Page 332 – Safeguard Properties

FHFA Third Quarter Foreclosure Prevention Report: Seriously Delinquent Loans Drop to Lowest Level Since June 2008

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

Investor Update
December 22, 2016

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its third quarter Foreclosure Prevention Report which shows that the serious delinquency rate for mortgages owned or guaranteed by Fannie Mae and Freddie Mac (the Enterprises) has reached the lowest level since June of 2008. The Enterprises’ serious delinquency rate fell to 1.16 percent at the end of the third quarter of this year.

Overall, the Enterprises completed 46,390 foreclosure prevention actions in the third quarter, bringing the total number of foreclosure prevention actions to more than 3.7 million since the start of the conservatorships in September 2008. FHFA’s report includes data on Fannie Mae and Freddie Mac home retention actions, delinquency data and real estate owned (REO) inventory. FHFA publishes the report data in an online, interactive Borrower Assistance Map on FHFA.gov. Other foreclosure prevention data noted in the quarterly report include:

The number of 60+ days delinquent loans declined another 3 percent to 421,765 at the end of the third quarter, also the lowest level since 2008.
Nearly one-third of the loan modifications during the quarter reduced borrowers’ monthly payments by over 30 percent.
Fannie Mae and Freddie Mac’s REO inventory declined by 9 percent in the third quarter to 52,891 as property dispositions continued to outpace acquisitions.

Link to Report

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

Source: FHFA

FHFA Releases 2017 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions

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

Investor Update
December 15, 2016

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released the 2017 Scorecard outlining specific conservatorship priorities for Fannie Mae, Freddie Mac, and their joint venture, Common Securitization Solutions, LLC. The 2017 Scorecard furthers the goals outlined in FHFA’s Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac, published in May 2014. These goals include:

Maintain, in a safe and sound manner, credit availability and foreclosure prevention activities for new and refinanced mortgages to foster liquid, efficient, competitive and resilient national housing finance markets;
Reduce taxpayer risk through increasing the role of private capital in the mortgage market; and
Build a new single-family securitization infrastructure for use by the Enterprises and adaptable for use by other participants in the secondary market in the future.

“The 2017 Scorecard will guide Fannie Mae, Freddie Mac and Common Securitization Solutions as they continue to build on the progress that has been made over the years in meeting the goals set forth in our Conservatorship Strategic Plan,” said FHFA Director Melvin L. Watt. “The goals and initiatives contemplated in the Scorecard strike what we believe is an appropriate balance between ensuring that these entities operate in a safe and sound manner while continuing to ensure that the housing finance market remains liquid and supports housing access for homeowners and renters.”

Link to 2017 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions

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

Source: FHFA

FHFA: Refinance Report

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

Investor Update
December 15, 2016

Total refinance volume increased in October 2016 but remained well above levels observed earlier in the year as mortgage rates in September hovered near lows last observed in 2013. Mortgage rates increased in October: the average interest rate on a 30-year fixed rate mortgage was 3.47 percent.

In October 2016:

Borrowers completed 3,986 refinances through HARP, bringing total refinances from the inception of the program to 3,438,437.
HARP volume represented 2 percent of total refinance volume.
Four percent of the loans refinances through HARP had a loan-to-value ratio greater than 125 percent.

Year to date through October 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 refinance for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
HARP refinances represented 7 or more percent of total refinances in Nevada, Florida and Georgia, more than 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 – October 2016

Source: FHFA

FHA INFO #16-78: Mortgagee Letter 2016-25: 2017 Nationwide Forward Mortgage Limits ? Correction for Special Exception Areas (Alaska, Hawaii, Guam, and the Virgin Islands)

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

Investor Update
December 23, 2016

On December 22, 2016, the Federal Housing Administration (FHA) issued Mortgagee Letter 2016-25: 2017 Nationwide Forward Mortgage Limits – Correction for Special Exception Areas (Alaska, Hawaii, Guam, and the Virgin Islands), to provide official notification of the previously announced correction to the ceiling limits for calendar year 2017 in the special exemption areas of Alaska, Hawaii, Guam, and the Virgin Islands. This error was first communicated in FHA INFO #16-76, dated December 8, 2016.

Although Mortgagee Letter 2016-20, dated December 1, 2017, referenced incorrect ceiling limits for special exception areas, there were no changes to the forward mortgage limits in these, or any other jurisdiction, as previously noted. The downloadable files that provide the complete list of FHA loan limits for 2017 are posted on the Maximum Mortgage Limits web page, and are not impacted.

