Safeguard Properties

Fannie Mae Announces Eviction Moratorium for the Holidays

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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

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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

VALERI Servicer Newsflash

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Investor Update
November 6, 2015

IMPORTANT INFORMATION
Federal Register – Maximum Allowable Attorney Fees – The Federal Register notice published on July 31, 2015, provided updated information regarding the primary method of foreclosing in each state and the dollar value allowable amount for each type of foreclosure method. The VALERI Fee cost schedule will reflect a zero dollar value for the alternative method of foreclosure that is not recognized in the Federal Register. If a servicer’s attorney determines the need to use a foreclosure method not authorized by VA, the servicer must seek pre-approval from VA prior to the foreclosure taking place. Servicers must submit the pre-approval to VA through the VALERI pre-approval request. They must select the reason for the pre-approval as “Other Regulatory Requirement – Any Deviation from Regulatory Requirements Caused by Unusual Circumstances”, and provide justification for why they are seeking pre-approval to use an alternative method of foreclosure. Upon claim submission, the attorney fees will automatically be denied and the servicer will need to submit an appeal with supporting documentation including the invoice and justification for using an alternative foreclosure method.

REMINDER
Servicer Calls – As a reminder, VA bi-weekly servicer calls were split earlier this year based on the alphabetical order of servicer names. To receive an invitation for future calls, please send an email request to the VALERI Helpdesk and include your name, position, email address and phone number. Our next call is Thursday, November 19, 2015. Below is the breakdown of the call times:

  • A-L – 1:00 p.m. EST
  • M-Z – 2:00 p.m. EST

New HUD-1 Settlement Statement Disclosure –The new HUD-1 Settlement Statement Disclosure that was recently released no longer requires signatures; therefore, VA will no longer require an executed HUD-1 at post audit for completion of Compromise Sales.

Report Name Change – The name of the Non-Matching report has been changed to the WebLGY and Servicer Non-Matching Loans report.

Source: VA

VA Circular 26-15-30 Title Documentation of HOA Matters in Florida

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Investor Update
November 16, 2015

1. Purpose. This Circular provides guidance on the submission of title documents to VA’s property management contractor when conveying a property in the State of Florida to VA. The guidance below corrects and amends the previous Circular 26-15-26.

2. Background. As part of conveying a property to VA, it is necessary to provide proper documentation so that VA can conclude that the title is in accordance with Title 38, Code of Federal Regulations, section 36.4323(d)(5)(i)(B); i.e., that title vested in VA is such as “would be acceptable to prudent lending institutions, informed buyers, title companies, and attorneys, generally, in the community in which the property is situated.” This usually involves providing an owner’s title insurance policy with no exclusions, other than for taxes that have not yet been billed, but may be accrued against the property.

3. Florida Statutory Revisions. Under Florida statutes, FL 718.116 (condominiums), and 720.3085 (Planned Unit Developments (PUDs)), as amended, if the Home Owner Association (HOA) is properly named in the foreclosure, a mortgagee, or its assignees or successor in interest, is only required to pay the lesser of either the past due HOA amounts which accrued or came due during a fixed period of time immediately preceding the acquisition of title, or one percent of the original mortgage debt. The fixed period is 12 months for a condominium, or a property in a PUD. In order to avoid unlimited liability for delinquent HOA dues and assessments, all foreclosures commenced on or after July 1, 2008, should have named existing HOAs in the foreclosure complaints.

4. Title Policy Exclusions. Previously, VA had received numerous title insurance policies containing Schedule B exclusions from coverage for “any” assessments related to existing HOAs. The exclusions are appearing even when there is no clear indication the property is subject to HOA assessment, and they give the appearance that a lien may exist without providing any details. Such a title insurance policy is not acceptable to VA under the standard cited in 38 CFR 36.4323(d)(5) as described above.

