Safeguard Properties

Freddie Mac 2017 Scorecard: New Look, New Gears to Drive Performance

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Investor Update
October 14, 2016

We’re starting clean in 2017 by refreshing the look and feel of your Freddie Mac Servicer Success Scorecard (Scorecard).
 
Based on your feedback, we’re making it easier to access the information that’s important to you by simplifying the existing navigation and providing a more intuitive user interface.
 
To learn more and help you prepare for the 2017 Scorecard, we’ve created a high-level overview video – check it out today for a sneak peek and see your feedback in action! Also, be on the lookout for the preview period beginning in November.
 
For More Information

Source: Freddie Mac (full update)

VALERI Servicer Newsflash

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Investor Update
September 9, 2016

IMPORTANT INFORMATION
Manual Update – Revisions to Chapter 2, 7, 8, and 15 are reflected on the Transmittal Sheet dated July 25, 2016, and have been posted in M26-4. They can be accessed at http://www.benefits.va.gov/WARMS/M26_4.asp.

Upcoming Loan Purge – VA is in the process of removing loans that have not had any reporting activity, or which no servicer is associated, from the VA Loan Electronic Reporting Interface (VALERI). Beginning September 18, there will be a purge of nearly 600,000 loans. If a servicer searches for a loan that has been removed in VALERI, a notification that the loan is no longer accessible in the VALERI application will appear. If the loan should be active in the application, the servicer must provide the VALERI Helpdesk with proof that the loan is active and not terminated or paid in full. VA will review the evidence and then if appropriate, reinstate the loan so the servicer can report on the loan as required.

Claims Bulk Upload Template Update – On the Debris Removal tab, Column F is no longer required. The field was renamed and no data is required. The new claim bulk upload template will be uploaded and available for servicers on Monday, September 12, 2016.

Transfer Tax for Two-Deed Process States – Transfer taxes for any states that require a two deed process are now reimbursable on the claim. This item should be filed on the claim as “Transfer Tax/Documentary Stamps,” located under the “Service (to Serve Homeowners)” subcategory of “Other Fees and Costs” (M26-4, Chapter 14 section 4).

REMINDER
Providing Sufficient Notice for Internet Protocol (IP) Changes – VALERI contractor, Black Knight Financial Services, requires a minimum of a 45-day notice for any IP change request (60-90 day notice is preferred whenever possible).

DEVELOPMENT UPDATES

On Saturday, September 10, 2016, VALERI Manifest 16.3 will be released. The following system enhancements will be included:

CQ 12010 – Adds increased character fields in the Servicer Point of Contact Information screen.
CQ 12308 – Adds Payment Due Date in the Servicer Web Portal on the Loan Information screen.
CQ 11779 – Gives servicers the ability to download the Event Inbox.
CQ 11873 – Adds the Electronic Default Notice processed date on the Loan Information screen.
CQ 12000 – Limits the Debris Removal advances on claim submissions, first by “cubic yards” and then by “number of units”.

Source: VA

VA Circular 26-16-24 Title Requirements for Manufactured or Mobile Home Conveyance

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Investor Update
September 9, 2016

1. Purpose. This Circular provides clarification of the documents required to properly provide clear and marketable title for mobile homes conveyed to the Department of Veterans Affairs (VA) per 38 C.F.R. 4300 in every state and territory in the United States.

2. Background. Pursuant to 38 U.S.C. § 3710(a)(9) and 38 C.F.R. § 36.4301, a manufactured home must be permanently affixed and classified as real property in the state where it is located. If the manufactured home does not meet these criteria, it may not be guaranteed pursuant to section 3710 and the holder may not have the option of conveying the manufactured home to the Secretary. Therefore, to ensure that a guaranty claim is fully payable and that the holder has the election to convey the manufactured home to the Secretary, servicers must also ensure that for home loans guaranteed under the 4300 series, the manufactured home is permanently affixed and classified as real property before attempting to convey the property to the Secretary.

