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Fannie Mae: Simpler Way to Reach Master Servicing; New Release of Liability Job Aid; and More

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

Investor Update
November 15, 2017

There’s a new way to reach SF Master Servicing

We’ve simplified how you reach our Single-Family Master Servicing team by having all calls routed through 1-800-2FANNIE, as well as a new email address. Please be aware our call center options have changed; refer to the updated Call Center Reference Guide for details.

As a reminder, our Technology Support Center continues to be the primary point of contact for anyone needing assistance to use our applications. The center is available via phone (800-2FANNIE) or web chat, 24 hours a day, seven days a week (except major holidays).

Increase certainty with the new Release of Liability job aid

Determining a borrower’s credit and financial qualifications for a release of liability is simpler and more certain than ever. Servicers can now leverage the power of Desktop Underwriter® (DU®) to review a borrower’s financial qualifications for a release of liability, and the new job aid can show you how. Check it out today!

AMN/HSSN release notes for Nov. 18 update

During the weekend of Nov. 18, we will update the Asset Management Network (AMN)/HomeSaver Solutions™ Network (HSSN) application with report generation updates. To implement this release, AMN/HSSN will be unavailable for processing from 7:30 a.m. ET until 4 p.m. ET on Saturday, Nov. 18. For more information, review the release notes.

Enhancements to SMDU coming this weekend

This weekend, we will implement enhancements to Servicing Management Default Underwriter™ (SMDU™), including supporting the Fannie Mae Extend Modification for Disaster Relief. Please refer to the SMDU Version 7.5 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, Nov. 17 until 4 p.m. ET on Saturday, Nov. 18. If you have questions about this release, please contact your Fannie Mae Servicing Account Manager.

Need loss mitigation training? Sign up for a free webinar

Did you know that Fannie Mae provides 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 December. 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, including disaster relief options; increase your workout percentage, and more. Learn more and register today.

Making data work for you with DMRS

You know that our Default Management Reporting System (DMRS) tool helps you navigate complex foreclosure and bankruptcy processes. But did you know that the tool’s powerful analytics also help you compare foreclosure-related milestones with national averages, identify properties at risk of missing deadlines, and respond to market conditions? Visit the DMRS webpage for more information!

Join us at these upcoming events:

View more events.

You may also be interested in…

Homebuyer education benefits lenders, homeowners, and the industry Read more

5 takeaways from this year’s MBA Annual, and what lies ahead in 2018 Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Help is available for homeowners impacted by the recent #hurricanes.
http://bit.ly/2iicO4Y

Nov. 15

The net share of Americans who say now is a good time to sell a home decreased in October, leading the #HPSI lower.
http://bit.ly/2hxLB0K

Nov. 14

Source: Fannie Mae

Fannie Mae: Servicing Guide Updates

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

Investor Update
November 8, 2017

Announcement SVC-2017-10: Servicing Guide Updates

The Fannie Mae Servicing Guide has been updated to simplify servicing and streamline processes. These changes:

Clarify requirements for transfers of ownership, releases of liability, and assumptions by:
Removing the owner-occupancy requirements for transfers of ownership that are exempt from due-on-transfer clause enforcement;
Increasing certainty for releases of liability by allowing servicers to use Desktop Underwriter® (DU®); the comprehensive risk assessment can help to determine if a transferee’s credit and financial capacity are acceptable to release the borrower of liability; and
Allowing servicers to decide on a transfer of ownership through an assumption modification.
Update the Cash Remittance System™ with new codes to minimize the need for clarification after remittance has occurred.

For a summary of key updates in Servicing Guide Announcement SVC-2017-10, 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.

Questions about Fannie Mae Invoicing? See the updated FAQs

What’s the difference between Fannie Mae Invoicing and LoanSphere Invoicing™?
How do I rebut compensation fees?
Is there a character limit for Rebuttal Comments?

Find out the answers to these questions and many others in the updated Fannie Mae Invoicing FAQs. Want to learn more? Be sure to check out the OnDemand eLearning modules and the User Guide on the Fannie Mae Invoicing page.

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. Effective immediately, the new line items should be used when requesting reimbursement for the applicable property inspections. For details, see the Updates to Line Items document, available on the Servicer Expense Reimbursement page.

Updated remittance codes in the Cash Remittance System

As a component of Simplifying Servicing™, we updated the Cash Remittance System (CRS™) remittance codes. Visit the CRS page to view the updated CRS User Guide, which contains all updated codes, their definitions, and purposes. Important reminder to CRS users: Drafting instructions are required before submitting the first draft request for a particular lender/remittance code combination. Please refer to the CRS User Guide for additional instructions.

