weekend, we will implement enhancements to Servicing Management Default Underwriter™ (SMDU™). Please refer to the SMDU Version 7.7 Release Notes for more information. As a reminder, to implement this release, SMDU will be unavailable to process transactions from 10 p.m. ET on Friday, Jan. 19 until 4 p.m. ET on Saturday, Jan. 20. If you have questions about this release, please contact your Fannie Mae Servicing Account Manager.

Updates to Form 2010

An updated version of Fannie Mae’s Designated Custodian Master Custodial Agreement (Form 2010) has been published to our portal. No updates were made to the interactive functionality of the form, but changes were made to contact information on pages 19 and 20.

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.

You may also be interested in…

Panel: African-American homeownership rates should concern all homeowners, and the industry
It’s been 50 years since passage of the Fair Housing Act, but African-American homeownership rates still lag. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

When a new housing project came to Manhattan’s Two Bridges neighborhood, the residents asked that the construction preserve the area’s character and affordability. The result is Lands End.
https://t.co/ZKSvZpnIXc

Jan. 17

“Entering 2018, housing affordability remains a persistent challenge, particularly in rental markets, where consumer expectations for price increases over the next 12 months reached a new survey high.” – @D2_Duncan on latest #HPSI results
http://bit.ly/2rdR4hw

Jan. 16

Source: Fannie Mae

Fannie Mae: Bringing Simplicity and Certainty to Servicing; Redesigned Form 582; and More

Posted on by Safeguard

Investor Update
January 24, 2017

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

Stop by our booth in THE HUB during the MBA National Mortgage Servicing Conference & Expo and learn how our Simplifying Servicing™ journey continues. 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. And be sure to catch Fannie Mae speakers during “Don’t Leave Money on the Table” on Feb. 7, “Information Sharing for Effective Property Maintenance Solutions” on Feb. 8, and the “Servicing Super Session” on Feb 9. See you in Texas!

The redesigned Lender Record Information Form 582 is here!

We’ve redesigned the Fannie Mae Lender Record Information Form 582 to provide a better annual certification experience. Features of the new platform include intuitive navigation, progress indicators, information carry-over from previous years, download and print options, and more. Watch an overview of what the new annual certification process has to offer.

Access the Form 582 web page for more information.

LoanSphere Invoicing line item updates

Effective Feb. 1, LoanSphere Invoicing™ will be updated with new line items as well as deactivating some duplicative line items. We’ve updated the Reimbursement Update Notification with minor changes, including the accurate Deductible Category #. For more information on LoanSphere Invoicing, visit the Servicer Expense Reimbursement page.

Join us at these upcoming events:

Feb. 6-7 | Texas MBA Southern Secondary Market Conference | Houston
Feb. 6-9 | MBA National Mortgage Servicing Conference & Expo | Grapevine, TX
Feb. 11-13 | The Mortgage Collaborative Winter Conference | San Diego

View more events.

You may also be interested in…

5 economic experts from the real estate sector weigh in on what the coming year may bring
Will housing industry growth be sustained in 2018? Here’s what five experts tell us. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Lenders say they believe mortgage industry data initiatives are valuable. But they also face challenges.
http://bit.ly/2n7qzFP

Jan. 24

How does @D2_Duncan think the recently passed tax bill will impact the economy? His 2018 Economic and Housing Outlook:
http://bit.ly/2Boorhj

Jan. 23

Source: Fannie Mae

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.

You may also be interested in…

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

Receive regular content updates by registering at The Home Story.

Recent Tweets

The net share of Americans who say it’s a good time to buy a home fell 5 percentage points last month and is down 8 points year-over-year. #HPSI
http://bit.ly/2mlFjAF

Jan. 9

Do you know a #housinginnovator? Make sure they know about The Challenge.
http://bit.ly/2qFL80c

Jan. 9

Source: Fannie Mae

CFPB: Request for Information on Civil Investigative Demands

Posted on by Safeguard

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

Posted on by Safeguard

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

Posted on by Safeguard

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

Posted on by Safeguard

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)