Safeguard Properties

Fannie Mae: Hurricane Irma Update for Sellers and Servicers

Posted on by Safeguard

Investor Update
September 7, 2017

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

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

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

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

Source: Fannie Mae

Additional Resource:

Safeguard Properties (Hurricane Irma All Client Alert summary page)

VALERI Special Announcement

Posted on by Safeguard

Investor Update
August 4, 2017

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

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

Thank you for your cooperation and patience during this time.

Source: VA

VALERI Servicer Newsflash

Posted on by Safeguard

Investor Update
August 21, 2017

IMPORTANT INFORMATION
Appraisal Fee Changes – Effective Friday, September 1, 2017, liquidation appraisal fees will increase in the District of Columbia, Kentucky, Maryland, Virginia, and West Virginia. On Friday, September 1, 2017, these changes will be updated and reflected on the VALERI Fee Cost Schedule, which is located at http://www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.

Bill of Collection Payment Remittance Update – The Bill of Collection Payment Remittance instructions located on the VALERI internet site have been updated and the name of the document has been changed to ALAC Bill of Collection Remittance instructions. The updated instructions include information regarding an electronic payment option through Fedwire and are located at http://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Circular 26-17-21, Special Relief Following Nebraska Severe Storms, Tornados, and Straight-line Winds, was issued on August 4, 2017, and is located on the VALERI Internet at http://www.benefits.va.gov/homeloans/servicers_valeri.asp.

Source: VA

VA Circular 26-17-25: Special Relief Following Iowa Severe Storms, Tornadoes, Straight-line Winds, and Flooding

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Investor Update
August 29, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by severe storms, tornados, straight-line winds, and flooding in the State of Iowa, 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. (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. 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 severe storms, tornados, straight-line winds and flooding in the State of Iowa, 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 26-17-24: Special Relief Following Idaho Flooding, Landslides, and Mudslides

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Investor Update
August 29, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by the flooding, landslides, and mudslides in the State of Idaho, 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. (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 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 flooding, landslides and mudslides in the State of Idaho, 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 26-17-23: Special Relief Following Hurricane Harvey

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Updated 3/5/18: The U.S. Department of Veterans Affairs (VA) issued a change to Circular 26-17-23 that extends the established moratorium on foreclosures following Hurricane Harvey.

Link to Circular 26-17-23 Change 2

Updated 10/23/17: The U.S. Department of Veterans Affairs (VA) issued a change to Circular 26-17-23 that extends the established moratorium on foreclosures following Hurricane Harvey.

Link to Circular 26-17-23 Change 1

Investor Update
August 29, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by Hurricane Harvey, 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. (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 Hurricane Harvey. 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 Hurricane Harvey, 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 July 1, 2018.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

Additional Resource:

Safeguard Properties (Hurricane Harvey All Client Alert summary page)

VA Circular 26-17-22: Special Relief Following Severe Flooding, Landslides, and Mudslides in West Virginia

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Investor Update
August 22, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by severe flooding, landslides and mudslides in the State of West Virginia, 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. (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 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 the 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 severe flooding, landslides, and mudslides in the State of West Virginia, 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. http://www.benefits.va.gov/homeloans/contact_rlc_info.asp

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 July 1, 2018.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

VA Circular 26-17-21: Special Relief Following Nebraska Severe Storms, Tornadoes, and Straight-line Winds

Posted on by Safeguard

Investor Update
August 4, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by severe storms, tornados, and straight-line winds in the State of Nebraska, 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: 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 severe weather. 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 severe storms, tornados, and straight-line winds in the State of Nebraska, 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 July 1, 2018.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

USDA: Servicing Relief to Borrowers Affected by Hurricane Harvey

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Investor Update
August 31, 2017

This announcement outlines relief measures loan holders and loan servicers should implement to assist USDA Rural Development Section 502 Single Family Housing Guaranteed Loan Program (SFHGLP) borrowers affected by Hurricane Harvey.  Homeowners impacted by the hurricane may be eligible for temporary relief and the determination of eligibility may require a property inspection.  Due to the magnitude and aftermath of the hurricane, loan servicers must inspect properties that secure SFHGLP loans to ascertain the extent of damage and the occupancy status, particularly if contact has not yet been made with the borrower.
 
Loan servicers seeking to assist SFHGLP borrowers may pursue any of the relief options referenced in the following USDA guidance. Complete details outlining “Assistance in Natural Disasters” is located in Chapter 18, Section 4, 7 CFR 3555.307 of the SFHGLP Handbook. An electronic version of the Handbook can be found at: https://www.rd.usda.gov/files/hb-1-3555.pdf.
 
1. FORBEARANCE: USDA Rural Development encourages SFHGLP loan servicers to extend forbearance alternatives to borrowers in distress as a result of Hurricane Harvey. Careful and precise communication with borrowers should help determine whether their difficulties are directly or indirectly related to Hurricane Harvey, or whether they stem from other sources which must be addressed.  
2. FORECLOSURE SUSPENSION:  Although the loan servicer is ultimately responsible for determining when to initiate foreclosure, USDA Rural Development requires that holders establish a 90-day suspension from the date the President declared the disaster on foreclosure actions involving properties or the borrower’s place of employment affected by Hurricane Harvey. The properties should also be in Presidentially declared disaster areas designated through the Federal Emergency Management Agency (FEMA) as eligible for individual assistance. The foreclosure suspension applies to the initiation of new foreclosure actions and to foreclosure actions already in process.  
3. DOCUMENTATION:  Holders and loan servicers should fully document their decisions when loss mitigation servicing actions are provided.
 
For questions, please contact the USDA Rural Development Customer Service Center by calling (866) 550-5887 or the National Office at (202) 720-1452.

Help Resources
Policy Questions
Customer Service Center
Phone: 866-550-5887
Single Family Housing Guaranteed Loan Division
Phone: 202-720-1452
 
USDA ITS Service Desk Support Center
For e-Authentication assistance
Email: eAuthHelpDesk@ftc.usda.gov
Phone: 800-457-3642, option 1 (USDA e-Authentication Issues)
 
Rural Development Help Desk
For GUS system, outage or functionality assistance
Email: RD.HD@STL.USDA.GOV
Phone: 800-457-3642, option 2 (USDA Applications); then option 2 (Rural Development)

Source: USDA

USDA: FEMA Housing Vouchers Available for REO Properties

Posted on by Safeguard

Investor Update
August 31, 2017

Dear Housing Partners,
 
The Department of Homeland Security’s Federal Emergency Management Agency (FEMA) is making housing vouchers available to displaced families in Texas impacted by Hurricane Harvey.  If you have vacant REO or inventory properties that might be available on a temporary or permanent basis, and have questions about the FEMA voucher program, please contact either of the FEMA representatives below:
 

FEMA manages critical life sustaining search and rescue operations, and also coordinates longer-term relief efforts with local governments.  USDA is working closely with FEMA and other Federal agencies to help bring relief to all families affected by this extraordinary natural disaster.  We greatly appreciate your assistance in this effort.
 
Thank you!

Help Resources

Policy Questions
Customer Service Center
Phone: 866-550-5887
Single Family Housing Guaranteed Loan Division
Phone: 202-720-1452
 
USDA ITS Service Desk Support Center
For e-Authentication assistance
Email: eAuthHelpDesk@ftc.usda.gov
Phone: 800-457-3642, option 1 (USDA e-Authentication Issues)
 
Rural Development Help Desk
For GUS system, outage or functionality assistance
Email: RD.HD@STL.USDA.GOV
Phone: 800-457-3642, option 2 (USDA Applications); then option 2 (Rural Development)

Source: USDA