Page 346 – Safeguard Properties

Fannie Mae: Servicer Expense Reimbursement Notification of Updates to LoanSphere Invoicing

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
July 17, 2016

Updates have been made to the LoanSphere InvoicingTM system which include the ability for Fannie Mae to add line level comments. The information below illustrates how to access line level comments and how to attach an invoice when submitting a claim for expense reimbursement.

Viewing the Investor Line Level Comments

Fannie Mae Expense Reimbursement has added a link for Investor Line Level Comments in LoanSphere InvoicingTM. These comments provide specific line item feedback to the servicer. This update streamlines the communication between the investor and servicer by providing a direct line of communication at the line item level.

Source: Fannie Mae (full release note)

Fannie Mae QAS Release Notification

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
July 14, 2016

During the weekend of July 23, 2016, Fannie Mae will implement an update to the Quality Assurance System (QAS). The updates, which respond to user feedback, will streamline and improve the usability of the “Missing/Defective Document Request” report. The changes are:

Drop document requests from the report once the lender has fulfilled the request
Include only missing document requests on the report and populate the “Missing Document Requested Date” field
Remove these fields from the report:
Document Received Date
Document Accepted Date
Document Rejected Date
Document Rejected Comments
Remove these fields from the Document Request History Section of the Loan Details:
Accepted Date
Rejected Date
Rejected Comments

Source: Fannie Mae (notification full version)

Fannie Mae Lender Letter LL-2016-04 Mortgage Insurance Updates

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
July 26, 2016

This Lender Letter updates the following mortgage insurance requirements and lists:

MassHousing Mortgage Insurance Fund Requirements
List of Approved Mortgage Insurance Forms
List of Approved Mortgage Insurers and Related Identifiers

Each of the updates is described below.

MassHousing Mortgage Insurance Fund Requirements

In SEL-2014-08: Fannie Mae Announces Approved Mortgage Insurance Forms, we announced changes to our requirements regarding mortgage insurance master primary policies, related endorsements, and other mortgage insurance forms (Forms). Recently, Fannie Mae and Freddie Mac, under the direction of the Federal Housing Finance Agency, worked with the MassHousing Mortgage Insurance Fund (Fund) to update the Fund’s loan loss reserve agreement and other Forms. These Forms describe the Fund’s terms of mortgage insurance coverage on individual loans sold to or securitized by Fannie Mae, as well as other investors and guarantors.

As a reminder, lenders are prohibited from entering into any agreement that modifies the terms of any approved mortgage insurance master policy on loans delivered to Fannie Mae. See the Selling Guide, B7-1-01, Provision of Mortgage Insurance for additional information. The Fund’s Forms are the equivalent of a private mortgage insurer’s mortgage insurance master policy and are subject to this prohibition.

Effective Date
The updated Forms are required for loans with application dates on or after October 1, 2016, that are covered by the Fund. Loans with incorrect Forms are not eligible for delivery.

List of Approved Mortgage Insurance Forms Updated
Updates to this list are shown below.

Replaced the previous MassHousing Forms with the following:
Loan Loss Reserve Agreement, LLRA 2016 Dated October 1, 2016;
Mortgage Payment Protection Endorsement, LLRA E-2016 Dated October 1, 2016; and
Commitment/Certificate, LLRA C-2016 Dated October 1, 2016.
Added two Essent Guaranty, Inc. forms:
Bulk Delivery Endorsement, EGI-3002.001(07/16); and
Certificate Schedule for Bulk Delivery Endorsement, EGI-3002.002(07/16).
Removed the following:
State of New York Mortgage Agency Mortgage Insurance Fund because it is no longer active and has beensuspended by Fannie Mae; and
Genworth Residential Mortgage Insurance Corporation of North Carolina because it merged with GenworthMortgage Insurance Corporation effective October 1, 2015, and no longer exists as a separate entity.

The updated list is on Fannie Mae’s website.

List of Approved Mortgage Insurers and Related Identifiers Updated
Updates to this list are shown below.

