Safeguard Properties

Freddie Mac: Avoid Roadblocks! Use Your Workout Settlements Roadmap

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Investor Update
June 30, 2016

We’ve updated our Workout Settlements website with additional tips to help you successfully navigate and complete your settlements.
 
The new Workout Settlements Spotlight addresses common questions and issues we’ve heard about from you. We’ll update it periodically to provide you with helpful insights into the settlement process.
 
Check out the June Spotlight today!
 
For More Information

  • Visit the updated Workout Settlements website.
  • Read more about our Workout Settlements website here.
  • Visit Freddie Mac’s Learning Center for more on our training programs and reference tools.
  • Contact your Freddie Mac representative.

Source: Freddie Mac

FHLMC Guide Bulletin 2016-10: Servicing Updates

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Investor Update
June 8, 2016

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2016-10, we’re revising requirements related to the Home Affordable Modification Program (HAMP®) expiration, extending the Lender-Placed Insurance (LPI) deductibles mandatory effective date for certain Servicers, and more.
 
Our shared commitment to servicing excellence means we’re always looking for ways to make things better, one change at a time.

Key Highlights

  • As the HAMP program winds down at the end of 2016, we’re aligning with certain expiration dates and removing HAMP-specific forms and references from our solicitation requirements so we aren’t promoting an imminently-ending program.
  • We’re extending the mandatory effective date for LPI deductibles for certain Servicers that use American Modern Insurance Group (AMIG) as their LPI provider. The revised effective date for Servicers that use AMIG is on or after July 1, 2017.
  • Servicers must use IRS Form 1099-C when reporting a cancellation of debt in connection with a short sale.


Reminders


For More Information

 

Source: Freddie Mac

FHLMC Guide Bulletin 2016-12: Selling and Servicing Updates

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Investor Update
June 29, 2016

Today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2016-12, announces a variety of selling and servicing updates, including:
 
ARM Lifetime Floor

  • Revising Freddie Mac/Fannie Mae ARM Notes and Riders and Freddie Mac ARM Notes and Riders to include new language imposing a Lifetime Floor equal to the ARM’s margin.

Freddie Mac Technology

  • Consolidating certain technology licenses for Freddie Mac tools and systems, including tools in Freddie Mac Loan Advisor SuiteSM, into a Master Systems License.
  • Replacing references to Loan Prospector® with Loan Product AdvisorSM.
  • Updating the Guide Glossary to include a definition for “Servicing Tool.” Servicing Tools governed by an existing license, user agreement or similar document continue to be subject to the same terms and conditions and are not subject to the Master License.

Home Possible® Mortgages

  • Eliminating the requirement that Sellers obtain a signed borrower consent form at or before closing that authorizes the release of the borrower’s information to a counseling agency in the event of a delinquency.
  • Updating Loan Prospector and the Affordable Income and Property Eligibility tool on June 30, 2016, with the 2016 area median income (AMI) estimates issued by the Federal Housing Finance Agency.
  • Many of the 2016 estimates are lower than the AMI estimates for 2015. As a result, Home Possible mortgages underwritten using the 2015 AMI limits may no longer be eligible for sale. If a Home Possible mortgage received an “Accept-Eligible” evaluation prior to June 30, 2016, but receives an “Accept-Ineligible” when resubmitted to Loan Prospector on or after June 30, 2016, due only to the AMI estimates, Freddie Mac will honor the original Loan Prospector Feedback Certificate for “eligibility” and purchase the mortgage provided that certain conditions are met.

Review today’s Guide Bulletin for details on the above changes and other updates.
 
For More Information

  • Review Guide Bulletin 2016-12 [pdf].
  • Visit the Freddie Mac Uniform Instrument News and Updates web page.
  • Read the Single-Family News Center article on what current users can expect when Loan Advisor Suite deploys.
  • Visit the Loan Advisor Suite web page.
  • Contact your Freddie Mac representative.

Source: Freddie Mac

FHFA Releases Data on Non-Performing Loan Sales

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Investor Update
June 30, 2016

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its first 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 May 31, 2016 and preliminary outcomes for borrowers through December 31, 2015.  NPL sales reduce the number of severely delinquent loans in the Enterprises’ portfolios and the rules are subject to FHFA requirements that encourage NPL buyers to prioritize outcomes for borrowers other than foreclosure. 