3. Action. Effective immediately, VA is requiring evidence that holders have complied with requirements for guaranteeing manufactured homes. Foreclosure title packages that do not include the required evidence will be rejected. The evidence required (applicable to all jurisdictions) for manufactured homes is as follows:

a. Copy of the deed or document evidencing transfer of interest and title to the holder at the liquidation sale;
b. Evidence that the manufactured home is permanently affixed and classified as real property under the laws of the state where it is located;
c. Special warranty deed or its legal equivalent from the holder to the Secretary, but only after the manufactured home has been deemed permanently affixed and classified as real property under the laws of the state where it is located;
d. Original or copy of mortgagee’s title insurance policy from loan origination (except in Iowa, where a title abstract is required);
e. Owner’s title insurance policy issued as of the recording date of the special warranty deed to the Secretary;
f. ALTA Endorsement 7-06 to the owner’s title policy insuring the Secretary;
g. Origination deed of trust or mortgage,
h. All assignments of the origination deed of trust or mortgage (if to effect an assignment a recorded document is legally required in the state where the property is located);
i. Evidence of proper notice (e.g., affidavit of publication, Affidavit of Substitute Trustee, notice of sale);
j. Department of Defense Manpower Data Center Status Report pursuant to Servicemembers Civil Relief Act; and
k. Real estate sales validation form (where applicable).

4. Details. VA’s determination of clear and marketable title is dependent on state statutory requirements. This Circular does not affect timeframes for submission of title documents. For title document requirements related to properties that are not manufactured homes, please reference VA Circular 26-16-14 entitled “Title Requirements for Conveyance of Real Property. VA Circular 26-16-14 is posted on VA’s website at: http://www.benefits.va.gov/HOMELOANS/documents/circulars/26_16_14.pdf.

5. In states where there is not a legal process for converting a manufactured home from personal property into real property, an ALTA Endorsement 7-06 to the Secretary’s owner title policy is sufficient evidence that the manufactured home is permanently affixed and classified as real property under the laws of the state where it is located. These locations are—

a. Connecticut
b. District of Columbia
c. Maine
d. Massachusetts
e. New Hampshire
f. Rhode Island
g. Vermont
h. Hawaii

6. Rescission: This Circular is rescinded October 1, 2018.

By Direction of the Under Secretary for Benefits

Jeffrey F. London
Deputy Director, Loan Guaranty Service

Source: VA

OCC: Patricia Pointer Named Deputy Comptroller for Leadership, Executive and Organizational Development

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Investor Update
September 6, 2016

WASHINGTON — The Office of the Comptroller of the Currency (OCC) today announced the selection of Patricia Pointer to be the agency’s Deputy Comptroller for Leadership, Executive and Organizational Development.

In this role, Ms. Pointer will serve as the executive responsible for the design, development, and implementation of agency-wide executive, leadership, and career development programs. She will also advise senior management on ways to improve or sustain organization effectiveness, and serve as expert policy advisor on the planning and execution of succession management plans. Ms. Pointer will report to the Senior Deputy Comptroller for Management and Chief Financial Officer Kathy Murphy, and assumes these duties on September 18, 2016.

“Pat’s experience in the human resources field, together with her experience with executive leadership training and development, will serve the agency well as we continue our focus on developing leadership competencies and successful organizational change and performance,” said Comptroller of the Currency Thomas J. Curry.

Prior to this position, Ms. Pointer served as Deputy Comptroller for Human Capital, and more recently served as Program Manager for the OCC’s Enterprise Workforce Planning effort, responsible for building an enterprise-wide staffing strategy model. Ms. Pointer served also at the U.S. Department of the Treasury as Deputy Chief Human Capital Officer and managed the Treasury Executive Institute.

Ms. Pointer is a magna cum laude graduate of the University of Maryland with a bachelor of science degree in secondary education. She received a master’s in public administration from American University in 2004.

Source: OCC

MHA HAMP Reporting Update Servicer Loan Number Change Request Process Available

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Investor Update
September 29, 2016

In order to support scenarios in which servicers have changed Servicer Loan Numbers in their servicing system and loans had previously been reported to the HAMP System of Record using a different Servicer Loan Number, MHA as Program Administrator (MHA-PA) has established a regularly scheduled process to update Servicer Loan Numbers in the HAMP Reporting System upon a servicer’s request. The process document has been posted on the secure side (login required) of HMPadmin.com.