5. Title Package Standards. Effective as of the date of this Circular, title packages for the State of Florida insuring foreclosed properties must include a statement by the foreclosure attorney on his or her letterhead that either there is no active HOA for the subject property, or that the existing HOAs have been identified and named in the foreclosure complaint. Title packages for the State of Florida insuring properties whose loans terminated in other ways, i.e., a deed in lieu (DIL), must include a statement on behalf the conveying servicer that either there is no active HOA for a the subject property, or that existing HOAs have been identified and all HOA dues have been paid through the date which is 30 days after the transfer of custody. If a particular property is in an HOA, the title documentation must also include either:

a. A recorded satisfaction of liens releasing all notices of liens filed of record and a letter from the management company of the HOA stating that there are no association fees due against the property; or

b. Schedule B of the owner’s title insurance policy must be free and clear of any exclusions for potential HOA liens.

6. Advances for Delinquent HOA Dues and Condominium Fees. This Circular constitutes prior approval, as required by 38 CFR 36.4314(e), to advance funds to pay delinquent condominium fees and HOA dues to the extent allowed by Florida law to obtain clear title following foreclosure. When naming the HOA in the foreclosure action serves to limit the maximum payable after foreclosure to the lesser of one percent of the original mortgage debt, or the amount which came due no more than 12 months immediately preceding foreclosure, VA will allow no more than the statutory maximum or the actual amount due, whichever is less. Moreover, fees and charges otherwise allowable that accrue after the date specified in 38 CFR 36.4314(f)(2) may not be included in a claim under the guaranty, nor may the claim exceed VA’s maximum guaranty.

7. Questions. Questions may be directed to Cheryl Amitay at Cheryl.Amitay@va.gov.

8. Rescission: This Circular is rescinded January 1, 2017.

By Direction of the Under Secretary for Benefits

Michael J. Frueh, Director
Loan Guaranty Service

Source: VA

Additional Resource:
Circular 26-15-26

MHA HAMP Reporting Update Updated Modification Agreement ? Document Summary Posted on HMPadmin.com

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Investor Update
November 4, 2015

The Home Affordable Modification Agreement – Document Summary for Non-GSE Loans has been revised to include language affirming that, with regard to Streamline HAMP, the subject property of the modification is either a principal residence or a rental property.

Pursuant to Supplemental Directive 15-06, servicers should use the updated Document Summary in conjunction with Streamline HAMP once the servicer’s Streamline HAMP Policy is in place.

The updated Document Summary can be found under the Borrower Documents tab in the Home Affordable Modification Program Overview page on HMPadmin.com.

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

Source: MHA

MHA HAMP Reporting Update October 2015 UP Survey Now Available

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Investor Update
November 16, 2015

The October 2015 UPSM 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, November 23, 2015.

SPA servicers that have any cumulative UP activity as of October 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

MHA HAMP Reporting Update Base NPV Model Documentation v7.0 Available

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Investor Update
October 28. 2015

The Base NPV Model Documentation v7.0 is now available for servicers participating in the Home Affordable Modification ProgramSM (HAMP®).

In September 2015, the U.S. Department of the Treasury announced an amendment to the principal forbearance requirement under the HAMP Tier 2 Standard Modification Waterfall, which was also intended to apply to the Tier 2 Alternative Modification Waterfall. These changes have been incorporated into Base Net Present Value (NPV) Model for version 7.0.

Beginning January 1, 2016, a loan’s estimated post-modification mark-to-market LTV ratio (after applying Steps 1 through 3) will be used by the NPV model to calculate eligibility for principal forbearance under the HAMP Tier 2 Standard Waterfall and for Principal Reduction AlternativeSM (PRASM) forgiveness under the HAMP Tier 2 Alternative Modification Waterfall.

Servicers can access the Base NPV Model Documentation v7.0 in both the public and secure (login required) sections of HMPadmin.com.

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

Source: MHA

MHA HAMP Reporting Update April 2016 HAMP Reporting Tool Release Preview

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Investor Update
October 29, 2015

On April 1, 2016, the HAMP Reporting System, including the HAMP Reporting Tool, will receive an update to support the following:

  • Streamline HAMP – Non-GSE
  • ADR Edit Updates for Tier 2 Forbearance Eligibility Policy Change
  • New Data Quality Edits

Please refer to the Release Preview for more details on these updates.

