Safeguard Properties

Consumer Financial Protection Bureau Announces Changes To Senior Leadership

Posted on 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

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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

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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

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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

OCC Bulletin 2016-20: Servicemembers Civil Relief Act

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Investor Update
June 10, 2016

Description: Extension of Time Period for Certain Protections

Summary

This bulletin informs national banks, federal savings associations, and federal branches and agencies of foreign banks (OCC-supervised institutions) of the temporary extension of certain protections under the Servicemembers Civil Relief Act (SCRA), enacted by the Foreclosure Relief and Extension for Servicemembers Act of 2015.
 
Note for Community Banks

This guidance is applicable to all OCC-supervised institutions that extend loans secured by a mortgage, trust deed, or other similar security to servicemembers.
 
Highlights

  • The SCRA amendments continue a temporary provision that extends for one year following a servicemember’s period of military service the protections related to the sale, foreclosure, or seizure of the servicemember’s mortgaged property, or the filing of a legal action to enforce a mortgage obligation or other similarly secured obligation.
  • The temporary extension expires on December 31, 2017.
  • The U.S. Department of Housing and Urban Development (HUD) updated its “Servicemembers Civil Relief Act Notice Disclosure” (Form 92070) to reflect the extensions.

Background

Section 303 of the SCRA, codified at 50 USC 3953, addresses obligations secured by a mortgage, trust deed, or other security similar to a mortgage on real or personal property owned by a servicemember. The provision applies only to obligations that originated before the servicemember’s military service and for which the servicemember is still obligated.

On March 31, 2016, President Obama signed into law the Foreclosure Relief and Extension for Servicemembers Act of 2015 (Pub. L. 114-142). This act extended again, on a temporary basis, the duration of coverage applicable to the section 303 protections for obligations described above from nine months to one year after a servicemember’s military service. (See OCC Bulletin 2015-21, “Servicemembers Civil Relief Act: Extension of Time Period for Certain Protections.”)

The temporary extension specifies that

  • a sale, foreclosure, or seizure of property based on a breach of a secured obligation is not valid if made during the period of military service or within one year thereafter, unless it is made pursuant to a court order or a waiver by the servicemember; and
  • a court may, on its own motion, and shall, upon application by a servicemember whose ability to comply with the obligation is materially affected by military service, stay the proceedings or adjust the obligation to preserve the interests of all parties at any time during the period of military service or within one year thereafter.

This extension ends December 31, 2017. Unless Congress enacts another extension, beginning January 1, 2018, there will be a period of 90 days after the end of the servicemember’s military service during which a foreclosure, sale, or seizure of the servicemember’s property based on a breach of a mortgage, trust deed, or other security, without a court order or waiver, will not be valid. During this period, a court may also stay proceedings enforcing such obligations.

The Housing and Urban Development Act of 1968, 12 USC 1701x(c)(5), requires lenders to send a notice of servicemembers’ rights to borrowers within 45 days of the date a missed payment was due on a mortgage secured by the borrower’s principal residence, unless the borrower pays the past-due amount before the expiration of the 45-day period. The contents of the notice are prescribed in HUD’s “Servicemembers Civil Relief Act Notice Disclosure.”

Further Information

Please contact the Compliance Risk Division at (202) 649-5470, the appropriate supervisory office, or the Community and Consumer Law Division at (202) 649-6350.

Donna M. Murphy
Deputy Comptroller for Compliance Risk

Related Links

Source: OCC

MHA HAMP Reporting Update Updated Data Dictionaries Posted

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Investor Update
June 30, 2016

In connection with the August 2016 release of the HAMP® Reporting System, updated versions of the following Data Dictionaries were posted on HMPadmin.com:

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

Source: MHA

MHA HAMP Reporting Update Streamline HAMP NPV Tool 2016 Q2 Supplemental Data Update Available

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Investor Update
July 1, 2016

A supplemental data update of the Streamline HAMP NPV Tool v1.0 is now available for servicers interested in offering Streamline HAMP under the Home Affordable Modification ProgramSM.

Servicers can access the new file in the Streamline HAMP NPV Tool and Documentation section on the secure side of HMPadmin.com (login required).

The Streamline HAMP NPV Tool is designed to help servicers evaluate their portfolio and determine their policies for offering Streamline HAMP. Information about its development and use is available in the accompanying documentation.

The Streamline HAMP NPV Tool and documentation are subject to the license and other terms and conditions in the Terms of Use of HMPadmin.com.

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

Source: MHA

MHA HAMP Reporting Update Q2 2016 Base NPV Documentation Supplement Available

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Investor Update
June 3, 2016

The Q2 2016 Base NPV Model Documentation Supplement is now available for the Home Affordable Modification ProgramSM (HAMP®) for use with Base NPV Model Version 7.0 beginning July 1, 2016. The supplement provides the following:

  • REO Sale Value Parameters
  • Historical and Projected Home Price Index
  • Foreclosure and REO Disposition Timelines and Costs
  • Home Price Decline Protection Incentive Matrix
  • Default Model Parameters
  • Pre-payment Model Parameters
  • HAMP Tier 2 Assumptions and Parameters

Servicers can access the Q2 2016 Base NPV Model Documentation Supplement in the Base NPV Model Tools & Documents section of HMPadmin.com (login required).

Important Actions for Certain Servicers: HAMP-registered servicers using an NPV model that has been implemented or customized for their own systems must implement the new Q2 2016 data tables for use beginning July 1, 2016.

To fulfill model versioning requirements, servicers should continue to use the Q1 2016 data tables for April 1 through June 30, 2016, and other appropriate supplement data tables for earlier quarters.

FHA Non Performing Loan Sale (NPL) Job Aid Posted

In connection with recent HUD guidance, MHA has created the FHA NPL Job Aid to assist servicers with setting up Servicing Transfers (SVT) of FHA NPL populations. This job aid is posted on the Learning Center tab under Job Aids on HMPadmin.com.

Please refer to this document for instructions on how to process FHA NPL servicing transfer requests to the HAMP Reporting Tool.

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

Source: MHA

MHA HAMP Reporting Update May 2016 UP Survey Now Available

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Investor Update
June 15, 2016

The May 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 Wednesday, June 22, 2016.

SPA servicers that have any cumulative UP activity as of May 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

MHA HAMP Reporting Update Independence Day Holiday Support and System Availability

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Investor Update
June 27, 2016

Due to the observance of Independence Day, the HAMP® Reporting System response files will not be available between 8:00 p.m. ET on Friday, July 1, 2015 and 8:00 a.m. ET on Tuesday, July 5, 2015.

During this time frame, the HAMP Reporting Tool will be available for servicers to submit and upload HAMP loan data files and the corresponding response files will be provided.

The HAMP Solution Center (HSC) will close at 3:00 p.m. ET on Friday, July 1, 2016 and will resume operations at 9:00 a.m. ET on Tuesday, July 5, 2016. Servicers may contact the HSC by phone or email at any time; however, phone messages and emails will be held in queue until the center reopens on Tuesday.

The NPV Transaction Portal will be available for normal processing during this period.

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

Source: MHA