Safeguard Properties

USDA: New USDA Electronic Status Reporting Requirements!

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Investor Update
June 1, 2017

This notification conveys the implementation date for the required use of the new status reporting requirements to be April 1, 2018. 

USDA Rural Development (RD) will adopt enhanced Electronic Status Reporting (ESR) on April 1, 2018, and are releasing an implementation guide, including release notes, for the following business reporting requirements: 

1.    Monthly default status reporting will be enhanced to add additional data fields and default status codes.  The current Electronic Data Interchange (EDI) Transaction Set 264 will continue to be used but will require many new data fields.  The new reporting structure will be similar to that of the Federal Housing Administration (FHA).

2.    Quarterly status reporting will change in frequency from quarterly reporting to monthly reporting.  The EDI Transaction set 203 will continue to be used and will not change in structure.  However, the statuses of all loans will now be required on a monthly basis. 

3.    Servicers will now be required to perform corrections of their status reports, similar to what is required by FHA.

For lenders with a small USDA Rural Development portfolio, the web screen method of reporting will still be available in lieu of the EDI transaction sets.

The new “ESR Implementation Guide” and “ESR Implementation Guide Release Notes” are located on the USDA LINC Training and Resource Library.  

Online user training and an ESR User Guide (for the web screen reporting and correction of the status reports) will be provided on the USDA LINC Training & Resource Library in the near future.  An announcement will be sent out on the GovDelivery SFH Guaranteed Servicing email updates once the training and User Guide are available.  To subscribe to the SFH Guaranteed Servicing email topic, please click here. 

We ask that loan servicers review both the “ESR Implementation Guide” and “ESR Implementation Guide Release Notes” and should there be any questions or comments, please forward them to the following email boxes based on subject matter content:

Technical Questions: RD.GLS.PROD@one.usda.gov
Business Operational Questions: SFHGLDPROGRAM.wdc.usda.gov

For all other inquiries, you may contact us at 202-720-1452

To subscribe to the SFH Guaranteed Servicing email topic, please click here.

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

MHA HAMP Update: HAMP Reporting System Release Outage June 23, 2017 – June 25, 2017

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Investor Update
June 1, 2017

Due to a HAMP Reporting System Release, a planned system outage is scheduled from 8:00 a.m. ET Friday, June 23, 2017 through 8:00 p.m. ET Sunday, June 25, 2017.

During this timeframe, HAMP Reporting System response files will not be available; they will be sent as soon as the system is available.

Source: MHA (full update)

MHA HAMP Reporting Update: HAMP Reporting System Post Release Message and Independence Day Holiday Support and System Availability

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Investor Update
June 26, 2017

Today, June 26, 2017, Fannie Mae, as Program Administrator for the Home Affordable Modification Program (HAMP), has implemented functionality in the HAMP Reporting Tool that supports:

Updates to Servicing Transfer Deal Setup Edits

  • Transfer or Assignment Effective Date for MHA Eligible loans in a Servicing Transfer deal is extended to 5/1/2018. After

    such date, all loans included in a Servicing Transfer deal must match to a Trial or Official Modification currently in the HAMP Reporting System.

  • At least one loan which is included in a Servicing Transfer deal must now pass all Hard Stop and Soft Check edits in order for the deal to be successfully set up.

Remodifications of Treasury FHA-HAMP Loans

  • A servicer may re-modify a Treasury FHA-HAMP modification that has lost its FHA insurance into a Tier 2 or Streamline HAMP modification.
  • FHA-HAMP / 1MP Loan Setup edits are updated to allow servicers to report a Tier 2 or Streamline HAMP modification if there is a prior Treasury FHA-HAMP modification in Official Disqualified or Withdrawn state.
  • HA-HAMP edits requiring the initial modification term to have elapsed prior to allowing a servicer to report a Treasury FHA-HAMP modification as Withdrawn are removed.

Servicers are encouraged to review updates related to this release from the program-specific sections on HMPadmin.com.

Independence Day Holiday Support and System Availability

Due to the observance of Independence Day, the HAMP Reporting System response files will not be available between 8:00 p.m. ET on Monday, July 3, 2017 and 8:00 a.m. ET on Wednesday, July 5, 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. 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 Monday, July 3, 2017 and will resume operations at 9:00 a.m. ET on Wednesday, July 5, 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 Wednesday.

