Page 378 – Safeguard Properties

Freddie Mac: IRS Rejection Messages Are a Reminder to Look Out for Fraud Red Flags

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

On June 11, Freddie Mac released an update titled IRS Rejection Messages Are a Reminder to Look Out for Fraud Red Flags.

IRS Rejection Messages Are a Reminder to Look Out for Fraud Red Flags

We’ve heard from Freddie Mac customers that, in a few instances, requests submitted through IRS Form 4506-T, Request for Transcript of Tax Return, are being returned with a rejection code entitled “Limitations.” The IRS’ reasons for rejecting requests with this particular code are to combat identity fraud and prevent unauthorized access to taxpayer information.

IRS Form 4506-T anomalies may indicate red flags such as the accuracy of a borrower’s income and tax documentation and/or the Social Security number used to qualify for a loan. We’re reminding you to treat these red flags as seriously as you would any other fraud red flag.

Processing IRS Form 4506-T is an essential, proven way to combat mortgage fraud, and is required for post-funding quality control programs. For more information, review Single-Family Seller/Servicer Guide (Guide) Section 48.5.

What You Can Do Now

To ensure the quality of loans sold to Freddie Mac, Sellers and Servicers must:

Take all appropriate steps to clear red flags typically found in fraud schemes focused on loan origination, so that you’re comfortable with the risk of lending money to the borrower, and;
Report instances of fraud or suspected fraud to Freddie Mac, as detailed in Single-Family Seller/Servicer Guide Section 7.3, when you receive the IRS rejection message “Limitations” for loans already sold to Freddie Mac. Freddie Mac doesn’t require any alternative documentation for transcripts rejected with this particular code during the post-closing quality control process.

Please review our recently updated Single-Family mortgage fraud mitigation best practices document [pdf] to help you spot what to look for, how to report fraud or suspected fraud to Freddie Mac, and what steps you can take to help prevent fraud.

Looking Forward to Continued Success

The Financial Fraud Investigation Unit is at the forefront of our mortgage fraud mitigation efforts and is committed to helping the mortgage industry fight fraud. Your continued efforts toward fraud prevention, detection and reporting are critical in the fight against fraud. Thank you for your vigilance.

For More Information

Read the Single-Family mortgage fraud mitigation best practices document [pdf] and mortgage screening checklist [pdf].
Visit the Freddie Mac Fraud Prevention Web page and share our updated resources with appropriate members within your organization.
Refer to Guide Chapters 7 and 57 for our complete requirements for fraud prevention, detection and reporting.
Call us at (800) 4FRAUD8.
Email us at Mortgage Fraud Reporting.

Please click here to view the update online.

About Safeguard
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.

Freddie Mac Extends Mortgage Relief to TX and OK Homeowners Impacted by Storms

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

On June 3, Freddie Mac released an update titled Freddie Mac Disaster Relief Extended to Eligible Borrowers Harmed by Texas, Oklahoma Storms.

Freddie Mac Disaster Relief Extended to Eligible Borrowers Harmed by Texas, Oklahoma Storms

MCLEAN, VA–(Marketwired – Jun 3, 2015) – Freddie Mac’s (OTCQB: FMCC) full menu of relief policies for borrowers affected by disaster is being extended to homeowners whose homes were damaged or destroyed by the powerful storms that swept through Oklahoma and Texas in late May. Freddie Mac’s disaster relief policies are targeted to borrowers with homes in presidentially declared Major Disaster Areas where federal Individual Assistance programs are being made available to affected individuals and households. Freddie Mac is one of the nation’s largest investors in residential mortgages.

News Quote:

Attribute to Yvette Gilmore, Vice President of Single-Family Servicer Performance Management, Freddie Mac:

“Freddie Mac strongly encourages Texas and Oklahoma residents whose homes or businesses were affected by these terrible storms to call their mortgage servicer. Borrowers with mortgages owned or guaranteed by Freddie Mac may benefit from our full range of mortgage relief options. These options include forbearance on mortgage payments for up to one year. We strongly encourage borrowers to contact their servicers to discuss mortgage relief.”

