Safeguard Properties

Freddie Mac: Building Starts Now: New Technical Specifications for Investor Reporting

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Investor Update
December 20, 2016

Today, we published the first of two technical specifications releases to support our Investor Reporting Change Initiative, which we’ll implement in October 2018. This publication builds on our previously published business requirements. The first release contains two new technical specification documents. The second release, scheduled for January, will primarily provide updates to existing data requirements, including report mock-ups.
 
Start Building Towards the Future
 
Technical development to support our investor reporting changes begins now, so here’s where to start:

  • Analyze today’s technical specifications [pdf] to see how they’ll impact processes and procedures throughout your organization. We suggest you also discuss them with any vendors who support your investor reporting functions, and make sure to allocate sufficient resources towards development work in 2017 and 2018.
  • Forward to a colleague. Share today’s message with appropriate business units within your organization including, but not limited to, information technology, capital markets, treasury, operations, and investor reporting teams.
  • Check out our detailed timeline to stay on track – see where we are and where we’re going throughout this initiative.
  • As a reminder, these changes affect all Freddie Mac Seller/Servicers, regardless of whether you use a vendor, proprietary systems or the Freddie Mac Service Loans application to complete your investor reporting requirements.

Stay Informed
 
Remember to visit and bookmark our redesigned Investor Reporting Change Initiative web page, your central hub for the latest details and frequently asked questions. We’ve overhauled the layout, making it easier to navigate and find the information that’s important to you. We’ll continue to post updated and new resources here, as they become available.
 
For More Information

  • Visit our Investor Reporting Change Initiative web page.
  • Read Single-Family Seller/Servicer Guide Bulletin 2016-15 [pdf] and our FAQs [pdf].
  • Visit Freddie Mac’s Learning Center for more on our training programs and reference tools.
  • Contact your Freddie Mac representative or email us directly.

Source: Freddie Mac

FHLMC Guide Bulletin 2016-22: Freddie Mac Flex Modification

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Investor Update
December 14, 2016

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2016-22 [pdf], we’re announcing the new Freddie Mac Flex Modification, which offers you an easier, flexible way of helping more borrowers qualify for a loan modification in a changing housing environment.
 
Please review today’s Guide Bulletin for detailed information on the Flex Modification.
 
Key Highlights

While the Flex Modification leverages the Freddie Mac Standard and Streamlined Modifications, a few significant changes from the Standard Modification include:

  • The housing-to-income ratio component for borrowers less than 90 days delinquent has changed from less than or equal to 55 percent with a 10 percent floor to less than or equal to 40 percent.
  • No choice of amortization terms for borrowers with a mark-to-market loan-to-value (MTMLTV) ratio less than 80 percent.
  • You must now forbear principal down to a 100 percent MTMLTV ratio (not to exceed 30 percent of the unpaid principal balance rather than the 115 percent MTMLTV ratio previously allowed under Standard and Streamlined Modifications).
  • Key Dates
  •  We’re providing this information now so you may update your systems as soon as possible.
  • You must begin evaluating your portfolios using the criteria described in the Determining the Terms of the Flex Modification table of this Guide Bulletin no later than October 1, 2017. Prior to October 1, 2017, Freddie Mac’s systems will be updated.
  • On and after October 1, 2017, this new modification will replace the current Freddie Mac Standard and Streamlined Modifications. In the interim, you’ll still be able to leverage the existing Standard and Streamlined Modifications.
  • Upcoming Communications
  • We’ll update you about the Flex Modification throughout 2017. In the meantime, please visit Freddie Mac’s new Freddie Mac Flex Modification web page for modification information and reminders.

Important Reminder
 
The MyCity Modification, Principal Reduction Modification and Home Affordable Modification Program (HAMP®) expire at the end of 2016.

  • All MyCity Modification Trial Period Plans must have a start date of no later than
    December 1, 2016.
  • All solicitations for the Principal Reduction Modification must be sent on or before
    December 31, 2016.
  • Borrowers must submit a complete Borrower Response Package (BRP) no later than December 30, 2016, to be evaluated for HAMP. Servicers must complete evaluations within 30 days of the Servicer’s receipt of the complete BRP.

For More Information

Source: Freddie Mac

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

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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

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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

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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)

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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

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

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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

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

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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

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

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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

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

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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

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

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)