Safeguard Properties

Fannie Mae: Meet the LARs Deadline, Learn More, and Enhance Your Customer Experience

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Investor Update
March 15, 2017

Changes to investor reporting: March 22 deadline for LARs

We greatly appreciate servicers’ support in adapting to our changes to investor reporting. Now that the first cycle of reporting changes has concluded, servicers no longer need to report Single Family MBS security balances to us.

As a reminder, the March activity reporting cycle is open with March Loan Activity Reports (LARs) due by March 22, regardless of whether you received borrower payment. Removal transactions must be reported to Fannie Mae within one day of processing in your system. Please contact your Fannie Mae representative or investor reporting analyst with any questions, and check out Fannie Mae’s Changes to Investor Reporting page for more information.

Live webinars: Investor Reporting Hot Topics/Best Practices run weekly through April. Sign up today.

Learn more. Do more.

Check out our redesigned Training pages. Now it’s even easier for you to select the training you need any time, from any location, to make your business more simple and certain. Select the mortgage process you’re interested in to easily find eLearning and job aids developed by our experts.

eLearning requires less time than traditional learning methods, increases retention rates, and gives you a competitive edge. View the infographic to learn more.

Enhance your customer experience with Day 1 Certainty. Find out more at MBA Tech.

Stop by and visit us in the center of the HUB at the MBA’s National Technology in Mortgage Banking Conference & Expo, March 26-29 in Chicago. We’ll share tips and best practices to help you implement Day 1 Certainty™ — resulting in a simpler, more certain experience for you and your customers. We’ll also share details on how we’re reducing complexities and costs with Simplify Servicing™.

Over half the lenders we surveyed believe the primary goal for investing in technology is to improve the customer experience. Find out how we can help.

Save time, reduce effort with HFI investor reporting training

Register today for our updated HFI® classes on investor reporting. You’ll learn tips for reporting on your loans, and have access to an expert instructor to answer your questions. Classes include:

  • Bank vs. Book! Reconciling Actual/Actual Custodial Accounts
  • Investor Reporting with Confidence: Best Practices for Reconciling Actual/Actual Loans
  • The ABCs of Managing MBS Cash Flow for Fannie Mae

All HFI InDepth courses provide:

  • Two hours of interactive, instructor-led training held in a virtual classroom
  • Limited class sizes that maximize interaction and allow for individualized attention
  • Access to recorded tutorials that prepare you with foundational knowledge prior to taking the course
  • A certificate of completion

Visit the HFI InDepth Training page for course details and class schedules, and sign up today!

You may also be interested in…

8 top women in mortgage finance offer career encouragement, advice
They’ve ‘been there’ and ‘done that.’ And they’re hopeful you’ll follow in their footsteps. Read more

Fannie Mae delivers on ‘Simplifying Servicing’ at MBA
Fannie Mae showcased its major efforts in policy, technology, and operations at the Mortgage Bankers Association servicing conference. Read more.

Receive regular content updates by registering at The Home Story.

Recent Tweets

Our economists’ growth forecast for the year is unchanged; Fed rate hike expected today. #FOMC
http://bit.ly/2ns2PLi

March 15
 
Lenders’ experience w/ next-gen mortgage tech varies greatly. New survey results:
http://bit.ly/2mVhFMn

March 14

Source: Fannie Mae

VALERI Servicer Newsflash

Posted on by Safeguard

Investor Update
February 13, 2017

IMPORTANT INFORMATION
New Maximum Allowable Attorney Bankruptcy Fees – The new maximum allowable attorney bankruptcy fees were published in the Federal Register Notice on February 7, 2017. The new maximum amounts for bankruptcy attorney fees will be allowed for each bankruptcy filed on or after March 9, 2017. The Federal Register notice is located at https://www.federalregister.gov/documents/2017/02/07/2017-02474/loan-guaranty-maximum-allowable-attorney-fees.

Missouri and Wyoming Foreclosure Process Updates – Loan termination information for judicial foreclosure process has been updated on the State Foreclosure Process and Statutory Bid Information document located at http://www.benefits.va.gov/HOMELOANS/servicers_valeri_rules.asp.

REMINDER
VALERI Access – Individuals requiring assistance with VALERI access must contact their company administrator within their organization. The VALERI Helpdesk does not reset passwords or edit/create/activate/deactivate servicers’ user profiles. These types of requests should not be submitted to the VALERI Helpdesk.

