Safeguard Properties

Freddie Mac Joins Fannie Mae in Reducing Mortgage Modification Interest Rate

Posted on by Safeguard

Investor Update
July 17, 2017

It just took Freddie Mac a little longer to update its systems

Last week, Fannie Mae announced it was cutting its benchmark interest rate for standard mortgage modifications for the second time this year, but Freddie Mac didn’t lower its rate, or so it appeared.

Normally, Fannie and Freddie raise or lower the benchmark interest rate at the same time, but when Fannie sent out a notification to mortgage servicers that it was dropping the benchmark rate from 4.125% to 4%, Freddie’s notification was nowhere to be seen.

As it turns out, Freddie is indeed cutting its benchmark rate to the same level as Fannie, but Freddie just took a little extra time to update its website to reflect that change.

So, on Monday, when Fannie Mae’s new benchmark rate of 4% took effect, it took effect for Freddie Mac too.

The standard modification program is “designed to help those borrowers who are ineligible for the Home Affordable Modification Program.”

According to the GSEs, the standard modification program is “designed to help those borrowers who are ineligible for the Home Affordable Modification Program.

Therefore, the new rate does not extend to HAMP borrowers.

Source: HousingWire

FHFA: Refinance Report – May 2017

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Investor Update
July 18, 2017

May 2017 Highlights

Total refinance volume fell in May 2017 as mortgage rates in April remained over half a percent higher than the lows observed in 2016. Mortgage rates decreased in May: the average interest rate on a 30-year fixed rate mortgage fell to 4.01 percent from 4.05 percent in April.

In May 2017:

  • Borrowers completed 3,291 refinances through HARP, bringing total refinances from the inception of the program to 3,467,881.
  • HARP volume represented 3 percent of total refinance volume.
  • Five percent of the loans refinanced through HARP had a loan-to-value ratio greater than 125 percent.

Year to date through May 2017:

  • Borrowers with loan-to-value ratios greater than 105 percent accounted for 19 percent of the volume of HARP loans.
  • Twenty-five 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, and Florida, 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.

Ten states accounted for over 60 percent of the Nation’s HARP eligible loans with a refinance incentive as of December 31, 2016.
 
Attachments: May 2017 Refinance Report

Source: FHFA

FHFA: Foreclosure Prevention Report – April 2017

Posted on by Safeguard

Investor Update
July 12, 2017

April 2017 Highlights

The Enterprises’ Foreclosure Prevention Actions:

  • The Enterprises completed 16,521 foreclosure prevention actions in April, bringing the total to 3,898,985 since the start of the conservatorships in September 2008.  Over half of these actions have been permanent loan modifications.
  • There were 11,328 permanent loan modifications in April, bringing the total to 2,065,576 since the conservatorships began in September 2008.
  • The share of modifications with principal forbearance accounted for 32 percent of all permanent modifications in April. Modifications with extend-term only increased to 38 percent during the month due to continuing improvement in house prices.
  • There were 1,650 short sales and deeds-in-lieu completed in April, down 10 percent compared with March.

The Enterprises’ Mortgage Performance:

  • The serious delinquency rate fell further from 1.04 percent at the end of March to 1.01 percent at the end of April.

The Enterprises’ Foreclosures:

  • Third-party and foreclosure sales decreased 16 percent from 6,581 in March to 5,523 in April.
  • Foreclosure starts increased 10 percent from 15,478 in March to 17,056 in April.

Attachments: 

Foreclosure Prevention Report – April 2017

Source: FHFA

Fannie Mae: SVC-2017-06: Servicing Guide Updates

Posted on by Safeguard

Investor Update
July 12, 2017

The Servicing Guide has been updated to include changes related to Property Inspection and Preservation Updates.

These policy changes also apply to Home Keeper® loans but are not applicable to Home Equity Conversion Mortgage (HECM) loans.

The affected topics for these policy changes are included below. Servicers should review the Servicing Guide and the Property Preservation Matrix and Reference Guide to gain a full understanding of the changes.

Property Inspection and Preservation Updates

In response to industry feedback and in an effort to better serve our customers, we are

  • updating the Property Preservation Matrix and Reference Guide to provide servicers with more specific and
    detailed procedures for preserving and completing inspections for properties that secure delinquent mortgage
    loans;
  • restructuring Servicing Guide D2-2-10, Requirements for Performing Property Inspections, to clarify requirements
    for ordering and completing inspections for properties that secure mortgage loans that are in default; and
  • making the process easier for completing maintenance work by adding or updating reimbursement limits in
    Servicing Guide F-1-06, Expense Reimbursement, for the following:
  • moisture control,
  • address discoloration,
  • roof cleaning,
  • repair/replace fascia,
  • repair/replace soffits,
  • emergency pump water,
  • plumbing services,
  • utility service – initial service and per month,
  • code violations for fines/fees/liens,
  • cleaning toilet – life of loan maximum expense limit added,
  • repair/replace fence gate/lania,
  • repair/replace exterior door, and
  • repair/replace exterior door jamb.

