Safeguard Properties

HUD: FHA INFO #17-48: FHA Disaster-Related Policy Waivers Issued for Presidentially-Declared Major Disaster Areas in Puerto Rico and California

Posted on by Safeguard

Investor Update
October 24, 2017

Today, the Federal Housing Administration (FHA) issued waivers of its policy on the timeframe for completing the inspection of properties prior to closing or submitting the mortgage for FHA insurance endorsement in the Presidentially-Declared Major Disaster Areas in certain municipalities in Puerto Rico impacted by Hurricane Maria (Maria) and certain counties in the state of California impacted by wildfires (Wildfires).

  • For mortgages in process secured by properties in a PDMDA that have not closed or are pending endorsement, mortgagees must follow the guidance contained in the Single Family Housing Policy Handbook 4000.1 (SF Handbook) Section II.A.7.c, Inspection and Repair Escrow Requirements for Mortgages Pending Closing or Endorsement in Presidentially-Declared Major Disaster Areas. FHA’s current policy requires that a damage inspection be performed following the close of the Incident Period as defined by the Federal Emergency Management Agency (FEMA).
  • FHA believes that the situations in certain municipalities in Puerto Rico and certain counties in California have stabilized to the extent that further damage to the properties appear unlikely, despite FEMA not having closed its Incident Period for the PDMDAs in these two areas. However, mortgagees should continue to monitor FEMA’s website to ascertain the latest information on these PDMDAs as additional municipalities or counties could be added to them until the Incident Periods have closed.
  • As a result, today FHA issued two waivers: one for certain municipalities in Puerto Rico (Maria) and the other for certain counties in California (Wildfires), regarding the timing of the required inspection, allowing damage inspections to be completed beginning October 24, 2017 for the PDMDAs in Puerto Rico and California.
  • These waivers do not affect mortgagees’ obligations to exercise prudent lending practices and ensure that mortgages they submit for endorsement fully comply with FHA’s property eligibility requirements, as well as any property condition requirements related to claims processing.

— The Puerto Rico “Maria” waiver is posted at:
https://www.hud.gov/sites/dfiles/OCHCO/documents/sf_hb40001waiverPR.pdf

— The California “Wildfires” waiver is posted at:
https://www.hud.gov/sites/dfiles/OCHCO/documents/sf_hb40001waiverCA.pdf

Mortgagees can find more information about FHA’s PDMDA policies, as well as the 203(h) Mortgage Insurance for Disaster Victims Program and the 203(k) Rehabilitation Mortgage Insurance Program, on the FHA Resource Center’s Online Knowledge Base.

Quick Links

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-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 #17-48 full version)

Additional Resources: 

Safeguard Properties (Hurricane Maria All Client Alert summary page)

Safeguard Properties (California Wildfires All Client Alert summary page)

HUD: FHA INFO #17-47: Extension of Initial Disaster Foreclosure Moratorium for Properties in Specified Areas Impacted by Hurricanes Harvey, Irma, and Maria (ML 17-15); SF Claims: Suspended Claim Dashboard; Training Opportunities

Posted on by Safeguard

Investor Update
October 20, 2017

Extension of Disaster Foreclosure Moratorium

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2017-15, Extension of Initial Disaster Foreclosure Moratorium for Properties in Specified Areas Impacted by Hurricanes Harvey, Irma, and Maria. This Mortgagee Letter (ML) communicates specific guidance for the extension of the foreclosure moratorium for FHA-insured properties in the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA)-designated Individual Assistance Areas that are located within the Presidentially-Declared Major Disaster Areas for Hurricanes Harvey, Irma, and Maria. The extension of these three initial moratoriums applies to the initiation of foreclosures and foreclosures already in process.

Quick Links

Single Family Claims: Suspended Claim Dashboard

Today, the Federal Housing Administration (FHA) is announcing the implementation of the “Suspended Claim Dashboard” in P260/Yardi, which is currently available for use. This dashboard will allow servicers to upload suspended documentation as an alternative to mailing hard copy documents to the Department of Housing and Urban Development (HUD), thus increasing efficiency and limiting the amount of paper used.

Servicers needing additional assistance with accessing or using the dashboard should contact FHA_SFClaims@hud.gov for instructions.

Quick Links

Source: HUD (FHA INFO #17-47 full version)

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: FHA Extends Foreclosure Relief for Homeowners Impacted by Recent Hurricanes

Posted on by Safeguard

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

Posted on by Safeguard

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

Posted on by Safeguard

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

Posted on by Safeguard

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

Posted on by Safeguard

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

Posted on by Safeguard

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

Posted on by Safeguard

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

Posted on by Safeguard

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