Safeguard Properties

Freddie Mac Extends Disaster Relief to Eligible Borrowers in Louisiana

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Investor Update
August 16, 2015

MCLEAN, VA–(Marketwired – Aug 16, 2016) – Freddie Mac’s (OTCQB: FMCC) full menu of disaster relief policies is now available to homeowners whose homes were damaged or destroyed by severe storms and flooding in Louisiana. Freddie Mac’s disaster relief policies are available to borrowers with homes in presidentially declared Major Disaster Areas where federal Individual Assistance programs are being made available to affected individuals and households. Freddie Mac is one of the nation’s largest investors in residential mortgages.

News Quote:

Attribute to Yvette Gilmore, Vice President of Single-Family Servicer Performance Management, Freddie Mac:

“Freddie Mac strongly encourages borrowers whose homes or businesses were harmed by the floods to immediately call their mortgage servicer to discuss mortgage relief. If their mortgage is owned or guaranteed by Freddie Mac, they may qualify for our full range of options, which includes forbearance on mortgage payments for up to one year.”

News Facts:

  • Freddie Mac disaster relief policies authorize mortgage servicers to help affected borrowers in presidentially declared Major Disaster Areas where federal Individual Assistance programs have been extended. A list of these areas can be found at http://www.fema.gov/disasters.
  • Freddie Mac mortgage relief options for affected borrowers in these areas include:
  • Suspending foreclosures by providing forbearance for up to 12 months;
  • Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and
  • Not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus.
  • Freddie Mac is also reminding servicers to consider borrowers who work in eligible disaster areas, but have homes in unaffected areas, for Freddie Mac’s standard relief policies, which include forbearance or mortgage modifications.
  • Affected borrowers should immediately contact their mortgage servicer — the company to which they send their monthly mortgage payment.
  • See http://www.freddiemac.com/singlefamily/service for a description of Freddie Mac disaster relief policies.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for approximately one in four home borrowers and is the largest source of financing for multifamily housing. Additional information is available at FreddieMac.com, Twitter @FreddieMac and Freddie Mac’s blog.

Source: Freddie Mac (Market Wired)

FHLMC Guide Bulletin 2016-15: Freddie Mac Investor Reporting Change Initiative

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Investor Update
August 22, 2016

In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2016-15, we’re announcing the Freddie Mac Investor Reporting Change Initiative. This initiative will convert our Single-Family investor reporting requirements to an industry standard and update remittance cycles by the second half of 2018. It also helps support the disclosure and buyout requirements of the upcoming Single Security initiative.
 
Once implemented, the changes below will provide you with simpler and more flexible reporting processes, greater operational efficiencies and a more complete view of investor reporting data.

Source: Freddie Mac (full release)

FHLMC Guide Bulletin 2016-14: Selling and Servicing Updates

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Investor Update
August 17, 2016

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2016-14, we’re updating the remedies frameworks and Servicer modification requirements. All changes are effective immediately unless otherwise noted in the Guide Bulletin.
 
As summer winds down, we’re keeping the heat on to improve our processes and customer focus.
 
What This Means for You
 
For Seller/Servicers, we’re including details of the Independent Dispute Resolution (IDR) process, announced in Guide Bulletin 2016-1 [pdf]. This includes changing the selling representation and warranty framework and the servicing remedies framework by:

  • Adding Guide clarification to support the IDR process.
  • Providing you with an opportunity for final resolution to a dispute regarding whether there’s a servicing or selling defect through the IDR process, which should be quicker and more cost-efficient than litigation.
  • Introducing impasse and management escalation processes as part of the overall appeals process, to resolve as many disputes as possible before any IDR process begins.
  • Updating the Guide to support the servicing remedies framework as it relates to title-related defects.

For Servicers, we are:

  • Clarifying our Principal Reduction Modification eligibility requirements to be consistent with our original intent for the Principal Reduction Modification.
  • Revising our evaluation model clauses in Guide Exhibit 93 and Freddie Mac Streamlined Modification borrower solicitation letters in Guide Exhibits 1191, 1191A and 1191B, to align with revisions to certain Home Affordable Mortgage Program (HAMP®) requirements that we announced in Guide Bulletin 2016-10 [pdf].

Reminder

For More Information

  • Read Guide Bulletin 2016-14 [pdf].
  • Visit the Principal Reduction Modification web page.
  • Review the IDR process outlined in the Independent Dispute Resolution Document found here for Selling and here for Servicing.
  • Go to Freddie Mac’s Learning Center for more on our training programs and reference tools.
  • Contact your Freddie Mac representative.