Reminder: Remitting duplicate MI premium refunds

As a result of finalized requirements for mortgage insurance (MI) companies to insure mortgage loans delivered to Fannie Mae, last year, we developed a process to identify and reconcile MI premium refunds. Servicing Guide F-1-06, Expense Reimbursement was updated to require the servicer to remit duplicate MI premium refunds to Fannie Mae through the CRS within 30 days of Fannie Mae’s request in instances where Fannie Mae has determined the servicer received an MI premium refund from the mortgage insurer, as well as reimbursement of the MI premium from Fannie Mae. Reminder: With the introduction of the new CRS remittance codes, use 336 for the payment of MI premium refunds.

In mortgage lending, the personal touch still matters

Data from not just one, but two of our recent surveys show that while borrowers use digital channels for mortgage information, they also place a high value on person-to-person engagement. When asked, close to half of lenders said person-to-person engagement will be equally important in the future as it is today, while nearly 40 percent expect it to be less important. An omni-channel experience that allows consumers to move conveniently between online and personal interactions may be the best approach.

Read more about our National Housing Survey and Mortgage Lender Sentiment Survey results.

Join us at these upcoming events:

Dec. 4-5 | MBA Summit on Diversity and Inclusion | Washington, DC
Jan. 22-25 | MBA Independent Mortgage Bankers Conference | Amelia Island, FL

View more events.

You may also be interested in…

5 takeaways from this year’s MBA Annual, and what lies ahead in 2018
MBA Annual caught the industry’s attention with newsworthy speakers, product announcements, and plenty of networking. Read more

Survey Results: One-fifth of home buyers received financial assistance from their families. Read more

Receive regular content updates by registering at The Home Story.

Source: Fannie Mae

Fannie Mae: Service Date Requirements in LoanSphere; New eLearning for Fannie Mae Invoicing; and More

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

Investor Update
November 22, 2017

Reminder: New Service date requirements for expense reimbursement requests in LoanSphere

The LoanSphere Invoicing™ application now requires servicers to include service dates for the majority of expenses requested for reimbursement. Most of the expense line items will require a Completed Date, also known as the “Service From Date.” Some expenses will require the “Service From Date” and “Service To Date.” Keep in mind that there are a select few expenses that will not require any service dates. Review the release notes for more information on populating these date fields.

New eLearning modules for Fannie Mae Invoicing

Are you up-to-speed on using the Fannie Mae Invoicing application to resolve your claims? Check out the new eLearning modules to learn more about how to accept a bill, rebut a bill, and manage file uploads. View these easy-to-use modules, along with updated FAQs, the user guide, and more, on the Fannie Mae Invoicing page.

Need loss mitigation training? Sign up for a free webinar

Did you know that Fannie Mae provides free loss mitigation training for servicers? Our Know Your Options™ Customer CARE (Connect, Assess, Resolve, and Execute) team will present two live webinars in December. 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 (including disaster relief options), increase your workout percentage, and more. Learn more and register today.

Technology Support Center open this weekend

Fannie Mae business offices will be closed Thursday and Friday, Nov. 23 and 24. Our Technology Support Center will be closed Thanksgiving Day (beginning at 8 p.m. Wed., Nov. 22), but will reopen at 8 a.m. on Friday (Nov. 24) and will remain open throughout the holiday weekend. With the exception of major holidays, you can receive assistance with Fannie Mae’s technology applications 24 hours a day, seven days a week. Our Technology Support Center is the primary point of contact for those who require assistance using our applications and is available via phone (800-2FANNIE) or web chat (visit the webpage for details). Recently we’ve updated our call center menu options to improve tracking and resolution of customer inquiries. Reference the updated Call Center Reference Guide for details.

Join us at these upcoming events:

View more events.

You may also be interested in…

Future of Manufactured Housing Forum delves into challenges, solutions for the industry
While acknowledging challenges, proponents point to benefits of manufactured housing for affordable homeownership. Read more

Fannie Mae re-enters Low-Income Housing Tax Credit market
The LIHTC program is a proven and effective way to create affordable housing supply for low- and very low-income families. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

@D2_Duncan says housing is still a drag on econ growth. Labor and lot shortages + rising building material costs are adding to existing challenges w/inventory, affordability, and sales:
http://bit.ly/2A2heUV

Nov. 22

Our November Servicing Guide update advances the ongoing commitment to simplify servicing for our customers. http://bit.ly/2zMy5x8. You can learn more about this Servicing Guide announcement here: http://bit.ly/2zS2NmC.

Nov. 17

Source: Fannie Mae

Fannie Mae: New eLearning Series; Loan Limits Increasing; and More

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

Investor Update
November 29, 2017

Introduction to servicing – new modules help new servicers get up to speed, fast!