VALERI Company Administrator – Servicers should always maintain two active company administrators in the event one company administrator is unavailable. To create a company administrator, the “Company Admin” box must be checked in the user profile. If the “Company Admin” box is not checked, the user will not be able to perform the functions of a company administrator.

DEVELOPMENT UPDATES
On Sunday, February 5, 2017, VALERI Manifest 16.4 BI was released. The following report enhancements were included:

CQ 10358 – Servicer Loan Listing – A new column, “Guaranty Date,” has been added.

CQ 10918 – Adequacy of Servicing (AOS) Action Required – A new column, “Kicked off due to 180 days after last 90 days AOS,” has been added.

CQ 11628 – Servicer Action Required – The verbiage, “Unreported Loss Mitigation Letter,” has been removed from the report description.

CQ 11723 – Pre-Approval Status –The column header, “Justification,” has been changed to “Determination.”

CQ 11732 – Servicer Refund Status report – A new column, “Consideration Denial Justification,” has been added. Also, the column header “Denial Justification” has been changed to “Decision Denial Justification.”

CQ 12326 – Fatal MSU and DSU Events Errors – WebLGY Terminated Paid in Full PIF – This is a new report that identifies loans where the Monthly Status Update (MSU) and Delinquency Status Update (DSU) events rejected due to the loans having a Terminated Paid In Full (PIF) status in WebLGY without having a PIF event reported by the servicer in VALERI.

CQ 12780 – Default Resolution Rate Volume and Efficiency report – The verbiage, “refund settlement date for refunds,” was replaced with “refund decision approval date for refunds” in the report description.

Source: VA

VA Circular 26-17-04: Special Relief Following Severe Storms and Tornadoes in Georgia and Mississippi

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Investor Update
February 10, 2017

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by severe storms and tornadoes in the states of Georgia and Mississippi, and describes measures mortgagees may employ to provide relief. Mortgage servicers and borrowers alike should review VA’s Guidance on Natural Disasters to ensure Veterans receive the assistance they need. (http://www.benefits.va.gov/homeloans/documents/docs/va_policy_regarding_natural_disasters.pdf)

2. Forbearance Request. VA encourages holders of guaranteed loans to extend forbearance to borrowers in distress as a result of the severe storms and tornadoes. Careful counseling with borrowers should help determine whether their difficulties are related to this disaster, or whether they stem from other sources that must be addressed. The proper use of authorities granted in VA regulations may be of assistance in appropriate cases. For example, Title 38, Code of Federal Regulations (CFR), section 36.4311 allows the reapplication of prepayments to cure or prevent a default. Also, 38 CFR 36.4315 allows the terms of any guaranteed loan to be modified without the prior approval of VA, provided conditions in the regulation are satisfied.

3. Moratorium on Foreclosure. Although the loan holder is ultimately responsible for determining when to initiate foreclosure, and for completing termination action, VA has requested on its website (http://www.benefits.va.gov/homeloans) that holders establish a 90-day moratorium from the date of a disaster on initiating new foreclosures on loans affected by major disasters. VA regulation 38 CFR 36.4324(a)(3)(ii) allows additional interest on a guaranty claim when eventual termination has been delayed due to circumstances beyond the control of the holder, such as VA-requested forbearance. Because of the widespread impact of the severe storms and tornadoes in the states of Georgia and Mississippi, holders should review all foreclosure referrals to ensure that borrowers have not been affected significantly enough to justify delay in referral. Any questions about impact should be discussed with the VA Regional Loan Center (RLC) of jurisdiction.

4. Late Charge Waivers. VA believes that many servicers plan to waive late charges on affected loans, and encourages all servicers to adopt such a policy for any loans that may have been affected.

5. Credit and VA Reporting. In order to avoid damaging credit records of Veteran borrowers, servicers are encouraged to suspend credit bureau reporting on affected loans. VA will not penalize affected servicers for any late default reporting to VA as a result. Please contact the appropriate RLC with any questions.

6. Activation of the National Guard. Members of the National Guard may be called to active duty to assist in recovery efforts. VA encourages servicers to extend special forbearance to National Guard members who experience financial difficulties as a result of their service.

