Safeguard Properties

VA Circular 26-17-04: Special Relief Following Severe Storms and Tornadoes in Georgia and Mississippi

Posted on by Safeguard

Investor Update
February 10, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by severe storms and tornadoes in the states of Georgia and Mississippi, 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 storms and tornadoes. 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 and tornadoes in the states of Georgia and Mississippi, 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 April 1, 2019.

By Direction of the Under Secretary for Benefits
Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

Urban Institute Launches Servicing Collaborative

Posted on by Safeguard

Investor Update
February 8, 2017

The Urban Institute’s Housing Finance Policy Center has created a new initiative aimed at addressing skyrocketing mortgage servicing costs.

The initiative, called the Mortgage Servicing Collaborative, will bring together stakeholders including lenders, servicers, consumer groups and policymakers to develop possible solutions to this issue. The collaborative plans to launch this spring and will be in place for up to two years.

Alanna McCargo, who is currently a co-director of the Urban Institute’s Housing Finance Policy Center, will serve as the collaborative’s executive director.

Among the collaborative’s goals will be to determine the specific costs of servicing different loans and how those costs influence consumer access to credit. Between 2008 and 2015 the cost to service a performing loan tripled to $181 from $59, while the cost to service a nonperforming loan jumped five times higher to $2,386 from $484, according to data from the Mortgage Bankers Association.

But as costs have soared, servicer compensation has remained flat, which has resulted “in a market that undercompensates servicers for managing nonperforming loans and overcompensates them for handling performing loans,” the Urban Institute said.

Meanwhile, the number of loans made to low- and moderate-income borrowers slipped 35%, and the number of loans made to African-American and Hispanic borrowers dropped 64%, the Urban Institute reported.

“To avoid the enormous cost of servicing nonperforming loans, many lenders are restricting mortgage lending to a narrow band of consumers that can meet stringent income, asset and other eligibility requirements,” the Urban Institute wrote.

The changes have taken place at the same time as the landscape of market participants has shifted toward nonbanks. Between 2013 and 2016, the share of nonbanks servicing Federal Housing Administration loans rose from 35% to 70%.

Beyond identifying why costs are rising, the collaborative will also debate and analyze pricing strategies that incorporate alternative compensation models and methods to lower costs and to mitigate risk better. Ultimately, the collaborative plans to distribute its findings and produce industrywide policy recommendations.

Source: National Mortgage News

Additional Resources:

Urban Institute (The Mortgage Servicing Collaborative)

Announcement

FAQ

Fact Sheet

Mortgage Servicing Research

Mortgage Delinquencies Edge Slightly Higher From Record Lows

Posted on by Safeguard

Investor Update
February 15, 2017

MBA: Rise not unexpected

Despite a rise in the mortgage delinquency rate in the fourth quarter of 2016, the slight uptick follows a record-low third-quarter report, according to the Mortgage Bankers Association’s national delinquency survey.

The report stated the delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.80% of all loans outstanding at the end of the fourth quarter of 2016. This is up 28 basis points from the previous quarter and is three basis points higher than one year ago.

Meanwhile, the foreclosure starts rate decreased two basis points, falling to its lowest level since 1988. Plus, foreclosure starts in the fourth quarter decreased across all loan types: FHA, VA and conventional.

The overall foreclosure inventory dropped by two basis points, and remained at its lowest level since 2007.

“We saw a mixed set of results in the most recent survey. Mortgage delinquencies increased in the fourth quarter for the first time since 2013, while both new foreclosure starts and the percentage of loans in foreclosure continued to decline,” said Marina Walsh, MBA’s vice president of industry analysis.

However, it’s important to keep the data in perspective, as Walsh stated.

While the overall delinquency rate in the fourth quarter increased across all loan types, FHA, VA and conventional, as compared to the third quarter, Walsh said, “It should be noted that last quarter’s overall delinquency rate was at its lowest level since 2006.”

“It is not unexpected that delinquencies could eventually increase off such a low base. We continue to see strong fundamentals in the overall economy, such as rising home values and increased employment, which bodes well for the future performance of FHA, VA and conventional loans,” she said.

Breaking apart the different loans types, the seasonally-adjusted FHA delinquency rate increased to 9.02% in the fourth quarter from 8.30% in the third quarter (its lowest level since 1997).

Walsh attributed the increase to the FHA 30-day delinquency category, which increased 55 basis points over the quarter.

The seasonally adjusted VA delinquency rate increased to 4% in the fourth quarter from 3.89% in the third quarter (its lowest level since 1979). However, on a yearly basis, the VA delinquency rate declined 12 basis points.

In addition, the seasonally adjusted conventional delinquency rate increased to 4.04% in the fourth quarter from 3.76% in the third quarter. On a year-over-year basis, the conventional delinquency rate increased by 6 basis points.

Source: HousingWire

MHA HAMP Reporting Update: Updated Reporting Form Posted on HMPadmin.com

Posted on by Safeguard

Investor Update
February 8, 2016

The MHA LPI Date Correction Request Form (login required) has been updated.

Servicers should continue to use the existing form until Friday, February 10, 2017 for February cycle submissions. The new format of the MHA LPI Date Correction Request Form will be effective from Monday, February 13, 2017.

This form can be found in the Data Reporting tab on the secure side of HMPadmin.com.

Questions?
For more information, email the HAMP Solution Center or call 1-866-939-4469.

