Safeguard Properties

MHA HAMP Reporting Update December 2015 UP Survey Now Available

Posted on by Safeguard

Investor Update
January 15, 2016

The December 2015 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 Monday, January 25, 2016.

SPA servicers that have any cumulative UP activity as of December 31, 2015 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

GAO-16-279R: Troubled Asset Relief Program: Status of Housing Programs

Posted on by Safeguard

Investor Update
January 8, 2016

What GAO Found
 
As of October 31, 2015, three Troubled Asset Relief Program (TARP) housing programs— Making Home Affordable (MHA), Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (Hardest Hit Fund or HHF), and Federal Housing Administration’s Short Refinance Program (FHA Short Refinance)—remained active. Combined, the Department of the Treasury (Treasury) had obligated $37.51 billion to these three programs. As of October 31, 2015, Treasury had disbursed $18.34 billion (49 percent). The amount and percentage of disbursements varied across these programs.

  • Treasury had disbursed $12.59 billion (42 percent) of the $29.78 billion in TARP funds allocated to MHA programs as of October 2015. Of the $17.19 billion remaining, Treasury had committed $9.53 billion to the payment of future financial incentives with respect to existing MHA transactions. As of September 2015, approximately 2.5 million homeowner assistance actions had taken place under MHA programs, according to Treasury.
  • Treasury had disbursed $5.73 billion (75 percent) of the $7.6 billion it had allocated to the 18 states and the District of Columbia under HHF as of October 2015. The program had assisted 241,775 households as of September 2015.
  • Treasury had disbursed $0.02 billion (15 percent) of the $0.13 billion it had currently allocated to the FHA Short Refinance program as of October 2015. FHA had insured 4,156 loans that could require Treasury to pay claims to lenders in the event these loans incur losses, as of September 2015.


Why GAO Did This Study

The Emergency Economic Stabilization Act of 2008 provided GAO with broad oversight authorities for actions taken under TARP and included a provision that GAO report at least every 60 days on TARP activities and performance.  As a result, GAO has continued to monitor and provide updates on TARP programs.  This 60-day report provides an update on the status of Treasury’s disbursements and participation for TARP housing programs that were active as of October 31, 2015. This included the

  • MHA, which includes several programs intended to encourage the modification of eligible mortgages and provide other relief to distressed borrowers;
  • HHF, which supports innovative measures developed by state housing finance agencies and approved by Treasury to help borrowers in states hit hardest by the aftermath of the housing crisis; and
  • FHA Short Refinance, which provides underwater borrowers—those with properties that are worth less than the principal remaining on their mortgage—whose loans are current and are not insured by FHA with the opportunity to refinance into an FHA-insured mortgage.


What GAO Recommends
 
GAO is not making any recommendations in this report.
 
For more information, contact Mathew J. Scirè at (202) 512-8678 or sciremj@gao.gov or Daniel Garcia-Diaz at (202) 512-8678 or garciadiazd@gao.gov.

Source: GAO

Additional Resource:

GAO-16-279R Full Report [pdf]

Freddie Mac: Spoiler Alert: Our Preview Now Prevents Surprises Later

Posted on by Safeguard

Investor Update
January 19, 2016

A spoiler can be a good thing. Especially if it means you’ll be ready when there’s a change – like with our new Single-Family Seller/Servicer Guide (Guide) format.
 
In October, we provided resources for you to use to become familiar with the reorganized Guide. Now, we’re expanding the preview to include the reorganized Guide content that will be published in its final form on March 2, 2016.  
 
Check out the AllRegs® Guide preview site that now includes the Guide content in the new format. The preview looks just like it will when it goes live. You can browse through the preview Guide folders and become familiar with the new placement of Freddie Mac’s requirements. The preview incorporates Guide Bulletins through December 2015.
 