“This report reflects the first available results since the Enterprises started to sell NPLs and since we put in place enhanced requirements for servicing these loans,” said FHFA Director Melvin L. Watt.  “The report demonstrates our commitment to transparency as we work to achieve more favorable outcomes for borrowers and for the Enterprises by providing alternatives to foreclosure whenever possible. Because the program is new, we have only preliminary data about outcomes to share, but we will continue to provide regular reports as we gain new outcome information,” said Watt. 

The report shows that, as of the end of May of this year, the Enterprises have sold over 41,600 NPLs with a total unpaid principal balance of $8.5 billion.

  • ?The NPLs had an average delinquency of 3.4 years and an average current loan-to-value ratio of 98 percent. 
  • New Jersey, Florida and New York accounted for nearly half of the NPLs sold.
  • A nonprofit organization, Community Loan Fund of New Jersey, was the winning bidder on five of six small, geographically concentrated pools sold by the Enterprises through May 2016 and is a service provider for the sixth pool.

The outcomes in the report are based on only the 8,849 NPLs that were sold by June 30, 2015 and reflect outcomes only through December 31, 2015. This preliminary outcome information suggests the following:  

  • NPLs where the home is occupied by the borrower had a higher rate of foreclosure avoidance (13 percent foreclosure avoided versus 6.2 for vacant properties).
  • NPLs on which the property was vacant had a much higher rate of foreclosure (21.3 percent foreclosure versus 8.5 percent for borrower occupied properties), which is viewed by FHFA as favorable in light on FHFA’s belief that foreclosure of  vacant homes can improve neighborhood stability and reduce blight as the homes are sold or rented to new occupants.
  • To date, only 24 percent of the 8,849 NPLs have been resolved, 12 percent without foreclosure and 12 percent through foreclosure.
  • Compared to a benchmark of similarly delinquent Enterprise NPLs that were not sold, foreclosures for NPLs sold trended lower than the benchmark loans the Enterprises did not sell (21 percent of NPLs that have been with the new servicers the longest avoided foreclosure compared to 14 percent of the benchmark NPLs).

Future NPL Sales Reports are expected to be published twice each year.

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

FHFA Releases 2015 Report to Congress

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Investor Update
June 15, 2016

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its 2015 Report to Congress.  The statutorily-required report provides information about FHFA’s 2015 examinations of Fannie Mae, Freddie Mac (the Enterprises), 11 Federal Home Loan Banks (FHLBanks) and the FHLBanks’ Office of Finance.  The report also describes FHFA’s actions as conservator of Fannie Mae and Freddie Mac during the year and it describes the Agency’s regulatory guidance, research and publications.  

Link to 2015 Report to Congress

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

Source: FHFA

FHFA: Foreclosure Prevention Actions Approach 3.7 Million Through First Quarter 2016

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Investor Update
June 23, 2016

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today reported that Fannie Mae and Freddie Mac completed 49,573 foreclosure prevention actions in the first quarter of 2016, bringing the total number of foreclosure prevention actions to nearly 3.7 million since the start of the conservatorships in September 2008.  These measures have helped more than 3.0 million borrowers stay in their homes, including nearly 1.9 million who received permanent loan modifications.   

Further details can be found in FHFA’s first quarter Foreclosure Prevention Report?, which also includes data on Fannie Mae and Freddie Mac home retention actions, delinquency data and real estate owned (REO) inventory.  FHFA publishes the report data in an online, interactive Borrower Assistance Map accessible through FHFA.gov. 

Other foreclosure prevention data for Fannie Mae and Freddie Mac noted in the quarterly report include:

  • The number of loans 60+ days delinquent declined another 10 percent during the quarter, dipping to 461,696, the lowest level since the first quarter of 2008.
  • The serious delinquency rate of Fa?nnie Mae and Freddie Mac loans continued to decline, settling at 1.3 percent at the end of the first quarter, down significantly from a peak of 4.93 percent in the first quarter of 2010.
  • REO inventory fell 9 percent during the quarter to 66,277, as property dispositions continued to outpace property acquisitions.

Link to Report?

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

Source: FHFA

FHFA: April 2016 Refinance Report

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Investor Update
June 14, 2016

April 2016 Highlights

Total refinance volume increased in April 2016 after a decrease in mortgage rates in the first quarter. 