News Facts:

Freddie Mac disaster relief policies authorize mortgage servicers to help affected borrowers in presidentially declared Major Disaster Areas where federal Individual Assistance programs have been extended. A list of these areas can be found at http://www.fema.gov/disasters.
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 to consider borrowers who work in eligible disaster areas, but have homes in unaffected areas, for Freddie Mac’s standard relief policies, which include forbearance or mortgage modifications.
Affected borrowers should immediately contact their mortgage servicer — the company to which they send their monthly mortgage payment.
See http://www.freddiemac.com/singlefamily/service for a description of Freddie Mac disaster relief policies.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four homebuyers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac

Please click here to view the online release.

Freddie Mac Disaster Relief Policies

Posted on September 13, 2018 by Safeguard

On June 4, Freddie Mac released an update asking sellers and servicers to refresh their knowledge of its disaster-relief policies.

Freddie Mac Disaster Relief Policies

When disasters like the severe storms in Texas and Oklahoma occur, we give you options to offer temporary relief to impacted borrowers who are trying to pay their mortgage.

We ask all Freddie Mac Sellers and Servicers to respond to borrower’s assistance requests using the options available to you through our Single-Family Seller/Servicer Guide (Guide). Please note that our disaster relief requirements and options have not changed. For a reminder of those requirements and options, please read below.

Next Steps for Servicers

Servicers should immediately begin following the disaster relief requirements outlined in Guide Chapter 68, which include:

Obtaining quality right party contact as soon as possible.
Short-term suspension of collection and foreclosure proceedings for up to 12 months from the date a disaster strikes to help accommodate financial hardship, based on each borrower’s specific circumstances.
No assessment of late charges or reporting to credit repositories for borrowers on a forbearance plan or paying as agreed on a repayment plan.
Help with options for local, state, or federal disaster assistance.
Monitoring and coordinating the insurance claim process.

If you need to respond to assistance requests from impacted borrowers:

Refer to the general mortgage relief policies in Guide Chapters A65, B65 and C65.
Determine the number of impacted properties and assess the extent of the damage caused by the Texas and Oklahoma storms.

Special Relief Consideration

If you’re faced with a unique situation that may warrant special relief consideration, Freddie Mac will review individual circumstances on a case-by-case basis.

For More Information

Please review these resources or contact your Freddie Mac representative to prepare for borrower inquiries.

Our press release.
Guide Chapters A65, B65, and C65 for general mortgage assistance policies.
Guide Chapter 68 for Servicer responsibilities.
FEMA’s website to find out which locations are Major Disaster areas.

Please click here to view the online update.

FHLMC Guide Bulletin 2015-09 Save Time, Save Money – More Options

Posted on September 13, 2018 by Safeguard

On June 15, Freddie Mac released an update titled Save Time, Save Money – More Options with Guide Bulletin 2015-9.

Save Time, Save Money – More Options with Guide Bulletin 2015-9

In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-9, we’re announcing requirement changes that help save you time, money, and extend modification options for your borrowers.

Important changes include:

Extending the Home Affordable Modification Program (HAMP®) for one year. All HAMP modifications must have an effective date on or before September 1, 2017, and all evaluations for HAMP must have a complete Borrower Response Package submitted on or before December 31, 2016.
Updating the HAMP Pay for Performance incentive program.
Extending the Freddie Mac Streamlined Modification indefinitely.
Using the Freddie Mac Default Fee Appeal System for all late foreclosure sale reporting compensatory fee appeals. Effective September 1, 2015.
Reimbursing unearned property insurance premiums for certain properties.

Please read Guide Bulletin 2015-9 for full details on these updates and more.

Resources

Check out our Summary of Upcoming Requirement Changes [pdf] and At-a-Glance: Modification Comparison [pdf] job aid.
For your convenience, printer-friendly PDF versions of our current Guide Chapters are now available on AllRegs.
Vacation plans? Stay connected to the latest Single-Family news. The Single-Family Week in Review provides you with a summary of all the previous week’s Single-Family news and announcements every Monday morning.

For More Information

Read Guide Bulletin 2015-9 [pdf].
Review our HAMP and Default Fee Appeal System Web pages.
Visit Freddie Mac’s Learning Center for additional information 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 2015-09 [pdf].