Get the Full Story

Visit the full preview site to become more familiar with the reorganized Guide and make sure to take advantage of the following Guide resources:

  • Sign up for our new Guide Reorganization webinar.
  • Use the updated Preliminary Guide Reorganization Mapping spreadsheet [xls] in conjunction with this full preview site to determine where current Guide content is located in the reorganized Guide.
  • Check out the Guide Reorganization Web page for information on how Guide chapters and sections will be numbered under the new format. 

Make sure the right people in your organization are ready for the reorganized Guide – forward this email to them today!

Source: Freddie Mac

Freddie Mac January 2016 Insight and Outlook

Posted on by Safeguard

Investor Update
January 29, 2016

MCLEAN, VA-Freddie Mac (OTCQB: FMCC) released today its monthly Insight & Outlook for January. This month’s Insight examines how the large investors’, backed by private equity, business model of buy-to-rent (B2R) operations stands in contrast to that of the more-familiar, professionally-managed apartment complexes. And the Outlook looks at the recent activity around the many underwater borrowers who chose to take advantage of the Home Affordable Refinance Program (HARP) whom are now choosing to “UnHARP” and refinance into a conventional mortgage loan as a result of rising home prices and declining mortgage rates.

Insight Highlights

  • In 2012, a new type of single-family rental business appeared. A few large investors, backed by private equity, started accumulating portfolios of single-family homes with the intention of renting and managing them. 
  • The single-family rental market expanded during the Great Recession, and, as of 2013, represented 35 percent of all rented housing units in the U.S.
  • Although buy-to-rent has attracted a great deal of attention, a recent paper finds that it remains a small part of the single-family housing market. Purchases by the eight firms studied totaled $16 billion from 2012 through 2014 and never exceeded 2 percent of the market in any of these three years.
  • The same paper finds that houses purchased by B2R firms tended to be newer, larger, and on smaller lots than houses purchased by other large investors consistent with the view that B2R firms intend to rent these houses for an extended period rather than resell them.


Outlook Highlights

  • Tracking data for fourth quarter 2015 growth has been negative and we’ve revised down our forecast for full-year 2015 real GDP growth a tenth of a percentage point to 1.9 percent. According to our forecast, 2016 will mark the sixth full year of sub-3-percent economic growth.
  • We’ve lowered our 2016 and 2017 forecast for headline consumer price inflation to 1.9 percent in both years. And core inflation is likely to remain well below the Federal Reserve’s target of two percent for the next two years.
  • Despite slow economic growth, general weakness in the overall economy, and turmoil in financial markets, housing and mortgage markets should sustain their momentum from last year.
  • Total home sales in 2015 were the highest since 2007, and we expect sales to rise another 3.7 percent in 2016. We’re expecting house price gains of 4.4 percent and 3.5 percent in 2016 and 2017, respectively.
  • “UnHARP” trends among borrowers who refinanced their HARP loan for a conventional loan:
  • Shorter Terms. Borrowers who UnHARPed prefer the 30-year fixed rate mortgage, but about 43 percent choose a 20-year or 15-year product, up from 25 percent in HARP loans.
  • Higher Home Values. The median appreciation of an UnHARPed borrower’s property is 24.6 percent in third quarter of 2015, up from just 9.5 percent in 2011. 
  • Interest Rate Reduction. Borrows who UnHARPed lower their interest rates between 0.6 and 1.5 percentage points.
  • Less Cash In.  Early in our sample, nearly one-quarter of all UnHARPed borrowers had to bring cash to closing to refinance. Now, less than 1 in 20 UnHARPed borrowers bring cash to closing.


Quote: Attributed to Sean Becketti, Chief Economist, Freddie Mac.

“Single family rental is a significant component of the rental market. Historically — and currently — it is dominated by individuals and small partnerships. The emergence of large-scale buy-to-rent investors in recent years potentially represents a new feature of this market sector. Undoubtedly, the house price collapse following 2006 provided large-scale operators with an extraordinary opportunity to launch their operations. But, while the data is mixed, there are some signs that large-scale firms intend to manage their large portfolios of single-family rentals as an on-going business.”