Additionally, Servicing Guide E-3.3-03, Inspecting Properties Prior to Foreclosure Sale, has been updated to change the number of days to complete an inspection from 30 to 35 days prior to the foreclosure sale.

Additional Servicing Guide Topics Impacted

References to the revised Property Preservation Matrix and Reference Guide were added to the following topics:

Effective Date

Policy changes must be implemented by October 1, 2017. However, servicers are encouraged to implement the updated expense limits and guidelines for these policy changes as of the date of this Announcement.

Contact your Customer Delivery Team, Portfolio Manager, or Fannie Mae’s Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643) with any questions regarding this Announcement.

Carlos T. Perez
Senior Vice President and
Chief Credit Officer for Single-Family

Source: Fannie Mae

Fannie Mae: Simplified Expense Reimbursement and More

Posted on by Safeguard

Investor Update
July 6, 2017

Simplified servicer responsibilities for post-foreclosure fees and taxes

As previously announced, we’ve simplified servicing by eliminating servicer responsibilities to pay for some homeowner/condo association fees and property taxes on properties acquired through foreclosure or Mortgage Release/Deed-in-lieu of foreclosure. Read the updated Servicer Expense Reimbursement Job Aid to find out how we’ve made it easier for servicers to get reimbursement from us. Refer to pages 12 and 14-15 to see the changes to homeowner/condo association fees and taxes, respectively. You can find more resources on the Servicer Expense Reimbursement page.

Coming July 31: New field in LoanSphere Invoicing simplifies expense reimbursement

We’re enhancing our expense reimbursement application, LoanSphere™ Invoicing, to include the new First Time Vacancy Date field. Effective July 31, servicers must populate the new field with the property’s vacancy date, which is required for the reimbursement of most property preservation expenses. The new field will eliminate the need for servicers to note the vacancy date in the description or comments fields. Additional information is available in the Servicer Expense Reimbursement Job Aid on the Servicer Expense Reimbursement page. (Note: The original effective date for this change was July 10, but it has been moved to July 31.)

Slowing mortgage demand drives expected credit easing

According to our Mortgage Lender Sentiment Survey® (MLSS), expectations to ease credit standards climbed to survey highpoints in Q2 as more lenders reported slowing mortgage demand and increasing concerns about competition. The survey of senior executives at 184 lending institutions also showed that purchase mortgage demand reached its lowest point in years and refi mortgage demand is down. View the infographic and learn more.   

Join us at these events:

July 19-21 | 45th Annual Western Secondary Market Conference | San Francisco

July 30-August 1 | Michigan Mortgage Lenders Association Annual Conference | Mt. Pleasant

August 6-9 | Lenders One Summer Conference | Minneapolis

View all events.

You may also be interested in…

Duty to Serve forum challenges industry to ‘change the landscape’

The half-day event brought together more than 120 housing industry participants to learn about Fannie Mae’s proposed DTS plan. Read more

Fairway is saving time and money with property inspection waivers

Day 1 Certainty™ streamlines key aspects of the mortgage origination process. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Comment on our proposed Underserved Markets Plan by July 10. Visit http://bit.ly/2uuTqpJ to submit your comments. #DutyToServe

July 6

Take a look at @HousingWire’s interview w/our SF EVP Andrew Bon Salle on our evolution into a smart & agile company:

https://t.co/eFAOSu7vV1

July 5

Source: Fannie Mae

Fannie Mae: SEL-2017-06: Selling Guide Updates

Posted on by Safeguard

Investor Update
July 25, 2017

Selling Guide Updates

The Selling Guide has been updated to include changes to the following:

  • Debt-to-Income Ratios
  • ARM Enhancements
  • Employment Offers or Contracts
  • Fidelity Bond and Errors and Omissions
  • Disputed Tradelines
  • Timeshare Accounts
  • Simplification of Document Custody Requirements
  • Student Loan Clarifications
  • Alimony Treatment
  • Mortgages Paid by Others
  • Miscellaneous Selling Guide Updates

Source: Fannie Mae (SEL-2017-06 full version)

Fannie Mae: New Post-Payment Portal and Even Better Customer Service

Posted on by Safeguard

Investor Update
July 19, 2017

New post-payment documentation portal coming soon

To improve customer service and increase efficiency, we have introduced an online Post Payment Documentation Request portal. Beginning Aug. 4, this portal will trigger email notifications to servicers when a paid expense is flagged for a post-payment review and additional documentation is required to remediate a possible collection to Fannie Mae. Servicers will be able to electronically upload the necessary documentation or communicate when they will remit collection funds back to Fannie Mae.
 