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

Source: MHA

Freddie Mac: Register Now for Freddie Mac Flex Modification Training

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Investor Update
June 5, 2017

Are you ready to start evaluating borrowers for a Freddie Mac Flex ModificationSM Trial
Period Plan?

Last December, we announced the new Flex Modification, which offers you an easier,
flexible way to help more borrowers qualify for a loan modification in a changing
housing environment.

To help get you ready and make your process as smooth and efficient as possible, we’ve:

  • Added new training to provide upfront guidance and processing tips to help you achieve a successful settlement. Learn more and register now for one of our several upcoming Flex Modification webinars.
  • Updated Workout Prospector® so you can submit data relating to Flex Modification Trial Period Plans now, in advance of the October 1, 2017 deadline. Please reference the Workout Prospector Users’ Guide [pdf].

Please review Single-Family Seller/Servicer Guide (Guide) Bulletins 2016-22 [pdf], 2017-1 [pdf] and 2017-5 [pdf] for detailed Flex Modification requirements.

Important Reminder

You must begin evaluating your portfolios no later than October 1, 2017. On and after October 1, 2017, this new Flex Modification will replace the current Freddie Mac Standard and Streamlined Modifications. In the interim, Servicers will be able to leverage the existing Standard and Streamlined Modifications.

For More Information

Source: Freddie Mac

Freddie Mac: Customer Testing for Investor Reporting Changes ? What’s the Game Plan?

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Investor Update
June 12, 2017

Today, we’re providing you with our Customer Testing Strategy to support the Investor Reporting Change Initiative.

This document provides a glimpse of our game plan, including details on testing activities and timing, so you know what to expect. We’re driving towards the same goal – let’s execute our game plan and bring home a win.

Why Test with Us?

Customer testing will begin in Q3 2018 and will give you an opportunity to evaluate:

  • Technology changes you or your vendor have made to accommodate our investor reporting changes.
  • Process changes within the Freddie Mac Service Loans application via Customer Test Environment.

We’ll provide you with more details on test scenarios, registration and next steps in subsequent communications – we’re supporting your testing and implementation, every step of the way.

What’s Next

The testing period will be here before you know it. To prepare, we recommend that you:

  • Analyze our Customer Testing Strategy document [pdf] to understand the planning necessary for a successful testing period and eventual implementation in May 2019.
  • Review our previously published business requirements, technical specifications, FAQs and project timeline, which are available on our web page.

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

For More Information

Source: Freddie Mac

FHLMC Guide Bulletin 2017-9: Servicing Updates

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Investor Update
June 21, 2017

In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2017-9, we’re announcing several positive servicing updates:

  • Effective August 21, 2017, we’re updating certain loss mitigation property valuation requirements. For example, when you’re required to order a Brokers Price Opinion (BPO) via BPODirect®, you won’t need to order an interior BPO when evaluating a borrower for a modification of a:
  • Mortgage secured by a 3- or 4-unit property.
  • Manufactured Home.
  • Dwelling subject to a leasehold estate or a cooperative unit.
  • You may implement the modified Mortgage First Lien and enforcement requirements for all modifications with a first payment due date on and after January 1, 2017.
  • We’re adding requirements specific to mortgaged premises with income-based resale restrictions when you evaluate a borrower for a short sale or bid at a foreclosure sale.
  • You may now submit multiple loans on a single Form 1205 [xls] when reporting post-settlement discrepancies after mortgage modifications or liquidation settlements.

Other Reminders & Updates

  • Quality Control Information Manager will be rebranded as Quality Control Advisor and become part of the Freddie Mac Loan Advisor Suite® on June 26.
  • In Guide Bulletin 2017-5, we updated our reimbursement request requirements for unrecoverable expenses (as described in Guide Section 9701.5). Due to additional testing, the associated enhancement to the Reimbursement System was implemented on June 19 instead of June 5.
  • Don’t forget to register now for one of our upcoming Flex Modification webinars.

For More Information

Source: Freddie Mac

FHFA Releases Further Data on Non-performing Loan Sales

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Investor Update
June 1, 2017

Washington, DC – The Federal Housing Finance Agency (FHFA) today released its third report providing information about the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises).  The Enterprise Non-Performing Loan Sales Report includes information about NPLs sold and outcomes for borrowers as of December 31, 2016.  The sale of NPLs reduces the number of severely delinquent loans in the Enterprises’ portfolios.  FHFA and the Enterprises impose requirements on NPL buyers  to encourage prioritization of outcomes for borrowers other than foreclosure.  An initial report of NPL sales and borrower outcome data was released in June 2016 and the second report was released in November 2016.

