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OCC Reports Improved Mortgage Performance in Third Quarter of 2016

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
January 4, 2017

WASHINGTON— Performance of first-lien mortgages improved during the third quarter of 2016 compared with a year earlier, according to the Office of the Comptroller of the Currency’s (OCC) quarterly report on mortgages.

The OCC Mortgage Metrics Report, Third Quarter 2016, showed 94.8 percent of mortgages included in the report were current and performing at the end of the quarter, compared with 93.9 percent a year earlier.

The report also showed that foreclosure activity has declined. Reporting servicers initiated 47,955 new foreclosures during the third quarter of 2016, a 25.3 percent decrease from a year earlier.

As first-lien mortgage performance improves, the need for other loss mitigation actions declines. Servicers implemented 35,642 mortgage modifications in the third quarter of 2016. Eighty-eight percent of the modifications reduced borrowers’ monthly payments.

The OCC instituted the following changes to its data collection method for the data reported in this report:

Servicers now submit data for prime, alt-a, subprime, and other mortgages using their internal credit scoring system rather than FICO scores.
The report now includes first-lien, closed-end home equity loans.
Banks now submit aggregate data directly to the OCC, as opposed to submitting loan level data to a third-party aggregator.

The first-lien mortgages included in the OCC’s quarterly report comprise 36 percent of all residential mortgages outstanding in the United States or about 20.4 million loans totaling $3.5 trillion in principal balances. This report provides information on mortgage performance through September 30, 2016, and it can be downloaded from the OCC’s website, www.occ.gov.

Related Link

OCC Mortgage Metrics Report, Third Quarter 2016 (PDF)

Source: OCC

Additional Resource:

DS News (The Ever-Growing World of Performing Mortgages)

MHA HAMP Reporting Update Martin Luther King, Jr. Holiday Support and System Availability

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
January 10, 2017

Due to the observance of Martin Luther King, Jr. Day, the HAMP® Reporting System response files will not be available between 6:00 p.m. ET on Friday, January 13, 2017 and 8:00 a.m. ET on Tuesday, January 17, 2017; they will be sent as soon as the system is available.

During this time frame, 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, January 13, 2017 and will resume operations at 9:00 a.m. ET on Tuesday, January 17, 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 System, Secure Side of HMPadmin.com, and NPV Transaction Portal Will Be Down for Maintenance

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
January 13, 2017

The HAMP Reporting System, secure side of HMPadmin.com and NPV Transaction Portal will be unavailable due to maintenance from Thursday, January 26 at 6:00 PM to Tuesday, January 31 at 8:00 AM. HAMP Reporting System response files will not be sent during this time; they will be sent as soon as the system is available.

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

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

Source: MHA

MHA HAMP Reporting Update December 2016 UP Survey Now Available

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
January 17, 2017

The December 2016 UP survey is now available on HMPadmin.com (login required). Servicers that have executed a Servicer Participation Agreement (SPA) and that have cumulative UP activity must complete and upload their UP survey response to the HAMP® Reporting Tool (login required) by Tuesday, January 24, 2017.

SPA servicers that have any cumulative UP activity as of December 31, 2016 must submit an UP survey at this time.

For details on downloading and submitting the UP survey response, log in to HMPadmin.com, navigate to the HAMP Loan Reporting Tools & Documents area, and select the UP Survey tab.

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

For questions specifically regarding the survey contents, email the HAMP Servicer Survey team.

Source: MHA

HUD Announces Change to Debenture Interest Rates

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
January 24, 2017

AGENCY:

Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD.

ACTION:

Notice.

SUMMARY:

This Notice announces changes in the interest rates to be paid on debentures issued with respect to a loan or mortgage insured by the Federal Housing Administration under the provisions of the National Housing Act (the Act). The interest rate for debentures issued under Section 221(g)(4) of the Act during the 6-month period beginning January 1, 2017, is 21/8 percent. The interest rate for debentures issued under any other provision of the Act is the rate in effect on the date that the commitment to insure the loan or mortgage was issued, or the date that the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance, whichever rate is higher. The interest rate for debentures issued under these other provisions with respect to a loan or mortgage committed or endorsed during the 6-month period beginning January 1, 2017, is 23/4 percent. However, as a result of an amendment to Section 224 of the Act, if an insurance claim relating to a mortgage insured under Sections 203 or 234 of the Act and endorsed for insurance after January 23, 2004, is paid in cash, the debenture interest rate for purposes of calculating a claim shall be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years.

Source: HUD/Office of the Federal Register (full notice)

GAO-17-236: Troubled Asset Relief Program: Status of Housing Programs

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
January 9, 2017

What GAO Found

As of October 31, 2016, the Department of the Treasury (Treasury) had disbursed $22.6 billion (60 percent) of the $37.51 billion Troubled Asset Relief Program (TARP) funds obligated to the three housing programs (see fig.).

The Making Home Affordable (MHA) program allowed homeowners to apply for loan modifications to avoid foreclosure. Under this program, which was closed to applicants on December 31, 2016, Treasury provides incentive payments for certain loan modifications. As of October 31, 2016, Treasury had disbursed or committed for future incentive payments $23.6 billion (about 85 percent) of about $27.8 billion MHA funds.

The Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (Hardest Hit Fund) provides funds to 18 states and the District of Columbia (collectively, “states,” which were chosen based on unemployment rates and house price declines) to help struggling homeowners through programs designed by states. Congress extended Treasury’s authority to commit TARP funds to the program to December 31, 2017. As of October 31, 2016, Treasury had disbursed $6.84 billion (about 71 percent) of the $9.6 billion program funds.

The Federal Housing Administration (FHA) Short Refinance program allowed eligible homeowners to refinance into an FHA-insured loan. Under this program, Treasury made TARP funds available to provide coverage to lenders for a share of potential losses on these loans for borrowers who entered the program by December 31, 2016. As of October 31, 2016, Treasury had disbursed $0.02 billion (about 15 percent) of the $0.13 billion obligated to this program.

Why GAO Did This Study

Since 2009 Treasury has obligated $37.51 billion in TARP funds to help struggling homeowners avoid foreclosure. The Emergency Economic Stabilization Act of 2008 included a provision for GAO to report at least every 60 days on TARP activities. This report provides an update on the status and condition of Treasury’s TARP-funded housing programs as of October 31, 2016. To do this work, GAO reviewed Treasury documentation and prior GAO reports on TARP. We also interviewed Treasury officials. This report contains the most recently available public data in Treasury’s reports at the time of our review, including obligations, disbursements, and program participation.

What GAO Recommends

GAO is making no new recommendations. Of the 29 recommendations that GAO has previously made related to the TARP-funded housing programs, 5 remain open or not fully implemented. More information on these recommendations and their status is included in this report. GAO will continue to monitor and assess the status of these recommendations considering the termination of MHA at the end of 2016, program activity, and any further actions taken by Treasury.

For more information, contact Daniel Garcia-Diaz at (202) 512-8678 or garciadiazd@gao.gov.

Source: GAO

Additional Resource:

GAO (GAO-17-236 full report)

Freddie Mac: Building Continues: Additional Investor Reporting Technical Specifications

Posted on September 13, 2018 by Safeguard

Investor Update
January 18, 2017

Today, we published the second of two technical specifications releases to support our Investor Reporting Change Initiative. This publication builds on our previously published business requirements, with:

Several updates to existing data requirements.
One new technical specification document detailing the business-to-business draft file layout.

Onward Towards the New Standard

To further support your continued development, we recommend that you:

Analyze the technical specifications [pdf] to see how they’ll impact processes and procedures throughout your organization. Discuss them with any vendors who support you, and allocate sufficient resources towards development work through implementation in October 2018.
Review our updated FAQs. We’ve made comprehensive updates to our FAQs document to address common questions we’ve heard from you.
Check out our detailed timeline to stay on track – see where we are and where we’re going throughout this initiative.

Remember, these investor reporting changes affect all Freddie Mac Seller/Servicers, regardless of whether you use a vendor, proprietary systems or the Freddie Mac Service Loans application.

Heads Up: Requirements Updates and Upcoming Survey

Today, we’re also announcing the following:

We’ve published minor updates to our business requirements [pdf], which were originally released on October 18, 2016. These updates help clarify some of the requirements and further expand upon data cutover activities. Please review Appendix C for more details.
During Q1 2017, you may receive a survey from us gauging your testing capabilities to support these investor reporting changes. We anticipate external testing will begin in Q1 2018 and would appreciate working with you to lay the foundation for a successful implementation.

For More Information

Visit our redesigned Investor Reporting Change Initiative web page.
Read Single-Family Seller/Servicer Guide Bulletin 2016-15 [pdf] and our FAQs.
Visit Freddie Mac’s Learning Center for more on our training programs and reference tools.
Contact your Freddie Mac representative or email us directly.

Source: Freddie Mac

FHFA: Refinance Report – November 2016

Posted on September 13, 2018 by Safeguard

Investor Update
January 17, 2017

November 2016 Highlights

Total refinance volume rose in November 2016 as mortgage rates in October remained near lows last observed in 2013. Mortgage rates increased by over a quarter percent in November: the average interest rate on a 30-year fixed rate mortgage was 3.77 percent.

In November 2016:

Borrowers completed 4,530 refinances through HARP, bringing total refinances from the inception of the program to 3,442,967.
HARP volume represented 2 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 November 2016:

Borrowers with loan?to?value ratios greater than 105 percent accounted for 21 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, Florida, and Georgia, 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 June 30, 2016.

Attachments: Refinance Report – November 2016

Source: FHFA

FHFA: Foreclosure Prevention Report – October 2016

Posted on September 13, 2018 by Safeguard

Investor Update
January 19, 2017

October 2016 Highlights

The Enterprises’ Foreclosure Prevention Actions:

The Enterprises completed 14,370 foreclosure prevention actions in October 2016, bringing the total to 3,802,258 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
There were 9,213 permanent loan modifications in October, bringing the total to 2,002,905 since the conservatorships began in September 2008.
The share of modifications with principal forbearance increased to 21 percent. Modifications with extend-term only remained high at 41 percent of all permanent modifications due to improved house prices and a declining HAMP eligible population.
There were 1,771 short sales and deeds-in-lieu completed in October, down 8 percent compared with September.