7. Rescission: This Circular is rescinded April 1, 2019.

By Direction of the Under Secretary for Benefits
Jeffrey F. London
Director, Loan Guaranty Service

Source: VA

Urban Institute Launches Servicing Collaborative

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Investor Update
February 8, 2017

The Urban Institute’s Housing Finance Policy Center has created a new initiative aimed at addressing skyrocketing mortgage servicing costs.

The initiative, called the Mortgage Servicing Collaborative, will bring together stakeholders including lenders, servicers, consumer groups and policymakers to develop possible solutions to this issue. The collaborative plans to launch this spring and will be in place for up to two years.

Alanna McCargo, who is currently a co-director of the Urban Institute’s Housing Finance Policy Center, will serve as the collaborative’s executive director.

Among the collaborative’s goals will be to determine the specific costs of servicing different loans and how those costs influence consumer access to credit. Between 2008 and 2015 the cost to service a performing loan tripled to $181 from $59, while the cost to service a nonperforming loan jumped five times higher to $2,386 from $484, according to data from the Mortgage Bankers Association.

But as costs have soared, servicer compensation has remained flat, which has resulted “in a market that undercompensates servicers for managing nonperforming loans and overcompensates them for handling performing loans,” the Urban Institute said.

Meanwhile, the number of loans made to low- and moderate-income borrowers slipped 35%, and the number of loans made to African-American and Hispanic borrowers dropped 64%, the Urban Institute reported.

“To avoid the enormous cost of servicing nonperforming loans, many lenders are restricting mortgage lending to a narrow band of consumers that can meet stringent income, asset and other eligibility requirements,” the Urban Institute wrote.

The changes have taken place at the same time as the landscape of market participants has shifted toward nonbanks. Between 2013 and 2016, the share of nonbanks servicing Federal Housing Administration loans rose from 35% to 70%.

Beyond identifying why costs are rising, the collaborative will also debate and analyze pricing strategies that incorporate alternative compensation models and methods to lower costs and to mitigate risk better. Ultimately, the collaborative plans to distribute its findings and produce industrywide policy recommendations.

Source: National Mortgage News

Additional Resources:

Urban Institute (The Mortgage Servicing Collaborative)

Announcement

FAQ

Fact Sheet

Mortgage Servicing Research

Mortgage Delinquencies Edge Slightly Higher From Record Lows

Posted on by Safeguard

Investor Update
February 15, 2017

MBA: Rise not unexpected

Despite a rise in the mortgage delinquency rate in the fourth quarter of 2016, the slight uptick follows a record-low third-quarter report, according to the Mortgage Bankers Association’s national delinquency survey.

The report stated the delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.80% of all loans outstanding at the end of the fourth quarter of 2016. This is up 28 basis points from the previous quarter and is three basis points higher than one year ago.

Meanwhile, the foreclosure starts rate decreased two basis points, falling to its lowest level since 1988. Plus, foreclosure starts in the fourth quarter decreased across all loan types: FHA, VA and conventional.

The overall foreclosure inventory dropped by two basis points, and remained at its lowest level since 2007.

“We saw a mixed set of results in the most recent survey. Mortgage delinquencies increased in the fourth quarter for the first time since 2013, while both new foreclosure starts and the percentage of loans in foreclosure continued to decline,” said Marina Walsh, MBA’s vice president of industry analysis.

However, it’s important to keep the data in perspective, as Walsh stated.

While the overall delinquency rate in the fourth quarter increased across all loan types, FHA, VA and conventional, as compared to the third quarter, Walsh said, “It should be noted that last quarter’s overall delinquency rate was at its lowest level since 2006.”

“It is not unexpected that delinquencies could eventually increase off such a low base. We continue to see strong fundamentals in the overall economy, such as rising home values and increased employment, which bodes well for the future performance of FHA, VA and conventional loans,” she said.

Breaking apart the different loans types, the seasonally-adjusted FHA delinquency rate increased to 9.02% in the fourth quarter from 8.30% in the third quarter (its lowest level since 1997).

Walsh attributed the increase to the FHA 30-day delinquency category, which increased 55 basis points over the quarter.

The seasonally adjusted VA delinquency rate increased to 4% in the fourth quarter from 3.89% in the third quarter (its lowest level since 1979). However, on a yearly basis, the VA delinquency rate declined 12 basis points.

