Safeguard Properties

FHFA: HARP Refinances Surpass 3.4 Million

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Investor Update
May 16, 2016

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that more than 3.4 million homeowners have refinanced their mortgages through the Home Affordable Refinance Program (HARP).  FHFA’s first quarter Refinance Report shows that more than 19,000 HARP refinances were completed through March, bringing the total to 3,400,543 refinances since the program began in 2009. 

Eligible Borrowers Can Save Money

HARP expires at the end of this year and there are still more than 325,000 U.S. borrowers  eligible for the program who have a financial incentive to refinance.  These so called “in-the-money” 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. 

Final HARP Webinar

FHFA will hold its final HARP outreach webinar on May 24 to provide community leaders with tools to help encourage eligible borrowers to take advantage of HARP before it expires.  FHFA will be joined by representatives from Freddie Mac, Fannie Mae, the U.S. Department of the Treasury, Quicken Loans, and Neighborworks America.  Register for the webinar here.

Also in the Refinance Report:

  • In the first quarter, 22 percent of HARP refinances were for borrowers with loan-to-value ratios greater than 105 percent.
  • In the first quarter, 25 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.

FHFA and the Treasury Department introduced HARP in early 2009 as part of the Making Home Affordable program.  HARP allows borrowers who are current on their mortgage payments, but have little or no equity in their home, take advantage of low interest rates and other refinancing benefits.

FHFA launched a nationwide public awareness campaign and the website HARP.gov and HARP.gov/espanol in 2013 to reach eligible borrowers.  Since 2014, FHFA has held a series of outreach events in the cities with the highest numbers of eligible borrowers: Chicago, Atlanta, Detroit, Miami, Newark and Phoenix.  FHFA has also hosted webinars designed to reach eligible borrowers in Ohio and Maryland, and conducted several social media campaigns to raise awareness about the savings available through HARP.  Follow @FHFA and #HARPNow on Twitter, LinkedIn and YouTube for more information.

Link to Refinance Report

Link to HARP.gov

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

Source: FHFA

FHFA: Foreclosure Prevention Report

Posted on by Safeguard

Investor Update
May 10, 2016

February 2016 Highlights
The Enterprises’ Foreclosure Prevention Actions:

  • The Enterprises completed 16,208 foreclosure prevention actions in February 2016, bringing the total to 3,674,849 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
  • There were 10,095 permanent loan modifications in February, bringing the total to 1,918,846 since the conservatorships began in September 2008.
  • The share of modifications with principal forbearance decreased to 18 percent. Modifications with extend-term only remained at 48 percent of all permanent modifications in February due to improved house prices and a declining HAMP eligible population.
  • There were 2,235 short sales and deeds-in-lieu completed in February, down 4 percent compared with January.

The Enterprises’ Mortgage Performance:

  • The serious delinquency rate decreased from 1.47 percent at the end of January to 1.42 percent at the end of February.

The Enterprises’ Foreclosures:

  • Third-party and foreclosure sales declined 15 percent from 9,062 in January to 7,716 in February.
  • Foreclosure starts increased 20 percent from 17,831 in January to 21,369 in February.

Attachments: Foreclosure Prevention Report – February 2016

Source: FHFA

FHA REO Management and Marketing Contractors

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Investor Update
May 19, 2016

FHA Management and Marketing Structure (M&M III)

In 2010, HUD launched the third generation of its Management and Marketing (M&M) program, known as M&M III. These new contracts streamline HUD’s operations, capitalize on the expertise of its potential vendors, and provide flexibility to meet changing market conditions in the REO industry.

Since 1999, HUD has been outsourcing the disposition of its foreclosed FHA inventory under the M&M contracting process. M&M Contractors manage and market single-family properties owned by, or in the custody of the Department. HUD-owned houses are often referred to as HUD Homes. These are homes that had an FHA-insured mortgage, the homeowners defaulted, and the lender foreclosed. The lender then deeded the home to the Secretary of HUD in exchange for an insurance claim payment.

Under prior agreements, M&M contractors were responsible for both maintenance and marketing of the Department’s real estate-owned or REO properties. However, under M&M III these functions have been separated to increase the effectiveness of the Department’s asset disposition program.

The Mortgagee Compliance Manager is responsible for ensuring compliance with HUD’s conveyance standards as related to title, occupancy, and property condition.  Field Service Managers are responsible for property maintenance and preservation and the Asset Managers are responsible for the sale of the homes.  There will be one Mortgagee Compliance Manager located in Oklahoma City, Oklahoma.  HUD’s National Servicing Center will have direct oversight over the Mortgage Compliance Manager.  There will be one Field Service Manager and one Asset Manager contractor in an area.  Each contractor will establish an office within its awarded geographic area.  HUD’s Homeownership Centers in Atlanta, Georgia; Denver, Colorado; Philadelphia, Pennsylvania and Santa Ana, California are responsible for the direct oversight of the contracts for the Field Service Manager and Asset Manager within their respective jurisdictions.  A map of all M&M III contract areas is available  here.

