Safeguard Properties

FHLMC Guide Bulletin 2016-21: Servicing Updates

Posted on by Safeguard

Investor Update
November 30, 2016

Today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2016-21 focuses on making it easier to do business with us. When you review the Guide Bulletin, you’ll find changes that will help save you time and provide you with greater flexibility.
 
Highlights include:

  • Giving you more time to submit required data when settling a third-party foreclosure sale transaction through Workout Prospector®.
  • Allowing new options as proof of insurance for condominiums, cooperatives and planned-unit developments.
  • Updating Guide Form 16SF and Form 1107SF to request information about where you do business and to make them more user-friendly.

We’re also reminding you that we’ve published our Investor Reporting Change Initiative business requirements and to visit our web page for more details on the project.
 
For more detailed information on these and other changes, please read Guide Bulletin 2016-21.
 
For More Information

Source: Freddie Mac

FHFA Releases Further Data on Non-performing Loan Sales

Posted on by Safeguard

Investor Update
November 16, 2016

Washington, DC – The Federal Housing Finance Agency (FHFA) today released its second report providing information about the sale of non-performing loans (NPLs) by Fannie Mae and Freddie Mac (the Enterprises).  The Enterprise Non-Performing Loan Sales Report includes NPL sales data through August 31, 2016 and preliminary outcomes for borrowers as of June 30, 2016.  The sale of NPLs reduces the number of severely delinquent loans in the Enterprises’ portfolios and imposes on NPL buyers FHFA requirements that encourage prioritization of outcomes other than foreclosure for borrowers.  An initial report of NPL sales and borrower outcome data was released in June.

The new report shows that, through August of 2016, the Enterprises had sold over 59,629 NPLs with a total unpaid principal balance of $11.9 billion. 

  • The NPLs had an average delinquency of 3.4 years and an average current loan-to-value ratio of 97 percent.
  • New Jersey, Florida and New York accounted for nearly half (49 percent) of the NPLs sold.  These three states also accounted for 47 percent of the Enterprises’ loans that are 1 year or more delinquent as of December 31, 2014.
  • A nonprofit organization, Community Loan Fund of New Jersey, was the winning bidder on eight of nine small, geographically concentrated pools sold by the Enterprises through August 2016 and is a service provider for the ninth pool.

The outcomes in the report, which pertain only to the 25,612 NPLs that were sold by December 31, 2015 and reflect outcomes only through June 30, 2016, reflect the following: 

  • Compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold, foreclosure avoidance for NPLs sold was higher than the benchmark loans the Enterprises did not sell (29 percent of NPLs that have been with the new servicers the longest avoided foreclosure compared to 19 percent of the benchmark NPLs).
  • NPLs where the home is occupied by the borrower had a higher rate of foreclosure avoidance (17.1 percent foreclosure avoided versus 9.8 percent for vacant properties).
  • NPLs on which the property was vacant had a much higher rate of foreclosure (29.3 percent foreclosure versus 10.3 percent for borrower occupied properties).  Foreclosure on vacant homes improves neighborhood stability and reduces blight as the homes are sold or rented to new occupants.
  • To date, only 31 percent of the 25,612 NPLs sold by December 31 have been resolved, 16 percent without foreclosure and 15 percent through foreclosure, so there is much more information to be gathered on the outcomes associated with NPL sales.

FHFA has stated that it will continue to provide regular updates on NPL sales and the outcomes of those sales as additional information is gathered.

Link to Non-Performing Loan Sales Report

Link to NPL page on FHFA.gov (Guidelines, etc)

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

C?onsumers: Consumer Communications or (202) 649-3811?

Source: FHFA

Additional Resource:
DS News (A Second Look at FHFA Non-Performing Loan Sales Data)

FHFA Releases 2016 Performance and Accountability Report

Posted on by Safeguard

Investor Update
November 15, 2016

Washington, DC – The Federal Housing Finance Agency (FHFA) today released its Performance and Accountability Report, which details FHFA’s activities as regulator of the Federal Home Loan Bank System and as regulator and conservator of Fannie Mae and Freddie Mac during fiscal year 2016.  For the eighth consecutive year, FHFA received an unmodified audit opinion on its FY 2016 financial statements from the U.S. Government Accountability Office.

Link to 2016 Performance and Accountability Report

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

Source: FHFA

FHFA: HARP Refinances Continue Decline in Third Quarter

Posted on by Safeguard

Investor Update
November 17, 2016

More than 242,000 Homeowners Still Eligible

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today reported that 15,597 borrowers refinanced their mortgages through the Home Affordable Refinance Program (HARP) from July through September.  FHFA’s third quarter Refinance Report also shows that while total refinance volume increased in September, as mortgage interest rates hovered at lows last seen in 2013, HARP refinances represented 2 percent of total refinances.  Total HARP refinances now stand at 3,434,451. 

