Page 363 – Safeguard Properties

FHFA: Foreclosure Prevention Actions Approaching 3.6 Million Through Third Quarter 2015

Posted on September 13, 2018 by Safeguard

Investor Update
December 16, 2015

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today reported that Fannie Mae and Freddie Mac completed 54,744 foreclosure prevention actions in the third quarter of 2015, bringing the total number of foreclosure prevention actions to just under 3.6 million since the start of the conservatorships in September 2008. These measures have helped more than 2.9 million borrowers stay in their homes, including more than 1.8 million who received permanent loan modifications.

Further details can be found in FHFA’s third 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 60+ day delinquent loans declined another 3 percent during the quarter.?
The REO inventory of Fannie Mae and Freddie Mac declined 11 percent during the third quarter to 77,204.
The serious delinquency rate of Fannie Mae and Freddie Mac loans fell to 1.5 percent at the end of the third quarter.

Link to Report

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

Source: FHFA

FHA INFO #15-90 2016 Nationwide Forward Mortgage Limits/2016 Nationwide Home Equity Conversion Mortgages (HECM) Limits

Posted on September 13, 2018 by Safeguard

Investor Update
December 9, 2015

In this Announcement:

2016 Nationwide Forward Mortgage Limits Mortgagee Letter
2016 Nationwide Home Equity Conversion Mortgage (HECM) Limits Mortgagee Letter

See below for details.

2016 Nationwide Forward Mortgage Limits

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2015-30: 2016 Nationwide Forward Mortgage Limits, which provides the maximum mortgage limits for FHA-insured mortgages. There are no changes to the low cost area and high cost area limits for Title II forward mortgages—as referenced in Section II.A.2.a.ii of the FHA Single Family Housing Policy Handbook 4000.1—for calendar year 2016.

Loan limits increased in 188 counties. The loan limit increases in these areas range from $350 to $115,350. To enable Mortgagees to easily identify areas with loan limit increases, FHA has published a separate list of counties with loan limit increases. Mortgagees may view this list along with a list of areas at the ceiling and a list of areas between the floor and ceiling on the Maximum Mortgage Limits web page. FHA forward mortgage limits are also available by MSA and county, or by downloading a complete listing from HUD.gov.

There are no jurisdictions with a decrease in loan limits from the 2015 levels.

The loan limits are effective for case numbers assigned on or after January 1, 2016, and remain effective through December 31, 2016.

Forward mortgage and HECM loan limits are publishing separately due to forward mortgages having been incorporated into HUD Handbook 4000.1.

Quick Links

View Mortgagee Letter 2015-30 and other Mortgagee Letters at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
View 2016 forward mortgage limit attachments:
– FHA mortgage limits by MSA and County at: https://entp.hud.gov/idapp/html/hicostlook.cfm
– Complete listing of FHA loan limits at: http://www.hud.gov/pub/chums/file_layouts.html
– Maximum Mortgage Limits web page at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lender/origination/mortgage_limits
View the online or portable document format (PDF) versions of HUD Handbook 4000.1 at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

2016 Nationwide Home Equity Conversion Mortgages (HECM) Limits

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2015-29: 2016 Nationwide Home Equity Conversion Mortgage (HECM) Limits, which provides the 2016 maximum claims amounts for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances. The HECM nationwide claim amount limitations for 2016 remain unchanged at $625,500 for all areas. These limits are applicable for case numbers assigned on or after January 1, 2016.

FHA published its Home Equity Conversion Mortgage (HECM) and Title II forward mortgage loan limits separately this year due to forward mortgages having been incorporated into the FHA Single Family Housing Policy Handbook 4000.1. For details on FHA’s 2016 maximum HECM loan limits, refer to Mortgagee Letter 2015-29.

Quick Links

View Mortgagee Letter 2015-29 and other Mortgagee Letters
at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

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 Information Relay Service at 1-800-877-8339.

Source: HUD (FHA INFO #15-90 full version)

FHA INFO #15-89 Home Equity Conversion Mortgage (HECM) Mortgagee Optional Election Assignment Extension to 60-Day Assessment

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

Investor Update
December 7, 2015

The Federal Housing Administration (FHA) has been advised that certain states’ probate procedures may impede a Non-Borrowing Spouse’s ability to obtain title or establish the legal right to remain in the property secured by the Home Equity Conversion Mortgage (HECM) before the deadline for a mortgagee to complete its assessment following the mortgagee’s Mortgagee Optional Election (MOE) Assignment election as required by Mortgagee Letter 2015-15. Mortgagees may request an extension of 60 days in these circumstances for the mortgagee to confirm that the Non-Borrowing Spouse has secured title or the legal right to remain in the property and to complete the 60-day assessment provided that:

The mortgagee confirms the Non-Borrowing Spouse’s inability to timely obtain legal title or some other legal right to remain was wholly outside of the Non-Borrowing Spouse’s control; and
The mortgagee has no reason to believe that the Non-Borrowing Spouse will be unable to secure legal title or some other legal right to remain in the property.