In addition, the seasonally adjusted conventional delinquency rate increased to 4.04% in the fourth quarter from 3.76% in the third quarter. On a year-over-year basis, the conventional delinquency rate increased by 6 basis points.

Source: HousingWire

MHA HAMP Reporting Update: Updated Reporting Form Posted on HMPadmin.com

Posted on by Safeguard

Investor Update
February 8, 2016

The MHA LPI Date Correction Request Form (login required) has been updated.

Servicers should continue to use the existing form until Friday, February 10, 2017 for February cycle submissions. The new format of the MHA LPI Date Correction Request Form will be effective from Monday, February 13, 2017.

This form can be found in the Data Reporting tab on the secure side of HMPadmin.com.

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

Source: MHA

MHA HAMP Reporting Update: Presidents? Day Holiday Support and System Availability

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Investor Update
February 14, 2017

Due to the observance of Presidents’ Day, the HAMP® Reporting System response files will not be available between 3:00 p.m. ET on Friday, February 17, 2017 and 8:00 a.m. ET on Tuesday, February 21, 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, 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, February 17, 2017 and will resume operations at 9:00 a.m. ET on Tuesday, February 21, 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 Tool Post Release Message

Posted on by Safeguard

Investor Update
February 27, 2017

Today, February 27, 2017, Fannie Mae, as Program Administrator for the Home Affordable Modification Program (HAMP), has implemented the following functionality to the HAMP Reporting Tool that supports:

Supplemental Directive 16-02 (SD 16-02) Making Home Affordable Program – MHA Program Termination and Borrower Application Sunset

  • HAMP Tier 1, HAMP Tier 2, Streamline HAMP, 2MP, FHA-HAMP and RD-HAMP Modification Effective
    Date must be on or before December 1, 2017. Additionally, closing dates for a transaction under HAFA
    must be on or before December 1, 2017.
  • Servicers are encouraged to refer to the Data Dictionaries on HMPadmin.com for the full list of attributes
    and associated edits that are changing or being added with this release.

Questions?
Email the HAMP Solution Center or call 1-866-939-4469.

Source: MHA

MHA HAMP Reporting Update: HAMP Reporting System Outage the Weekend of February 24

Posted on by Safeguard

Investor Update
February 17, 2017

Due to the HAMP Reporting System Release, a planned system outage is scheduled from Friday, February 24, 2017, 6:00 PM ET to Monday, February 27, 8:00 AM ET.

During this time frame, HAMP Reporting System response files will not be available. Servicers will be able to submit and upload HAMP loan data files via the HAMP Reporting Tool and receive response files except from 6:00 AM ET to 12:00 PM ET on Sunday, February 26, 2017.

New functionality will be implemented in the HAMP Reporting Tool that supports:

  • Supplemental Directive 16-02 (SD 16-02) Making Home Affordable Program – MHA Program Termination and Borrower Application Sunset
  • HAMP Tier 1, HAMP Tier 2, Streamline HAMP, 2MP, FHA-HAMP and RD-HAMP Modification Effective Date must be on or before December 1, 2017. Additionally, closing dates for a transaction under HAFA must be on or before December 1, 2017.

Servicers are encouraged to refer to the Data Dictionaries on HMPadmin.com for the full list of attributes and associated edits that are changing or being added with this release.

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

Source: MHA

HUD Announces Disaster Assistance for Louisiana Tornado Victims

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Investor Update
February 13, 2017

Foreclosure protection offered to displaced families

WASHINGTON – U.S. Housing and Urban Development today announced HUD will speed federal disaster assistance to the State of Louisiana and provide support to homeowners and low-income renters forced from their homes due to severe storms, tornadoes, and straight-line winds.

This week, President Trump issued a disaster declaration for Livingston and Orleans parishes. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county.

HUD is:

  •  Assisting the State of Louisiana and local governments in re-allocating existing federal resources toward disaster relief– HUD’s Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars in annual formula funding to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department’s CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
  •  Granting immediate foreclosure relief– HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
  •  Making mortgage insurance available– HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
  •  Making insurance available for both mortgages and home rehabilitation– HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
  •  Offering Section 108 loan guarantee assistance– HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
  • Information on housing providers and HUD programs – The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

Read about these and other HUD programs designed to assist disaster victims.

Source: HUD