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FHFA First Quarter Foreclosure Prevention Report: Foreclosure Preventions Near 3.9 Million

Posted on September 13, 2018 by Safeguard

Investor Update
June 22, 2017

First Quarter 2017 Highlights

The Enterprises’ Foreclosure Prevention Actions:

The Enterprises completed 49,104 foreclosure prevention actions in the first quarter of 2017, bringing the total to 3,882,464 since the start of conservatorships in September 2008. Of these actions, 3,211,462 have helped troubled homeowners stay in their homes including 2,054,248 permanent loan modifications.
The share of modifications with principal forbearance increased to 26 percent. Modifications with extend-term only accounted for 40 percent of all loan modifications in the first quarter due to improved house prices and expiration of the Home Affordable Modification Program (HAMP).
As of March 31, 2017, approximately 20 percent of loans modified in the first quarter of 2016 had missed two or more payments, one year after modification.
There were 4,936 completed short sales and deeds-in-lieu during the quarter, bringing the total to 671,002 since the conservatorships began in September in 2008.

The Enterprises’ Mortgage Performance:

The number of 60+ days delinquent loans declined 10 percent to 377,622 at the end of the first quarter, the lowest level since 2008.
The Enterprises’ serious delinquency rate fell to 1.0 percent at the end of the first quarter, the lowest level since April of 2008. This compared with 4.0 percent for Federal Housing Administration (FHA) loans, 2.1 percent for Veterans Affairs (VA) loans, and 2.8 percent for all loans (industry average).

The Enterprises’ Foreclosures:

Foreclosure starts fell 4 percent to 50,529 while third-party and foreclosure sales increased 5 percent to 19,195 in the first quarter.

Related News Release

For an interactive online map that provides state data, click on the following link: Fannie Mae and Freddie Mac State Borrower Assistance Map

Attachments:

Foreclosure Prevention Report – 1Q 2017

Source: FHFA

FHA INFO #17-26R: CORRECTION: Training Opportunities (Reissued)

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

Investor Update
June 19, 2017

FHA INFO #17-26: Training Opportunities dated June 16, 2017 is being reissued because there are errors in three of the Webinar links. Those incorrect registration links were in the following:

Webinar II.1: HUD Loss Mitigation – Option Priority Waterfall, Forbearance Plans, and Special Forbearance Option
Webinar V.1: SFDMS – Reporting Basics
Webinar VI: HUD Extension of Time and Variance Request System (EVARS) Training

The registration links have been corrected and are included below. We apologize for any confusion.

Source: HUD (FHA INFO #17-26 full version)

Fannie Mae: Servicing Guide Updates; Quarterly Compass; and More

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

Investor Update
June 21, 2017

Announcement SVC-2017-05: Servicing Guide Updates

The Fannie Mae Servicing Guide has been updated to simplify servicing and enhance the way servicers work with us. These changes:

Reduce post-foreclosure risks and costs by making Fannie Mae, instead of servicers, responsible for the payment of tax assessments for REO properties in all states.
Streamline processes by allowing servicers to leverage the Flex Modification recordation requirements in advance of Flex Modification program implementation and by accepting electronically notarized mortgage loan modifications.
Simplify short sale processing by having Fannie Mae provide all list price guidance and negotiations with real estate agents through the HomePath® Short Sales program instead of the lender serving as the intermediary.
Clarify servicer responsibilities for mortgage loan recordings and reimbursement fees.
Enhance servicer performance ratings by removing the 30-, 60-, 90+- day delinquency and REO metric. Instead, servicers are rated based on how well they prevent credit losses.

Read the Announcement for details on these and other changes.

For a summary of key updates in this Servicing Guide Announcement, view the video presented by Jenise Hight, Director of Servicing Policy.

Get up to speed with the new Quarterly Compass

Where else can you catch up on quarterly news and timelines related to Fannie Mae technology, policy, training opportunities, and more? Look no further than the Quarterly Compass, bringing you the best of Q2 and previews for the remainder of this year.

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 10, servicers should begin populating 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. The Servicer Expense Reimbursement job aid will be updated and available on our website the week of implementation.

Updates to all Excess Fee AAA matrices

We have updated AAA matrices for all 54 jurisdictions to include a revised fee for a Motion to Dismiss foreclosure. Additionally, the Washington AAA Matrix has been updated to include revised mediation fees. To view the updated matrices, visit the Excess Attorney Fee/Cost Guidelines page.

Comment on the proposed Underserved Markets Plan

Our proposed Underserved Markets Plan, required under the Duty to Serve rule, remains available for review and public comment. The public input period on our proposed Plan ends July 10, 2017. See fanniemae.com/DutytoServe for important information and resources, including links to our proposed Plan and instructions for submitting feedback on the Federal Housing Finance Agency’s website, plus helpful FAQs, video, and more.