Source: Freddie Mac

FHFA: HARP Refinances Continue Steady Decline

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Investor Update
August 18, 2016

Washington, DC – The Federal Housing Finance Agency (FHFA) today announced that 18,310 borrowers refinanced their mortgages through the Home Affordable Refinance Program (HARP) through June this year.   FHFA’s second quarter Refinance Report shows that while total refinance volume increased in June, as mortgage interest rates edged lower, HARP refinances represented only 4 percent of total refinances, the lowest percentage since the second quarter of 2009 when the program was first launched.  Total HARP refinances now stand at 3,418,854. 

There are still more than 323,000 U.S. borrowers eligible for the program who have a financial incentive to refinance, as of the first quarter of 2016. These so called “in-the-money” borrowers meet the basic HARP eligibility requirements, have a remaining balance of  $50,000 or more on their mortgage, have a remaining term on their loan of greater than 10 years, and their mortgage interest rate is at least 1.5 percent higher than current market rates.  These borrowers could save, on average, $2,400 per year by refinancing their mortgage through HARP.  See the new, updated U.S. map showing the number of HARP-eligible borrowers by Metropolitan Statistical Area, county and zip code.

Also in the Refinance Report:

  • Through the second quarter, 26 percent of HARP refinances for underwater borrowers were for shorter-term 15- and 20-year mortgages, which build equity faster than traditional 30-year mortgages.
  • 10 states account for more than 60 percent of borrowers who remain eligible for HARP and have a financial incentive to refinance; they are: Florida, Illinois, Ohio, Michigan, Georgia, Pennsylvania, New Jersey, California, New York and Maryland.

FHFA and the Treasury Department introduced HARP in early 2009 as part of the Making Home Affordable program.  HARP allows borrowers who are current on their mortgage payments, but have little or no equity in their home, to take advantage of low interest rates and other refinancing benefits.

FHFA launched a nationwide public awareness campaign and the website HARP.gov and HARP.gov/espanol in 2013 to reach eligible borrowers.  Since 2014, FHFA has held a series of outreach events in the cities with the highest numbers of eligible borrowers: Chicago, Atlanta, Detroit, Miami, Newark and Phoenix.  FHFA has also hosted webinars designed to reach eligible borrowers in Ohio and Maryland, and a webinar designed to encourage borrowers across the country to take advantage of HARP.  FHFA has also conducted several social media campaigns to raise awareness about the savings available through HARP.  Follow @FHFA and #HARPNow on Twitter, LinkedIn and YouTube for more information.

Link to Refinance Report

Link to HARP.gov

Contacts:
Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030

Consumers: Consumer Communications or (202) 649-3811

Source: FHFA

FHFA Announces Results of Fannie Mae and Freddie Mac Dodd-Frank Act Stress Tests

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Investor Update
August 8, 2016

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released a report providing the results of annual stress tests Fannie Mae and Freddie Mac (the Enterprises) are required to conduct under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).  The Dodd-Frank Act requires certain financial institutions with more than $10 billion in assets to conduct annual stress tests to determine whether they can absorb losses as a result of adverse economic conditions.  The report, Dodd-Frank Act Stress Tests – Severely Adverse Scenario, provides updated information on possible ranges of future financial results of Fannie Mae and Freddie Mac under severely adverse economic conditions. 

Link to Dodd-Frank Act Stress Tests – Severely Adverse Scenario

Link to 2016 Summary Instructions and Guidance

Contacts:
Media: Corinne Russell (202) 649-3032 / Stefanie Johnson (202) 649-3030

Consumers: Consumer Communications or (202) 649-3811

Source: FHFA

FHFA Announces New Streamlined Refinance Offering for High LTV Borrowers: HARP Extended Through September 2017

Posted on by Safeguard

Investor Update
August 25, 2016

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that Fannie Mae and Freddie Mac (the Enterprises), at FHFA’s direction, will implement a new refinance offering aimed at borrowers with high loan-to-value (LTV) ratios.  The new refinance offering will provide much-needed liquidity for borrowers who are current on their mortgage but are unable to refinance through traditional programs because their LTV ratio exceeds the Enterprises’ maximum limits. 

“Providing a sustainable refinance opportunity for high LTV borrowers who have demonstrated responsibility by remaining current on their mortgage makes financial sense both for borrowers and for the Enterprises,” said FHFA Director Melvin L. Watt.  “This new offering will give borrowers the opportunity to refinance when rates are low, making their mortgages more affordable and thus reducing credit risk exposure for Fannie Mae and Freddie Mac.”