Have you checked out our self-paced eLearning series designed to help new servicers get up to speed quickly? Here are two more reasons: Required Forms and Access to Information and Introduction to Fannie Mae Systems are now both available on the Servicing Training page. Additional courses coming soon.

Loan Limits to increase in 2018

Fannie Mae has issued Lender Letter LL-2017-10 to confirm the general and high-cost area loan limits announced by the Federal Housing Finance Agency (FHFA). The new loan limit in most of the country will be $453,100, which represents a 6.8 percent increase over the 2017 limit. All but 71 counties (or county equivalents) will see a loan limit increase. The new limits are effective for whole loans delivered to Fannie Mae and loans in MBS pools with issue dates on or after Jan. 1, 2018. Detailed information and updated resources, including the Loan Limit Look-Up Table, are available on the Loan Limits page.

Need loss mitigation training? Sign up for a free webinar

Did you know that we provide participating servicers with free loss mitigation training? The Know Your Options™ Customer CARE (Connect, Assess, Resolve, and Execute) team will present two live webinars in December. 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, including disaster relief options; increase your workout percentage; and more. Learn more and register today.

We’re always here to help you support borrowers affected by disaster

Visit our Assistance in Disasters page to find resources and guidance for helping borrowers in disaster areas.

Visit us at the MBA’s Summit on Diversity and Inclusion

Stop by our booth Dec. 4-5 in Washington, DC to talk about how you can build a culture of inclusion to better serve expanding markets. Hear Tujuanna Williams, VP and chief diversity and inclusion officer, introduce the opening reception. And, learn more about Increasing Your ROI (Return on Inclusion), from Charmaine Brown, director, Office of Diversity & Inclusion on Tuesday at 1 p.m.

Register for our D&I Best Practices course today.

Join us at these upcoming events:

View more events.

You may also be interested in…

Student loan debt pilot underway with 10 Fannie Mae lenders
Several lenders are working with Fannie Mae’s Customer Solutions team on small test-and-learn pilots. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Homeownership rates for Millennials 28-31 years old is actually higher than it was for previous generations at the same age, according to our market researcher Patrick Simmons & @USCPrice’s @ProfDowellMyers.
http://bit.ly/2BmcSHS

Nov. 29

Want freedom from reps and warrants? This innovation makes it possible with automated data validation.
http://bit.ly/2j1awaK

Nov. 28

Source: Fannie Mae

Fannie Mae: Lender Letter LL-2017-09: Fannie Mae Extends Modification for Disaster Relief and Other Clarifications for Mortgage Loans Impacted by Disaster Events

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

Investor Update
November 2, 2017

Fannie Mae continues to support servicers working with borrowers impacted by recent disasters, including hurricanes on or after Aug. 25 and the California wildfires. Today, we published Lender Letter LL-2017-09 to provide policy guidance for loans secured by properties located in a Federal Emergency Management Administration (FEMA) Declared Disaster Area eligible for Individual Assistance. This lender letter:

Provides guidance for an additional relief offering for borrowers, the Extend Modification for Disaster Relief — a new, temporary workout option following the end of a forbearance period;
Simplifies the process for getting insurance funds directly to the borrower and reduces the frequency of inspections to monitor repairs;
Describes the policy for servicers to request reimbursement from Fannie Mae for inspections to confirm repairs on properties with an insured loss event; and
Clarifies the terms of acceptable payment records when a borrower impacted by a disaster requests termination of conventional mortgage insurance.

The Lender Letter provides details. Visit the Assistance in Disasters page for additional information and resources, including previous disaster-related Lender Letters, FAQs, and more.

Source: Fannie Mae

Additional Resources:

Safeguard Properties (California Wildfires All Client Alert summary page)

Safeguard Properties (Hurricane Nate All Client Alert summary page)

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)

CFPB: Leandra English Named Deputy Director of the Consumer Financial Protection Bureau

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

Investor Update
November 24, 2017

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today announced that Leandra English has been officially named deputy director of the agency. English, who had been most recently serving as the agency’s chief of staff, has previously held key leadership positions at the CFPB, the Office of Management and Budget, and the Office of Personnel Management. David Silberman, who had been serving as acting deputy director, will continue in his role as associate director of the Research, Markets, and Regulations division.

“Leandra is a seasoned professional who has spent her career of public service focused on promoting smooth and efficient operations. As deputy director, we will continue to benefit from Leandra’s in-depth knowledge of the operational needs of this agency and its staff,” said CFPB Director Richard Cordray. “I would like to thank David Silberman for taking on the additional role of acting deputy director during a busy time and appreciate his continued service as associate director of Research, Markets, and Regulations.”

