Safeguard Properties

HUD: FHA Extends Foreclosure Relief for Homeowners Impacted by Recent Hurricanes

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Investor Update
October 23, 2017

Foreclosure moratorium extended another 90 days to help struggling families

WASHINGTON – The Federal Housing Administration (FHA) is extending its initial 90-day foreclosure moratorium for FHA-insured homeowners impacted by Hurricanes Harvey, Irma and Maria for an additional 90 days due to the extensive damage and continuing needs in hard-hit areas. Read FHA’s letter to lenders, servicers and counseling agencies.

FHA is extending this foreclosure relief in Presidentially declared counties and municipalities where the Federal Emergency Management Agency (FEMA) is operating its Individual Assistance Program. Under the expanded moratorium, FHA is instructing lenders and servicers to suspend all foreclosure actions against borrowers until the following dates:

Hurricane Harvey – February 21, 2018
Hurricane Irma – March 9, 2018
Hurricane Maria – March 19, 2018

FHA-insured homeowners may qualify for this relief under the following conditions:

  • The household lives within the geographic boundaries of a Presidentially declared disaster area;
  • A household member of someone who is deceased, missing or injured directly due to the disaster; or
  • The borrower’s ability to make mortgage payments is directly or substantially affected by a disaster.

In addition to the extension of FHA’s initial foreclosure moratorium, the agency is:

  • Offering forbearance and loan modification options – HUD offers different forbearance and loan modification options for FHA borrowers affected by disasters. Borrowers having trouble making regular payments should contact their loan servicer as soon as possible for more information.
  • Making mortgage insurance available – HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs.
  • Making insurance available for both mortgages and home rehabilitation – HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home;
  • Sharing information with FEMA and the State on housing providers that may have available units in the impacted counties – this includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

Read about these and other HUD programs designed to assist disaster victims.

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)

HUD: Disaster Assistance for California Wildfire Victims

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Investor Update
October 19, 2017

Foreclosure protection offered to displaced families

WASHINGTON – U.S. Housing and Urban Development today announced HUD will speed federal disaster assistance to the State of California and provide support to homeowners and low-income renters forced from their homes due to wildfires.

President Trump issued a major disaster declaration for Butte, Lake, Mendocino, Napa, Nevada, Orange, Sonoma, and Yuba counties.

The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in these counties. HUD is:

  • Granting immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures of Federal Housing Administration (FHA)-insured home mortgages. There are tens of thousands of FHA-insured California homeowners living in these impacted counties.
  • Offering forbearance and loan modification options – HUD offers different forbearance and loan modification options for FHA borrowers affected by disasters. Borrowers having trouble making regular payments should contact their loan servicer as soon as possible for more information.
  • Making mortgage insurance available – HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs.
  • Making insurance available for both mortgages and home rehabilitation – HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home;
  • Sharing information with FEMA and the State on housing providers that may have available units in the impacted counties – this includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

Read about these and other HUD programs designed to assist disaster victims.

Source: HUD

Additional Resource:

Safeguard Properties (California Wildfires All Client Alert summary page)

HUD: Additional $58 Million to Help Texas Recover From Hurricane Harvey

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Investor Update
October 20, 2017

Funding to support housing recovery

WASHINGTON – U.S. Housing and Urban Development (HUD) Secretary Ben Carson today allocated an additional $57.8 million to help Texas recover from Hurricane Harvey. The grant announced today is provided through HUD’s Community Development Block Grant – Disaster Recovery (CDBG-DR) Program. Combined with CDBG-DR grants already allocated to the State of Texas from disasters that occurred in 2015 and 2016, HUD’s support of long-term disaster recovery in the Lone Star State now totals more than $371 million.

“Clearly, the long-term needs in Texas far exceed this allocation so I anticipate this downpayment will be targeted to address damaged housing to help Texans move forward with their own recovery,” said Secretary Carson. “As we work to allocate additional funding in a fair and effective manner, states and communities can count on HUD to be a strong partner in efforts to recover from the hurricanes and other major disasters our nation experienced this year.”

HUD relied upon the best available data from FEMA to allocate the recovery funds announced today and evidence supports the immediate allocation of the $57.8 million. The Department opted to allocate the funds to Texas as it has an existing recovery plan, as a result of funds awarded for 2016 disasters, that can serve as a rapid launch platform for the use of these funds. As additional disaster data become available in the coming weeks for areas impacted by major disasters declared in 2017, HUD will use those data to allocate the $7.4 billion in disaster recovery grants appropriated in September in an equitable and consistent manner, based on a clear understanding of unmet needs.

CDBG-DR grants support a wide variety of activities including housing redevelopment, business assistance and infrastructure repair. State and local governments are required to spend these recovery funds in “the most impacted” areas. Using data available from FEMA as of October 2, 2017, HUD determined that Texas has unmet housing needs in excess of $57.8 million as a result of Hurricane Harvey. Using these data, HUD estimates thirteen counties in Texas have qualifying levels of unmet housing needs but the situation is most severe in Harris, Galveston and Jefferson counties.

