Safeguard Properties

Fannie Mae Reminds Homeowners and Servicers of Options for Areas Affected by the Midwest Flooding

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Investor Update
January 5, 2016

WASHINGTON, DC – Fannie Mae (FNMA/OTC) is reminding those affected by the floods in the Midwestern parts of the country of the options available for mortgage assistance. Under Fannie Mae’s guidelines for single-family mortgages, servicers have the ability to grant an initial period of forbearance to any borrower they believe has been affected by this natural disaster. Additional forbearance is available with approval from Fannie Mae. In addition, Fannie Mae guidelines authorize servicers to delay foreclosure sales and other legal proceedings in these areas.

“We understand the disruption that a natural disaster such as the flooding in the Midwest can have on people’s lives,” said Malloy Evans, Vice President of Servicing at Fannie Mae. “Fannie Mae servicers are expected to offer the appropriate assistance to families affected by these floods. Our thoughts are with all of those who have been impacted.”

Under Fannie Mae’s disaster relief guidelines, a servicer may temporarily suspend or reduce a homeowner’s mortgage payments for up to ninety days if the servicer believes a natural disaster has adversely affected the value or habitability of the property or if the natural disaster has temporarily impacted the homeowner’s ability to make payments on their mortgage. Since these events can make it difficult to reach homeowners, Fannie Mae allows servicers to grant this temporary relief even if they cannot contact the impacted homeowner immediately. If a servicer establishes contact with a homeowner, the servicer may offer forbearance for up to six months, which may be extended for an additional six months, for those homeowners that were current or ninety days or less delinquent when the disaster occurred.

In addition, lenders who are originating loans that will be sold to Fannie Mae are reminded that they must verify the condition of the property if it is in the area affected by flooding. Additional lender guidelines can be found here.

Borrowers should reach out to their servicer as soon as possible for assistance. In addition, homeowners can reach out to Fannie Mae directly by calling 1-800-7FANNIE. For more information, visit http://www.knowyouroptions.com/relief.

Source: Fannie Mae

Fannie Mae Reaches Two Million HARP Refinances

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Investor Update
January 12, 2016

WASHINGTON, DC – Fannie Mae (FNMA/OTC) announced today that it has helped more than two million American households save money, reduce their interest rates, move into more stable loans or shorten their loan terms by refinancing their mortgages under the Home Affordable Refinance Program (HARP). By refinancing through HARP, those households have been able to save an average of nearly $200 a month since the program’s inception in 2009.

“We have worked to help as many homeowners as possible,” said Andrew Bon Salle, executive vice president, single family business, Fannie Mae. “HARP gives homeowners an opportunity to refinance their home even if the value of the property has declined significantly. This way they can better manage their financial situations and continue to support their families. The two million household milestone is one we’re proud of at Fannie Mae, but our work is not done. Homeowners who have loans from before 2009 and haven’t refinanced should contact a lender immediately to determine their options.”

The U.S. Treasury Department and the Federal Housing Finance Agency (FHFA) created the HARP program in 2009 amid the economic crisis that left many Americans owing more on their mortgages than their homes were worth. Many homeowners saw their loan-to-value ratios rise above 100 percent, making them ineligible for traditional refinancing options. HARP was created to give homeowners who are current on their payments but have little or no equity in their home, the opportunity to refinance into a more affordable and stable mortgage at lower, fixed interest rates or into a mortgage with a shorter term.

Last year, the HARP program was extended through the end of 2016, giving homeowners who have not refinanced additional time to take advantage of lower mortgage rates. Fannie Mae estimates that tens of thousands of households across the U.S. could still be eligible to refinance under HARP.

“We’ve helped a half million families take advantage of low rates through HARP,” said Steve Hemperly, head of mortgage originations at Chase. “We’ve partnered closely with Fannie Mae and others to proactively reach out to homeowners and educate them on the unique benefits of HARP.”

“For those considering home refinancing, a HARP loan is an absolute homerun option,” said Bob Walters, chief economist, Quicken Loans. “Even if you’ve previously applied and been turned down, it’s worth exploring again as the program and eligibility guidelines have evolved over the years. The time to act is now, especially while rates remain low. Every day we’re working with homeowners to lower monthly payments, in turn helping them save money and improve their finances.”

If you are interested in applying for a HARP loan, here are some resources about eligibility and other details:

Source: Fannie Mae

Additional Resource:

Fannie Mae celebrates 2 million HARP refinances (HousingWire 1/12/16)

Fannie Mae Connect Version 1.1 Implementation Notification

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Investor Update
January 29, 2016

Effective January 29, 2016, Fannie Mae will implement Fannie Mae Connect™ Version 1.1. This release adds five reports and includes system enhancements that improve usability.