Also as noted, the forward mortgage limits for calendar year 2017 in all areas are effective for case numbers assigned on or after January 1, 2017. More information regarding forward mortgage loan limits can be found in Section II.A.2.a.11 of the Single Family Housing Policy Handbook 4000.1.

Quick Links

View Mortgagee Letter 2016-25 and all other Mortgagee Letters at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
View FHA INFO #16-76 at: https://portal.hud.gov/hudportal/documents/huddoc?id=SFH_FHA_INFO_16-76.pdf
View 2017 forward mortgage limits:
Maximum Mortgage Limits web page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/origination/mortgage_limits
FHA mortgage limits by MSA and County at: https://entp.hud.gov/idapp/html/hicostlook.cfm
Complete listing of FHA loan limits at: http://www.hud.gov/pub/chums/file_layouts.html
View the online or PDF versions of the Single Family Housing Policy Handbook 4000.1 at: https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

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 #16-78 full version)

FHA INFO #16-76: Corrections to Mortgagee Letter 2016-20: 2017 Nationwide Forward Mortgage Limits

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

Investor Update
December 8, 2016

Today, the Federal Housing Administration (FHA) is issuing this communication to notify its FHA-approved mortgagees that originate and service Title II forward mortgages of an error to Mortgagee Letter (ML) 2016-20, 2017 Nationwide Forward Mortgage Limits. ML 2016-20 referenced an incorrect limit ceiling for Alaska, Hawaii, Guam, and the Virgin Islands, which are identified as “special exception areas” due to higher construction costs in these areas.

It is important to note that while ML 2016-20 referenced incorrect limit ceiling for special exemption areas, there are no changes to the forward mortgage limits in these, or any other jurisdiction. The downloadable files that provide the complete list of FHA loan limits for 2017 are posted on the Maximum Mortgage Limits web page, and are not impacted.

FHA will issue a revised Mortgagee Letter that provides official notification of the correction to the limit ceiling for calendar year 2017 in special exemption areas in the near future.

Additionally, it was reported that the List of Increased Loan Limits CY16 to CY17 that was posted on the Maximum Mortgage Limits web page in support of ML 2016-20, did not show the correct loan limits for 2017. That comparison chart has also been updated, and you are advised to discard any previous version you may have downloaded.

Quick Links

View Mortgagee Letter 2016-20 at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
View 2017 forward mortgage limits:
– Maximum Mortgage Limits web page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/origination/mortgage_limits
– FHA mortgage limits by MSA and County at: https://entp.hud.gov/idapp/html/hicostlook.cfm
– Complete listing of FHA loan limits at: http://www.hud.gov/pub/chums/file_layouts.html

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 #16-76 full version)

FHA INFO #16-75: New Guidance on Maximum Allowable Fee for Assumptions

Posted on September 13, 2018 by Safeguard

Investor Update
December 7, 2016

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2016-24, Processing Fee for Assumptions, which provides guidance on the maximum fee mortgagees may charge to process an assumption request and raises the maximum allowable from $500 to $900. FHA believes this new maximum allowable fee amount will provide adequate compensation to mortgagees, thus potentially expanding the use of assumptions to facilitate homeownership opportunities.

This guidance is effective for all assumption applications received on or after today, December 7, 2016. All policy updates will be incorporated into a future update of the Single Family Housing Policy Handbook 4000.1 (SF Handbook).

Quick Links

View Mortgagee Letter 2016-24 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 #16-75 full version)

FHA INFO #16-74: Extension of Implementation Date of Selected Sections of Handbook 4000.1

Posted on September 13, 2018 by Safeguard

Investor Update
December 2, 2016

On December 1, 2016, the Federal Housing Administration published Mortgagee Letter 2016-22, Extension of Implementation Date of Selected Sections of Handbook 4000.1, which extends from December 1, 2016, until March 1, 2017, the implementation date of certain parts of Section III.A.2 in the Single Family Housing Policy Handbook 4000.1 (SF Handbook).

The implementation date change outlined in this Mortgagee Letter is effective immediately. FHA will incorporate these changes into the SF Handbook’s online format and portable document format (PDF) as part of a future update.

Quick Links

Review Mortgagee Letter 2016-22 and all other Mortgagee Letters at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
View the online and PDF versions of the Single Family Housing Policy Handbook 4000.1 at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

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 #16-74 full version)

FHA INFO #16-73: 2017 Nationwide Forward Mortgage Limits/Nationwide Home Equity Conversion Mortgage (HECM) Limits

Posted on September 13, 2018 by Safeguard

Investor Update
December 1, 2016

2017 Nationwide Forward Mortgage Limits

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2016-20, 2017 Nationwide Forward Mortgage Limits, which provides the maximum mortgage limits for FHA-insured Title II forward mortgages.