FHFA Releases 2014 Report to Congress

Posted on September 13, 2018 by Safeguard

On June 15, the Federal Housing Finance Agency (FHFA) published a news release announcing the release of its 2014 Report to Congress.

News Release

FHFA Releases 2014 Report to Congress

FOR IMMEDIATE RELEASE

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released its 2014 Report to Congress, which details the findings of the agency’s 2014 examinations of Fannie Mae, Freddie Mac (the Enterprises), 12 Federal Home Loan Banks (FHLBanks) and the FHLBanks’ Office of Finance. The statutorily-required report also details FHFA’s actions as conservator of Fannie Mae and Freddie Mac during the year and provides details about the agency’s regulatory guidance, research and publications.

Link to 2014 Report to Congress

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

Please click here to view the news release online.

FHA Releases Servicing Handbook

Posted on September 13, 2018 by Safeguard

On June 24, the Federal Housing Administration (FHA) published its final Servicing and Loss Mitigation (Servicing) for Title II Forward Mortgages and the Servicer Tier Ranking System II (TRS II) sections of its Single Family Housing Policy Handbook. The policies in these sections become effective on March 14, 2016, except the Default Servicing policies in Section III.A.2, which become effective for mortgages in default on or after March 14, 2016.

Single Family Housing Policy Handbook Now On Line

As of May, 18, 2015 users can access the online SF Handbook for free from the link provided on HUD’s Client Information Policy Systems (HUDCLIPS) web page. The online SF Handbook makes it easier for mortgagees and other stakeholders in FHA transactions to:

Find precise policy information, with an organizational structure, searches and other features that allows users to go directly to the information they’re seeking.
Compare current FHA Single Family Housing policy with future effective policy, and with policy and effective date notations that allow for easy comparisons.
Share information among organizations and teams using enhanced features for emailing specific SF Handbook sections or subsections directly from content pages.

Please click here to view the HUD Single Family Housing Policy Handbook (HUD Handbook 4000.1) Information Page.

Please click here to view the Single Family Housing Policy Handbook [pdf]. NOTE: The Servicing and Loss Mitigation section begins on page 491.

FHA INFO #15-43: Extension of the Implementation Date for Mortgagee Letter 2015-07: Trial Payment Plans Associated with HUD?s Loss Mitigation Loan Modification Options for Forward Mortgages

Posted on September 13, 2018 by Safeguard

On June 3, the U.S. Department of Housing and Urban Development (HUD) released single family housing news and updates in FHA INFO #15-43.

TO: All FHA-Approved Mortgagees Servicing Single Family Mortgages

NEWS AND UPDATES

Extension of the Implementation Date for Mortgagee Letter 2015-07: Trial Payment Plans Associated with HUD’s Loss Mitigation Loan Modification Options for Forward Mortgages

Today, the Federal Housing Administration (FHA) announced that it is extending the implementation dates for the policy changes originally announced in Mortgagee Letter (ML) 2015-07: Trial Payment Plans Associated with HUD’s Loss Mitigation Loan Modification Options for Forward Mortgages, issued on March 18, 2015. The policy changes announced in ML 2015-07 will now become effective with the Servicing section of the Single Family Housing Policy Handbook (HUD Handbook 4000.1) and on a date that will be established at the time of publication of that handbook section.

Questions regarding the extension of ML 2015-07 should be directed to the U.S. Department of Housing and Urban Development’s (HUD) National Servicing Center at 1-877-622-8525. Persons with hearing or speech impairments may reach this number by calling the Federal Information Relay Service at 1-800- 877-8339.

Quick Links

Access Mortgagee Letter 2015-07 and all other archived Mortgagee Letters at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee
View the online version of HUD Handbook 4000.1 on HUDCLIPS at: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh

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.

FHA Expands Opportunities for Reverse Mortgage ‘Non-Borrowing Spouses’ to Remain in Their Home

Posted on September 13, 2018 by Safeguard

On June 12, the U.S. Department of Housing and Urban Development (HUD) published a press release announcing a revised policy issued by the Federal Housing Administration (FHA) under its Home Equity Conversion Mortgage Program (HECM).