Eligibility

In order to qualify for the new offering, borrowers: (1) must not have missed any mortgage payments in the previous six months; (2) must not have missed more than one payment in the previous 12 months; (3) must have a source of income; and (4) must receive a benefit from the refinance such as a reduction in their monthly mortgage payment.  Full details will be available in the coming months through the Enterprises, but the offering will make use of the lessons learned from the Home Affordable Refinance Program (HARP) and its streamlined approach to refinancing.

The new high LTV streamlined refinance offering is more targeted than HARP but as with HARP, eligible borrowers are not subject to a minimum credit score, there is no maximum debt-to-income ratio or maximum LTV, and an appraisal often will not be required.  However, unlike HARP, there are no eligibility cut-off dates connected with the new offering, and borrowers will be able to use it more than once to refinance their mortgage.  Borrowers with existing HARP loans are not eligible for the new offering unless they have refinanced out of HARP using one of the Enterprises traditional refinance products.

HARP Extended into 2017

The new high LTV streamlined refinance offering will not be available to borrowers until October 2017.  To ensure that high LTV borrowers who are eligible for HARP will not be without a refinance option while the new refinance offering is being implemented, FHFA is creating a bridge to this future program by also directing the Enterprises to extend HARP through September 30, 2017.  HARP continues to be one of the most successful crisis-era programs with more than 3.4 million homeowners already having refinanced their mortgage.  More than 300,000 U.S. homeowners could still refinance through HARP.  Visit HARP.gov and follow @FHFA on Twitter, LinkedIn and YouTube for more information.

Fannie Fact Sheet link

Freddie Fact Sheet link

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

Source: FHFA

FHA Streamlines Process to Help Delinquent Homeowners Avoid Foreclosure and Remain in Their Homes

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Investor Update
August 25, 2016

WASHINGTON – The Federal Housing Administration (FHA) today announced new procedures to strengthen the process mortgage servicers use to help struggling families avoid foreclosure and remain in their homes.  FHA is streamlining its loss mitigation protocols that servicers must use when evaluating and deploying ‘home retention options,’ foreclosure alternatives that allow delinquent borrowers to retain their home.  Read FHA’s mortgagee letter.

FHA’s revised procedures streamline the process servicers use to engage borrowers, specifically when evaluating them for the FHA-Home Affordable Modification Program (FHA-HAMP).  These changes will reduce the number of steps that a servicer and borrower must take to resolve a delinquency and enter into a loss mitigation home retention product.  In addition, FHA is removing certain obstacles that will allow servicers greater flexibility for evaluating an unemployed borrower for a special forbearance agreement.

Specifically, FHA will:

  • Require servicers to convert successful 3-month trial modifications into permanent modifications within 60 days instead of the average four-to-six months;
  • Allow borrowers with three missed mortgage payments to qualify for a partial claim to bring their arrearages current versus the previous requirement for a minimum of four missed payments;
  • End the traditional stand-alone Loan Modification option so struggling borrowers can access the FHA-HAMP option, with its greater payment relief, sooner; and
  • Eliminate the required 12-monthterm for FHA’s special forbearance option.  This will allow servicers to offer this option to more unemployed households.

Source: HUD

FHA INFO #16-55: Guidance for FHA-Approved Mortgage Servicers Regarding Presidentially-Declared Major Disaster Areas/ML-2016-13/ML-2016-14

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Investor Update
August 25, 2016

Reminder: Guidance for FHA-approved Mortgage Servicers regarding Presidentially-Declared Major Disaster Areas

Today, the Federal Housing Administration (FHA), in light of the recent Presidentially-Declared Major Disaster Area (PDMDA) in the State of Louisiana due to damage caused by severe storms and flooding, issued a reminder that mortgages secured by properties in a PDMDA are subject to a 90-Day moratorium on foreclosures following the disaster. HUD provides mortgagees an automatic 90-Day extension from the date of the moratorium expiration date to commence or recommence foreclosure action or evaluate the borrower under HUD’s Loss Mitigation Program. See Presidentially-Declared Major Disaster Areas (Section III.A.3.c.ii.) in the Single Family Housing Policy Handbook 4000.1 (SF Handbook).

Quick Links

Updates to FHA’s Loss Mitigation Retention Options and Miscellaneous Mortgage Servicing Procedures Mortgagee Letter

On August 24, 2016, the Federal Housing Administration (FHA) published Mortgagee Letter 2016-14, “Updates to FHA’s Loss Mitigation Retention Options and Miscellaneous Mortgage Servicing Policy,” which announces revisions to FHA’s procedures for evaluating and using its Loss Mitigation Home Retention Options, and other operational changes for mortgagees servicing FHA-insured Title II forward mortgages. The revisions contained in Mortgagee Letter 2016-14, including a revised HUD Loss Mitigation Priority Option Waterfall, are designed to streamline the loss mitigation process for servicers while strengthening their ability to more quickly and effectively engage in loss mitigation home retention actions for the purpose of providing an alternative to foreclosure.