Because of the change to the national median home price this year that increased the Federal Housing Finance Agency (FHFA) limits, FHA’s “floor” and “ceiling” loan limits will increase for calendar year 2017 to $275,665 and $636,1501, respectively, for a one-unit property as referenced in Section II.A.2.a.ii of the Single Family Housing Policy Handbook 4000.1.

As a result of the increase to FHA’s “floor” and “ceiling” loan limits, nearly all U.S. counties will have an increase in forward loan limits in 2017. There are no jurisdictions with a decrease in loan limits from the 2016 levels. To enable mortgagees to identify the areas with loan limit increases, FHA has published a separate list of counties with loan limit increases. Mortgagees may view this list along with a list of areas at the ceiling and a list of areas between the floor and ceiling on the Maximum Mortgage Limits web page. FHA forward mortgage limits are available by MSA and county, or by downloading a complete listing.

The new loan limits are effective for case numbers assigned on or after January 1, 2017, and remain effective through December 31, 2017.

Quick Links

View Mortgagee Letter 2016-20 and other Mortgagee Letters at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
View 2017 forward mortgage limit attachments:
– FHA mortgage limits by MSA and County at: https://entp.hud.gov/idapp/html/hicostlook.cfm
– Complete listing of FHA loan limits at: http://www.hud.gov/pub/chums/file_layouts.html
– Maximum Mortgage Limits web page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/origination/mortgage_limits
View the online or portable document format (PDF) versions of the SF Handbook 4000.1 at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

1Alaska, Hawaii, Guam and the Virgin Islands are subject to a higher “ceiling.” See Mortgagee Letter 2016-20 for details.

2017 Nationwide Home Equity Conversion Mortgage (HECM) Limits

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2016-19, 2017 Nationwide Home Equity Conversion Mortgage (HECM) Limits, which provides the 2017 maximum claims amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances.

Because of the change to the national median home price this year that increased the Federal Housing Finance Agency (FHFA) limits, the maximum HECM claim amount has increased to $636,150 for calendar year 2017 for all areas.

These limits are applicable for case numbers assigned on or after January 1, 2017, through December 31, 2017.

For details on FHA’s 2017 maximum HECM claim amount, refer to Mortgagee Letter 2016-19.

Quick Links

View Mortgagee Letter 2016-19 and other Mortgagee Letters at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
View 2017 HECM limit attachments:
– FHA mortgage limits by MSA and County at: https://entp.hud.gov/idapp/html/hicostlook.cfm
– Complete listing of FHA loan limits at: http://www.hud.gov/pub/chums/file_layouts.html
– Maximum Mortgage Limits web page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/origination/mortgage_limits

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 #16-73 full version)

Fannie Mae: Maximum Allowable Foreclosure Fees Update

Posted on September 13, 2018 by Safeguard

Investor Update
December 21, 2016

The AAA Matrices have been updated to reflect the changes to the maximum allowable foreclosure fees for Fannie Mae mortgage loans secured by properties in Connecticut, Delaware, District of Columbia, Florida, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, New Jersey, New Mexico, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, South Carolina, South Dakota, Vermont, Virgin Islands, Wisconsin. Additional updates include, revised Colorado allowable pro-rated fee schedule, Ineligible fee verbiage clarification for all matrices, and the addition of a revision history section in the back of each matrix to detail all changes going forward. The updated versions will be available on the Fannie Mae business website on December 22. Servicers may access these documents on the Fannie Mae business website by logging in with their valid user ID and password (or contact their Technology Manager Administrator for access assistance).

January All-Servicer Forums: Fannie Mae Changes to Investor Reporting

Please plan to attend one of our upcoming Fannie Mae Changes to Investor Reporting-All Servicer Forums.

Transition Month Overview
January 11, 2017 from 2 – 3 p.m. ET
January 26, 2017 from 2 – 3 p.m. ET

Loan Activity Processing (Transaction Type 96) Forum — January 17, 2017 from 2 – 3 p.m. ET

Overview of Interest Rate/Payment Changes and MI Discontinuation — January 18, 2017 from 2 p.m. – 3 p.m. ET

Loan Re-class and Loan Modifications — January 19 from 2 p.m. – 3 p.m. ET

Who should attend?
Every servicer who does business with us. Register today via one of the links above, or via our web page. Be sure to forward this message to others in your organization who would also benefit from these forums.