Before taking on the role of deputy director of the CFPB, Leandra English had been serving as the agency’s chief of staff. Ms. English has served in number of senior leadership roles at the CFPB, including deputy chief operating officer, acting chief of staff, and deputy chief of staff. In addition to her work at the CFPB, Ms. English served as the principal deputy chief of staff at the Office of Personnel Management, chief of staff and senior advisor to the deputy director for management at the Office of Management and Budget, and as a member of the CFPB implementation team at the Department of the Treasury. Ms. English received her B.A. from New York University and her M.S. from the London School of Economics.

Source: CFPB

CFPB Director Richard Cordray Resigns

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

Investor Update
November 15, 2017

Makes no mention of future plans

The speculation is finally over.

Consumer Financial Protection Bureau Director Richard Cordray announced in an email to the bureau’s staff that he will be stepping down from his position before the end of the month.

Cordray’s term was set to expire next year, but rather than waiting it out (or being fired by President Donald Trump), Cordray is leaving on his own terms.

“As I have said many times, but feel just as much today as I ever have, it has been a joy of my life to have the opportunity to serve our country as the first director of the Consumer Bureau by working alongside all of you here,” Cordray wrote.

In his letter, he lists the accomplishments he says made a “real and lasting difference” during his time at the CFPB:

$12 billion in relief recovered for nearly 30 million consumers
Stronger safeguards against irresponsible mortgage practices that caused the financial crisis and hurt millions of Americans
Giving people a voice by handling over 1.3 million complaints that led to problems getting fixed for vast numbers of individuals
Creating new ways to bring financial education to the public so that people can take more control over their economic lives

“None of this could have happened without all of us being dedicated to pull together in supporting and protecting people and making every consumer count,” Cordray said. “I will always be immensely proud of you and what you have done.”

This decision comes after months of speculation over Cordray’s future at the CFPB. Most recently, President Donald Trump openly discussed firing Cordray with members of Congress while signing the resolution to repeal the CFPB’s controversial arbitration rule.

Cordray has long been rumored to be exploring a bid for Ohio governor after the bureau published its much-anticipated final payday lending rule, however he has yet to announce anything regarding his future. His letter to CFPB staff did not mention any future plans.

However, sources told HousingWire Wednesday they speculate Cordray will announce a run for Ohio governor in the next few weeks.

Cordray encouraged his staff that more work still lies ahead for them at the CFPB.

“There is always more work that lies ahead,” he said. “That would be true at any point, of course, and one thing I have tried to reinforce this year is that the Consumer Bureau is far more than its director.”

“I am confident that you will continue to move forward, nurture this institution we have built together, and maintain its essential value to the American public,” Cordray continued. “And I trust that new leadership will see that value also and work to preserve it – perhaps in different ways that before, but desiring, as I have done, to serve in ways that benefit and strengthen our economy and our country.”

Source: HousingWire

VALERI Servicer Newsflash

Posted on September 13, 2018 by Safeguard

Investor Update
October 13, 2017

IMPORTANT INFORMATION
Reporting on Loans Impacted by Natural Disaster– Servicers should not report an Electronic Default Notification (EDN) event on current loans that are impacted by a natural disaster. The EDN event should only be reported prior to the 61st day of delinquency, with “Property Problems” as the reason for default, if there has been contact with the Veteran and they plan to abandon the property or pursue an alternative to foreclosure. When the loan reaches the 61st day of delinquency, servicers should use “Casualty Loss” as the reason for default when reporting the EDN event. This will assist VA in identifying loans that defaulted as a result of a natural disaster.

REMINDER
Bill of Collections Status and Offsets Report – The Claim Summary and Claim Detail Results reports currently do not include negative claims. Enhancements to the reports are scheduled for later this year. Servicers should pull the Bill of Collections Status and Offsets report in VALERI to ensure notification of negative claims is received timely.

Title Disputes on Conveyed Properties – We have seen an increase in attorneys going directly to the VA National Practice Group on appeals for re-conveyance. Please refer to Circular 26-15-2, which provides guidance on the dispute process. Any disputes must be submitted by the servicer and not the attorney.

Source: VA

VA Circular 26-17-32: Special Relief Following Wisconsin Severe Storms, Straight-line Winds, Flooding, Landslides and Mudslides

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

Investor Update
October 18, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by severe storms, straight-line winds, flooding, landslides, and mudslides in the State of Wisconsin, 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 storms, straight-line winds, flooding, landslides and mudslides. 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 the storms, straight-line winds, flooding, landslides and mudslides, 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

VA Circular 26-17-31: Special Relief Following California Wildfires

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

Investor Update
October 13, 2017

1. Purpose. This Circular expresses concern about the 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. 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.

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 (California Wildfires All Client Alert summary page)