Homeownership education is evolving and it’s good for business

In a new Perspectives blog, Mike Hernandez, Vice President of Housing Access and Affordable Housing Initiatives, discusses how homeownership education and housing counseling can help bridge the consumer knowledge gap, smooth the process for lenders, and support efforts to expand sustainable homeownership. Mike says, “As we celebrate National Homeownership Month, let’s spread the word that homeownership education and housing counseling are evolving to meet borrower needs and that they support all of our efforts to make homeownership sustainable.”

We’ve been celebrating National Homeownership Month on Twitter, LinkedIn, and Facebook. Chime in to tell us how you’re celebrating!

Join us at these events:

View all events.

You may also be interested in…

Fairway is saving time and money with property inspection waivers
Day 1 Certainty™ streamlines key aspects of the mortgage origination process. Read more

Cities giving inclusionary zoning more muscle to battle lofty housing costs
Cities are taking a harder look at inclusionary zoning to ease today’s growing shortage of affordable housing. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Congratulations to our President & CEO Tim Mayopoulos, one of the Highest Rated CEOs on @Glassdoor! #TopCEOs
https://t.co/2hdEEWYI50

June 21

Here are some reasons our researchers discovered the decline in young-adult #homeownership:
http://bit.ly/2sNzUpU

June 20

Source: Fannie Mae

Fannie Mae: Redesigned Fannie Mae Connect; Loan Delivery Change Clarification; and More

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

Investor Update
June 28, 2017

Redesigned Fannie Mae Connect goes live!

During the weekend of June 24, we implemented Fannie Mae Connect™ Version 7.0, which gives you new features and an enhanced user experience.

The new Fannie Mae Connect user interface was designed, based on customer feedback, to enhance and simplify your access to business analytics. It will deliver the dynamic functionality you’ve come to expect, in an attractive, simplified interface.

View the Fannie Mae Connect video to review new features, and refer to the Fannie Mae Connect 7.0 Change Notification for more details.

How do you access the new enhancements? Just log on — all new features are available now!

Loan Delivery change clarification

The May 22 Loan Delivery release included a change that impacts the numeric range of the Fannie Mae Loan Number. Previously, the Fannie Mae loan number was generated in ranges based on execution (i.e., Whole Loan vs. MBS). With this release, the Fannie Mae Loan Number is now generated in the same range (regardless of execution type) in Loan Delivery as follows: 4007XXXXXX to 5999999999. For questions about this change, please contact your Fannie Mae account representative.

Washington AAA matrix correction

A correction has been made to the updated mediation fees in the Washington AAA matrix. To view the updated matrix, visit the Excess Attorney Fee/Cost Guidelines page.

July 4 holiday closure

Fannie Mae’s Master Servicing department will be closed on Tuesday, July 4. All Investor Reporting activities should recognize Monday, July 3, as Business Day 1 and Wednesday, July 5, as Business Day 2. The Technology Support Center will close at 8 p.m. ET on Monday, July 3, and reopen at 8 a.m. ET on Wednesday, July 5. Fannie Mae’s other business offices will be closed on Monday, July 3, and Tuesday, July 4.

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. Learn more and register today.

Join us in San Francisco!

Stop by booth #102 at California MBA’s 45th Annual Western Secondary Market Conference, July 19-21, in San Francisco. Make connections. Learn how to improve your borrowers’ experience and increase efficiency with Day 1 Certainty™, so you can help make the homeownership dream possible for more Americans.

Join us at these events:

June 29-30 | MBA of Hawaii Annual State Conference | Honolulu
July 19-21 | 45th Annual Western Secondary Market Conference | San Francisco
July 30-Aug. 1 | Michigan Mortgage Lenders Association Annual Conference | Mt. Pleasant

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

Tight inventory continues to boost home prices and constrain home sales. Our June Econ. & Housing Outlook.

http://bit.ly/2rX6GSt

June 27

Our President & CEO, Tim Mayopoulos, received a 92% approval rating on @Glassdoor — Congratulations! #TopCEOs

http://bit.ly/2sbM2NN

June 25

Source: Fannie Mae

Fannie Mae: New Co-Issue Report, Impacts to HSSN and SMDU, and More

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

Investor Update
June 7, 2017

New co-issue report can help you validate loan data

The new Whole Loan Co-Issue Purchase Detail File gives servicers loan-level data for loans purchased/sold through concurrent transfer of servicing, also known as co-issue transactions. This report will allow you to validate loan data received from sellers with what was purchased by Fannie Mae and to pursue corrections for any data discrepancies quickly. You can find this report in the Loan Delivery category in Fannie Mae Connect™.

Access to the report is granted by the Corporate Administrator or Report Administrator at your firm. For more information on Fannie Mae Connect, including the latest Release Tracker and Report Directory, demos, quick tips, and training, visit the Fannie Mae Connect web page. If you have questions, email fanniemae_connect@fanniemae.com.

