Safeguard Properties

MHA HAMP Reporting Update April 2016 Release Communications Plan Posted

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Investor Update
October 16, 2015

The communications plan for the April 2016 Release has been posted on the open and secure sections of HMPadmin.com. This plan provides a high-level overview of the upcoming release with key milestones identified.

Please review the April 2016 Release Communications Plan for more details. This plan can be found in the Release Notes tab under the Loan Reporting Documents section on HMPadmin.com.

Questions?
Email the HAMP Solution center or call 1-866-939-4469; to reach Black Knight Financial Services (BKFS), select option 1, then option 5.

Source: MHA

HUD Report Shows Continued Success of Single Family Loan Sale Program

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Investor Update
October 16, 2015

Earlier this week, HUD released its most recent Report to the Commissioner on Post-Sale Reporting on the FHA Single Family Loan Sale (SFLS) program. The report, using data through August 3, 2015, found that the SFLS program continues to meet its intended goals of contributing to the Mutual Mortgage Insurance (MMI) fund, providing homeowners who have exhausted FHA’s loss mitigation options a second chance to stay in their homes, and reducing taxpayer risk.

Instituted in 2010, the SFLS program is intended to maximize financial recovery, reduce claim costs, minimize the time assets are held, and keep homeowners in their homes. The SFLS program enables FHA to accept assignment of FHA-insured loans and sell distressed mortgages prior to foreclosure, avoiding costly and potentially lengthy foreclosure proceedings. When a distressed loan is sold, FHA generates savings by avoiding claim, holding, and sales expenses that would have occurred if the loan was foreclosed upon.

The report states that FHA has sold roughly 101,000 distressed mortgage notes through the Distressed Asset Stabilization Program (DASP), with roughly 55 percent of those sold mortgage notes now resolved. Nearly 50 percent of the loans that have come to a resolution have successfully avoided foreclosure. The report found that without DASP, the alternative for these homeowners would have most likely been foreclosure and the loss of their home.

HUD found that the 14 rounds of SFLS mortgage sales since 2010 have increasingly improved the financial health of the MMI fund. Overall, loss rates to the MMI fund have dropped from 64 percent in the first quarter of 2010 to 49 percent in the second quarter of 2015.

FHA says in the report that it is continuously looking to build on the success of the SLFS program and improve its contributions to the MMI fund as well as provide more homeowners different avenues to avoid foreclosure. In the report, FHA details the following changes that were made to the SLFS program in 2015:

  • Required loan purchasers not to foreclose on borrowers for 12 months in owner-occupied properties;
  • Required loan purchasers to evaluate the borrower for the Home Affordable Modification Program (HAMP). The purchaser is required to offer HAMP or a substantially similar modification to eligible borrowers;
  • Created a pool of loans where only nonprofit groups and local governments were eligible to participate in the auction; and
  • Conducted outreach to encourage a greater number of nonprofits to participate in the SFLS program.

 

Source: NCSHA

HUD OIG Launches Integrity and Compliance Program

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Investor Update
October 6, 2015

WASHINGTON, D.C.Today, the Office of the Inspector General at the U.S. Department of Housing and Urban Development (HUD OIG) is proud to announce the launch of an effort to establish an Integrity & Compliance Program (ICP). This program will demonstrate HUD OIG’s commitment to the public to maintain its high standard of integrity, and dedication to making values-based ethics the standard for its conduct.
 
HUD OIG’s goal with the ICP initiative is to incorporate integrity into every decision at every level.   The ICP initiative will go beyond typical government ethics programs which, by statute, are focused on matters of employee financial disclosure requirements and compliance with regulations prohibiting such things as conflicts of interest.  It will also incorporate robust whistleblower, ombudsman, and hotline programs.
 
 “By implementing an integrity program that emphasizes our office’s shared core values, we look to support our employees as they make tough decisions in their daily activities,” said David A. Montoya, Inspector General. “We also want to provide them guidance so they are prepared for instances when ethical dilemmas arise. As evidenced by recent events of misconduct in Executive branch departments and agencies, we recognize that a single act of misconduct can jeopardize an organization’s mission. I believe federal agencies should do more to incorporate a strong values-based ethics program that goes beyond the government’s current focus of ethics. It will allow us to employ a principled organizational culture and use our values, policies and principles to guide every decision we make and every action we take.”
 
HUD OIG elected to partner with the Ethics Research Center (link is external) (ERC), the research arm of the Ethics & Compliance Initiative (ECI), on this effort. ERC is America’s oldest non-profit organization devoted to independent research to advance high ethical standards and practices in public and private institutions. ERC will be reviewing HUD OIG’s current programs and soliciting input from leaders and employees about how they live their values and the challenges they face, and helping coordinate this data into the creation of a values-based ethics program for HUD OIG.
 
“We look forward to supporting HUD OIG in their development of systems and resources that will transform their existing program into a true values-based ethics program,” said Patricia J. Harned, Ph.D., CEO, ECI. “HUD is the first OIG to endeavor to create this type of program, which demonstrates their commitment to not only operating with integrity, but also their courage in providing a model for their broader Department and other agencies. We are proud to help them accomplish these goals.”

Source: HUD OIG

HUD Mortgagee Letter 2015-24: Single Family Foreclosure Policy and Procedural Changes for HUD Title II Forward Mortgages and Reverse Mortgages

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Investor Update
October 1, 2015

Purpose
The purpose of this Mortgagee Letter is to update HUD’s:

  • Reasonable Diligence timeframes;
  • Schedule of Attorney Fees for all jurisdictions; and
  • Cash for Keys’ Relocation allowances

Effective Date
Effective Date The updated Reasonable Diligence timeframes are effective for all cases in which the First Legal Action to initiate foreclosure occurs on or after January 1, 2016.

The updated Schedule of Attorney Fees is effective for all cases in which any of the following actions occurs on or after January 1, 2016:

  • a first legal action to foreclose is initiated;
  • a bankruptcy clearance is undertaken;
  • a possessory action has begun; or
  • a deed-in-lieu of foreclosure is recorded.

 
The Cash for Keys’ Relocation allowances are effective for all FHA-insured
mortgages for which a foreclosure sale or non-conveyance transaction is scheduled on or after January 1, 2016.

Affected Policy
Beginning January 1, 2016, the policies set forth in this Mortgagee Letter supersede all prior Reasonable Diligence timeframes, Attorney Fee schedules and Cash for Keys’ Relocation allowances, including those outlined in Mortgagee Letters 2013-38 and 2002-13.

Source: HUD (Mortgagee Letter 2015-24 full version)

HUD Mortgagee Letter 2015-23: New Single Family Mortgagee Compliance Manager (MCM)

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Investor Update
October 1, 2015

New Mortgagee Compliance Manager

Beginning October 1, 2015, ISN is responsible for assigned Mortgagee Compliance Compliance Manager functions including:

  • Reviewing Requests for Extensions of Time to Convey
  • Processing Occupied Conveyance Requests
  • Reviewing the approval of reimbursable expenses for Preservation & Protection Overallowable Requests (including those properties securing Home Equity Conversion Mortgages)
  • Reviewing Requests to Convey Properties with Surchargeable Damage
  • Conducting Title Reviews and verifying Deed/Document Execution
  • Processing Requests for Pre-conveyance Inspections
  • Conducting Reviews of Claim Parts A, B, C, and D
  • Tracking and Pursuing Administrative Remedies (e.g., Monetary Demands, Offsets, and Re-conveyances)

 

Source: HUD (Mortgagee Letter 2015-23 full version)

HUD Mortgagee Letter 2015-21: Automatic Extensions to HUD’s Initiation of Foreclosure Timeline

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Investor Update
September 28, 2015

This Mortgagee Letter provides guidance relating to HUD’s regulatory requirement for mortgagees to utilize a Loss Mitigation Option or initiate foreclosure within six months of the date of default. Specifically, this Mortgagee Letter:

  • reiterates the existing eight automatic extensions available to mortgagees when they are unable to initiate foreclosure within the allotted timeframe; and
  • introduces two new automatic extensions to align with the Consumer Financial Protection Bureau’s Regulation X.

 

Source: HUD (Mortgagee Letter 2015-21 full version)

GAO-15-783: FEMA Needs to Cohesively Manage Its Workforce and Fully Address Post-Katrina Reforms

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Investor Update
September 29, 2015

What GAO Found
 
The Federal Emergency Management Agency (FEMA) has more than tripled the number of contracting officers it employs since Hurricane Katrina in 2005, but it does not have a sufficient process in place to prioritize disaster workload and cohesively manage its workforce. Some of the workforce growth is attributed to the establishment of the Disaster Acquisition Response Team (DART) in 2010, which has the primary mission of deploying to provide disaster contracting support, such as contracting for blankets or debris removal. DART has gradually assumed responsibility for administering the majority of disaster contract spending, but FEMA does not have a process for prioritizing the team’s work during disasters. Without such a process, FEMA is at risk of developing gaps in contract oversight during major disasters. Further, in 2011, FEMA established an agreement that regional contracting officers would report to headquarters supervisors for technical oversight while continuing to respond to regional supervisors—who have responsibility for administrative duties—for everyday operations. This agreement has led to challenges for FEMA in cohesively managing its workforce, including heightening the potential for an environment of competing interests for the regional contracting officers. Further, FEMA has not revisited this agreement on annual basis as called for in the agreement. As a result, it does not incorporate lessons learned since its creation 4 years ago.
 
FEMA has not fully implemented 2006 Post-Katrina Emergency Management Reform Act (PKEMRA) contracting reforms due in part to incomplete guidance.

Why GAO Did This Study
 
FEMA obligated $2.1 billion in fiscal years 2013 and 2014 for products and services, which included almost $770 million from offices responsible for disaster contracting. Providing disaster relief in a timely manner is essential, while adhering to contracting laws and regulations helps safeguard taxpayer dollars. Following Hurricane Katrina, Congress passed PKEMRA to improve FEMA’s disaster contracting.
 
GAO was asked to review FEMA’s disaster contracting practices. This report assesses the extent to which FEMA (1) made efforts to build and manage its contracting workforce and structure since PKEMRA, and (2) adopted PKEMRA reforms and demonstrated good management practices for disaster contracting.
 
GAO analyzed data on FEMA’s workforce from fiscal years 2005 through 2014, reviewed workforce guidance, and reviewed 27 contracts—including 16 selected through a random sample and 11 through a nonprobability sample based on factors including high cost—to determine the extent to which PKEMRA provisions were met. GAO also met with contracting officials.
 
What GAO Recommends
 
GAO recommends, among other things, that the FEMA Administrator establish procedures to prioritize DART’s workload, revisit the agreement for oversight of regional contracting officers, and improve guidance on PKEMRA requirements. DHS concurred with GAO’s recommendations.
 
For more information, contact Michele Mackin at (202) 512-4841 or mackinm@gao.gov.

Source: GAO

Additional Resources:

GAO-15-783 Full Report [pdf]

Freddie Mac Announces Relief for Eligible Borrowers, Employers, Employees in South Carolina Disaster Areas

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Investor Update
October 6, 2015

We’re making our full menu of disaster relief policies available to homeowners whose homes were damaged or destroyed by the powerful storms that swept through South Carolina. 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. A list of these areas can be found at http://www.fema.gov/disasters ..
 
Freddie Mac strongly encourages South Carolinians whose homes or businesses were harmed by Hurricane Joaquin’s torrential downpours to call their mortgage servicer (the company to which they send their monthly mortgage payment) as soon as possible. If their mortgage is owned or guaranteed by Freddie Mac they may qualify for our full range of mortgage relief options. These options include forbearance on mortgage payments for up to one year.

  • 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 that disaster relief policies are not limited to those borrowers whose homes reside in eligible disaster areas, but also to those borrowers whose place of employment resides in an eligible disaster area

Again, borrowers whose home or place of business is in a disaster area, borrowers should immediately contact their mortgage servicer – the company to which they send their monthly mortgage payment.

Source: Freddie Mac

FHLMC Guide Bulletin 2015-18: Updates to State Foreclosure Time Lines and Modification Requirements

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Investor Update
October 14, 2015

In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-18, and in response to your feedback, we announced updates to state foreclosure time lines and compensatory fees, modification requirements, and other changes.

Key Highlights

  • Updated Guide Exhibit 83, Freddie Mac State Foreclosure Time Lines, to extend state foreclosure time lines in 34 of 55 jurisdictions, effective for all foreclosure sales completed on or after August 1, 2015.
  • Extended the temporary suspension of assessment and billing of state foreclosure time line compensatory fees in certain jurisdictions announced in Guide Bulletin 2014-19 [PDF].
  • Simplified the calculation and assessment of state foreclosure time line compensatory fees. The billing methodology for mortgages referred to foreclosure prior to October 1, 2011, is now more closely aligned with the billing methodology for mortgages referred to foreclosure on or after October 1, 2011. Refer to our new Quick Reference [PDF] for details.

Other servicing requirement updates include:

  • Notifications for the HAMP Year Six Pay for Performance incentive [PDF].
  • Eligible hardships for a simultaneous assumption and modification.
  • Expenditures related to lender-placed insurance.
  • Attorney fee reimbursement amounts for certain bankruptcy services.

Please read Guide Bulletin 2015-18 for more details on these updates and additional requirement changes.

For More Information

 

Source: Freddie Mac

FHLMC Guide Bulletin 2015-17: Origination Defects and Remedies Framework Announced

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Investor Update
October 7, 2015

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-17, we’re announcing an origination defects and remedies framework (the “remedies framework”), effective for mortgages with Freddie Mac settlement dates on or after January 1, 2016. The framework provides you with more clarity on how we categorize origination defects, Seller corrections of defects and available remedies. This framework expands the selling representation and warranty framework and will help you manage risk more effectively.

We’re announcing the remedies framework jointly with Fannie Mae at the direction of the Federal Housing Finance Agency.
 
The following are highlights of the framework included in the Bulletin:

  • Categories of defects. After a quality control (QC) review of a loan, origination defects, if any, fall into one of three categories. This determines whether the Seller can correct the defect and what remedy is required.
  • Definitions. New terms have been added to the Guide to help you understand the application of the remedies framework.
  • Remedying origination defects. We’ve outlined our four-step process that we will follow to categorize origination defects, Seller corrections of the defects and available remedies.
  • Please take advantage of our Quality Control Information Manager and Freddie Mac Loan Coverage Advisor® to help you manage the QC review process and track the representation and warranty relief dates for loans you’ve sold us.

For More Information

Source: Freddie Mac