Specific revisions contained in Mortgagee Letter 2016-14 are designed to:

  • Streamline FHA’s loss mitigation waterfall to support more efficient borrower engagement, specifically when evaluating a borrower for the FHA Home Affordable Modification Program (FHA-HAMP) option, which is a sustainable and effective loss mitigation home retention option;
  • Reduce the number of steps that a servicer and borrower must take to resolve a delinquency and enter into a loss mitigation home retention product; and
  • Provide additional flexibility that servicers can extend to borrowers, including revised procedures for evaluating a borrower’s financial condition and special forbearance agreements for unemployed borrowers, to remove unnecessary obstacles for a borrower to be eligible for a home retention option.

This Mortgagee Letter also contains operational and reporting changes and clarifications for servicers related to: using independent third-party providers to conduct Claims Without Conveyance of Title (CWCOT) property sales transactions; the Manufactured Housing Review; and other changes.

Servicers must implement the procedures set forth in this Mortgagee Letter no later than December 1, 2016. Revisions to the Single Family Housing Policy Handbook 4000.1 (SF Handbook) included in Mortgagee Letter 2016-14 will be incorporated into the SF Handbook’s online format and portable document format (PDF) at a future date.

Quick Links

Extension of Temporary Approval Provisions for the Condominium Project Approval Process Mortgagee Letter

On August 24, 2016, the Federal Housing Administration (FHA) announced via Mortgagee Letter 2016-13, “Extension of Temporary Approval Provisions for the Federal Housing Administration (FHA) Condominium Project Approval Process,” that it is extending its temporary condominium project approval policy provisions, without changes, until August 31, 2017.

As noted in the Mortgagee Letter, FHA’s temporary condominium project approval policy provisions were issued in its September 13, 2012 Mortgagee Letter 2012-18, and its November 13, 2015 Mortgagee Letter 2015-27. The provisions in these Mortgagee Letters are applicable to all Title II programs, including the Home Equity Conversion Mortgage program, unless otherwise stated.

The extension of FHA’s temporary provisions for condominium project approvals supports the continuation of FHA’s ability to insure mortgages in condominium projects and avoid market disruption, while work continues on the rulemaking necessary to propose policy revisions and address items in the Housing Opportunity Through Modernization Act of 2016, which was signed by the President on July 29, 2016.

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 #16-55 full version)

FHA INFO #16-54: Property Disposition Regulations Final Rule

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Investor Update
August 11, 2016

Today, the Federal Housing Administration (FHA) published a final rule in the Federal Register, Disposition of HUD-Acquired Single Family Properties; Updating HUD’s Single Family Property Disposition Regulations (Docket No. FR-5776-F-02). The final rule revises HUD’s property disposition regulations.

The final rule follows the October 2, 2015, publication of the proposed rule, during which time public comments were solicited. After consideration of comments received, FHA adopted the proposed rule with minor changes and issued its final rule today.

Specifically, this rule consolidates and reorganizes these regulations to better reflect industry standards, and allows HUD to conduct its Single Family Property Disposition Program more efficiently and effectively. Policy revisions and future effective dates will be incorporated into a future update of FHA’s Single Family Housing Policy Handbook 4000.1.

Quick Links

Home Equity Conversion Mortgage Program Supplemental Notice of Proposed Rulemaking Published in the Federal Register

Today, the Federal Housing Administration (FHA) published in the Federal Register, a supplemental notice of proposed rulemaking (Docket No. FR-5353-N-02) to its original May 19, 2016, Home Equity Conversion Mortgage (HECM) proposed rule, Strengthening the Home Equity Conversion Mortgage Program.

The supplemental notice provides for an additional public comment period solely to address a suggested change offered by a commenter on the May 19 proposed rule.

FHA is soliciting public comments on the supplemental notice during a 30-day period. All comments must be submitted to FHA through the formal methods detailed in the proposed rule.

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 #16-54 full version)

Fannie Mae: Updated AAA Matrix

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Investor Update
August 10, 2016

The AAA matrix provides state-specific excess fees/costs process guidelines and includes a process overview, as well as additional procedures and specific request requirements.
 
The matrix references applicable Servicing Guide provisions and other policies.
 
Fannie Mae requires the attorneys to submit all excess fee and title cost requests. Requests made by servicers will not be accepted.

Source: Fannie Mae (Excess Attorney Fee Guidelines page full version)

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties