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HUD Announces Change to Debenture Interest Rates

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

Investor Update
August 7, 2015

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR–5847–N–02]

Mortgage and Loan Insurance Programs Under the National Housing Act—Debenture Interest Rates

AGENCY: Office of the Assistant Secretary for Housing—Federal Housing Commissioner, HUD.

ACTION: Notice.

SUMMARY: This notice announces changes in the interest rates to be paid on debentures issued with respect to a loan or mortgage insured by the Federal Housing Administration under the provisions of the National Housing Act (the Act). The interest rate for debentures issued under section 221(g)(4) of the Act during the 6-month period beginning July 1, 2015, is 21⁄8 percent. The interest rate for debentures issued under any other provision of the Act is the rate in effect on the date that the commitment to insure the loan or mortgage was issued, or the date that the loan or mortgage was endorsed (or initially endorsed if there are two or more endorsements) for insurance,
whichever rate is higher. The interest rate for debentures issued under these other provisions with respect to a loan or mortgage committed or endorsed during the 6-month period beginning July 1, 2015, is 27⁄8 percent.

However, as a result of an amendment to section 224 of the Act, if an insurance claim relating to a mortgage insured under sections 203 or 234 of the Act and endorsed for insurance after January 23, 2004, is paid in cash, the debenture interest rate for purposes of calculating a claim shall be the monthly average yield, for the month in which the default on the mortgage occurred, on United States Treasury Securities adjusted to a constant maturity of 10 years.

Please click here to view the announcement in its entirety.

HOPE NOW Mortgage Industry Achieves 24M Solutions and 6M Loan Mods

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

Investor Update
August 26, 2015

In the second quarter of 2015, approximately 411,000 homeowners received non-foreclosure solutions from mortgage servicers, according to HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors.

Since 2007 the mortgage industry has completed a total of 24 million workout plans and six million proprietary loan modifications for homeowners — reaching another milestone in its efforts to assist families with troubled mortgages.

This compares to just over six million foreclosure sales completed in the same time period.

From April through June 2015, non-foreclosure solutions outpaced completed foreclosure sales by a margin of more than four to one (411,000 solutions, vs. 89,000 foreclosure sales). For every one foreclosure sale, mortgage servicers offered 4.6 solutions.

This is due to the fact that there are several long term and short term solutions available to at-risk homeowners when facing delinquency or foreclosure.

Permanent loan modifications in the second quarter of 2015 totaled approximately 113,000 and short sales totaled 24,000. Other non-foreclosure solutions (including repayment plans, deeds in lieu, other retention plans and liquidation plans) made up the rest of the total number. When homeowners do not qualify for long term permanent loan modifications, mortgage servicers continue to look for short term options that, in many cases, lead to a permanent solution.

Of the 113,000 loan modifications completed for the second quarter of 2015, about 78,000 homeowners received proprietary loan modifications and 35,738 homeowners received loan modifications completed under the Home Affordable Modification Program.

Q2 2015 vs. Q1 2015 – Loan Mods Decrease 2%, Serious Delinquencies Decrease 6%, Foreclosure Sales Decrease 7%
During the second quarter of 2015, there were an estimated 113,000 loan modifications completed, compared to 116,000 during the previous quarter – a slight decrease of 2%. ?
Serious delinquencies of 60 days or more declined from 1.85 million in Q1 2015 to 1.74 million in Q2 2015 – a 6% decline. (Delinquency data is extrapolated from data received by the Mortgage Bankers Association for the Q2 2015) ?
Foreclosure sales also decreased from the previous quarter – 89,000 in Q2 2015 vs. 96,000 in Q1 2015, a decrease of 7%.

Comparing the second quarter to the first quarter of 2015:

Total non-foreclosure solutions were approximately 411,000 in Q2 2015, ?compared to 444,000 in Q1 2015 – a decrease of 7%. ?
Foreclosure starts were approximately 176,000 in Q2 2015, compared to ?212,000 in Q1 2015, a decrease of approximately 17%. ?Q2 2015 vs. Q2 2014 –