Mortgage rates decreased in April: the average interest rate on a 30?year fixed rate mortgage fell to 3.61 percent from 3.69 percent in March.

In April 2016:

  • Borrowers completed 6,347 refinances through HARP, bringing total refinances from the inception of the program to 3,406,890.
  • HARP volume represented four percent of total refinance volume.
  • Six percent of the loans refinanced through HARP had a loan-to?value ratio greater than 125 percent.

Year to date though April 2016:

  • Borrowers with loan?to?value ratios greater than 105 percent accounted for 22 percent of the volume of HARP loans.
  • Twenty six 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.
  • HARP refinances represented 10 or more percent of total refinances in Florida and Georgia, more than double the 4 percent of total refinances nationwide over the same period.

Borrowers who refinanced through HARP had a lower delinquency rate compared to borrowers eligible for HARP who did not refinance through the program.
Ten states accounted for over 60 percent of the nation’s HARP eligible loans with a refinance incentive as of December 31, 2015.
 
Attachments: Refinance Report – April 2016

Source: FHFA

FHA INFO #16-38: Mortgagee Letter 2016-09

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Investor Update
June 22, 2016

Today, the Federal Housing Administration’s (FHA) Office of Single Family Housing published Mortgagee Letter 2016-09, Delivery of Advice of Payment and Title Approval, which announces the elimination of hard copy mailings of Advice of Payment and Title Approval letters to holders and servicers, with certain exceptions1, as the information is available electronically through the FHA Connection (FHAC) system. FHA will discontinue the hard copy mailings on June 28, 2016.

As noted in today’s Mortgagee Letter, elimination of the hard copy mailings of the two letters does not change the FHA requirement that the information be maintained by the mortgagee in the mortgagee’s Claim Review File. In addition, the Mortgagee Letter contains Single Family Housing Policy Handbook 4000.1 (SF Handbook) changes that will supersede sub-sections of the SF Handbook’s Claims and Disposition section when this section becomes effective on September 30, 2016. The SF Handbook changes noted in the Mortgagee Letter are planned to be incorporated into the SF Handbook in September 2016.

1. Claims processed outside of FHAC (e.g., Hawaiian Home Lands, Indian Lands, and re-conveyance) will continue to receive hard copy, mailed Advice of Payment and Title Approval letters.

Quick Links

TOTAL Mortgage Scorecard Counsel Type Field Data Change Reminder

On June 11, 2016, the Federal Housing Administration (FHA) implemented technical changes to its Technology Open To Approved Lenders (TOTAL) Mortgage Scorecard. As a reminder, as of June 11, all TOTAL Mortgage Scorecard submissions now require a response in the Counsel Type field.

The two Counsel Type field response options are:

  • A = No HUD Approved Counseling; or
  • D = HUD Approved Counseling Agency. To determine whether an organization is a HUD-Approved Housing Counseling Agency, please refer to the “find a counselor” information on HUD.gov.

Blank or “N/A” responses are no longer acceptable values. Automated Underwriting System (AUS) vendors have made accommodations to their systems for this change.

Mortgagees’ accurate responses in this field are critical for allowing HUD to measure its progress toward meeting its goal to increase the number of FHA-insured mortgages with borrowers who are benefitting from housing counseling. This data will also provide valuable insights regarding the role of counseling in FHA programs; its ability to improve outcomes for borrowers; and to strengthen the health of the FHA’s Mutual Mortgage Insurance Fund.

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 Announces Most Significant Improvements to Date for Distressed Notes Sales Program

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Investor Update
June 30, 2016

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) announced today that it is making a series of enhancements to the Department’s Distressed Asset Stabilization Program (DASP) that would have purchasers of severely delinquent mortgages offer qualified borrowers principal reductions and protection from “payment shock.” Certain families with distressed mortgages insured by the Federal Housing Administration (FHA) may soon be eligible for a reduction of their outstanding loan amounts should their mortgages be sold through DASP.

In addition, FHA’s latest enhancements prohibit investors from abandoning low-value properties in high-foreclosure neighborhoods to prevent blight. FHA is also offering greater opportunity for non-profit organizations, local governments and other governmental entities to participate in DASP. Loans are not eligible to be sold through DASP unless and until all FHA loss mitigation efforts are exhausted. On average, mortgages sold through this sales program are 29 months delinquent at the time of the auction. Read additional details on the latest enhancements announced today.