The key elements of the disposition structure include:

  • Mortgagee Compliance Manager (MCM)
  • Field Service Manager (FSM)
  • Asset Manager (AM)


Mortgagee Compliance Manager (MCM)

The Mortgagee Compliance Manager (MCM) performs a variety of pre- and post- property conveyance services to ensure that HUD’s interests are protected. These services include: reviewing property inspections to ensure the property is in conveyance condition; resolving conveyance exceptions; providing guidance to Mortgagees related to pre-conveyance and post-conveyance responsibilities; and leveraging HUD’s software and information systems to execute and complete the tasks within this contract.

Field Service Manager (FSM)

Field Service Managers (FSM) are companies that provide property preservation and protection services consisting of, but not limited to, inspecting the property, securing the property, performing cosmetic enhancements/repairs, and providing on-going maintenance. Properties acquired by HUD are assigned to FSMs.  There is one contractor per geographic area for each HOC.


Asset Manager (AM)

The Asset Managers (AM) are responsible for the marketing and sale of REO property.  There will be one AM contractor to market HUD-owned properties within the selected contract area. FHA property listings and property agent contact information are available at HUD’s REO listing site, HUD Home Store.

For further information, please visit the FHA Resource Center.

Source: HUD

FHA INFO #16-31: Home Equity Conversion Mortgage Proposed Rule Published Today in the Federal Register

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Investor Update
May 19, 2016

Today, the Federal Housing Administration (FHA) published its Home Equity Conversion Mortgage (HECM) proposed rule, Strengthening the Home Equity Conversion Mortgage Program (FR-5353-P-01), in the Federal Register. This is a milestone step for FHA in its efforts to ensure the continued viability of its HECM program. The proposed rule updates the regulations (24 CFR Parts 30 and 206), consolidating all HECM regulations into one document for public comment with the intent to:

  • Codify previously implemented requirements;
  • Propose new requirements that reflect FHA’s need to manage the risk to the Mutual Mortgage Insurance Fund, while maintaining the program in a manner that assists seniors in using the HECM program to access the equity in their homes;
  • Propose clarifications and corrections to existing HECM regulatory language; and
  • Replace certain references in 24 CFR Part 203 by incorporating those requirements in 24 CFR Part 206.

FHA is soliciting public comments on the proposed rule during a 60-day public comment period. All comments must be submitted to FHA through the formal methods detailed in the proposed rule.

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

Additional Resources:

HUD (FHA Proposes to Strengthen Reverse Mortgage Program)

DS News (FHA Proposes Enhancements to HECM Program)

Fannie Mae: Updated Maryland AAA Matrix

Posted on by Safeguard

Investor Update
May 4, 2016

The AAA Matrix provides state-specific excess fee process guidelines and includes an excess fee process overview, as well as additional procedures and specific fee request requirements.
 
The matrix refers to applicable Servicing Guide provisions and other policies. Fannie Mae provides the AAA Matrix directly to the attorneys and updates the matrices as needed.
 
The process encompasses only attorney fees for legal services provided. It does not cover costs (anything other than an attorney fee). We review and reimburse costs to servicers through the expense reimbursement (or claims) process.
 
Only attorneys may submit excess fee requests. Fannie Mae does not accept excess fee requests from servicers.

Source: Fannie Mae (Excess Attorney Fee Guidelines page full version)

Fannie Mae: Updated AAA Matrix

Posted on by Safeguard

Investor Update
May 31, 2016

The AAA Matrix provides state-specific excess fee process guidelines and includes an excess fee process overview, as well as additional procedures and specific fee request requirements.
 
The matrix refers to applicable Servicing Guide provisions and other policies. Fannie Mae provides the AAA Matrix directly to the attorneys and updates the matrices as needed.
 
The process encompasses only attorney fees for legal services provided. It does not cover costs (anything other than an attorney fee). We review and reimburse costs to servicers through the expense reimbursement (or claims) process.
 
Only attorneys may submit excess fee requests. Fannie Mae does not accept excess fee requests from servicers.

Source: Fannie Mae (Excess Attorney Fee Guidelines page full version)

Fannie Mae: Updated AAA Matrix

Posted on by Safeguard

Investor Update
May 13, 2016

The AAA Matrix provides state-specific excess fee process guidelines and includes an excess fee process overview, as well as additional procedures and specific fee request requirements.
 
The matrix refers to applicable Servicing Guide provisions and other policies. Fannie Mae provides the AAA Matrix directly to the attorneys and updates the matrices as needed.
 
The process encompasses only attorney fees for legal services provided. It does not cover costs (anything other than an attorney fee). We review and reimburse costs to servicers through the expense reimbursement (or claims) process.
 
Only attorneys may submit excess fee requests. Fannie Mae does not accept excess fee requests from servicers.