The 89,000 foreclosure sales in the second quarter of 2015 compares to an estimated 117,000 completed during the second quarter of 2014, representing a significant decline year over year.?Here are some other key metrics for Q2 2015 vs. Q2 2014: ?
Total solutions for Q2 2015 were approximately 411,000 vs. 456,000 for Q2 2014 – a decline of 10%. ?
Loan mods for Q2 2015 were approximately 113,000 vs. 125,000 for Q2 2014 – a decline of 10%. ?
Foreclosure starts for Q2 2015 were approximately 176,000 vs. 203,000 for Q2 2014 – a decrease of 13%. ?
Short sales completed for Q2 2015 were approximately 24,000 vs. 35,000 for Q2 2014 – a decrease of 31%. ?
Deeds in lieu for Q2 2015 were approximately 5,400 – a decrease of 28% from Q2 2014 (7,500). ?
Delinquencies of 60+ days were approximately 1.74 million for Q2 2015, compared to 1.98 million for Q2 2014 – a decline of 12%. ?

Source: HousingWire

HARP Refinances Remain Steady Through Second Quarter

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

Investor Update
August 27, 2015

FOR IMMEDIATE RELEASE

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today reported that the total number of loans refinanced through the Home Affordable Refinance Program (HARP) in the second quarter was nearly the same as the number of HARP refinances through the first quarter. FHFA’s second quarter Refinance Report indicates that 31,561 HARP refinances were completed between April and June, down slightly from the 31,648 HARP refinances completed from January through March.

More than 3.3 million borrowers have refinanced their homes through HARP since the program began in 2009, and FHFA estimates that, as of March, more than 578,000 borrowers nationwide still have a financial incentive to refinance through the program. The top five states with the highest numbers of “in-the-money” borrowers that remain eligible for a HARP refinance are Florida, Ohio, Illinois, Michigan and Georgia.

Borrowers are considered “in-the-money” if they meet the basic HARP eligibility requirements, have a remaining mortgage balance of $50,000 or more, have a remaining term of greater than 10 years, and an interest rate at least 1.5 percent higher than current market rates. Nationwide, these borrowers could save, on average, as much as $200 per month on their mortgage payments, or $2,400 per year. See the U.S. map showing the number of HARP-eligible borrowers by Metropolitan Statistical Area, county and zip code.

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. FHFA announced in May that HARP was extended through December 2016.

Also in the second quarter Refinance Report:

Through the first half of 2015, 29 percent of all HARP refinances for underwater borrowers (those with a loan-to-value ratio greater than 105 percent) resulted in 15- and 20-year mortgages, which helps borrowers build equity faster than traditional 30-year mortgages.
The top five states with the highest number of total HARP refinances completed thus far in 2015 are Florida, California, Illinois, Michigan and Georgia. See page 14 of the Report for a list of total HARP refinances by state.
The two states with the highest level of HARP refinances as a percentage of total refinances so far in 2015 are Florida and Georgia.

Link to Refinance Report

Link to HARP.gov

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

Source: FHFA

Freddie Mac Single Sign-On and Other Enhancements for Servicer Performance Profile

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

Investor Update
August 7, 2015

We listened to your feedback. To make doing business with us easier, we’ve made several updates to the Freddie Mac Servicer Performance Profile, including single sign-on functionality. Log into the Servicer Performance Profile one time and you can freely navigate to the Manager Series and Freddie Mac Servicer Success Scorecard (Scorecard) without having to log in again.

“What if I bookmarked a direct link to the Scorecard in my browser?” No problem. You can log in through the Scorecard and navigate to other areas of the Servicer Performance Profile without having to log in again.

On top of that, we made other enhancements to the Servicer Performance Profile including:

Adjustments for Timely REO Notifications Based on Holidays
When a holiday occurs, use the “next business day” rule when you report a foreclosure sale by the notification due date. Here’s an example:

The calendar holiday is July 4, 2015, but the Freddie Mac observed holiday is July 3, 2015.

Scenario 1

REO Sale Date: July 1, 2015
Notification Due Date: July 2, 2015
Servicer gives notification on: July 6, 2015
Compensatory Fee charge : 4 days (July 3 holiday is included)

Scenario 2

REO Sale Date: July 2, 2015
Notification Due Date: July 6, 2015
Servicer gives notification on: July 7, 2015
Compensatory Fee charge: 1 day

This change will affect your FC Sales Reported Current Year and FC Sales Reported Last Year reports in Default Reporting ManagerSM.