“FHA is deeply committed to protecting struggling homeowners and making certain they have the greatest opportunities to avoid foreclosure and remain in their homes,” said Ed Golding, HUD’s Principal Deputy Assistant Secretary for the Office of Housing. “While thousands of homeowners avoided foreclosure through this note sales program, we continue to explore new ways to help these families and to offer more opportunities for public-minded organizations to have a seat at the table.”

FHA’s new DASP enhancements include:

  • Principal Reduction/Capital Arrearage Forgiveness – Principal forgiveness is the first option investors must consider offering to borrowers when evaluating them for a modification.
  • Payment Shock Protection – FHA will limit interest rate increases to no more than one percent per year after a five-year period where the rate is fixed; this is consistent with the Home Affordable Modification Program (HAMP).
  • Walk-Away Prohibition – Effective immediately, FHA will prohibit any purchaser of single-family mortgages under DASP from abandoning lower value properties in order to prevent neighborhood blight.
  • Alternative Bidding for Non-Profit Buyers – This enhancement will allow qualified non-profit organizations to bid on a partial pool of notes up to five percent of a National Pool and to pay the reserve price. This alternative offers another opportunity for non-profit organizations and local governments to participate in DASP along with those announced last year (non-profit/government-only NSO pools and direct sales offerings).
  • Streamline Direct Sales to Interested Government Entities – FHA is providing new standard guidance on the sale of distressed mortgages directly to qualified government entities and local governments. This will provide greater education and awareness among these public entities which may be interested in participating in DASP.
  • Target loans for DASP sales based on the interest of non-profits and local governments-FHA will enhance its efforts to identify and offer loans in targeted distressed areas to non-profits and local governments. FHA will continue its outreach to solicit their interest in geographically targeted loan sales. These efforts are aimed at helping vulnerable neighborhoods maintain more stable communities.

Last year, FHA strengthened DASP to further help defaulting families still living in their homes and to allow for greater participation among non-profit organizations. FHA expanded a foreclosure moratorium from six-to-12 months, requiring purchasers of these distressed mortgages to suspend any foreclosure action against these families. In direct response to non-profit organizations seeking to participate in DASP auctions, FHA provided more advanced notice of pending sales and extended the due diligence periods to accommodate these organizations. In addition, FHA offered a ‘first look’ opportunity for non-profits to purchase vacant properties to be occupied by owner-occupants. Finally, FHA created specific pools of mortgages that would be exclusively offered to non-profit organizations and local governments.

Source: HUD

Fannie Mae Single Family Servicing News: Principal Reduction Servicer FAQs Updated and HFI InDepth Summer Specials

Posted on by Safeguard

Investor Update
June 22, 2016

Principal Reduction Servicer FAQ Document Updated

The Principal Reduction Modification Servicer FAQ document has been updated and posted to the business portal. Question 16 has been added. 

It’s Officially Summer! Sharpen your Investor Accounting Skills with HFI InDepth for Half the Price

Are you involved in investor accounting for your company? HFI™ InDepth virtual classes provide training in custodial accounting, reconciling actual/actual loans, and MBS accounting. You’ll learn tips for reporting on your loans and have access to an expert instructor who can answer your questions during a two-hour session from the comfort of your desk.

Regular price: $250
Summer price: $125 (June 20 through September 22, 2016)

Take advantage of the summer discount and register for one of these HFI InDepth classes today:

Webinar: Know Your Options Customer CARE

Know Your Options™ Customer CARE (Connect, Assess, Resolve, and Execute) provides participating servicers with free loss mitigation training that leverages a servicer’s ownership model to:

  • Develop rapport and establish consultative customer relationships.
  • Maintain quality right party contact throughout the default management process.
  • Properly position available workout solutions.

Learn more about this transformational re-design of the loss mitigation process at the next Know Your Options Customer CARE Call Flow & Script Training webinar on July 7. This two-hour session will provide program information and training on the Know Your Options Customer Care 7-Step Call Flow scripts and job aids.

Click here to register today.

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June 20, 2016

Source: Fannie Mae

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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