The third report shows that, through December 2016, the Enterprises had sold more than 72,502 NPLs representing a total unpaid principal balance of $14.2 billion.

  • NPLs sold had an average delinquency of 3.4 years and an average current loan-to-value ratio of 97 percent.
  • New Jersey, Florida and New York accounted for nearly half (48 percent) of the NPLs sold.  These three states also accounted for 47 percent of the Enterprises’ loans that were 1 year or more delinquent as of December 31, 2014.
  • A nonprofit organization, Community Loan Fund of New Jersey (CLFNJ), along with its affiliate, New Jersey Community Capital, was the winning bidder on 9 of 11 small, geographically concentrated NPL pools sold by December 31, 2016, and CLFNJ is a service provider for the tenth and eleventh pools.

The borrower outcomes in the report are based on the 45,446 NPLs that were settled by June 30, 2016 and reported through December 31, 2016.  These outcomes reflect the following:

  • NPLs where the home was occupied by the borrower had the highest rate of foreclosure avoidance outcomes (18.8 percent foreclosure avoided versus 10.1 percent for vacant properties).
  • NPLs where the property is vacant had a much higher rate of foreclosure, nearly double the foreclosure rate of borrower-occupied properties (38.5 percent foreclosure versus 16.6 percent for borrower occupied properties).  Foreclosure outcomes for vacant homes typically improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.
  • Compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold, foreclosures avoided for sold NPLs were higher than the benchmark.  Thirty?three percent of NPLs that have been with the new servicers the longest (1,737 NPLs for 20 months) avoided foreclosure, compared to 23 percent of the benchmark NPLs.
  • Eleven percent of the permanent modifications provided arrearage and/or principal forgiveness.  The average forgiveness earned per loan was $35,385, with the potential to earn an average forgiveness of $73,695 in total.

FHFA will continue to provide reporting on NPL sales borrower outcomes on an ongoing basis.

Link to Non-Performing Loan Sales Report

Link to NPL page on FHFA.gov

?The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks.  These government-sponsored enterprises provide more than $5.8 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn.
 
Contacts: 
Media: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030

C?onsumers: Consumer Communications or (202) 649-3811?

Source: FHFA

FHFA Releases 2016 Report to Congress

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Investor Update
June 15, 2017

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its 2016 Report to Congress.  The statutorily-required report provides information about FHFA’s 2016 examinations of Fannie Mae, Freddie Mac (the Enterprises), 11 Federal Home Loan Banks (FHLBanks) and the FHLBanks’ Office of Finance.  The report also describes FHFA’s actions as conservator of Fannie Mae and Freddie Mac during the year and it describes the Agency’s regulatory guidance, research and publications.  

Link to 2016 Report to Congress

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.8 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn. 

Contacts: 
Media: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030
Consumers: Consumer Communications or (202) 649-3811

Source: FHFA

FHFA: Refinance Report – April 2017

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Investor Update
June 15, 2017

April 2017 Highlights

Total refinance volume fell in April 2017 as mortgage rates in March remained over half a percent higher than the lows observed in 2016. Mortgage rates decreased in April: the average interest rate on a 30?year fixed rate mortgage fell to 4.05 percent from 4.20 percent in March.

In April 2017:

  • Borrowers completed 3,493 refinances through HARP, bringing total refinances from the inception of the program to 3,464,589.
  • HARP volume represented 3 percent of total refinance volume.
  • Six percent of the loans refinanced through HARP had a loan-to?value ratio greater than 125 percent.

Year to date through April 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: 

Refinance Report – April 2017

Source: FHFA

FHFA Proposes 2018-2020 Housing Goals For Fannie Mae and Freddie Mac

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Investor Update
June 29, 2017

Washington, D.C. – In accordance with the provisions of the Housing and Economic Recovery Act of 2008, the Federal Housing Finance Agency (FHFA) today proposed a rule that would establish new housing goals for Fannie Mae and Freddie Mac (the Enterprises) for 2018 through 2020.  FHFA is requesting comment on the proposed rule.  When finalized, the new goals will replace the current goals which will expire at the end of 2017.

The proposed rule would establish new Single-Family Housing Goals and new Multifamily Housing Goals.

Source: FHFA (full news release)