Impacts to HSSN and SMDU June 17-18

We’ll be making changes to investor reporting during the weekend of June 17, and information between our systems may not be synchronized during that time. To avoid exceptions, we recommend delaying case creation and closing from 12 a.m. ET, Saturday, June 17, until 8 a.m. ET, Sunday, June 18. 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, June 19. SMDU Auto Decision is not impacted; SMDU will remain available per the usual availability schedule.

Washington AAA Matrix update

A correction has been made to the Washington E-Note Foreclosure fee effective dates. To view the updated matrix, visit the Excess Attorney Fee/Cost Guidelines page.

We’re celebrating National Homeownership Month

June is National Homeownership Month and we’ll be celebrating all month on social media. Follow us on Twitter, LinkedIn, and Facebook as we highlight industry trends and stories you may want to share with your borrowers. Chime in to tell us how you’re celebrating!

Attend a Duty to Serve webinar

Learn more about Fannie Mae’s proposed Underserved Markets Plan, including our proposed actions to help the manufactured housing, affordable housing preservation, and rural housing markets identified by the Federal Housing Finance Agency’s Duty to Serve rule. Click here to add the webinar to your calendar and join us on Thursday, June 8, 3-4 p.m. ET. To learn more about Duty to Serve, visit our Duty to Serve page.

Looking for free loss mitigation training? Attend a live 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 in June. 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. Learn more and register today.

Join us at these upcoming events:

June 13-16 | NAFCU 50th Annual Conference and Solutions Expo | Honolulu, HI
June 14-16 | Optimal Blue Client Conference | Plano, TX

View all events.

You may also be interested in…

Pulitzer Prize winning author discusses America’s alarming housing affordability crisis
Affordability and promoting healthy living in multifamily housing were key themes at DUS 2017, Fannie Mae’s annual meeting with its Delegating Underwriting and Servicing lenders. Read more

The cost of home is big but not easy for residents of New Orleans
Exhibit chronicles the housing struggle faced by residents of New Orleans — which has the second least affordable housing market in the country. Read more

Receive regular content updates by registering at The Home Story.

Recent Tweets

Head into #NationalHomeownershipMonth with the facts on our consumer housing sentiment report:
http://bit.ly/2rCSIb2

June 3

We don’t just want to help families get into homes — we want to help them stay there.
http://bit.ly/2szrhvX

June 2

Source: Fannie Mae

Fannie Mae: Lender Letter: Guidance on Credit Report Changes; Impacts to HSSN and SMDU This Weekend

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

Investor Update
June 14, 2017

Lender Letter LL-2017-02: Guidance on credit report changes

Effective in July 2017, most tax liens and civil judgments will not appear on credit reports. We are providing the following guidance:

Lenders can continue to rely on the Desktop Underwriter® (DU®) risk assessment and recommendation.
There will be no changes to our current policy requiring delinquent credit, including judgments and liens, to be paid off at or prior to closing.
We are not requiring lenders to use sources other than the loan application, credit report, and preliminary title report to identify potential civil judgments and tax liens. We continue to require lenders to address outstanding judgments and liens they become aware of prior to closing.
We will monitor the effects of the credit report changes to understand how they impact lenders throughout the loan origination process. We ask lenders to share their experiences and feedback with their Fannie Mae customer delivery team.

Review Lender Letter LL-2017-02 for details.

Reminder: Impacts to HSSN and SMDU June 17-18

To avoid exceptions, we recommend delaying case creation and closing from 12 a.m. ET on Saturday, June 17 to 8 a.m. ET on Sunday, June 18, as information between systems may not be synchronized due to changes in investor reporting. This may affect 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. XML bulk file submissions for HSSN submitted during this timeframe will be held and processed on Monday, June 19. SMDU Auto Decision is not impacted; SMDU will remain available per the usual availability schedule.

We’re celebrating National Homeownership Month

Join us at these events:

June 19-21 | Motivity Solutions User Conference | Beaver Creek, CO
June 21-22 | Florida MBA 64th Annual Convention | St. Petersburg
June 29-30 | MBA of Hawaii Annual State Conference | Honolulu

View all events.

You may also be interested in…

Receive regular content updates by registering at The Home Story.

Recent Tweets

Here are 3 ways #homeownership education can help homebuyers. #NationalHomeownershipMonth
http://bit.ly/2rviz0E

June 14

Are we in a seller’s market? That’s what consumers think, according to new Home Purchase Sentiment Index. #HPSI
http://bit.ly/2sYDURe

June 8

Source: Fannie Mae

Freddie Mac: Enhancements Make it Easier to Share Guide Content and Find Recent Updates

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

Investor Update
June 22, 2017

New functionality is now available to help you review Single Family Seller/Servicer Guide (Guide) content when you use the AllRegs® link on our Guide and Forms web page on FreddieMac.com. These enhancements, previously only available with an AllRegs subscription, include:

An “Email” feature to easily share Guide content with others. Simply click on the “Email” button found in the top right-corner of the page you’re viewing and provide the recipient email address.
A new “Recent Updates” section which features a summary and links to the latest Guide Bulletins and our Industry Letters.