Source: MHA

MHA HAMP Reporting Update: Presidents? Day Holiday Support and System Availability

Posted on by Safeguard

Investor Update
February 14, 2017

Due to the observance of Presidents’ Day, the HAMP® Reporting System response files will not be available between 3:00 p.m. ET on Friday, February 17, 2017 and 8:00 a.m. ET on Tuesday, February 21, 2017; they will be sent as soon as the system is available.

During this timeframe, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files, and the corresponding Black Knight response files will be provided as usual.

The HAMP Solution Center (HSC) will close at 6:00 p.m. ET on Friday, February 17, 2017 and will resume operations at 9:00 a.m. ET on Tuesday, February 21, 2017. Servicers may contact the HSC by phone or email at any time; however, phone messages and emails will be held in queue until the center reopens on Tuesday.

The NPV Transaction Portal will be available for normal processing during this period.

Questions?
For more information, email the HAMP Solution Center or call 1-866-939-4469.

Source: MHA

MHA HAMP Reporting Update: HAMP Reporting Tool Post Release Message

Posted on by Safeguard

Investor Update
February 27, 2017

Today, February 27, 2017, Fannie Mae, as Program Administrator for the Home Affordable Modification Program (HAMP), has implemented the following functionality to the HAMP Reporting Tool that supports:

Supplemental Directive 16-02 (SD 16-02) Making Home Affordable Program – MHA Program Termination and Borrower Application Sunset

  • HAMP Tier 1, HAMP Tier 2, Streamline HAMP, 2MP, FHA-HAMP and RD-HAMP Modification Effective
    Date must be on or before December 1, 2017. Additionally, closing dates for a transaction under HAFA
    must be on or before December 1, 2017.
  • Servicers are encouraged to refer to the Data Dictionaries on HMPadmin.com for the full list of attributes
    and associated edits that are changing or being added with this release.

Questions?
Email the HAMP Solution Center or call 1-866-939-4469.

Source: MHA

MHA HAMP Reporting Update: HAMP Reporting System Outage the Weekend of February 24

Posted on by Safeguard

Investor Update
February 17, 2017

Due to the HAMP Reporting System Release, a planned system outage is scheduled from Friday, February 24, 2017, 6:00 PM ET to Monday, February 27, 8:00 AM ET.

During this time frame, HAMP Reporting System response files will not be available. Servicers will be able to submit and upload HAMP loan data files via the HAMP Reporting Tool and receive response files except from 6:00 AM ET to 12:00 PM ET on Sunday, February 26, 2017.

New functionality will be implemented in the HAMP Reporting Tool that supports:

  • Supplemental Directive 16-02 (SD 16-02) Making Home Affordable Program – MHA Program Termination and Borrower Application Sunset
  • HAMP Tier 1, HAMP Tier 2, Streamline HAMP, 2MP, FHA-HAMP and RD-HAMP Modification Effective Date must be on or before December 1, 2017. Additionally, closing dates for a transaction under HAFA must be on or before December 1, 2017.

Servicers are encouraged to refer to the Data Dictionaries on HMPadmin.com for the full list of attributes and associated edits that are changing or being added with this release.

Questions?
For more information, email the HAMP Solution Center or call 1-866-939-4469.

Source: MHA

HUD Announces Disaster Assistance for Louisiana Tornado Victims

Posted on by Safeguard

Investor Update
February 13, 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 Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms, tornadoes, and straight-line winds.

This week, President Trump issued a disaster declaration for Livingston and Orleans parishes. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county.

HUD is:

  •  Assisting the State of Louisiana and local governments in re-allocating existing federal resources toward disaster relief– HUD’s Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars in annual formula funding to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department’s CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
  •  Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
  •  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; and
  •  Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
  • Information on housing providers and HUD programs – The Department will share 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

Freddie Mac Sponsors Housing Counseling Office in McComb, Miss.

Posted on by Safeguard

Investor Update
February 1, 2017

Freddie Mac is opening its newest Borrower Help Center on February 7, 2017, and is co-hosting a ribbon cutting ceremony to mark the occasion. This will be our 14th Borrower Help Center – the third to be led by The D&E Power Group, which also manages two locations in the Atlanta area.
 
Through our on-the-ground Freddie Mac Borrower Help Centers and national Network, we work with trusted national nonprofit intermediaries like D&E to support our ongoing commitment to prepare prospective buyers for responsible homeownership and help struggling borrowers with Freddie Mac-owned mortgages avoid foreclosure.
 
For More Information

Source: Freddie Mac

Freddie Mac: Redesigned 2017 Servicer Success Scorecard Now Available

Posted on by Safeguard

Investor Update
February 28, 2017

Today, your first 2017 Freddie Mac Servicer Success Scorecard (Scorecard), with your January performance, is available. We refreshed the look and feel, making it easier to access information through simpler navigation and a more intuitive design.

 Log in now and check it out!

What’s New?

In addition to the redesign, we’re also introducing several new features that were unavailable during the 2017 Scorecard preview period, including:

  • Scorecards for Servicing Agents and Interim Servicers.
  • Performance trend data for default management and file review monitoring sections.
  • 12-Month Rolling Scorecard Summary Report.
  • Other new reports for deeper analysis, including on-demand availability of your Rank Improvement Report.

For more details on these and other new features, review our updated reference guide [PDF]. Also, get to know the new Scorecard by signing up for webinar training today.

For More Information

  • Visit our redesigned Scorecard web page.
  • Review our updated 2017 Scorecard FAQs.
  • Read Single-Family Seller/Servicer Guide Bulletin 2016-17 [PDF].
  • Contact your Freddie Mac representative.

Source: Freddie Mac

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties