Safeguard Properties

Fannie Mae: Cash Remittance System Enhancements; Servicer Self-Assessment Tool Kit

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Investor Update
August 9, 2017

Cash Remittance System enhancements on the way

Effective Sept. 9, the Cash Remittance System™ (CRS™) will undergo several user interface changes to make it easier to navigate. Enhancements include updates to the Contact Information and Drafting Instructions sections, extended submission time for updating or creating banking instructions, and more. Review the Release Notes to find out more about this release.

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.

Join us at these upcoming events:

  • Aug. 20-22 | The Mortgage Collaborative Summer Conference | Nashville
  • Sept. 13-15 | New England Mortgage Bankers Conference | Newport, RI
  • Sept. 17-20 | Pacific Northwest Mortgage Lenders Conference | Stevenson, WA

View more events.

You may also be interested in…

4 cities where growth is increasing rental demand, rents
These markets illustrate the fundamentals that drive the multifamily market, including one very big factor: jobs. Read more

Application programming interfaces will reshape the mortgage business
About half of lenders surveyed have either incorporated APIs into their mortgage process or used them on a trial basis. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

#ICYMI: Last week we released our Q2 financial results. Highlights below. Details here:
http://bit.ly/2wI7A76 #FMQ22017

Aug. 9

Just out: Housing sentiment dips. Find out more in our July #HPSI report:
http://bit.ly/2ves1cz

Aug. 7

Source: Fannie Mae

Fannie Mae: Announcement SVC-2017-07: Servicing Guide Updates

Posted on by Safeguard

Investor Update
August 16, 2017

The Fannie Mae Servicing Guide has been updated to simplify servicing and improve processes. These changes:

  • Streamline the Selling and Servicing Guides by removing certain topics from Servicing Guide Part A, including general contract terms, indemnification provisions, and Fannie Mae trade names and trademarks. These topics will be updated and included in the Selling Guide on Aug. 29.
  • Provide Fannie Mae sellers/servicers advance notice of changes to fidelity bond and errors and omissions insurance requirements, effective Oct. 1, 2018.
  • Revise how servicers should calculate the pass-through rate when an adjustable-rate mortgage (ARM) adjusts. Servicers will now use the calculation, index plus the net margin, to better align whole loan ARM execution with the market demand in ARM MBS.

Read about these updates in Servicing Guide Announcement SVC-2017-07. For a summary of key updates in this Servicing Guide Announcement, view the executive overview from Carlos Perez, Chief Credit Officer for Single-Family.

Updates to bankruptcy-related attorney fees and processes

We have updated the Allowable Bankruptcy Attorney Fees Exhibit to reflect changes to the maximum fee reimbursement for select services and detail steps to take when a servicer incurs out-of-pocket expenses less than $150 that are governed by Federal Rule of Bankruptcy Procedure 3002.1. We’ve also simplified a related process by no longer requiring law firms to seek excess fee approval for a Chapter 7 Motion for Relief filed more than 60 days after the bankruptcy filing date.

The updated fees take effect immediately and apply to all matters referred to counsel for bankruptcy services regardless of referral date, as long as the matter is still active as of Aug. 16. You are encouraged to implement the fee updates for impacted files as soon as possible, but must do so no later than Dec. 1. We will incorporate these updates in the September Servicing Guide Announcement. All Attorney Authorization Approval (AAA) matrices have been updated to reflect the changes. View details on the Excess Attorney Fee/Cost Guidelines page .

Inquiry Response Tool enhancement coming Aug. 25

In an effort to improve customer service and increase efficiency, an “Excess Fees” option will be added to the Inquiry Category drop-down list in the Inquiry Response Tool (IRT) on Aug. 25. This category should be used only for inquiries that are specific to the excess attorney fees process.

Additional information regarding the IRT can be found on the Servicer Expense Reimbursement page.

Impacts to HSSN and SMDU Aug. 26-27

We’ll be making changes to investor reporting during the weekend of Aug. 26, and information between our systems may not be synchronized during that time. To avoid exceptions, we recommend delaying case creation and closing from 6 p.m. ET, Saturday, Aug. 26 until 8 a.m. ET, Sunday, Aug. 27. This recommendation is intended for those who use Servicing Management Default Underwriter™ (SMDU™) Case Management functionality to create HomeSaver Solutions™ Network (HSSN) cases, as well as those creating cases directly on HSSN. Note that XML bulk file submissions for HSSN submitted during this timeframe will be held and processed on Monday, Aug. 28. SMDU Auto Decision will not be impacted; SMDU will remain available per the usual availability schedule.

Join us at these upcoming events:

  • Aug. 20-22 | The Mortgage Collaborative Summer Conference | Nashville
  • Sept. 13-15 | New England Mortgage Bankers Conference | Newport, RI
  • Sept. 17-20 | Pacific Northwest Mortgage Lenders Conference | Stevenson, WA

View more events.

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Mississippi joins a handful of states helping first-time homebuyers save for down payments
These accounts function like 529 college savings plans to help buyers save for their first home. Read more

4 cities where growth is increasing rental demand, rents
These markets illustrate the fundamentals that drive the multifamily market, including one very big factor: jobs. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

We were able to keep all 490 apartments in New York City’s Lands End affordable through diverse partnerships.
http://bit.ly/2uWa54s

Aug. 14

Find out why our #HPSI decreased in July, after matching its all-time high in June. Read more:
http://bit.ly/2hTBJ0G

Aug. 12

Source: Fannie Mae

VALERI Servicer Newsflash

Posted on by Safeguard

Investor Update
July 14, 2017

IMPORTANT INFORMATION
VALERI Offline – Due to the Legacy Loan purge, the VALERI application will be unavailable on the following
dates and times:

1. Friday, July 14th 8:00 PM EST to Saturday, July 15th 11:59 PM EST

2. Friday, July 28th 8:00 PM EST to Sunday, July 30th 12:00 Noon EST (possibly later on Sunday if necessary)

3. Friday, August 4th 8:00 PM EST to Saturday, August 5th 11:59 PM EST

4. Friday, August 11th 8:00 PM EST to Sunday, August 13th 12:00 Noon EST (possibly later on Sunday if necessary)

5. Friday, August 18th 8:00 PM EST to Saturday, August 19th 11:59 PM EST

6. Friday, September 22nd 8:00 PM EST to Saturday, September 23rd 11:59 PM EST

Regional Loan Center (RLC) Contact Information –The RLC contact list has been updated to include the general email addresses for the Loan Production and Construction and Valuation sections at each RLC, and is located at http://www.benefits.va.gov/homeloans/servicers_valeri.asp.

DEVELOPMENT UPDATES
On Sunday, June 25, 2017, VALERI Manifest 17.2 BI was released. The following report enhancement was included:

CQ 12874 – Identifies the second 90 day Adequacy of Servicing cases pending review on the Adequacy of Servicing Action (AOS) Required report.

Source: VA

MHA HAMP Update: Important Information on HAMP Reporting Tool Security Update

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Investor Update
July 13, 2017

As part of our ongoing effort to provide a high level of security, Black Knight Data & Analytics recently implemented security settings on the HAMP servers. This was in response to required changes to internet security protocols for Transport Layer Security (TLS). On scanning the system post updates, it was identified that one more change is required to complete the updates.

These changes will be reapplied in the Servicer Test environment on Saturday, July 15, 2017 from approximately 6:00 a.m. ET to 12:00 p.m. ET and then in the Production environment on Sunday, August 13, 2017 from 6:00 a.m. ET to 12:00 p.m. ET.

The updates may affect some users’ ability to access the HAMP Reporting Tool. It is strongly recommended that users update their internet browsers to the most current version and ensure all security patches have been applied.

What is The Impact For Users?
Users of older browsers (Internet Explorer (IE) 6 and lower versions) and older operating systems (Windows XP and lower versions) will no longer be able to access the HAMP Reporting Tool website.

What Must I Do?
Upgrade the operating system on your computer to at least Windows 7 or a later version. Upgrade your browser to at least IE 7.

We appreciate your understanding and cooperation as we strive to continually enhance your experience.

Questions?
Call 1-866-939-4469: select option 1, then option 5 for Black Knight Financial Services (BKFS).

Source: MHA

MBA Responds to Calls for Comments on CFPB?s Servicing Rule

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Investor Update
July 12, 2017

Questions timing of the assessment 

The Consumer Financial Protection Bureau asked earlier this year for comments from the real estate finance industry on the effectiveness of its 2013 Mortgage Servicing Rule.

Under Dodd-Frank, the CFPB must “use available evidence and data to assess all of its rules five years after they go into effect to ensure they are meeting the purposes and objectives of Dodd-Frank, and the specific goals of the subject rule,” Pavitra Bacon stated in a blog on the CFPB Monitor.

Earlier this year, it began doing just that.

This week, the Mortgage Bankers Association responded to the request.

The MBA submitted comments explaining the rule, which amended the Real Estate Settlement Procedures Act, “required mortgage servicers to spend millions of dollars and countless staff hours to come into compliance and it is appropriate to conduct an assessment of the rule, its costs and the resultant market outcomes.”

The final rule clarified and revised the 2013 RESPA Servicing Final Rule and the 2013 TILA Servicing Final Rule. It is set to go into effect on October 19, 2017.

“MBA feels strongly that this review should encompass both facets of the CFPB’s statutory mandate: ensuring access to financial markets and that those markets are fair and transparent,” the MBA wrote in its blog. “Such an accounting will necessarily involve discussions of the costs required to implement the rule and the effect that such increased costs have had on access to consumer credit.”

“It should also involve an analysis of how CFPB’s enforcement policy interacts with its supervisory role and whether a lack of regulatory clarity in this rule has reduced access to consumer credit,” it concluded.

Source: HousingWire

HUD: Housing Market Indicators Monthly Update

Posted on by Safeguard

Investor Update
July 18, 2017

National housing market indicators available as of June show continuing recovery in housing markets. Trends in some of the top indicators for this month include:

  • Foreclosure starts and completions rose slightly in May.
    Lenders started the public foreclosure process on 35,790 U.S. properties in May, an increase of 5 percent from April but a decline of 15 percent from a year earlier. Newly initiated foreclosures have been below the pre-crisis (2005 and 2006) monthly average of 52,280 since March 2015. Lenders completed the foreclosure process (bank repossessions or REOs) on 27,090 U.S. properties in May, an increase of 4 percent from the previous month but a drop of 25 percent from the previous year. The pre-crisis average of foreclosure completions was 23,120 properties a month. Year-over-year foreclosure completions have declined for fourteen of the past fifteen months. Prior to that, annual foreclosure completions had declined for 27 consecutive months before starting to increase in March 2015; they began to decline again in March 2016. Note that foreclosure activity has been volatile in recent months as states with a substantial pool of foreclosure inventory move to reduce the backlog. (Source: ATTOM Data Solutions.)

Source: HUD (full update)

HUD: Change to Debenture Interest Rates

Posted on by Safeguard

Investor Update
July 26, 2017

AGENCY:

Office of the Assistant Secretary for Housing, 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 July 1, 2017, is 21/4 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 July 1, 2017, is 27/8 percent.

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

Freddie Mac Joins Fannie Mae in Reducing Mortgage Modification Interest Rate

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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

Posted on by Safeguard

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