According to new data released today, 242,512 borrowers are still eligible for HARP as of the second quarter of 2016.  These 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 state, Metropolitan Statistical Area, county and zip code.  In August, FHFA announced a new, high-LTV refinance offering that would be available in October 2017.  To bridge the gap between the new refinance program and HARP, FHFA extended HARP to September 30, 2017. 

Also in the Refinance Report:

  • Through the third 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.
  • Nine states and one U.S. territory accounted for more than 60 percent of borrowers who remain eligible for HARP and have a financial incentive to refinance:  Florida, Illinois, Michigan, Ohio, Georgia, New Jersey, Pennsylvania, Puerto Rico, New York and California.

Link to Refinance Report

Link to HARP.gov

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.8 trillion in funding for the U.S. mortgage markets and financial institutions. Additional information is available at www.FHFA.gov, on Twitter @FHFA, YouTube and LinkedIn.
 
Contacts:
Media: Stefanie Johnson (202) 649-3030 / Corinne Russell (202) 649-3032
Consumers: Consumer Communications or (202) 649-3811

Source: FHFA

FHA INFO #16-72: Process Efficiencies for Mortgagees When Using Professional Employer Organizations

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Investor Update
November 28, 2016

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2016-18, Mortgagee Use of Professional Employer Organizations, which clarifies when mortgagees may engage in contractual arrangements with professional employer organizations and similar entities for human resources services.

Removing this perceived barrier through policy revisions allows mortgagees to take advantage of process efficiencies commonly used in business practices, while reinforcing FHA’s continuing objective of making it easier to do business with FHA.

The guidance contained in Mortgagee Letter 2016-18 is effective immediately, and includes changes to the Single Family Housing Policy Handbook 4000.1 (SF Handbook) Sections I.A.3.c.iv(B)(3)(b)(ii) and I.A.6.j. 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 #16-70: 2016 FHA Annual Report to Congress Released Today

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Investor Update
November 15, 2016

Today, the Department of Housing and Urban Development (HUD) released its Federal Housing Administration (FHA) Annual Report to Congress on the financial condition of FHA’s Mutual Mortgage Insurance Fund for fiscal year 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

FCC Denies Mortgage Servicers’ Bid for Robo-Calling Waiver

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Investor Update
November 18, 2016

The Federal Communications Commission has denied the Mortgage Bankers Association’s request for exemption from part of the Telephone Consumer Protection Act requiring servicers to get consent before robo-calling mobile phones.

“We find that MBA has not shown, as a threshold matter, the exempted calls would be free of charge to called parties,” the commission said in an order Tuesday.

“Separately, we find that MBA has not shown that it should be able to make or send non-time-sensitive robo-calls, including robo-texts, to consumers without first obtaining consumer consent,” the FCC added. An enforcement advisory Friday indicated the FCC will particularly crack down on “unwanted robo-texts.”

The decision can be appealed, according to the FCC. The MBA is evaluating its options, according to Pete Mills, senior vice president of residential policy and member services.

“We are surprised [by the] procedure the FCC utilized to deny our petition, because they had not used it previously,” he said.

Consumer advocates were pleased with the order.

“We had a win, which is pretty unusual this month,” said attorney Margot Saunders, who works with the National Consumer Law Center.

The Federal Housing Finance Agency also has asked the Federal Communications Commission to carve out an exemption for the mortgage industry.

An exemption exists for government-backed debt. The FHFA is the regulator and conservator of Fannie Mae and Freddie Mac, which aren’t strictly governmental, but rather government-sponsored.

By denying the MBA’s petition, the FCC is basically rejecting a similar argument made by the FHFA — that prohibiting robo calls impedes other government directives for servicers to make contact with borrowers who have trouble paying their loans.

“It has put servicers in a really difficult position,” said Barry Hays, senior vice president of TeleVoice, a provider of interactive voice response technology that servicers use to handle inbound calls and record consumer consent.
 
Also, banks have been getting hit with lawsuits over robo calling that have resulted in big payouts.

A particular concern for mortgage servicers is that the automated calls to mobile phones prohibited by the TCPA without consent includes both prerecorded calls, as well as auto-dialers that connect live callers to borrowers, he said.

It’s unclear how successful an effort to appeal by the MBA would be.

“I’m skeptical of MBA’s ability to succeed on appeal,” said Hays.

However, the Republican-controlled Congress is likely to be open to amendments that could address the industry concern. Whoever the new Trump administration appoints as FCC chair also could be in favor of a different interpretation. One possibility is senior Republican FCC Commissioner Ajit Pai.

“Certainly a lot of the campaign rhetoric has indicated that the new administration is in favor of reducing the regulatory burden to the private sector,” said Hays.

Source: National Mortgage News

Fannie Mae: SVC-2016-10: Servicing Guide Updates

Posted on by Safeguard

Investor Update
November 9, 2016

Announcement SVC-2016-10: Servicing Guide updates

The Servicing Guide has been updated to include changes related to the following:

  • Deadlines to Submit Requests for Expense Reimbursement
  • Updates to Defined Expense Limits
  • California Posting Costs
  • Minnesota Proceeding Subsequent Foreclosure Attorney Fee
  • New Property Preservation Expense Limits
  • Servicing Transfers
  • Clarifications Related to Mortgage Loan Modifications
  • Miscellaneous Revision

Read the Announcement for full details.

For a summary of key updates in this Servicing Guide Announcement, view the video presented by Jenise Hight, Director of Servicing & Expense Policy, or check out the Guide Update Presentation here.

New property preservation expense limits

Servicers now have access to some additional property preservation repair descriptions and defined expense limits. Please use this table as reference when submitting a claim for one of the newly added expenses.

Announcement RVS-2016-02: Reverse Mortgage Loan Servicing Manual update

The Reverse Mortgage Loan Servicing Manual has been updated to require the servicer to submit its final expense reimbursement claim no later than 60 days after the date Fannie Mae disposes of an acquired property.

Read the Announcement for full details.

Reminder: November All-Servicer Forums-Fannie Mae Changes to Investor Reporting

If you haven’t already, please register for one of next week’s Fannie Mae Changes to Investor Reporting-All Servicer Forums. During these forums we will review Transaction Type 89 -New Mortgage Insurance Discontinuation Record, and the Transaction Type 83- Interest Rate/Payment Change Reporting. For more information and resources to assist in your transition by February 1, 2017, visit our web page.

Reach HARP borrowers now

With HARP extended into 2017, there’s still time to reach underwater borrowers. See how professionally designed materials available on the Fannie Mae Marketing Center can help in your HARP outreach efforts. The Marketing Center includes newly updated HARP flyers, letters and more that you can customize with your company’s logo, colors, and contact information. There’s even a letter to help you reach borrowers whose loans have been modified but might benefit from a HARP refinance. Use of the Marketing Center is free — give it a try!

One HFI InDepth class remaining for 2016

Do you have new hires or other employees who need to complete development goals by the end of the year? There is one more HFI™ Investor Reporting-related session left in 2016 and it’s not too late to register!

Fannie Mae’s Housing Finance Institute® series, HFI InDepth, offers training in custodial accounting and reconciling actual/actual loans. If you’re involved with investor reporting for your company, register for the last HFI InDepth class for 2016 today:

The ABCs of Managing MBS Cash Flow for Fannie Mae

You’ll learn tips for reporting on your loans and have access to an expert instructor to answer your questions.

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, and
  • a certificate of completion.

Course details and class schedules are available on the Fannie Mae Training page. Sign up today!

You may also be interested in…

Big changes to investor reporting are right around the corner
Servicers must update their business processes and technology. Read more

Focus on customers drives best-practice performance
Servicers are working with Fannie Mae to improve how they operate. Read more

Receive regular content updates by registering at the sites.

Recent tweets

Home Purchase Sentiment Index drops again, reflecting consumer pessimism.
http://bit.ly/2efjv7O

November 7

Retweet: This was one of the top stories last week! @SoFi and @FannieMae announce cash-out refi for student loans:
http://bit.ly/2fcwl41

November 6

Source: Fannie Mae

Fannie Mae: Principal Reduction Modifications and Servicer Forums on Fannie Mae Changes to Investor Reporting

Posted on by Safeguard

Investor Update
November 2, 2016

Principal reduction modifications

Servicers are reminded, as they complete their principal reduction modifications, to reference the eligible campaign codes listed on page 10 of the Principal Reduction job aid. The campaign codes listed, in addition to the campaigns codes specific to the principal reduction program, are the only campaign codes eligible for Principal Reduction – Case Two submissions.

Also, further clarification is provided within questions 6 and 10 of the Principal Reduction FAQ document for obtaining Fannie Mae approval. If Fannie Mae approval specifies a campaign code which is not referenced in the job aid or the three principal reduction campaign codes, the modification case is not eligible for principal reduction and the opt-out letter must not be sent to the borrower.