Learn More
Visit the Fannie Mae Changes to Investor Reporting page to register for a forum and receive the latest information and resources. Questions? Contact your Servicer Integration Lead or email call-in_information@fanniemae.com.

Now may be the right time for a bulk transaction

With the recent movement in interest rates, now may be the right time for a bulk transaction with Fannie Mae, which may help you manage concentration risk and interest risk and improve liquidity and capital position for your business. To help you in this process, we recently updated the information and resources you need to complete a successful bulk transaction with us. Please contact your Fannie Mae account to learn more and get started.

Reimbursement for lockboxes

Effective immediately, Fannie Mae will reimburse for lockboxes within the knob lock/knob lock with deadbolt expense line as long as the expense is incurred on or after the date of this communication and it is within the allowable amount of $60 or less.

You may also be interested in…

5 ways to maximize your partnership with Fannie Mae
Keep your Fannie Mae account team current on your business plans. Read more

Existing-home sales highest in nearly a decade
Pent-up demand and first-time buyers contributed to continued strong sales of existing homes during October. Read more

Shift to rentals eats into supply of available starter homes
A study describes why starter homes, described as having 2,000 square feet of floor area, are in short supply. Read more.

Receive regular content updates by registering at the sites.

Recent Tweets

There’s a lot of pro-growth optimism in the market. Does our Econ. & Strategic Research Group share this sentiment?
http://bit.ly/2ha6YUH

December 20

HARP has been extended through Sep. 2017. More than 300K of our loans are still eligible for the program.
http://www.thehomestory.com

December 19

Source: Fannie Mae

Fannie Mae: Fannie Mae Standard Modification Interest Rate Adjustment Exhibit

Posted on September 13, 2018 by Safeguard

Investor Update
December 7, 2016

Fannie Mae Standard Modification Interest Rate Adjustment Exhibit

This Exhibit provides the new Fannie Mae Standard Modification Interest Rate required for all Fannie Mae conventional mortgage loan modifications, excluding Fannie Mae HAMP Modifications.

December All-Servicer Forums: Fannie Mae Changes to Investor Reporting

If you haven’t already, please plan to attend one of our upcoming Fannie Mae Changes to Investor Reporting-All Servicer Forums.

Loan Re-class and Loan Modifications: December 8 at 2 p.m. ET
Overview of Interest Rate/Payment Changes and MI Discontinuation: December 12 at 2 p.m. ET
Loan Activity Processing (Transaction Type 96) Forum: December 13 at 2 p.m. ET

New and updated Fannie Mae Connect reports featured in latest release

The Fannie Mae Connect reporting portal streamlines and centralizes key Fannie Mae data from multiple reporting applications, using business intelligence tools to provide unique analytics. In addition to centralizing all reporting into a single application, we continue to make Fannie Mae Connect easier to use. With the Fannie Mae Connect final 2016 release on December 5, several enhancements have been implemented. This release includes infrastructure upgrades to increase site stability, improve user experience, and expand functionality.
In addition, we have launched new and updated reports:

NEW: Day 1 Certainty
NEW: Economic and Housing Market Trends Dashboard
NEW: Title & Closing Supplier Scorecard
UPDATED: Market Opportunity Tool
UPDATED: Trial Balance Report

For more information on the release, see our latest Release Tracker and Report Directory (available to Fannie Mae Connect users) for report descriptions and details. For more information on Fannie Mae Connect, including demos, quick tips and training, please visit the Fannie Mae Connect web page.

Mobile demand signals shift in mortgage market

In just one year, mobile mortgage usage and demand both nearly doubled among low and moderate income homebuyers. That’s according to our Economic and Strategic Research Group survey. While 27 percent of consumers used their mobile devices for mortgage activities in 2015, by Q1 2016 that number rose to 64 percent. Among higher income consumers, that’s expected to be even greater. Over 70 percent of consumers plan to use their mobile device for mortgage activities in the future.

Over 80 percent of consumers rely on their mobile device to research homes; 29 percent to fill out a mortgage application.

While few lenders currently offer an end-to-end mobile mortgage experience, this startling growth in demand is a call to action to aggressively enhance the consumer mobile experience or risk having new entrants carve out space in the market. Download the Mobile Mortgage Demand infographic and learn more here.

Recent Tweets

#HPSI slips for 4th consecutive month in Nov. amid mixed consumer sentiment. Findings split election results.
http://bit.ly/2h2BFY8

December 7

Mobile use by borrowers during the #mortgage process is growing. @TheMReportNews has the story:
http://bit.ly/2hbGvS9

December 6

Source: Fannie Mae