Source: Fannie Mae (Excess Attorney Fee Guidelines page full version)

Fannie Mae Standard Modification Interest Rate Exhibit

Posted on by Safeguard

Investor Update
May 6, 2016

The Fannie Mae Standard Modification Interest Rate is subject to periodic adjustments based on an evaluation of prevailing market rates. The servicer must use the current Fannie Mae Standard Modification Interest Rate indicated below when evaluating a borrower for a conventional mortgage loan modification, excluding Fannie Mae HAMP Modifications.

NOTE: As a reminder, the interest rate used to determine the final modification terms must be the same fixed interest rate that was used when determining eligibility for the Trial Period Plan and calculating the Trial Period Plan payment.

The following table provides the current Fannie Mae Standard Modification Interest Rate as well as historical adjustments.

Effective Date
May 13, 2016*
March 14, 2016
February 12, 2016
December 14, 2015
November 13, 2015
September 15, 2015
July 14, 2015
June 12, 2015
May 14, 2015
April 14, 2015
February 13, 2015
January 15, 2015
November 14, 2014
October 14, 2014
September 15, 2014
July 14, 2014
September 1, 2013
December 1, 2012
September 1, 2012
January 2, 2012

Interest Rate
3.625%
3.750%
3.875%
4.000%
3.875%
4.000%
4.250%
4.125%
4.000%
4.125%
4.000%
4.125%
4.250%
4.500%
4.375%
4.500%
4.625%
4.000%
4.250%
4.625% 

* Current Fannie Mae Standard Modification Interest Rate

Source: Fannie Mae

Additional Resource:
DS News (Servicers Get Some Help from the GSEs)

Fannie Mae Single Family Servicing News: Announcement SVC-2016-04: Servicing Guide Updates; MBA Secondary Reminder

Posted on by Safeguard

Investor Update
May 11, 2016

Visit Us at MBA Secondary – Find Out How We Can Help You Achieve Your Goals

Looking for easy-to-use tools to simplify your business? Innovative solutions to reduce risk? New programs to serve your borrowers? Stop by Booth #205 and our Open House in the Manhattan Ballroom (8th floor lobby) at the MBA’s National Secondary Market Conference & Expo 2016. On May 16 – 17, meet with our experts to learn how we can help you achieve your goals.

We put your business at the center of everything we do
When you partner with us, you don’t just have access to a market leader to guide and support you. You benefit from:

  • A dedicated customer support team that knows your business.
  • Reliable, end-to-end Fannie Mae Technology Solutions, including:
  • Collateral Underwriter®
  • Desktop Underwriter®
  • Fannie Mae Connect™
  • Pricing & Execution – Whole Loan™
  • Servicing Execution Tool™
  • Mortgage products, like HomeReady®, that serve borrowers’ unique financing needs.
  • Bulk processes and customized solutions to address your portfolio needs.


Drop in and visit
We’ll tell you about how we’re making it easier for you to do business with us. On Monday at 4 p.m., you can’t miss us — we’ll be right next door to MBA’s Networking Reception in the Broadway Lounge. We hope to see you there.

Follow on Twitter
On Twitter? Follow @FannieMaeB2B for updates and more from MBA Secondary. And join the conversation using #MBASecondary16!

Conference Overview  >

Webinar: Introduction to Fannie Mae’s Principal Reduction Modification

Join Fannie Mae for an introduction to Fannie Mae’s Principal Reduction Modification in accordance with Lender Letter LL-2016-02.

The webinar will provide an overview of the Principal Reduction Modification, as well as effective dates, eligibility criteria, modification terms, solicitation letter, opt-out letter, handling active trial period plans for other modifications, and entry into the HomeSaver Solutions™ Network.

Please register here to take advantage of this opportunity.

Webinar Overview   >

Build New Skills with HFI InDepth

With Housing Finance Institute® (HFI™) InDepth, you’ll learn from expert instructors and get your questions answered — all in an online virtual classroom. Register today for an upcoming course:

Visit Fannie Mae’s HFI InDepth page today to see the full calendar of classes and to register!

View Upcoming Courses   >

Recent Tweets

Have you seen the list of top trending questions from servicers received from the Servicing Solutions Center?
https://t.co/rMSNM4YAE3

May 11, 2016
 
Our Marketing Center is a free online tool servicers can use to access, customize a variety of marketing materials:
https://t.co/gFcuSFHovn

May 10, 2016

Source: Fannie Mae 

Fannie Mae: Know Your Options Customer CARE Call Flow & Script Training

Posted on by Safeguard

Investor Update
May 16, 2016

Servicing training

The Housing Finance Institute® (HFI™) Servicing Training page provides Fannie Mae training on servicing processes, applications and best practices. Training solutions include HFI InDepth virtual classrooms, HFI Spotlight webinars, and HFI OnDemand eLearning courses, job aids, and FAQs.

Source: Fannie Mae (Servicing Training page full version)