Background

On May 5th, President Trump signed the Consolidated Appropriations Act of 2017 (the Act), which included $400 million in CDBG-DR funding to support recovery from major disasters in 2015 and later. To determine these disaster recovery allocations, the Act requires HUD to analyze the most currently available data of the unmet costs to repair seriously damaged properties and infrastructure in the most-impacted counties. HUD had previously allocated $342 million to qualifying 2015 and 2016 disasters nationwide.

On September 8th, President Trump signed the Continuing Appropriations Act, 2018 and the Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2017, which appropriated $7.4 billion in CDBG-DR funding for major disasters declared in calendar year 2017. As more data become available with respect to unmet needs arising from disasters such as Harvey, Irma, Maria and the California fires, HUD will announce the allocation of the $7.4 billion.

Source: HUD

Additional Resource:

Safeguard Properties (Hurricane Harvey All Client Alert summary page)

Freddie Mac: Upcoming Servicer Performance Profile Changes

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Investor Update
October 11, 2017

On October 31, we’re making big improvements to your Servicer Performance Profile. The redesigned profile will combine your Manager Series reports and your Servicer Success Scorecard (Scorecard) into one holistic experience – making it easier to monitor and manage your performance.

Here’s a few things that need to happen first:

Upcoming Changes

October 14 – 30 No new users may be added, including requests for new subservicer IDs.

October 26 – 31 Scorecard becomes unavailable (26th 8:00 p.m. – 31st 9:00 a.m. ET).
Please make sure you pull any reports/data you need before this date.

October 28 Legacy Manager Series retired. Please make sure you pull any reports/data you need before this date.

Users who only have access to Manager Series will receive a new user ID allowing access to both Manager Series and the Scorecard.  We’ll email you instructions on how to set up your user profile.

October 31 New and improved profile launches! Login using your Global Family ID.

After logging in on October 31, you may be asked to update your user profile by setting up security questions. This is a one-time process for security purposes.

Log-in: One and Done

All users will log in using the ID associated with their Global Family, including users who currently use multiple IDs to access data for multiple families or multiple servicing relationships.

For example, if you’re a Servicing Agent and subservice loans for multiple Master Servicers, you’ll only sign in once to retrieve data for each of those relationships. The new homepage will provide access to all your relevant Scorecards (Master, Interim, Subservicing) and corresponding Manager Series reports.

For More Information

  • Contact your Freddie Mac representative.

Source: Freddie Mac

Freddie Mac: Go All-In on Servicing Performance

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Investor Update
October 31, 2017

Today, we’re announcing the new and improved Servicer Performance Profile that combines your Servicer Success Scorecard (Scorecard) and Manager Series reports into one holistic application with a convenient homepage.

When you log in on October 31, you’ll be greeted with an “all-in” view of your performance. Your Scorecard, rankings (if applicable) and loan-level data will be easily accessible, visually appealing, and ready for drilling down.

The Stakes

Going all-in means you have all the tools and data you need to stay on top of your game. We’re making it easier for you to focus on the key performance areas that interest you – from default management to portfolio reconciliation.

With your new profile, you can:

  • View all your performance data across multiple portfolios in one location.
  • Log in once to see all of your data.
  • Choose a portfolio and watch your topline metrics change dynamically.
  • Download a single workbook with all of your loan-level metric data.
  • Get organized – a click or two will help you sort your data.

Ante Up

Get in the game and review our updated Scorecard Reference Guide [PDF] and new Manager Series Reference Guide [PDF]. Look to sign up for training soon on Freddie Mac’s Learning Center.

For More Information

Source: Freddie Mac

Freddie Mac: Flex Modification Resources

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Investor Update
October 2, 2017

Last December, we announced the Freddie Mac Flex Modification®, which offers you an easier, flexible way to help borrowers qualify for a loan modification in a changing housing environment.  Since then, we’ve sent you reminders and updates to prepare you for the October 1 mandatory evaluation date.

Now that you’ve begun evaluating borrowers for Flex Modification Trial Period Plans, we want to remind you that we offer training and resources to make your evaluations as smooth as possible going forward.

Flex Modification Training and Resources

Please note that you’re no longer able to evaluate borrowers for Freddie Mac Standard and Streamlined Modifications.

Source: Freddie Mac

Freddie Mac: Disaster Relief Policies Amid California Wildfires

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Investor Update
October 13, 2017

MCLEAN, VA–(Marketwired – Oct 13, 2017) –  Freddie Mac (OTCQB: FMCC) confirmed today its disaster relief policies for people whose homes or places of employment have been impacted amid the wildfires in California.