If you have any questions, please contact your Servicing Consultant, Portfolio Manager, or Fannie Mae’s Single-Family Servicing Servicer Support Center at 1-800-2FANNIE (1-800-232-6643).

We want to know your thoughts

Do you read The Home Story or the Housing Industry Forum, Fannie Mae’s sources for news about housing and the housing finance industry? If so, we would like your feedback to make sure we are giving you all the news you need. All responses are completely confidential. Please click here to take a five-minute survey.

November 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.

Who should attend?
Every servicer who does business with us. To accommodate your busy schedule, we are offering three forums this month. Register today via one of the links on our web page, as space is limited. Be sure to forward this invitation to others in your organization who would also benefit from these forums.

Operational Readiness & Acknowledgment Form
Have you seen the new Operational Readiness & Acknowledgment Form? You can use this form to confirm your readiness for the Fannie Mae Changes to Investor Reporting (FCIR) being implemented February 1, 2017, in several phases of readiness (analysis, testing, etc.). Fannie Mae servicers should review this Acknowledgment Form, sign and return it by December 1, 2016 via email: call-in_information@fanniemae.com.

Learn More
Visit the Fannie Mae Changes to Investor Reporting web 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.

Our phones are ringing, even after midnight

Since September, our Technology Support Center is available 24 hours a day, seven days a week. We never stop servicing our customers and are committed to offering exceptional around-the-clock service. Visit our Technology Application Support page, or call us 24×7 at 1-800-2FANNIE (excludes major holidays) for questions related to our technology solutions, registration, and more.

One HFI InDepth class remaining for 2016

Do you have new hires or other employees who need to complete development goals by the end of the year? There is one more HFI™ Investor Reporting-related session left in 2016 and it’s not too late to register!

Fannie Mae’s Housing Finance Institute® series, HFI InDepth, offers training in custodial accounting and reconciling actual/actual loans. If you’re involved with investor reporting for your company, register for the last HFI InDepth class for 2016 today:

The ABCs of Managing MBS Cash Flow for Fannie Mae

You’ll learn tips for reporting on your loans and have access to an expert instructor to answer your questions.

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, and
  • a certificate of completion.

Course details and class schedules are available on the Fannie Mae Training page. Sign up today!

You may also be interested in…

Big changes to investor reporting are right around the corner
Servicers must update their business processes and technology. Read more

Focus on customers drives best-practice performance
Servicers are working with Fannie Mae to improve how they operate. Read more

Receive regular content updates by registering at the sites.

Recent tweets

We’re seeing how the #Cubs, #Indians compete, but how do their cities’ #housing markets compare?
http://bit.ly/2el3Hi9

November 1
 
Here’s a free online tool lenders can use to support your purchase and refinance-related consumer outreach:
http://bit.ly/2eezOjv

October 31

Source: Fannie Mae

Fannie Mae: Principal Reduction Modification Retirement and Eviction Lockout Moratorium Announced

Posted on by Safeguard

Investor Update
November 23, 2016

Principal Reduction Modification retirement

Servicers are reminded that, for the servicer to offer a Fannie Mae Principal Reduction Modification Trial Period Plan, the servicer must send the Fannie Mae Principal Reduction Modification Solicitation Letter on or before December 31.

In addition, servicers are also reminded that, borrowers referenced in Handling an Active Trial Period Plan are eligible to have the UPB reduced in an amount equal to the deferred principal balance. The servicer must send the Fannie Mae Principal Reduction Modification Opt-Out Letter on or before December 31.

Eviction lockout moratorium announced

Fannie Mae recently advised our eviction attorneys of an eviction lockout moratorium from Monday, December 19, 2016, through Monday, January 2, 2017. This guidance only applies to Fannie Mae eviction matters. We are not prohibiting servicers from issuing holiday moratorium guidance related to foreclosure sales on Fannie Mae loans. However, servicers remain responsible for completing a foreclosure action within the time frame prescribed by Fannie Mae.

You may also be interested in…

Kansas City tiny homes being built by vets for vets
A group of vets acted when they saw a gap in housing and services for fellow servicemen. Read more.

Lenders and borrowers encouraged to give HARP a try during extension
Fannie Mae is encouraging lenders to get the word out on the benefit of refinancing – including those homeowners with resetting modified loans. Read more.

Big changes to investor reporting are right around the corner
Servicers must update their business processes and technology. Read more.

Receive regular content updates by registering at the sites. 
 
Recent Tweets

What impact may the election have on our economy? Here’s what our economists think:
http://bit.ly/2gyTbGy

November 22
 
We’re continuing to make it easier to do business with us. Check out the new http://FannieMae.com.

November 22

Source: Fannie Mae