The Enterprises’ Mortgage Performance:

The serious delinquency rate fell from 1.16 percent at the end of September to 1.14 percent at the end of October.

The Enterprises’ Foreclosures:

Third-party and foreclosure sales decreased 13 percent from 6,975 in September to 6,094 in October. Foreclosure starts increased 15 percent from 16,744 in September to 19,194 in October.

Attachments: Foreclosure Prevention Report – October 2016

Source: FHFA

FHA INFO #17-04: HECM Final Rule Published (Docket No. FR-5353-F-03); and New Servicing Guidance for FHA-insured Properties Encumbered with a PACE Obligation (ML 17-06)

Posted on September 13, 2018 by Safeguard

Investor Update
January 19, 2017

Strengthening the Home Equity Conversion Mortgage Program Final Rule Published Today

Today, the Federal Housing Administration (FHA) published in the Federal Register a final rule, Strengthening the Home Equity Conversion Mortgage (HECM) Program (Docket No. FR-5353-F-03). This HECM final rule is a major milestone that codifies HECM requirements implemented under the authority granted to HUD in the Housing and Economic Recovery Act of 2008, the Reverse Mortgage Stabilization Act of 2013, and statutory authority. The rule updates existing regulatory content, and provides new regulatory guidance that carries forward FHA’s ongoing work to ensure the HECM program is a safe and viable financing option for seniors, usable by mortgagees, and protects FHA’s Mutual Mortgage Insurance (MMI) Fund.

FHA will host an industry briefing conference call to provide an overview of the HECM final rule on February 9, 2017. Details for joining this call are included at the end of this FHA INFO.

Provisions Contained in the Final Rule
The publication of the HECM final rule follows more than three years of work to stabilize the HECM program and reduce risk to the MMI Fund, so that the program remains a sustainable option for seniors. In 2013, Congress passed the Reverse Mortgage Stabilization Act, authorizing FHA to quickly enact policy changes via administrative issuance such as a Mortgagee Letter to address immediate program concerns, with the expectation that FHA would follow with formal rulemaking. The HECM final rule fulfills this commitment, and:

Includes FHA’s assessment of public comments received in response to its May 19, 2016, proposed rule;
Updates Part 206 of the Code of Federal Regulations in its entirety for the first time since 1989, providing a complete and current source for HECM regulations; and
Contains both new policies and revisions to existing policies that become effective on September 19, 2017.

Implementing the Provisions Contained in the Final Rule
The HECM final rule contains both new policies and revisions to existing policies that will require actions on the part of mortgagees, other program participants, and FHA to implement. FHA established an eight-month lead time between the
publication of the final rule and the effective date of the provisions it contains in order to:

Provide mortgagees and other program participants the time to understand the contents of the rule, and then
to begin planning for any necessary process, operational, or systems changes;
Allow time for FHA to issue the necessary implementation guidance for mortgagees and other program
participants; and
Complete the necessary system changes that will be required within the FHA Connection system, the Home
Equity Reverse Mortgage Information Technology system, and other FHA technology systems.

FHA is currently finalizing its implementation approach, and will be communicating more specifics about operational and system changes in the coming months.

Industry Briefing Conference Call on February 9th
Mortgagees and other stakeholders are invited to attend an industry briefing conference call on February 9th. During this call, FHA subject matter experts will provide an overview of the provisions contained in the final rule.

Title: HECM Final Rule Overview
Date: February 9, 2017
Time: 2:00 PM – 3:00 PM (Eastern)
Dial-in: (800) 707-9573
Access Code: 415732

Mortgagees may submit questions in advance of this call to FHA’s special email box, FHASFCall@hud.gov, by midnight (Pacific), Sunday, February 5th. Questions submitted will be considered by FHA subject matter experts for responses during the call. Please note that this is an unattended e-mail box to be used only for submitting questions for this call. FHA will be unable to respond in writing to individual questions or inquiries submitted to this e-mail box.

Quick Links

Review the HECM final rule in the Federal Register at:
https://www.federalregister.gov/documents/2017/01/19/2017-01044/federal-housing-administrationstrengthening-
the-home-equity-conversion-mortgage-program

New Guidance For Servicing FHA-insured Mortgages Encumbered with a Pace Obligation

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2017-06, Servicing of FHA-insured Mortgages on Properties Encumbered with a Property Assessed Clean Energy (PACE) Obligation. This Mortgagee Letter provides policies for payment of Property Assessed Clean Energy (PACE) obligation assessments, appraisal of PACE encumbered properties, and property title and conveyance requirements.

This guidance applies to all FHA Title II forward mortgage programs, and the policy revisions are effective immediately. These policy updates will be incorporated into an upcoming update of the Single Family Housing Policy Handbook 4000.1.

Quick Links

View Mortgagee Letter 2017-06 on HUD.gov at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

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-CALLFHA (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 #17-04 full version)