Freddie Mac’s disaster relief options are available to borrowers with homes in presidentially-declared Major Disaster Areas where federal Individual Assistance programs are made available to affected individuals and households. In areas where the Federal Emergency Management Agency (FEMA) has not made Individual Assistance available, servicers may leverage Freddie Mac’s forbearance programs to provide immediate mortgage relief to borrowers affected by the fires.

“Once they’re in a safe place, we strongly encourage borrowers whose homes or businesses are being impacted by the California wildfires to call their mortgage servicer,” said Yvette Gilmore, Freddie Mac’s Vice President of Single-Family Servicer Performance Management. “Relief — including forbearance on mortgage payments for up to one year — may be available if their mortgage is owned or guaranteed by Freddie Mac.”

News Facts:

  • Freddie Mac disaster relief policies authorize mortgage servicers to help affected borrowers in presidentially declared Major Disaster Areas where federal Individual Assistance programs have been extended. A list of these areas can be found at http://www.fema.gov/disasters.
  • Freddie Mac mortgage relief options for affected borrowers in these areas include:
  • Suspending foreclosures by providing forbearance for up to 12 months;
  • Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and
  • Not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus.
  • Freddie Mac is reminding servicers to consider borrowers who work in eligible disaster areas but have homes in unaffected areas for Freddie Mac’s standard relief policies, which include forbearance or mortgage modifications.
  • Affected borrowers should immediately contact their mortgage servicer — the company to which they send their monthly mortgage payment.
  • See http://www.freddiemac.com/singlefamily/service for a description of Freddie Mac disaster relief policies.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog.

Source: Freddie Mac

Additional Resource:

Safeguard Properties (California Wildfire All Client Alert summary page)

FHLMC Guide Bulletin 2017-22: Servicing Updates

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Investor Update
October 11, 2017

We’re announcing the following Servicing updates in Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-22 [pdf].

  • We’re eliminating the Imminent Default Indicator® model and replacing it with a more transparent, rules-based approach. Servicers must implement the new imminent default evaluation requirements no later than July 1, 2018, but may implement earlier once Workout Prospector® is updated.

    We’ll notify Servicers when Workout Prospector will be updated and provide additional guidance on how to report imminent default data using Workout Prospector.

  • We’re making changes to certain requirements related to the Servicemembers Civil Relief Act (SCRA) interest rate credits.
  • Beginning on November 15, 2017, we will no longer provide Servicers with a paper copy of the property condition certificate. With this change, we’re revising our requirements for cancelling property insurance policies for REO properties.
  • We’re updating Exhibit 88, Servicing Tools, as a result of the retirement of Remedy ManagerSM.

FYI: Upcoming Servicer Performance Profile Changes

Beginning October 31, we’re updating your Servicer Performance Profile to combine Servicer Success Scorecard and Manager Series reports into one single, holistic experience – making it easier to monitor and manage your performance.

Learn more about how accessing and interacting with your profile is changing.

For More Information

  • Review Guide Bulletin 2017-22  [pdf] for details.
  • Contact your Freddie Mac representative.

Source: Freddie Mac

FHFA: Second Quarter Foreclosure Prevention Report Shows Foreclosure Preventions Surpass 3.9 Million

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Investor Update
September 27, 2017

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its second quarter Foreclosure Prevention Report, which shows that Fannie Mae and Freddie Mac (the Enterprises) completed 48,760 foreclosure prevention actions in the second quarter of 2017, bringing the total number of troubled homeowners helped to 3,931,224 since the start of the conservatorships in September 2008.

Of the foreclosure prevention actions, more than 3.2 million have helped troubled homeowners stay in their homes, including more than 2 million permanent loan modifications.  FHFA’s report includes data on the Enterprises’ home retention actions, delinquency data and real estate owned (REO) inventory.  FHFA publishes the report data in an online, interactive Borrower Assistance Map on FHFA.gov.

Other foreclosure prevention data noted in the quarterly report include:

  • The Enterprises’ serious delinquency rate fell to 0.9 percent at the end of the second quarter, the lowest level since January 2008.
  • The number of 60+ days delinquent loans declined 6 percent to 354,178 at the end of the second quarter.
  • The Enterprises’ REO inventory declined by 9 percent in the second quarter to 40,392.

Link to Report 

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

FHFA: Refinance Report – August 2017

Posted on by Safeguard

Investor Update
October 17, 2017

August 2017 Highlights
Total refinance volume increased in August 2017 as mortgage rates in July remained below the levels observed at the beginning of the year.  Mortgage rates decreased in August: the average interest rate on a 30-year fixed rate mortgage fell to 3.88 percent from 3.97 percent in July.

In August 2017:

  • Borrowers completed 2,379 refinances through HARP, bringing total refinances from the inception of the program to 3,475,488.
  • 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 August 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, 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: August 2017 Refinance Report

Source: FHFA