Removed the following:
State of New York Mortgage Agency Mortgage Insurance Fund (SONYMA)
SONYMA has not insured new mortgage loans in many years and we have no remaining exposure to SONYMA. As a result, we are suspending SONYMA, effective immediately, and deactivating ULDD Enumerated Value “SONYMA” and MI Code “40” from our delivery systems.
Genworth Residential Mortgage Insurance Corporation of North Carolina
Genworth Residential Mortgage Insurance Corporation of North Carolina (including all of its assets and liabilities) was merged into Genworth Mortgage Insurance Corporation effective October 1, 2015, and no longer exists as a separate entity.
Substituted the following:
ULDD Enumerated Value of “ArchMI” for Arch Mortgage Insurance Company replaces “CMG”
Arch Mortgage Insurance Company acquired the former CMG Mortgage Insurance Company in January 2014. With the implementation of ULDD Phase 2, effective June 27, 2016, we now support the ULDD Enumerated Value of “ArchMI” for Arch Mortgage Insurance Company.
Lenders should no longer use “CMG” and need to replace “CMG” with “ArchMI” in the ULDD loan delivery file. “CMG” will no longer be an acceptable enumeration in Loan Delivery after December 31, 2016.

The updated list is on Fannie Mae’s website.

Contact your Account Team if you have any questions about this Lender Letter.

Carlos T. Perez
Senior Vice President and
Chief Credit Officer for Single-Family

Source: Fannie Mae

Fannie Mae: Delinquency Counseling Policies Job Aid

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
July 5, 2016

Delinquency Counseling Policies

This job aid is a tool for the servicer to understand Fannie Mae’s delinquency counseling requirements, updates of which were announced in SVC-2016-05 on June 8, 2016. With these updates, Fannie Mae deleted Servicing Guide topic D2-2-09, Collection Requirements for a Borrower Who Has a Community Lending Mortgage Loan, and its related policies. The servicing of community lending mortgage loans is now aligned under the policies for all other Fannie Mae conventional mortgage loans. Furthermore, with a focus on supporting sustainable homeownership, Fannie Mae updated other policies in the Servicing Guide to increase the visibility of available resources to the borrower.

Source: Fannie Mae

Fannie Mae Connect Implementation Notification

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
July 18, 2016

Message Manager Report Migration to Fannie Mae Connect – Aug. 1, 2016

Updated to reflect a new release date for reports in Fannie Mae Connect

The Fannie Mae Connect reporting portal streamlines and centralizes key Fannie Mae data from multiple reporting applications, and uses business intelligence tools to provided unique analytics.

In August 2016, all Message Manager Selling and Servicing reports will be migrated to Fannie Mae Connect and two reports will be retired. Once logged into Fannie Mae Connect, a user can view each report within the Fannie Mae Connect Report Center. At the end of the transition in late October 2016, Message Manager will be retired.

This notification details changes for the August 1 implementation and provides a preview of changes coming later in the month. This document will be updated as information about the August implementation becomes available.

Provided in this notification:

A list of the Selling and Servicing Reports that will transition to Fannie Mae Connect by the end of August 2016.
The format changes and links to the technical specifications for reports that have format changes when they transition to Fannie Mae Connect.

NOTE: For your convenience, Message Manager reports will be available in both Fannie Mae Connect and Message Manager until the tool is retired in October 2016.

Information on the amount of historical data that will be available in Fannie Mae Connect.
Notification of two reports that will be retired.

Report Formats

When migrated to Fannie Mae Connect, Message Manager Selling and Servicing Reports can be accessed from the Report Center in one or more of the following formats.

Enhanced Tableau Functionality: Some Selling Reports will be available in the Tableau® Business Intelligence reporting tool. The Tableau reporting tool enables both data display and analytics. The reports in Tableau are viewable using enhanced reporting features such as filtering, sorting and exporting options. For more information about Tableau in Fannie Mae Connect this document provides information on how to work with Tableau.
Raw Data via the Download Center: Other Selling Reports will be accessed as downloads from the Fannie Mae Connect Download Center. The reports in the Download Center are viewable in a different format as raw data (PDF, .txt), with data filtering by seller/servicer and monthly periods.
Message Manager As-Is: Some reports will be viewable in Fannie Mae Connect in the same format as they were presented in Message Manager. To support Call-In-Elimination project activities and to minimize impact to their team’s current requirements, we are assisting our Servicers by not changing the format of Servicing reports.

Source: Fannie Mae (full notification)

Fannie Mae: AMN/HSSN 22.0 Release Notes

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
July 6, 2016

During the weekend of July 23, 2016, Fannie Mae will implement Release 22.0, which includes the changes and enhancements described below for the Asset Management Network (AMN)/HomeSaver SolutionsTM Network (HSSN) application.

This release includes changes to the following functionality:

HSSN General Case – Uploading PDF files
HSSN Mortgage Release (Deed in Lieu)
HSSN Short Sale

To implement this release, AMN/HSSN will not be available for processing from 7 a.m. Eastern Time on July 23, 2016, until 7 a.m. Eastern Time on July 24.

Source: Fannie Mae (full release notes)

Consumer Financial Protection Bureau Announces Changes To Senior Leadership

Posted on September 13, 2018October 29, 2018 by Safeguard

Investor Update
July 20, 2016

WASHINGTON, D.C. —The Consumer Financial Protection Bureau (CFPB) today announced leadership changes within the Bureau. The positions being announced today are: the Associate Director for Supervision, Enforcement, and Fair Lending; the Principal Deputy General Counsel; and the Deputy Chief Operating Officer.

“I am very pleased to announce today’s changes to senior leadership positions at the Bureau,” said CFPB Director Richard Cordray. “These leaders have played important roles in fulfilling the CFPB’s mission to protect consumers, and I am looking forward to continuing to work alongside them here at the Bureau.”

The following individuals were announced today:

Chris D’Angelo will serve as the CFPB’s Associate Director for Supervision, Enforcement and Fair Lending. Mr. D’Angelo is currently the Bureau’s chief of staff. He joined the CFPB in June 2011 and previously served as senior advisor to the Director and as an attorney in the Office of Enforcement. Mr. D’Angelo came to the Bureau from the U.S. Treasury Department where he was senior advisor to the under secretary for domestic finance and worked on financial regulation. Before entering public service, Mr. D’Angelo worked as an associate at Cravath, Swaine, and Moore in New York and later at Williams & Connolly in Washington, D.C. Mr. D’Angelo received his B.A. from Cornell University and earned his J.D. from New York University School of Law.

Richard Lepley will serve as the CFPB’s Principal Deputy General Counsel in the Office of the General Counsel in the Legal Division. For the past five years, Mr. Lepley has worked as the deputy general counsel for general law, ethics and oversight at the CFPB. Prior to joining the Bureau in 2010, Mr. Lepley was the acting assistant general counsel for general law and ethics at the U.S. Treasury Department, working on draft legislation that became the Consumer Financial Protection Act. Before working at the Department of Treasury, Mr. Lepley spent over two decades as a litigator and manager in the Federal Programs Branch of the Civil Division at the U.S. Department of Justice. Prior to working in government, Mr. Lepley was an associate at Fullbright and Jaworski. Mr. Lepley received his B.S. from the University of Illinois and his J.D. from the George Washington University National Law Center.

Nellisha Ramdass will serve as the CFPB’s Deputy Chief Operating Officer. Previously, Ms. Ramdass was in charge of team operations in the Office of Technology and Innovation including serving as the acting deputy chief information officer. Prior to joining the Bureau, Ms. Ramdass worked as a senior adviser to the chief operating officer at Federal Student Aid at the Department of Education. Before that, Ms. Ramdass was a senior contracting officer at the Office of the Comptroller of the Currency. Ms. Ramdass received her B.A. from the City University of New York and her M.A. from Johns Hopkins Carey Business School.

Source: CFPB

VALERI Servicer Newsflash

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
June 10, 2016

IMPORTANT INFORMATION
Circular 26-16-14 – Circular 26-16-14, Title Requirements for Conveyance of Real Property, was released on May 17, 2016. The effective date for the new requirements is June 17, 2016. This circular and Exhibit A are located on the VALERI internet website.

REMINDER
Compromise Sale Complete Event – Servicers should not report a Paid in Full (PIF) event in VALERI when completing compromise sales. The PIF event will erroneously change the status of the loan from “Guaranty Issued” to “Paid in Full,” which will cause the Compromise Sale Complete event to reject.

Servicer Point of Contact – In our effort to provide servicers with timely responses to inquiries, please remember to create or update your Servicer Point of Contact (POC) List in VALERI for all categories such as Adequacy of Servicing, Loss Mitigation, Foreclosure, etc. VA Loan Technicians will use the most current contact information in VALERI to send and respond to your inquiries. For those servicers who have not created their Servicer POC list, please see the attached instructions on how to complete this process or you may obtain a copy of the document at http://www.benefits.va.gov/HOMELOANS/documents/docs/newsletter/VALERIServicerNewsflash_POC_Guide.pdf

DEVELOPMENT UPDATES
On Saturday, June 11, 2016, VALERI 16.2 manifest will be released. The following enhancements will be included:

CQ 10752 – Creates a pop up message that asks “Are you sure you want to withdraw the entire claim?” to assist servicers when filing claims in the Servicer Web Portal (SWP).

CQ 11010 – Reorganizes events on the “Report an Event” screen in the Servicer Web Portal (SWP).

CQ 11469 – Adds functionality in SWP so servicers can now sort by events reported.

CQ 11604 – The redemption date is now a required field on the Transfer of Custody (TOC) event for all redemption states (SWP and SWP Bulk Upload Template). A new version of the SWP Bulk Upload Template will be available on Monday June 13th.

CQ 11661 – Changes the description for boarding advance types to identify windows, doors, and other openings on the claim. A new version of the Claim Bulk Upload Template will be available on Monday June 13th.

CQ 11667 – Creates a new Read Only High (ROH) user role for servicers in VALERI. This will allow the VALERI Administrator to provide access within their company to grant users read only capability.

CQ 11754 – Adds state foreclosure information via the hyperlink on property address in SWP.

CQ 11848 – Makes the Transfer of Custody event the terminating event for the state of Wisconsin.

Source: VA

Additional Resource:
Circular 26-16-14

VA Circular 26-12-5 Change 2 New VA Property Management and Servicing Contractor

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
June 6, 2016

1. Purpose. The purpose of this Circular is to revise the servicing contractor information from Residential Credit Solutions (RCS) to Ditech Financial LLC and to update the Contract Assurance (Portfolio Loan) contact information.

2. Therefore, Circular 26-12-5 is changed as follows:

Page 1, paragraph 2: Delete “Residential Credit Solutions” and insert “Ditech Financial LLC”.

Page 1, paragraph 7: Delete “c/o Residential Credit Solutions, Attn: Insurance Services, P.O. Box 692330, San Antonio, TX 78269-2330.” and insert “c/o Ditech Financial LLC, Attn: Conversion Team, Mailstop: L508, 345 St. Peter Street, St. Paul, MN 55102”.

Page 1, paragraph 9: Questions for VA regarding portfolio servicing issues should be directed to Adrian.Holbert@va.gov.

By Direction ofthe Under Secretary for Benefits Distribution:

Michael J. Frueh
Director, Loan Guaranty Service

Source: VA

Additional Resources
VA (Circular 26-12-5 Change 1)

VA (Circular 26-12-5)

VA Circular 26-16-17 Special Relief Following West Virginia Severe Storms, Flooding, Landslides and Mudslides

Posted on September 13, 2018September 13, 2018 by Safeguard

Investor Update
June 28, 2016

1. Purpose. This Circular expresses concern about Department of Veterans Affairs (VA) home loan borrowers affected by severe storms, flooding, landslides and mudslides in the States of West Virginia, and describes measures mortgagees may employ to provide relief.

2. Direct and Indirect Impact on Borrowers. Directly affected by the West Virginia severe storms, flooding, landslides, and mudslides, were those whose homes were severely damaged or destroyed, the families of those impacted during the storms, flooding, landslides and mudslides, and those who suffered considerable personal injury. Also directly affected were those whose work environments were destroyed or severely damaged as a result of the storms, flooding, landslides and mudslides. Many others have been indirectly affected, including business partners of those in the federally declared disaster areas announced by the Federal Emergency Management Agency (FEMA). The impact may continue to ripple throughout the country, as evacuees travel nationwide to seek the support and shelter of family members.

3. Forbearance Request. VA encourages holders of guaranteed loans to extend every possible forbearance to borrowers in distress as a result of the West Virginia severe storms, flooding, landslides, and mudslides. Careful counseling with borrowers should help determine whether their difficulties are directly or indirectly related to these storms, or whether they stem from other sources that must be addressed. The proper use of authorities granted in VA regulations may be of assistance in appropriate cases. For example, Title 38, Code of Federal Regulations (CFR), section 36.4311 (Prepayments) allows the reapplication of prepayments to cure or prevent a default. This means that if a borrower has been making additional principal payments over a period of years, the principal balance may be increased up to the scheduled balance and the increase applied toward regular installments. Also, 38 CFR 36.4315 (Loan modifications) allows the terms of any guaranteed loan to be modified without the prior approval of VA, provided certain conditions in the regulation are satisfied.

4. Moratorium on Foreclosure. Although the loan holder is ultimately responsible for determining when to initiate foreclosure, and for completing termination action, VA has requested on its website (http://www.benefits.va.gov/homeloans) that holders establish a 90-day moratorium from the date of a disaster on initiating new foreclosures on loans affected by major disasters. VA regulation 38 CFR 36.4324(a)(3)(ii) allows additional interest on a guaranty claim when eventual termination has been delayed due to circumstances beyond the control of the holder, such as VA-requested forbearance. The initial request applies to loans in the federally declared disaster areas, which VA believes should include areas declared by FEMA as eligible for public assistance as well as those areas eligible for individual assistance. Because of the widespread impact of the West Virginia severe storms, flooding, landslides, and mudslides, holders should ensure that all foreclosure referrals nationwide during the moratorium are reviewed prior to initiation to ensure that borrowers have not been affected significantly enough to justify delay in referral. Any questions about impact should be discussed with the VA Regional Loan Center (RLC) of jurisdiction.

5. Late Charge Waivers. VA believes that many servicers plan to waive late charges on loans in the disaster areas, and VA encourages all servicers to adopt such a policy for any loans that may have been affected due to the ripple effect of the storms, flooding, landslides, and mudslides as mentioned in paragraph 2.

6. Credit and VA Reporting. In order to avoid damaging credit records of Veteran borrowers in the affected areas, many servicers may suspend credit bureau reporting on loans in those areas. At this time, VA would encourage servicers to consider suspension of credit reporting on Veteran borrowers nationwide who have been affected by the storms, flooding, landslides, and mudslides. Similarly, VA will not penalize servicers for any late default reporting to VA as a result of the storms, flooding, landslides, and mudslides. This may include direct damage to servicer facilities located in the disaster areas or their operations elsewhere which may have been impacted by business partners within the disaster areas. Please contact the appropriate RLC with any questions.

7. Activation of the National Guard. Some members of the National Guard have already been called to active duty to assist in recovery efforts. Those individuals may experience financial difficulties of their own due to what could be extended tours of duty during the disaster recovery efforts. VA encourages servicers to extend special forbearance to National Guard members in this situation.

8. Rescission: This Circular is rescinded July 1, 2018.

By Direction of the Under Secretary for Benefits

Michael J. Frueh
Director, Loan Guaranty Service

Source: VA