“The HARP program allowed millions of underwater borrowers with good payment history to refinance without paying down the balance of their current mortgage. Many borrowers who took advantage of HARP over the past five years now have built sufficient equity so they can UnHARP to a conventional refinance with little or no cash brought to closing. This is yet another indicator of the effectiveness of the HARP program. And yet there remains many thousands more who can still take advantage of the HARP program that are currently underwater on their mortgage that should be utilizing this highly successful program.”

Source: Freddie Mac (January 2016 Insight and Outlook full version)

Freddie Mac Extends Mortgage Relief to Borrowers Affected by Mississippi Storms

Posted on by Safeguard

Investor Update
January 6, 2016

MCLEAN, VA–(Marketwired – Jan 6, 2016) –  Freddie Mac’s (OTCQB: FMCC) full menu of disaster relief policies is now available to homeowners whose homes were damaged or destroyed by floods in Mississippi. Freddie Mac’s disaster relief policies are available to borrowers with homes in presidentially declared Major Disaster Areas where federal Individual Assistance programs are being made available to affected individuals and households. Freddie Mac is one of the nation’s largest investors in residential mortgages.

News Quote:

Attribute to Yvette Gilmore, Vice President of Single-Family Servicer Performance Management, Freddie Mac:

“Freddie Mac strongly encourages borrowers whose homes or businesses were harmed by the floods to immediately call their mortgage servicer to discuss mortgage relief. If their mortgage is owned or guaranteed by Freddie Mac they may qualify for our full range of options, which include forbearance on mortgage payments for up to one year.”

News Facts:

  • Freddie Mac disaster relief policies authorize mortgage servicers to help affected borrowers in presidentially declared Major Disaster Areas where federal Individual Assistance programs have been extended. A list of these areas can be found at http://www.fema.gov/disasters.
  • Freddie Mac mortgage relief options for affected borrowers in these areas include:
  • Suspending foreclosures by providing forbearance for up to 12 months;
  • Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and
  • Not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus.
  • Freddie Mac is also reminding servicers to consider borrowers who work in eligible disaster areas, but have homes in unaffected areas, for Freddie Mac’s standard relief policies, which include forbearance or mortgage modifications.
  • Affected borrowers should immediately contact their mortgage servicer — the company to which they send their monthly mortgage payment.
  • See http://www.freddiemac.com/singlefamily/service for a description of Freddie Mac disaster relief policies.

Source: Freddie Mac

Freddie Mac: Default and Workout Reporting Changes

Posted on by Safeguard

Investor Update
January 25, 2016

Today, based  on Servicer feedback, we’ve made default and workout reporting changes so it’s easier to do business with us.
 
What’s New?

  • Servicers are now able to directly change the reporting of a third-party sale to an REO status without submitting a rollback request.
  • We’ve updated our foreclosure sale reporting error codes to more accurately reflect today’s housing market and align with Servicers’ business needs.


What’s in it for Our Servicers?
 
Today’s updates should lead to a significant reduction in:

  • Rollback fees assessed and billed.
  • Time spent submitting Form 106, Rollback Request Form, tracking the status of rollback(s), and re-posting sales results.
  • Late foreclosure timeline reporting fees and corresponding appeals.
  • Corrections required for sales reporting errors.
  • REO properties that aren’t marketed in a timely manner.
  • For more information on common foreclosure sale errors, please read our updated Quick Reference [pdf].


Reminder
 
As announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-18, all mortgages subject to state foreclosure timeline compensatory fees will now be billed on a monthly basis regardless of the foreclosure referral date. For additional details, please read Guide Bulletin 2015-18 [pdf].

For More Information

 

Source: Freddie Mac

Freddie Mac: Compensatory Fee Analysis Report to be Reissued

Posted on by Safeguard

Investor Update
January 8, 2016

Your Foreclosure Timeline Compensatory Fee Analysis Report, available via Default Reporting ManagerSM, will be reissued on Monday, January 11, 2016, due to some inaccuracies. Please disregard the report that is currently available and use the updated report available Monday morning.