Alternatives to Foreclosure Criteria: Quarter-to-Date Results
We’ve updated this section of your Scorecard to give you more timely results. The Alternatives to Foreclosure section will display current quarter forecasts and quarter-to-date actual results.
New Loan-Level Reports Available
We are providing a new set of loan-level reports that include denominator loan-level data available to you. Just call Customer Support (800-FREDDIE) or your account manager. The new reports include:
Transition to 60+ (Denominator excludes active loans)
Cure Efficiency
Retention Efficiency
Liquidation Efficiency
Average Age Past Foreclosure Sale Standard
Beyond Timeline Resolution Rate

This is one step closer to providing you all Scorecard loan-level reports at your fingertips.

Changes to Investor Reporting Metric
We’re updating the calculation for Percent of Ending Hard Rejects to Total Loans in Portfolio. The numerator will now reflect Number of Ending hard edits remaining on the Edits to be Cleared report.

Training and Resources

Review the updated Servicing Success Program Reference Guide [pdf].
Visit the Servicing Success section in the Learning Center to access updated training resources.

For More Information

Contact your Freddie Mac account manager.

Please click here to view the release online.

Freddie Mac Recent Updates to Guide and Bulletins

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

Investor Update
August 13, 2015

Quick and easy access to information is important for your business. That’s why we’re focused on improving the usability of the Single-Family Seller/Servicer Guide (Guide) and our Guide Bulletins. Here are enhancements we’ve recently incorporated, based on your feedback:

PDFs of Guide chapters and Bulletins on AllRegs®. Use the PDFs for easier printing and cutting and pasting content.
Bulletin enhancements. To help you better identify and track information in Bulletins, we’ve made the following improvements:
Anchor links. Click on a topic link in the Bulletin introduction to quickly get to the detailed information in the Bulletin.
Critical information is now highlighted in the introduction. The Bulletin’s introductory text includes the future effective date of a Guide change when applicable. Also, if the requirement or process is new, it will say so in the introduction.
Wednesday publication. When feasible, we’re publishing our Bulletins on Wednesdays.
Advanced search features. If you access our Guide through FreddieMac.com, you’ll see these Advanced Search functionalities:
Type ahead. As you begin typing a search query, a list of suggested topics appears in a dropdown so you can quickly locate the information you need.
Highlighted results. Automatically see your search term highlighted on your search results page to help you determine what may be the content you’re looking for.
Content navigators. Use this filter feature to further define your search criteria to get more relevant results.

More Guide Changes to Come

We continue to review Seller/Servicer feedback and plan to implement other Guide usability enhancements early next year. Our goal is to make the Guide more intuitive to use by organizing it to be better aligned with the way you do business with Freddie Mac.

As with any Guide update, you’ll be notified in advance of upcoming Guide changes.

Take Advantage of These Guide-related Resources

The Guide and Forms Web page for access to the Guide, a full list of our Guide forms, Guide Update Spreadsheets, as well as other Guide resources
Guide Snapshot PDFs for a PDF of the full Guide.
Guide video on navigation and tracking.

Are you getting the latest Single-Family news and Guide Bulletins? Visit our Single-Family News Center and make sure you’ve subscribed to receive our Single-Family Update emails that include notifications about new Guide Bulletins.

Please click here to view the release online.

FHLMC Guide Bulletin 2015-14 New Automated Settlement Process and Requirement Updates

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

Investor Update
August 12, 2015

In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-14, we’re announcing a new automated settlement process and updating Seller/Servicer requirements.

Key highlights include:

Coming Soon! Workout Prospector® Automated Settlement for Liquidation Transactions
Following up on our commitment to continuously improve our technology, we’re announcing a new automated settlement process for liquidation transaction types – including short sales, deeds-in-lieu of foreclosure, charge-offs and third-party foreclosure sales – effective March 1, 2016. Doing business with us will be easier since you’ll have:
- Less required paperwork. You’ll no longer need to submit a Settlement/Closing Disclosure Statement, or a third-party foreclosure sale claim package or Guide Form 1160.
- Pre-populated data based on the liquidation approval.
- Real-time feedback and transparent communication on settlement issues within the system.
- Quicker payment of the charge-off adjustment/credit on the Detailed Adjustment Report (DAR).

We’ll announce more information, training and resources about this enhancement later this fall.

