Safeguard Properties

FHFA Issues Proposed Rule on Fannie Mae and Freddie Mac Duty to Serve Underserved Markets

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Updated 7/21/16: The FHFA posted a blog titled Update on FHFA’s Proposed Rule on Duty to Serve Underserved Markets.

Link to blog

Investor Update
December 15, 2015

?Washington, D.C. – The Federal Housing Finance Agency (FHFA) is seeking comments on a proposed rule to implement the Duty to Serve provisions of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008.  This statute requires Fannie Mae and Freddie Mac (the Enterprises) to serve three specified underserved markets:  manufactured housing, affordable housing preservation and rural markets.  The proposed rule would require the Enterprises to adopt plans to improve the distribution and availability of mortgage financing in a safe and sound manner for residential properties that serve very low-, low-, and moderate-income families in the three specified underserved markets.  

The proposed rule would provide Duty to Serve credit for eligible Enterprise activities that facilitate a secondary market for mortgages on residential properties in the specified underserved markets.  It would also establish a method for evaluating and rating the Enterprises’ performance each year, on which FHFA would report annually to Congress.  

Each Enterprise would be required to submit to FHFA an Underserved Markets Plan covering a three-year period that describes the activities and objectives it will undertake to meet its Duty to Serve. 

  • For the manufactured housing market, Duty to Serve credit would be provided for eligible Enterprise activities related to manufactured homes financed as real property and blanket loans for certain categories of manufactured housing communities. 
  • For the affordable housing preservation market, Duty to Serve credit would be provided for eligible Enterprise activities related to preserving the affordability of housing for renters and homebuyers, including activities under the programs specified in the Safety and Soundness Act.  Duty to Serve credit would also be provided for activities related to existing small multifamily rental properties, energy efficiency improvements on existing multifamily rental and single-family first-lien properties, shared equity homeownership programs and the U.S. Department of Housing and Urban Development’s Choice Neighborhoods Initiative and Rental Assistance Demonstration program.  
  • For the rural market, Duty to Serve credit would be provided for eligible Enterprise activities related to housing in rural areas, including activities serving the following high-needs rural regions and populations:  Middle Appalachia, the Lower Mississippi Delta, colonias, members of a Native American tribe located in a Native American area, and migrant and seasonal agricultural workers.

FHFA would provide an Enterprise Duty to Serve credit for additional eligible activities identified by an Enterprise in its Underserved Markets Plan for the specific underserved market.  Qualifying activities that promote residential economic diversity in one or more underserved markets would also receive Duty to Serve credit. 

FHFA invites interested parties to submit comments on all aspects of the proposed rule within 90 days of publication in the Federal Register via FHFA.gov.  The public comment period commences and public comments may be submitted upon publication of the proposed rule in the Federal Register.

Link to Proposed Rule sent to Federal Register?

Link to Fact Sheet?

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

Source: FHFA

Technical Amendments: FHFA Address and Zip Code Change

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Investor Update
December 28, 2015

SUMMARY: The Federal Housing Finance Agency (FHFA) is issuing this final rule as a technical change to correct regulatory references to FHFA’s address and postal zip code.

DATES: Effective December 24, 2015. For additional information, see SUPPLEMENTARY INFORMATION.

FOR FURTHER INFORMATION CONTACT:
Crystal Miller, Crystal.Miller@fhfa.gov, (202) 649–3079, Paralegal Specialist (not a toll-free number), Office of General Counsel, Federal Housing Finance Agency, Constitution Center, Eighth Floor (OGC), 400 7th Street SW., Washington, DC 20219. The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877–8339.

SUPPLEMENTARY INFORMATION:

I. Background

FHFA Headquarters Address Change

In January 2012, FHFA moved to a new headquarters building in Southwest Washington, DC. As a result, the addresses for FHFA’s former locations in Northwest Washington, DC, included in 12 CFR 1203.29, 1209.15(a), 1263.5(a)(2), and 1264.6(a) are now out-of-date. This final rule amends those regulations to replace the FHFA’s former addresses with its current address, 400 7th Street SW., Washington, DC 20219.

FHFA Zip Code Change

Effective November 1, 2015, all mail addressed to FHFA is being processed through a different mail processing facility. This facility change required that FHFA use a new zip code. As a result, the zip code in the addresses for the FHFA included in 12 CFR 1200.1(b), 1200.2(g), 1202.3(c), 1202.5(a), 1202.9(a), 1204.3(b), 1204.5(b)(2), 1209.102(a)(1), and 1215.7(b) are now out-of-date. This final rule amends those regulations to replace the FHFA’s zip code, which changed from 20024 to 20219. The street address of 400 7th Street SW., Washington, DC remains the same.

FHFA submitted a change-of-address request to the local United States Post Office to forward mail containing the old zip code; however, mail addressed with the zip code 20024 after November 1, 2015, may result in delayed delivery to all FHFA offices.

II. Notice and Comment

Pursuant to the Administrative Procedure Act (APA), notice and comment are not required prior to the issuance of a final rule if an aagency, for good cause, finds that ‘‘notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.’’ 1 FHFA finds that public notice and comment on this final rule are unnecessary. The final rule’s update of FHFA’s address and postal zip code is purely a technical change to the Agency’s regulations and provides FHFA’s regulated entities, interested parties, and other members of the public with FHFA’s current and accurate location and mailing address information. For these reasons, FHFA has good cause to conclude that advance notice and comment under the APA for this rulemaking are unnecessary.

III. Effective Date

This final rule is effective on December 24, 2015. Pursuant to the APA, a final rule may be effective without 30 days advance publication in the Federal Register if an agency finds good cause and publishes its finding with the final rule.2 As described above, the updates made by this final rule to FHFA’s physical addresses and zip code are technical changes and will have no substantive effect on FHFA’s regulated entities, interested parties, or other members of the public. Therefore, the FHFA finds good cause to dispense with a delayed effective date.

1 5 U.S.C. 553(b).
2 5 U.S.C. 553(d)(3).

Source: FHFA

Additional Resource: 
Federal Register Citation [pdf]

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

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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

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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

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

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

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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:

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

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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

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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

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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

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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

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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