Servicer Loan Number Change Request Process

Updated Data Dictionary Posted

In connection with the November 2016 release of the HAMP Reporting System, an updated version of the following Data Dictionary was posted on HMPadmin.com:

ADR Data Dictionary – 11/01/2016 Release

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

Source: MHA

MHA HAMP Reporting Update Preview Schema File Available on HMPadmin.com

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Investor Update
September 8, 2016

The following preview version of the November 1, 2016 Release schema is available in the File Formats and Interfaces section on HMPadmin.com (login required).

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

Source: MHA

MHA HAMP Reporting Update August 2016 UP Survey Now Available

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Investor Update
September 15, 2016

The August 2016 UP survey is now available on HMPadmin.com (login required). Servicers that have executed a Servicer Participation Agreement (SPA) and that have cumulative UP activity must complete and upload their UP survey response to the HAMP® Reporting Tool (login required) by Thursday, September 22, 2016.

SPA servicers that have any cumulative UP activity as of August 31, 2016 must submit an UP survey at this time.

For details on downloading and submitting the UP survey response, log in to HMPadmin.com, navigate to the HAMP Loan Reporting Tools & Documents area, and select the UP Survey tab.

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

For questions specifically regarding the survey contents, email the HAMP Servicer Survey team.

Source: MHA

HUD Provides $13 Million in Emergency Disaster Assistance to Baton Rouge and Lafayette

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Investor Update
September 22, 2016

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today announced it is providing Baton Rouge and Lafayette, Louisiana with an early infusion of $13 million in disaster assistance in the wake of last month’s devastating flooding. The announcement was made by HUD Principal Deputy Assistant Secretary Harriet Tregoning following a meeting with members of Governor John Bel Edward’s Restore Louisiana Task Force. 

The funding is provided through a special recovery fund established under the HUD’s Community Development Block Grant (CDBG) Program. This Declared Disaster Recovery Fund will provide $11 million to Baton Rouge/East Baton Rouge Parish and $1.9 million Lafayette/Lafayette Parish, which are eligible since they are entitlement communities under the CDBG program.

“We’ve got to roll up our sleeves to support recovery in any way we can,” said Tregoning. “HUD will continue to work very closely with our state and local partners to plan and execute a long-term strategy to help homeowners get back in their homes, to rebuild critical infrastructure and to help local businesses open their doors again.”

While there have been 26 major presidentially declared disasters this year, the most significant of these events was the flooding in Louisiana, with significant damage occurring in areas around Baton Rouge and Lafayette. This award is a small but targeted source of funding to meet emergency community development needs while the status of any larger supplemental appropriation gets resolved.

The consolidated governments of Baton Rouge/East Baton Rouge Parish and Lafayette/Lafayette Parish can use the funding announced today to:

  • Provide support for persons and families experiencing homelessness;
  • Repair damaged infrastructure;
  • Rehabilitate damaged homes; and
  • Restore rental properties and businesses.

Source: HUD

HARP Volumes Shrink as Refi Numbers Retreat

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Investor Update
September 16, 2016

The number of mortgage loans backed by Fannie Mae and Freddie Mac that refinanced reversed course in July, declining after three months of gains as mortgage rates hover slightly above record lows, according to the FHFA’s July 2016 Refinance Report released Friday.

The GSEs combined to refinance approximately 170,000 mortgage loans during July; 5,121 of those loans (3 percent) were refinanced through the FHFA’s Home Affordable Refinance Program (HARP), bringing the total number of loans refinanced through HARP up to nearly 3.424 million since the program’s inception in 2009.

HARP numbers have been shrinking since the third quarter of 2012 when they peaked at 319,000 for the three-month period. HARP refis totaled 18,000 for the second quarter of 2016. FHFA estimates that eligible borrowers who refinance through HARP can save approximately $2,400 per year on mortgage payments. The Agency has made attempts to reach borrowers eligible for HARP through a series of outreach events in cities with the most eligible borrowers (Chicago, Atlanta, Detroit, Miami, Newark, and Phoenix), webinars, websites, and social media campaigns.