As a result, you will have until Wednesday, February 10 to submit your December foreclosure sale appeals.

If you have any questions, please contact your account representative or Customer Support (800-FREDDIE). We apologize for any inconvenience and thank you for your patience.

Source: Freddie Mac

FHFA: Foreclosure Prevention Report – October 2015

Posted on by Safeguard

Investor Update
January 13, 2016

October 2015 Highlights

The Enterprises’ Foreclosure Prevention Actions:

  • The Enterprises completed 17,121 foreclosure prevention actions in October 2015, bringing the total to 3,612,801 since the start of the conservatorships in September 2008. Over half of these actions have been permanent loan modifications.
  • There were 10,926 permanent loan modifications in October, bringing the total to 1,879,835 since the start of conservatorships.
  • The share of modifications with principal forbearanceincreased slightly to 20 percent. Modifications with extend-term only accounted for 48 percent of modifications in October due to improved house prices and a declining HAMP eligible population.
  • There were 2,744 short sales and deeds-in-lieu completed in October, up slightly compared with September.


The Enterprises’ Mortgage Performance:

  • The serious delinquency rate decreased slightly from 1.52 percent at the end of September to 1.50 percent at the end of October.


The Enterprises’ Foreclosures:

  • Third-party and foreclosure sales decreased slightly in October to 9,105, from 9,143 in September.
  • Foreclosure starts decreased 12 percent in October to 18,946, from 21,590 in September.??


Attachments: Foreclosure Prevention Report – October 2015

Source: FHFA

FHA INFO #16-01: Additional Extension of Certain Timeframes in Connection with Mortgagee Letters 2015-11 and 2015-26

Posted on by Safeguard

Investor Update
January 13, 2016

On January 12, 2016, the Federal Housing Administration (FHA) issued Mortgagee Letter (ML) 2016-01, Additional Extension of Certain Timeframes in Connection with Mortgagee Letter 2015-11 (Loss Mitigation Guidance for Home Equity Conversion Mortgages [HECMs] in Default due to Unpaid Property Charges) and Mortgagee Letter 2015-26. 

This Mortgagee Letter extends the time to submit a Due and Payable request as outlined in ML 2015-11. The new deadline is April 17, 2016. The extension applies to the timeframe in which a mortgagee must to take First Legal Action where the mortgagee is actively reviewing the borrower for loss mitigation in accordance with ML 2015-11.

The policies in this Mortgagee Letter affect the “Effective Date” sections of ML 2015-11 and the extension period provided in ML 2015-26. All other provisions in Mortgagee Letter 2015-11 remain in effect.

Provisions of this Mortgagee Letter will be incorporated into the Single Family Housing Policy Handbook 4000.1 in the future, as applicable.

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

Source: HUD (FHA INFO #1601 full version)

Fannie Mae: Servicer’s Obligation to Select and Retain Mortgage Default Counsel

Posted on by Safeguard

Investor Update
January 6, 2016

Fannie Mae reminds the servicer that all referrals after June 1, 2013 of Fannie Mae mortgage loans for default related legal services (foreclosure, workout options, bankruptcy, and related litigation) must be to law firms selected and retained pursuant to the requirements set forth in Servicing Guide A4-2.2-01, Selecting and Retaining Law Firms. In order for a law firm to be eligible to receive Fannie Mae default related legal services referrals:

  • the servicer must have submitted a Servicer Selection Form (Form 200) to Fannie Mae,
  • the servicer must have received a “No Objection” determination from Fannie Mae,
  • the firm must have executed a limited retention agreement with Fannie Mae, and
  • the firm must have completed Fannie Mae new firm training.

 
The law firm selection and retention requirements set forth in the Servicing Guide are mandatory for all Fannie Mae mortgage loans.

Source: Fannie Mae