To request a 60-day extension, mortgagees must upload into FHA’s Home Equity Reverse Mortgage Information Technology system (HERMIT) documentation that demonstrates that the inability to timely obtain title or the legal right to remain in the property was wholly outside of the Non-Borrowing Spouse’s control. Any extension granted terminates immediately should the mortgagee learn that the Non-Borrowing Spouse will be unable to obtain either legal title or some legal right to remain in the property. In the event that the extension is terminated, the mortgagee must adhere to the guidance provided by Mortgagee Letter 2015-15, where appropriate.

Quick Links:

View Mortgagee Letter 2015-15 at http://portal.hud.gov/hudportal/documents/huddoc?id=15-15ml.pdf

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 Information Relay Service at 1-800-877-8339.

Source: HUD (FHA INFO #15-89 full version)

Fannie Mae Standard Modification Interest Rate Exhibit

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

Investor Update
December 9, 2015

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

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

4.000%
3.875%
4.000%
4.250%
4.125%
4.000%
4.125%
4.000%
4.125%
4.250%
4.500%
4.625%
4.500%
4.625%
4.000%
4.250%
4.625%

* Current Fannie Mae Standard Modification Interest Rate

Source: Fannie Mae

Additional Resource:
Fannie Mae, Freddie Mac roll mortgage modification interest rate back to 4% (HousingWire 12/9/15)

Fannie Mae Servicing Guide Announcement SVC-2015-15 Servicing Guide Updates

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

Investor Update
December 16, 2015

Servicing Guide Updates

The Servicing Guide has been updated to include the following:

Updates to the Servicing Defect Remedies Framework
Updates to Borrower Outreach Requirements
Updates to Requirements Related to Execution and Retention of Loan Modification Agreements
Updates to SCRA – Notification and Calculating Payment Requirements
Extension of Increased Borrower Incentives for Mortgage Release™
Clarifications Related to Property Inspections for Mortgage Release
Updates to the Forbearance Extension Request Template
Updates to Filing Proofs of Claim – Form 410A
Reminder of the Servicer’s Obligation to Escalate All Non-Routine Litigation
Miscellaneous Revisions

Source Fannie Mae (Servicing Guide Announcement SVC-2015-15 full version)

Fannie Mae: Revised Webinar on Expanded Borrower “Pay for Performance” Incentives

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

Investor Update
December 2, 2015

An updated recorded webinar is now available regarding policy requirements for the Expanded Borrower “Pay for Performance” Incentives for Fannie Mae HAMP Modifications.

The webinar provides information on the expanded borrower “pay for performance” incentives, and focuses on eligibility and the servicer’s requirements related to:
The expanded incentive.
Form 720 and Treasury’s “Dodd Frank Certification.”
Re-amortization of the mortgage loan.
Application of incentives.

The updated webinar reflects policy revisions from Servicing Guide Announcements SVC-2015-09, SVC-2015-10, SVC-2015-11, SVC-2015-12, and SVC-2015-14.

Click here to access the recorded webinar.

Source: Fannie Mae

Fannie Mae: Excess Attorney Fee Request Guidelines Updates

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

Updated 2/12/16: Fannie Mae has posted an updated version of the New Jersey AAA Matrix to the Excess Attorney Fee Guidelines webpage.

Link to webpage

Investor Update
December 24, 2015

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

Fannie Mae Announces Technology Release to Help Additional Struggling Borrowers

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

Investor Update
December 8, 2015

WASHINGTON, DC – Fannie Mae (FNMA/OTC) has updated its Servicing Management Default Underwriter™ tool to support a recently announced policy change that helps its servicers provide foreclosure prevention help to additional borrowers. By making this change, Fannie Mae will save its servicers the time, expense and complexity of implementing it on their own.

The recently announced policy change requires servicers to calculate the borrower’s full mortgage obligation, including the outstanding principal balance, past due interest and other arrearages, to determine eligibility for a Fannie Mae Standard Modification or Streamlined Modification. Previously, just the outstanding principal balance was used. As a result of the change, a greater number of borrowers facing financial hardship will qualify for assistance and a greater number will receive additional payment relief under their mortgage loan modification. The new policy can be found in Fannie Mae’s September 9, 2015 Servicing Guide Announcement.

“We are continuously looking for ways to help struggling Fannie Mae borrowers,” said Joy Cianci, Senior Vice President, Credit Portfolio Management, Fannie Mae. “With this technology update, our servicers will be able to help more struggling borrowers sooner since we are implementing the policy change directly in the tool.”

While servicers must implement the new policy by March 1, 2016, Fannie Mae updated Servicing Management Default Underwriter as of the weekend of December 5, 2015 so that borrowers can benefit from the change more quickly.