FHA EXPANDS OPPORTUNITIES FOR REVERSE MORTGAGE ‘NON-BORROWING SPOUSES’ TO REMAIN IN THEIR HOME

WASHINGTON – The Federal Housing Administration (FHA) today issued a revised policy under its Home Equity Conversion Mortgage (HECM) Program giving FHA-approved lenders expanded options to allow eligible ‘non-borrowing spouses’ the potential to remain in their home following the death of the last surviving borrower. Read FHA’s new mortgagee letter.

Last year, FHA amended its HECM policies to allow for the deferral of foreclosure, or ‘due and payable status’ for certain Eligible Non-Borrowing Spouses for case numbers assigned on or after August 4, 2014. Today’s action allows lenders to offer similar treatment for eligible HECMs and Eligible Non-Borrowing Spouses with FHA case numbers issued before August 4, 2014.

Under FHA’s revised policy, lenders will be allowed to proceed with submitting claims on HECMs with Eligible Surviving Non-Borrowing Spouses and Case Numbers assigned before August 4, 2014 in accordance with the terms of the mortgagee letter by:

Electing to assign the HECM to HUD upon the death of the last surviving borrower, where the HECM would not otherwise be assignable to FHA solely as a result of the death of the borrower. (The Mortgagee Optional Election Assignment)
Allowing claim payment following sale of the property by heirs or estate; or
Foreclosing in accordance with the terms of the mortgage, and filing an insurance claim under the FHA insurance contract as endorsed.

By electing the Mortgagee Optional Election Assignment (MOE), lenders will be permitted assign an eligible HECM to HUD despite the death of the last surviving borrower and regardless of the loan’s unpaid principal balance. Following the death of their borrowing spouse, non-borrowing spouses may remain in their home under the following conditions:

The lender or servicer agrees;
The reverse mortgage was assigned an FHA case number prior to August 4, 2014;
They are current in making timely tax and insurance payments;
They maintain the property under the terms and conditions of the HECM;
They were legally married to the borrowing spouse at the time of the loan closing, OR they were engaged in a committed same-sex relationship with the borrower akin to marriage but were prohibited under state law from legally marrying the borrower at the time of the loan’s origination, but became legally married prior to the death of the borrower;
They currently reside and resided in the property as his/her principal residence at the origination of the HECM and throughout the duration of the HECM borrower’s life;
They have, or are able to obtain, within 90 days following the last surviving borrower’s death, good, marketable title to the property or a legal right to remain in the property for life; and

They meet all other terms and conditions of the original mortgage contract.

Please click here to view the press release online.

Fannie Mae SVC-2015-09 Servicing Guide Updates

Posted on September 13, 2018 by Safeguard

On June 10, Fannie Mae released Servicing Guide Announcement SVC-2015-09, subtitled Servicing Guide Updates.

Servicing Guide Announcement SVC-2015-09

Servicing Guide Updates

The Servicing Guide has been updated to include the following:

Introduction to New Fannie Mae Custodial Document Reconciliation Requirements
Updates to Requirements Related to Adverse Action
Updates to Fannie Mae’s Investor Reporting Manual
Extension of Fannie Mae HAMP/2MP and Elimination of Streamlined Modification Program Expiration Dates
Updates to Fannie Mae’s Allowable Bankruptcy Attorney Fees Exhibit
Miscellaneous Revisions
Clarifications to HAMP Borrower “Pay for Performance” Notice Requirements

Please click here to view the announcement in its entirety.

Fannie Mae Standard Modification Interest Rate Adjustment

Posted on September 13, 2018 by Safeguard

On June 5, Fannie Mae issued Servicing Notice: Fannie Mae Standard Modification Interest Rate Adjustment.

Servicing Notice

Fannie Mae Standard Modification Interest Rate Adjustment

Fannie Mae is adjusting the Fannie Mae Standard Modification Interest Rate required for all Fannie Mae conventional mortgage loan modifications, excluding Fannie Mae HAMP Modifications. The servicer must implement the new interest rate indicated on the Fannie Mae Standard Modification Interest Rate Exhibit for any mortgage loan modification evaluation conducted on or after June 12, 2015.

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.

Please click here to view the notice online.