Updated Data Dictionaries Posted

In connection with the April 2016 release, updated versions of the following Data Dictionaries were posted on HMPadmin.com:

Updated MHA Compensation Matrix

The MHA Compensation Matrix has been updated. Please refer to this document for a summary of servicer, investor, and borrower compensation by program.

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

Source: MHA

HUD Extends Deadline for HECMs in Default

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Investor Update
October 23, 2015

HUD has announced that it is extending the deadline for reverse mortgage lenders to submit payable requests for home equity conversion mortgages (HECMs) that defaulted on or after April 23, 2015, due to unpaid property charges.

The Department made the announcement through Mortgagee Letter 2015-26 that HECM mortgagees would have until January 18, 2016, to submit due and payable requests, extending the timelines that were previously outlines in Mortgagee Letter 2015-11.

Representatives from HUD could not immediately be reached for comment.

According to ML 2015-26, the timeframe for the HECM mortgagee to take First Legal Action where the mortgagee is actively reviewing the borrower for loss mitigation in accordance with ML 2015-11 has also been extended until January 18, 2016.

The policies in ML 2015-26 affect the “effective date” section of ML 2015-11, and all other provisions spelled out in ML 2015-11 are unaffected by ML 2015-26, according to the letter.

Mortgagees are permitted by ML 2015-11 to implement loss mitigation options to help borrowers satisfy unpaid property charges or other obligations such as taxes or hazard insurance.

“For defaults occurring before the date of this Mortgagee Letter (April 23, 2015), mortgagees have 180 days from the date of publication to review their portfolio to bring HECM loans into compliance with the requirements herein,” ML 2015-11 stated. “For HECM loans currently subject to a repayment plan, such plans may continue so long as they remain current. In the event that they cease to remain current, mortgagees must comply with the requirements of this Mortgagee Letter.”

ML 2015-11 said that borrowers must satisfy any outstanding amounts within 30 days; in June, two months after that mortgagee letter was issued, the Federal Housing Administration said through a memo to HECM servicers that mortgagees were allowed an extension until October 20, 2015, to submit a due and payable request.

Source: DS News

HARP Refi Numbers Dwindling Despite FHFA?s Efforts

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Investor Update
November 27, 2015

The total number of loans refinanced through the Home Affordable Refinance Program (HARP) to an unexpected turn downward in the third quarter.

According to the Federal Housing Finance Agency (FHFA) third quarter Refinance Report, a total of 25,824 HARP refinances were completed between July and September, down from the 31,561 refinances completed from April to June. In addition, HARP volume accounted for 5 percent of total refinance volume in the third quarter.

The FHFA reported that over 3.3 million borrowers have refinanced through the HARP program, which was enacted in 2009 to help homeowners that are not able to refinance due to falling home values.

The Agency approximates that over 429,000 borrowers nationwide have a financial incentive to use the HARP program but still have not.

HARP refinances were highest in Florida, California, Illinois, Michigan, and Georgia, the FHFA stated.

The report showed that Florida, Ohio, Illinois, Michigan, and Georgia are the top five states with the most “in the money” borrowers that are able to use HARP. These borrowers could save an average of $200 per month on mortgage payments.

FHFA deems borrowers to be “in the money” if they meet HARP eligibility requirements, have a mortgage balance of $50,000 or more, have a remaining mortgage of no more than ten years, and an interest rate at least 1.5 percent higher than current market rates.

“FHFA is continuing its efforts to reach HARP-eligible borrowers and has held town-hall style events with local community leaders in Chicago, Atlanta, Detroit, Miami, Newark and Phoenix to get the word out about HARP,” the report stated.

Those who refinance using HARP are typically have a lower delinquency rate compared to those who are eligible for the program but choose not to use it, the FHFA says.

Of all HARP refinances for underwater borrowers (those with a loan-to-value ratio greater than 105 percent), 28 percent resulted in 15-and 20-year mortgages. The FHFA noted that this method helps build equity for borrowers quicker than 30-year mortgages.

The FHFA cautioned potential refinancers that “HARP will sunset on December 31, 2016.”

Click here to view the full report.

Source: DS News