The Post Payment Documentation Request Portal Job Aid, located on the Servicer Expense Reimbursement page, provides instructions on how to access the new portal, as well as procedures on how to complete requests.

New process, same great service

Last year, we simplified the way you contact Fannie Mae by establishing a single phone line (800-2FANNIE) to consolidate and replace multiple phone numbers and improve issue tracking and resolution. Starting in September, we’ll make sure more of your calls are answered by a live analyst when contacting the Investor Reporting team, and email responses will be provided more quickly. More information on these changes will be communicated in the coming weeks.

Our Technology Support Center continues to be the primary point of contact for those who require assistance using our applications. You can reach the center via phone (800-2FANNIE) or web chat, 24×7 (except major holidays).  

Join us at these events:

  • July 30-Aug. 1 | Michigan Mortgage Lenders Association Annual Conference | Mt. Pleasant
  • Aug. 6-9 | Lenders One Summer Conference | Minneapolis

View all events.

You may also be interested in…

9 innovations in REO property management
When it comes to property preservation and marketing, here are a few tips and new products endorsed by the pros. Read more

Partnership is key to stabilizing our hardest-hit communities
Fannie Mae listened to partners to understand the many factors impacting those living in concentrated poverty. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Just released: Our July 2017 Economic & Housing Outlook. Find out what’s projected for the second half of the year:
http://bit.ly/2vxvJg7

July 18
 
The net % of lenders expecting more demand remains relatively stable for the same quarter year over year. Read more:
http://bit.ly/2tYZCGM

July 16

Source: Fannie Mae

Fannie Mae: New and Enhanced Invoicing System, Servicer Self-Assessment, and More

Posted on by Safeguard

Investor Update
July 26, 2017

Coming soon! New invoicing system for servicers replaces manual processing

We’re introducing a new web-based application, Fannie Mae Invoicing, on Sept. 25 to eventually replace the Servicer REAM Deficiency Billing System (SRDBS), which will be phased out over time. Providing easy access to consolidated loan-level invoices and the ability to communicate with the operations team to quickly resolve claims, this new system replaces manual processing and gives servicers a significantly improved experience. Read more in the fact sheet and FAQs on the Fannie Mae Invoicing page. 

Improve processes with new servicer self-assessment tool kit

As a component of Simplifying Servicing, we’re offering a tool kit to help servicers assess their processes and procedures in key servicing areas — including investor reporting, loan administration, escrow administration, collections, and loss mitigation. The foundation of the self-assessment is Fannie Mae’s STAR servicing review and includes guidelines for Servicing Guide compliance and best practices.

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 each month in August and October. 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, increase your workout percentage, and more. Next month’s webinars are Aug. 8 and 17; learn more and register today.

And, check out our new Know Your Options Customer CARE eLearning courses: Providing Borrower Solutions Using the 7-Step Call Flow and Helping Your Customer Exit Gracefully Through Short Sale or Mortgage Release. 

Join us at these events:

  • July 30-Aug. 1 | Michigan Mortgage Lenders Association Annual Conference | Mt. Pleasant
  • July 30-Aug. 1 | CoreLogic RiskSummit | Dana Point, CA
  • Aug. 6-9 | Lenders One Summer Conference | Minneapolis   

View all events.

You may also be interested in…

When it comes to building rental apartments, it’s not easy keeping up with 75-year-olds
Seniors housing has entered a period of robust expansion over the past several years. Read more

9 innovations in REO property management
When it comes to property preservation and marketing, here are a few tips and new products endorsed by the pros. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Reduce the mortgage cycle time and lend with a competitive advantage.
http://bit.ly/2uy2GKb

July 25
 
Econ. growth expected to slow slightly rest of 2017. Mod. econ. growth expected to continue in 2018.
http://bit.ly/2uQUhDY

July 24

Source: Fannie Mae

Fannie Mae: Introduction to Our Servicing Guide

Posted on by Safeguard

Investor Update
July 28, 2017

Introduction to Fannie Mae Servicing Guide

This is a new eLearning course is designed for new servicers and/or current servicers.

Source: Fannie Mae (full course page)

Fannie Mae: Standard Modification Interest Rate Exhibit

Posted on by Safeguard

Investor Update
July 10, 2017

The Fannie Mae Standard Modification Interest Rate is subject to periodic adjustments based on an evaluation of prevailing market rates. The servicer must use the current Fannie Mae Standard Modification Interest Rate indicated below when evaluating a borrower for a conventional mortgage loan modification, excluding Fannie Mae HAMP Modifications.

NOTE: As a reminder, the interest rate used to determine the final modification terms must be the same fixed interest rate that was used when determining eligibility for the Trial Period Plan and calculating the Trial Period Plan payment.

Source: Fannie Mae (full exhibit)