This release includes:

  • Five additional seller/servicer reports
  • Usability improvements based on customer feedback
  • Filter and export modifications to certain Phase 1 reports (including MBS Schedule of Mortgages, Additional Laser, and Pool Deficiency)

 

Source: Fannie Mae (Fannie Mae Connect Version 1.1 Implementation Notification full version)

CFPB Names Another Acting Deputy Director

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Investor Update
January 7, 2016

Six months have passed since Steven Antonakes announced he was stepping down as acting director for the Consumer Financial Protection Bureau, and the bureau has yet to find a replacement, announcing it is filling the position with another acting deputy director.
 
In July, the CFPB selected Meredith Fuchs to serve as acting deputy director when Antonakes stepped down at the end of that month.

At the time, Fuchs had already announced her intention to step down as General Counsel that same month, but she said she would continue to serve as general counsel and acting deputy director until a permanent replacement was selected for each position.
 
But that time hasn’t come, and instead, David Silberman (pictured left) will serve as acting deputy director beginning next week, replacing Meredith Fuchs, who is officially ending her time at the bureau.
 
Silberman currently serves as associate director for research, markets, and regulations at the CFPB, a position he has held since 2011 and will retain in the interim.
 
Prior to joining the CFPB in 2010, Silberman served for 12 years as general counsel and executive vice president of Kessler Financial Services, a privately-held company focused on providing advisory services in developing and marketing financial service products through distribution partnerships.
 
Silberman will serve as acting deputy director while a search for a replacement is conducted.
 
“David has been an integral part of the Bureau’s leadership team from the very beginning, and I am pleased that he will be taking on the role of acting deputy director,” said CFPB Director Richard Cordray.
 
“David has helped to lead the Bureau’s policy and regulatory efforts and put in place new protections that will benefit all Americans. David’s knowledge, fairness, and judgment will continue to be invaluable to the Bureau as we carry out our work improving markets for consumers. And although we will miss Meredith, we remain grateful for her contributions to the Bureau and the public we serve.”

Source: HousingWire

Additional Resource:

CFPB Press Release (1/7/16)

VALERI Servicer Newsflash

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Investor Update
December 4, 2015

IMPORTANT INFORMATION
Net Value – The new Net Value percentage was published in the Federal Register on November 23, 2015. The new percentage is 15.95 percent and will be effective on December 23, 2015. All Notices of Value issued on or after December 23, 2015, will be calculated using the new percentage.

New Maximum Allowable Foreclosure Timeframes – The new maximum allowable foreclosure timeframes were published in the Federal Register on December 4, 2015. The new foreclosure timeframes will be effective for all loan terminations completed on or after January 3, 2016.

Circular 26-15-30, Title Documentation of HOA Matters in Florida – On November 16, 2015,
Circular 26-15-30 was released. The guidance corrects and amends the previous Circular 26-15-26, entitled Title Documentation in Florida. The specific changes made are as follows:

  1. Title changed from Title Documentation in Florida to Title Documentation of HOA Matters in Florida
  2. Section 1: Language added to rescinding prior circular
  3. Section 3:
    a. Deleted background on FL statutory progression;
    b. Revised opening sentence;
    c. Changed pronoun reference from “current owner” to “mortgagee, or its assignees or successor in interest”;
    d. Corrected “The fixed period is 6 months 12 months for a condominium and 12 months for or a property in a PUD” to “The fixed period is 12 months for a condominium or a property in a PUD”.
  4. Sections 2, 4: “VA” substituted twice for sub organizations within VA
  5. Sections 2, 4 and 6: Four cites total were corrected from 38 CFR 36.4814 to 38 CFR 4314
  6. Section 6: Corrected “…which came due no more than 6 or 12 months (for a condominium or PUD property, respectively)…” to “which came due no more than 12 months…”

REMINDER
Pre-Approval Procedures – Pre-approval requests to deviate from a regulation must be submitted through the VALERI application. VA does not grant pre-approval on claim expenses or for additional time to foreclose. These items must be appealed.

VALERI Reports – VA is requesting servicers provide feedback regarding the VALERI report descriptions and the data included in the reports. VA is seeking comments on the Servicer Loan Listing report, including which departments use the report and for what purpose. VA can then determine if information from this report should be moved to a new report. Please email your feedback to the VALERI Helpdesk at VALERIHelpdesk.vbaco@va.gov by December 18, 2015.