The program, which was set to expire at the end of 2016, was extended in August 2016 for the fifth time, this time until the end of September 2017, as the FHFA continues to try to reach the approximately 323,000 borrowers nationwide that are eligible to refinance through HARP as of March 31, 2016.

FHFA launched HARP in early 2009 as a way for borrowers who are current on their mortgages but have little or no equity to take advantage of low interest rates and other refinancing benefits. Five percent of the loans refinanced through HARP in July had a loan-to?value ratio greater than 125 percent. Slightly more than one-quarter (26 percent) of HARP refinances in July were for shorter-term 15- of 20-year mortgages, which typically build equity faster than 30-year mortgages.

According to FHFA, about 60 percent of the 323,000 borrowers with an incentive to refinance through HARP are concentrated in 10 states: Florida (37,662), Illinois (30,205), Ohio (27,514), Michigan (25,272), Georgia (19,946), Pennsylvania (15,190), New Jersey (14,496), California (12,272), New York (12,192), and Maryland (11,890).

Click here to view the FHFA’s complete report.

Source: MReport (full article)

GAO-16-831: Troubled Asset Relief Program: Status of Prior GAO Recommendations

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Investor Update
September 6, 2016

What GAO Found

As of August 2016, GAO’s performance audits of the Troubled Asset Relief Program (TARP) activities have resulted in 74 recommendations to the Department of the Treasury (Treasury). Treasury has implemented 62 of the 74 recommendations, some of which were aimed at improving the transparency and internal controls of TARP. Five recommendations remain open, all pertaining to the Making Home Affordable (MHA) program, a collection of housing programs designed to help homeowners avoid foreclosure. Of the five:

  • Treasury has partially implemented three open MHA recommendations—that is, it has taken some steps toward implementation but needs to take more actions. For example, in March 2016, GAO recommended that Treasury deobligate funds that its review showed would likely not be expended. Treasury’s most recent estimates identified $4.7 billion in potential excess funds, of which Treasury has deobligated $2 billion as of August 2016.
  • Two additional MHA recommendations remain open—that is, Treasury has not taken steps to implement them. GAO recommended that Treasury take steps to assess the extent to which servicers have established internal control programs that monitor compliance with fair lending laws applicable to MHA programs. GAO also recommended that Treasury establish a standard process to better ensure that changes to TARP-funded MHA programs are based on comprehensive cost-benefit analyses. Treasury told GAO they would consider this recommendation but has noted that it plans no major program policy changes given the December 30, 2016, application deadline for the MHA program.

Seven recommendations have been closed but were not implemented. Five were related to the Capital Purchase Program (CPP) and MHA and two to other TARP activities. Generally, these recommendations were closed because GAO determined that the recommendations were no longer applicable.

Why GAO Did This Study
 
The Emergency Economic Stabilization Act of 2008 (EESA) authorized the creation of TARP to address the most severe crisis that the financial system had faced in decades. Treasury has been the primary agency responsible for TARP programs. EESA provided GAO with broad oversight authorities for actions taken under TARP and included a provision that GAO report at least every 60 days on TARP activities and performance.
 
This 60-day report describes the status of GAO’s prior TARP performance audit recommendations to Treasury as of August 2016. In particular, this report discusses Treasury’s implementation of GAO’s recommendations focusing on two programs: CPP and MHA. GAO’s methodologies included assessing relevant documentation from Treasury, interviewing Treasury officials, and reviewing prior TARP reports issued by GAO.
 
What GAO Recommends
 
GAO continues to maintain that Treasury should take action to fully implement the three partially implemented and two open MHA recommendations. GAO will continue to assess the status of these recommendations considering new program activity and any further actions taken by Treasury.
 
For more information, contact Daniel Garcia-Diaz at (202) 512-8678 or garciadiazd@gao.gov.

Source: GAO (GAO-16-831 full version)

Additional Resource:
GAO-16-831 Full Report [pdf]