Extending the Submission Deadline for the Home Affordable Modification Program (HAMP®) Year Six Pay for Performance Incentive
To provide additional time for Servicers to solicit eligible borrowers, and for eligible borrowers to submit the executed Dodd-Frank Certification (DFC) or Guide Form 720, we’re extending the September 1, 2015, date to January 1, 2016. To be eligible for the incentive, borrowers must submit an executed DFC or Guide Form 720 on or before the later of:
- The sixth anniversary of the HAMP Trial Period Plan Effective Date, or
- January 1, 2016.
DAR Enhancements for Third-Party Foreclosure Sales
Effective November 23, 2015, the amount posted to the DAR will be determined, in part, by the gross sale proceeds, and not the net sale proceeds of the property.
Property Inspection Updates
For mortgages secured by properties 45 or more days delinquent, you must complete one inspection every calendar month and ensure that no two inspections are completed within a 20-day period, effective January 1, 2016. Please note that we’ve updated Guide Form 1013, 1-4 Unit Property Inspection Report, to include interior property inspections and more accurately reflect a property’s condition.

Additional Updates

We’re introducing new Guide Exhibit 1191B, Streamlined Modification Solicitation Letter for Day 60 Rate Reset.
We streamlined Guide Form 1034T, Subsequent Transfer Document Custodial Certification Schedule.

Please read Guide Bulletin 2015-14 for more details.

Reminder
Beginning September 1 – as announced in Guide Bulletin 2015-9 – all appeals for late foreclosure sale reporting compensatory fees must be submitted through the Freddie Mac Default Fee Appeal System.

For More Information

Read Guide Bulletin 2015-14.
Check out our Summary of Upcoming Requirement Changes document.
Visit Freddie Mac’s Learning Center for more on our training programs and references tools.
Contact your Freddie Mac representative.

Please click here to view the online update.

Please click here to view Guide Bulletin 2015-14 [pdf].

FHA INFO #15-63: Multi-Topic Announcement: Single Family Handbook: Feedback Period Extended for Draft Claims and Disposition Section // EAD Portal Onboarding Temporarily Delayed

Posted on September 13, 2018 by Safeguard

Investor Update
August 18, 2015

Today, the Federal Housing Administration announced that it is extending the feedback period for the draft Claims and Disposition section of the Single Family Housing Policy Handbook (SF Handbook) through October 5, 2015. The original deadline for providing feedback was September 4, 2015. FHA is extending the period to allow stakeholders additional time to provide feedback.

The Claims and Disposition section content and supporting information is posted on a special SF Draft Handbook: Claims and Disposition page accessible from FHA’s Single Family Housing’s Policy Drafting Table web page.

Quick Links

View the Single Family Housing Policy Drafting Table main page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/SFH_policy_drafts
Link directly to the Claims and Disposition sections web page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/SFH_policy_drafts/sfh_claimsanddisposition

Please click here to view the online update in its entirety.

FHA INFO #15-57: Single Family Housing Policy Handbook: Draft Claims and Disposition Section Posted Today for Feedback

Posted on September 13, 2018 by Safeguard

Investor Update
August, 5, 2015

Today, the Federal Housing Administration (FHA) posted for stakeholder review and feedback the draft Claims and Disposition section of its Single Family Housing Policy Handbook (SF Handbook; HUD Handbook 4000.1). This posting is a continuation of FHA’s progress toward a consolidated, authoritative SF Handbook that will make it easier to do business with FHA.

The Claims and Disposition section is organized into two subsections. The first subsection—the draft Claims subsection—provides comprehensive and consolidated guidance on the submission of claims for single family FHA mortgage insurance benefits. It consolidates existing claims calculation and submission guidance found in the FHA Single Family Insurance Claims Handbook REV-1 (HUD Handbook 4330.4), subsequent Mortgagee Letters, relevant Housing Notices, and other claims policies and regulations published since 1995. The Claims subsection also covers claims calculations and submissions; post-claim reviews; withdrawal or cancellation of insurance claims; and, debt collection and administrative offsets.

The draft Disposition subsection contains comprehensive guidance on the disposition of HUD Real Estate Owned (REO) single family properties and covers HUD’s Management and Marketing program and all activities from acquisition of title by HUD to disposition of the property. It consolidates existing guidance found in the 1994 Property Disposition Handbook – One to Four Family (HUD Handbook 4310.5), subsequent Mortgagee Letters, relevant Housing Notices, and other disposition policies and regulations published since 1994.

The draft Disposition subsection also includes information on the registration and/or approval processes and compliance policies for Real Estate Brokers and Closing Agents. These policies will be added into the Doing Business with FHA—Other Participants in FHA Transactions, and, Quality Control, Oversight, and Compliance—Other Participants in FHA Transactions sections upon final publication.

Review and Feedback

The draft section and supporting information is posted on FHA’s Single Family Housing Policy Drafting Table page. We invite stakeholder feedback on the draft Claims and Disposition section from August 5, 2015 through September 4, 2015. Stakeholders are encouraged to use the respective Feedback Worksheets and feedback submission process outlined on the web page.

Industry Briefing

FHA will host an industry briefing conference call for stakeholders to review the organization and structure of the draft Claims and Disposition section. While the content is geared primarily for servicers and mortgagees, all stakeholders are welcome to participate.

Date: August 12, 2015
Time: 2:00 PM – 3:00 PM (Eastern)
Title: FHA SF—Handbook Draft Claims and Disposition Section
Dial-in: (800) 260-0702, Passcode 365366

Quick Links

View FHA’s SF Drafting Table main page at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/SFH_policy_drafts

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.

Please click here to view the online update in its entirety.

Fannie Mae SVC-2015-11 Servicing Guide Updates

Posted on September 13, 2018 by Safeguard

Investor Update
August 12, 2015

Fannie Mae released Servicing Guide Announcement SVC-2015-11, subtitled Servicing Guide Updates. The Servicing Guide has been updated to include the following:

Extension to receive an Executed Form 720
Updates to Requirements for Collecting Under an Assignment of Rents
Updates to Requirements for Performing Property Inspections
Changes to Issuing Bidding Instructions
Updates to Flood Insurance Requirements
Miscellaneous revisions

Please click here to view the announcement in its entirety.

CFPB Provides Guidance About Private Mortgage Insurance Cancellation and Termination

Posted on September 13, 2018 by Safeguard

Investor Update
August 4, 2015

Bureau Issues Bulletin Regarding Homeowners Protection Act

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a bulletin providing guidance to mortgage servicers regarding the cancellation and termination of private mortgage insurance. The bulletin explains certain requirements of the Homeowners Protection Act and is intended to help servicers comply with the law.

“Consumers should not be billed for unnecessary private mortgage insurance,” said CFPB Director Richard Cordray. “We will continue to supervise mortgage servicers to ensure they are treating borrowers fairly, and today’s guidance should help servicers come into compliance with the Homeowners Protection Act.”

Private mortgage insurance (PMI) protects the lender if the borrower stops making payments on a loan. Lenders generally require consumers to purchase PMI if their down payment is less than 20 percent of the sales price or the appraised value of the home. PMI premiums are added to the borrower’s monthly mortgage payment. The Homeowners Protection Act of 1998 was passed by Congress to address borrowers’ difficulties in cancelling PMI when they had reached a certain level of equity in the property.

Private mortgage insurance can be expensive for consumers, and the Homeowners Protection Act provides specific cancellation and termination rights. If a servicer does not cancel a borrower’s private mortgage insurance promptly, it can lead to the borrower paying significant amounts of money on unnecessary premiums.

The CFPB has identified substantial industry confusion over implementation of the PMI cancellation and termination requirements in the Homeowners Protection Act, and examinations by the Bureau have identified violations of several different provisions of the Act. The CFPB discussed a number of Homeowners Protection Act violations in the Summer 2013, Winter 2013, and Summer 2015 issues of Supervisory Highlights.

Today’s bulletin summarizes existing requirements under the law, and does not create any new responsibilities or requirements.

Today’s bulletin is available here: http://files.consumerfinance.gov/f/201508_cfpb_compliance-bulletin_private-mortgage-insurance-cancellation-and-termination.pdf

The Summer 2013 issue of Supervisory Highlights is available here:
http://www.consumerfinance.gov/reports/supervisory-highlights/

The Winter 2013 issue of Supervisory Highlights is available here:
http://www.consumerfinance.gov/reports/supervisory-highlights-winter-2013/

The Summer 2015 issue of Supervisory Highlights is available here:
http://www.consumerfinance.gov/reports/supervisory-highlights-summer-2015/

Please click here to view the press release online.