Source: Freddie Mac

CFPB Issues Implementation Date Guidance to Mortgage Servicing Rule

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

Investor Update
June 27, 2017

Along with technical corrections

The Consumer Financial Protection Bureau released updated guidance along with two technical corrections to the final mortgage servicing rule that is set to go into effect on Oct. 19.

The bureau released two documents that relate to the 2016 Amendments to the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z), collectively dubbed the 2016 Mortgage Servicing Final Rule.

While they are small changes, the first document addresses two typographical errors, the authority citation for Regulation Z, and several amendatory instructions relating to certain official commentary to apply the correct effective date.

Since there is minimal, if any, basis for substantive disagreement on the technical errors, the bureau stated that there is good cause to publish these corrections without seeking public comment.

The technical explanations start on page three, and include simple corrections such as fixing the word “contract” instead of “contact.”

Meanwhile, the second document is slightly more notable and addresses concerns raised by some industry participants.

Although it is a non-binding policy, the CFPB issued guidance relating to the implementation date of the servicing rule. As it stands, the rule is set to go into effect on Thursday, Oct. 19.

“The Bureau has heard concerns that these midweek effective dates for the 2016 Mortgage Servicing Final Rule could create operational challenges for servicers. The Bureau understands that, for many servicers, the Thursday effective dates could afford less than a full day—from the close of business overnight on each of the preceding Wednesdays—to update and test systems in order to be compliant with the 2016 amendments. If servicers do not have sufficient time to complete these tasks, their systems may be more likely to produce errors, which could expose servicers and consumers to risk,” the CFPB document stated.

So to help, the CFPB said that it does not intend to take supervisory or enforcement action for violations of existing Regulation X or Regulation Z resulting from a servicer’s compliance with the 2016 Mortgage Servicing Final Rule occurring up to three days before the applicable effective dates.

This means, in essence, that servicers can start implementing the servicing rule a few days early without fear of a supervisory or enforcement action for violations from the bureau.

Mike Jones, director with Navigant, added, “While the substance of the policy guidance does not appear to have a lot of operational impact, it does send a clear signal that the bureau does not intend to extend the effective dates of the rule changes. In fact, the policy guidance encourages servicers to implement the rule changes over the weekend before the mid-week effective dates.”

“It’s also a good reminder that servicers don’t have a lot of time to spare as the deadlines approach,” said Jones. “There’s a lot to do to get ready.”

Source: HousingWire

VALERI Servicer Newsflash

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

Investor Update
May 25, 2017

IMPORTANT INFORMATION
Servicer Handbook Update – Revisions to multiple chapters and Appendix G have been posted in M26-4 and are reflected on the transmittal document dated May 9, 2017. They can be accessed at http://www.benefits.va.gov/WARMS/M26_4.asp.

Document Uploads – Some servicer upload attempts to the VALERI application are being rejected due to a possible virus within Microsoft Word documents. This may be due to the recently identified Dridex malware. If an upload attempt is rejected, servicers will receive a generic error message indicating that the upload was not successful. Servicers experiencing issues with uploading documents to the application should reach out to their Information Technology department to run a virus scan.

REMINDERS
Reports – Servicers can schedule their reports to generate during non-working hours to prevent delays and reduce the probability of encountering error messages with high volume requests. Previously scheduled reports should be reviewed monthly and deleted if no longer required. The Scheduling Reports Quick Reference Guide can be accessed at http://www.benefits.va.gov/HOMELOANS/servicers_valeri_guides.asp.

If attempting to generate an unscheduled report, sufficient time should be allowed for the report to process. Cancelling and restarting the report while it is in progress will result in further delays and/or report errors.

Servicer Web Portal (SWP) Event Reporting – When reporting daily events through the SWP, servicers should not report more than one event per 24 hours on the same loan. Reporting multiple events on the same day can cause the events to process and /or display incorrectly, and some events may reject.

Source: VA

USDA: Status Reporting – Handbook-1-3555 Update

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

Investor Update
May 17, 2017

On March 17, 2017, Chapter 17, HB-1-3555 was updated to clarify that servicers should continue submitting monthly and quarterly status reports through foreclosure and until the loss claim is paid. More details on this subject may be found in Chapter 17, Paragraph 17.3 and Appendix 8 of the program handbook.

Questions regarding this announcement may be directed to Penny Nowak of the National Finance and Accounting Operations Center at 314-457-4209 or penny.nowak@stl.usda.gov.

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