Deficiency Waiver Letter (DWL) – Under 38 CFR 36.4323, a DWL must be sent to the borrower no later than 15 calendar days after receipt of the guaranty claim payment. The DWL must include the date and amount of waived indebtedness when VA paid maximum guaranty and the property was conveyed. A regulation infraction will be added to the loan during post audit review if the servicer fails to provide a DWL meeting all regulatory requirements.

DEVELOPMENT UPDATES
On Saturday, December 12, 2015, VALERI 3.7 manifest will be released. The following system enhancements will be included:

CQ10875 – Removed the duplicate Borrower Incentive line item from the dropdown selection for Foreclosure Recording Expense Type. A new Claims Bulk Upload Template will be available on Monday, December 12th.

CQ11035 – Security Notice/Privacy Act message now displays after a password reset for VALERI users.

CQ11016 – Added the ability to view who withdrew/canceled events in Servicer Web Portal (SWP).

Source: VA

VALERI Servicer Newsflash

Posted on by Safeguard

Investor Update
December 28, 2015

CORRECTED VERSION*

IMPORTANT INFORMATION
New Maximum Allowable Foreclosure Timeframes Clarification- The new maximum allowable foreclosure timeframes were published in the Federal Register Notice on December 4, 2015. The chart reflects the revised State foreclosure timeframes and includes the 210 calendar days for unpaid interest. The new foreclosure timeframes will be effective for all loan terminations completed on or after January 4, 2016. The Federal Register notice is located at https://www.federalregister.gov/agencies/veterans-affairs-department.

Deficiency Waiver Letter Clarification (DWL) – VA regulation 38 CFR 36.4323, Election to Convey Security, does not specify or differentiate between the type of maximum guaranty claim payment that requires a DWL be sent to the Veteran (original guaranty amount or maximum guaranty by percent). A DWL must be sent on ALL maximum guaranty claims for properties that were conveyed to VA. In addition, a DWL is required to be sent on ALL TYPES of maximum guaranty claims, including supplemental and appeal claims. If an original claim does not reach maximum guaranty, but the appeal or supplemental claim later causes the amount to reach maximum guaranty, servicers are required to send a DWL at that time.

Appraisal Fees – Appraisal fees within the jurisdiction of the Houston Regional Loan Center will be changing effective January 1, 2016. VALERI and the VALERI fee cost schedule will be updated to reflect the new fees.

VA Servicer Handbook M26-4 – Updates to the VA Servicer Handbook M26-4 have been published and are located at http://www.benefits.va.gov/WARMS/M26_4.asp.

*Appraisal Fees within the jurisdiction of the Houston Regional Loan Center effective date updated to January 1, 2016. Prior version stated January 1, 2015.

Source: VA

Obama Administration Considering Extension of HAMP Servicing Rules

Posted on by Safeguard

Investor Update
December 4, 2015

Treasury’s Weiss reiterates opposition to Fannie, Freddie recapitalization

Despite the fact that the federal government’s Making Home Affordable program is currently set to expire at the end of next year, one Obama administration official says that the mortgage servicing rules that were adopted as part of the Home Affordable Modification Program may be sticking around — permanently.
 
In a speech given Friday at the Consumer Federation of America’s Annual Financial Services Conference, Antonio Weiss, counselor to the Secretary of the Treasury, said that the HAMP “set new market standards for how modifications and loss mitigation are done across the industry,” and said that the administration is exploring the continuation of the HAMP servicing rules.

“Recently, Treasury held several conversations with stakeholders to find common ground to continue the standardization and transparency that HAMP has brought to mortgage servicing,” Weiss said, according to his prepared remarks.
 
“Chief among these reforms are-loss mitigation solutions that are designed to make monthly payments manageable,” Weiss continued. “By cementing these changes in the servicing industry, HAMP’s legacy promises to help ease the lives of future troubled borrowers for years to come.”
 
Weiss said that the administration plans to “make sure that HAMP’s servicing practices live on as a lasting legacy” even after the program expires.
 
During his speech, Weiss touched on a number of housing-related topics, including reiterating the administration’s position that it is opposed to the recapitalization and release of Fannie Mae and Freddie Mac.
 
The chatter around recapitalizing Fannie and Freddie has grown louder lately, with major civil rights groups, community lenders and other industry insiders pushing to allow the government-sponsored enterprises to rebuild their capital reserves.
 
But the Obama administration has pushed back against those efforts, with Michael Stegman, senior policy advisor for housing for the White House, saying repeatedly that the administration is not in favor of returning Fannie and Freddie to their pre-bailout status.
 
In his speech Friday, Weiss reiterated the Obama administration’s views on Fannie and Freddie.
 