Servicing Management Default Underwriter is used by many Fannie Mae servicers to determine what foreclosure prevention options are available to help a borrower facing financial difficulty. The tool provides real time evaluation capabilities so that servicers can provide timely, responsive and effective help to borrowers. Additional information is available on Fannie Mae’s website.

Source: Fannie Mae

Fannie Mae Announces Eviction Moratorium for the Holidays

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

Investor Update
December 10, 2015

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that it will suspend evictions of foreclosed single-family properties during the holiday season. The suspension of evictions will apply to single-family and 2-4 unit properties from December 18, 2015 through January 3, 2016. During this period, legal and administrative proceedings for evictions may continue, but families will be allowed to remain in the home.

“As we have done in past years, we are suspending evictions during the holidays,” said Joy Cianci, Senior Vice President of Credit Portfolio Management for Fannie Mae. “We also continue to remind homeowners who may be struggling with their mortgages to reach out for help. Options are available to avoid foreclosure, and we want to help pursue those options whenever possible.”

Homeowners can visit www.knowyouroptions.com for resources on how to prevent foreclosure, including how to find out if Fannie Mae owns their loan. Homeowners can also contact Fannie Mae at 1-800-7FANNIE for more information.

Source: Fannie Mae

Expansion of FHFA?s Neighborhood Stabilization Initiative Effective Today

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

Investor Update
December 1, 2015

On November 10, FHFA announced that it was expanding the Neighborhood Stabilization Initiative (NSI) to 18 additional metropolitan areas around the country. This NSI expansion is effective today, December 1. In these 18 new NSI areas, which are listed below, nonprofits and other community organizations now have the exclusive opportunity to buy foreclosed properties owned by Fannie Mae or Freddie Mac before those properties are listed for sale to the general public:

Akron, OH;
Atlanta-Sandy Springs-Roswell, GA;
Baltimore-Columbia-Towson, MD;
Chicago-Naperville-Elgin, IL;
Cincinnati, OH-KY-IN;
Cleveland-Elyria, OH;
Columbus, OH;
Dayton, OH;
Detroit-Warren-Dearborn, MI;
Jacksonville, FL;
Miami-Fort Lauderdale-West Palm Beach, FL;
New York-Newark-Jersey City, NY-NJ-PA;
Orlando-Kissimmee-Sanford, FL;
Philadelphia-Camden-Wilmington, PA-NJ-DE;
Pittsburgh, PA;
St. Louis, MO;
Tampa-St. Petersburg-Clearwater, FL, and
Toledo, OH

Foreclosed homes can sometimes remain vacant for months, or even years, which can have a negative impact on neighborhoods. The impact can be even worse when there are multiple foreclosed properties in a single community.

Some parts of the country have seen their housing market recover, but in other communities the number of foreclosed properties owned by financial institutions remains elevated. These markets present unique challenges such as steep home-price declines, high vacancy rates, and weak sales activity. To address this issue, FHFA worked with Fannie Mae and Freddie Mac to develop NSI to stabilize neighborhoods that continue to face challenges resulting from the housing downturn.

We started NSI as a pilot program last year in Detroit – one of the hardest hit cities in the country – and earlier this year expanded the pilot to Cook County, Illinois, covering Chicago and many of its suburbs. A central element of NSI is the partnership between Fannie Mae and Freddie Mac and the National Community Stabilization Trust (NCST), a national nonprofit organization that is experienced in helping to stabilize distressed communities. NCST has ties to “boots on the ground” community organizations and we know that partnerships with local community buyers are critical to the success of programs like NSI.

How will NSI work? In the markets where we’ve expanded NSI, foreclosed homes that have not yet been listed for public sale will be presented to NCST-approved community buyers that will have the exclusive opportunity to evaluate and purchase them. The primary goal is to sell the homes to local organizations that can fix them up and bring them to market for people to live in again, either as owners or renters. Homes will be offered to these community buyers at prices that reflect savings on things like marketing, upkeep, utilities and taxes – costs Fannie Mae and Freddie Mac would have paid through the normal process of disposing of foreclosed homes. Faster sales to organizations that have a vested interest in helping stabilize their communities will provide support to the neighborhoods that need it most.

We know that the recovery in the housing sector has not been balanced. Home prices have increased in some neighborhoods but not in others. I’ve personally visited some distressed communities and believe NSI is a great way to address challenging housing markets in neighborhoods across the country.

Local organizations experienced in community stabilization are encouraged to contact NCST at newbuyer@stabilizationtrust.com to inquire about becoming qualified as a community buyer. For more information on NSI, check out the links to our news release, fact sheet and interactive map.

Tagged: Foreclosure

By: Sandra Thompson
Deputy Director of FHFA’s Division of Housing Mission and Goals

Source: FHFA