“As time passes, some who view comprehensive housing finance reform as simply too difficult have begun calling for a return to the past,” Weiss said. “They are asking FHFA and Treasury to allow for the recapitalization and release of Fannie and Freddie from conservatorship. This approach is simply a bad deal for taxpayers and homeowners alike.”
 
Weiss went on to reference an editorial posted on HousingWire recently by the Consumer Federation of America’s Barry Zigas, who argued that “recap and release” is not the right path to affordable mortgages.
 
“First, as Barry recently pointed out, recap and release would do nothing to increase access for creditworthy borrowers who remain shut out of the market or renters who are struggling to find affordable homes,” Weiss said.
 
“Second, some have suggested the federal government could stop supporting Fannie and Freddie in the near term by allowing the companies to retain their earnings,” Weiss said.
 
“A recent analysis from Moody’s and the Urban Institute made clear that it could take decades for Fannie and Freddie to build safe and sound levels of capital and that recap and release would ultimately drive up the cost of mortgages,” Weiss continued.
 
“Third, contrary to the claims of some private investors, taxpayers have not been fully ‘repaid’ for the extraordinary risk they took in the crisis,” Weiss said. “This ‘repayment’ argument conveniently ignores the ongoing support that underpins Fannie and Freddie’s operations.”
 
In Weiss’ opinion, the “bottom line” is that the government needs to seek “much more fundamental reform,” and “not settle for the misguided call to return to a deeply flawed system.”
 
In addition to potentially expanding the HAMP servicing rules and not supporting recap and release, Weiss provided a glimpse at some of the ways that the Obama administration may push for comprehensive housing finance reform.
 
Weiss laid out three questions that he feels are “important to consider” for the future of housing finance.
 
Those questions are:
 
1. Are there alternative structures that can limit risk to taxpayers while ensuring broad access to credit?
 
2. For example, could a mutual or cooperative approach play a role in a future system?
 
3. And, how best can we utilize the GSEs’ existing infrastructure and systems?
 
“In the months ahead, Treasury will elicit the thoughts and insights of many of you gathered here today as we refine our thinking,” Weiss said.
 
“Consumer advocates need to play a key role in shaping efforts around reform,” Weiss concluded. “We look forward to working with you to develop programs and policies that harness the energy and efficiency of the marketplace for the benefit of all consumers.”

Source: HousingWire

MHA: Important Notice On Hardest Hit Fund and Making Home Affordable

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Investor Update
December 21, 2015

The Consolidated Appropriations Act, 2016 passed by Congress on December 18, 2015 allows the U.S. Department of the Treasury to make additional investments in the Hardest Hit Fund. In addition, the Act provides that the Making Home Affordable (MHA) program will terminate on December 31, 2016, with an exemption for loan modification applications under HAMP made before that date. Treasury expects to provide clarifying guidance for homeowners, servicers and other interested parties in early 2016.

Source: MHA

MHA HAMP Reporting Update Updated Official Monthly Reporting – OMR Job Aid Available on HMPadmin.com

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Investor Update
December 22, 2015

The Official Monthly Reporting – OMR Job Aid has been updated to support updated guidance for Dodd-Frank Compliance reporting scenarios for GSE HAMP® loans (e.g., deceased borrower, assumptions, quit claims). Please refer to this document for instructions on submitting Official Monthly Reporting data.

It is critical that servicers accurately report Dodd-Frank certification information in accordance with the guidance provided. As noted in the OMR Job Aid, servicers must promptly make any required corrections to previously reported information relating to GSE HAMP loans. The information entered by servicers is used to determine which borrowers will undergo Dodd-Frank compliance background checks, as well as which GSE HAMP loans are eligible to receive the 6th Year Performance incentive. Servicers must enter into the HAMP Reporting System any corrections that are required to be made as a result of this guidance, no later than January 13, 2016.

Beta Schema Files Available on HMPadmin.com

The following beta versions of the April 1, 2016 Release schemas are available in the File Formats and Interfaces section on HMPadmin.com (login required).


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

Source: MHA

MHA HAMP Reporting Update Q4 2015 Base NPV Documentation Supplement Available

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Investor Update
December 1, 2015

The Q4 2015 Base NPV Model Documentation Supplement (login required) is now available for the Home Affordable Modification ProgramSM (HAMP®) for use with Base NPV Model Version 7.0 beginning January 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 Q4 2015 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 Q4 2015 data tables for use beginning January 1, 2016.

To fulfill model versioning requirements, servicers should continue to use the Q3 2015 data tables for October 1 through December 31, 2015, and other appropriate supplement data tables for earlier quarters.

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

Source: MHA