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FHFA Announces June 12 HARP Outreach Event in Phoenix

Posted on September 13, 2018 by Safeguard

On May 27, the Federal Housing Finance Agency (FHFA) published a news release announcing its sixth event to reach homeowners who are eligible for the Home Affordable Refinance Program (HARP).

FHFA Announces June 12 HARP Outreach Event in Phoenix

HARP Refinances Surpass 3.3 Million

FOR IMMEDIATE RELEASE

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced that it will hold its sixth outreach event to reach homeowners who could save on their monthly mortgage payments by refinancing through the Home Affordable Refinance Program (HARP). Housing experts and community leaders will join FHFA policy experts for a town hall-style meeting at the Arizona Capitol Museum in Phoenix, AZ on June 12. The event is designed to provide tools to community leaders to encourage the more than 10,000 Phoenix area residents (more than 18,000 in Arizona statewide) still eligible for HARP to take advantage of the program.

FHFA also reported that, for the first time, the total number of borrowers who have refinanced through HARP has surpassed the 3.3 million mark. FHFA’s first quarter Refinance Repor?t shows that more than 31,000 HARP refinances were completed through March of this year, bringing the total to 3,302,102 since inception of the program in 2009.

FHFA Director Melvin L. Watt recently encouraged eligible borrowers to take advantage of HARP now while interest rates are still low, but announced that HARP will be extended through December 31, 2016. For the Phoenix event, Megan Moore, special advisor to Director Watt, will moderate a p?anel discussion that will include representatives from the U.S. Department of the Treasury, Fannie Mae, Freddie Mac, and the Arizona Department of Housing.

“There are more than 10,000 homeowners in the Phoenix area, and even more statewide who could save, on average, more than $2,400 per year by refinancing through HARP,” said Watt. “Our goal is to join forces with community leaders and other trusted sources so that borrowers who are current on their mortgage, but have little equity in their homes, know they have refinancing options and can still join the 3.3 million Americans who have saved money by refinancing through HARP.”

FHFA estimates that as of December 2014, more than 600,000 borrowers nationwide would benefit financially by refinancing through HARP. These so-called “in-the-money” borrowers are eligible if they meet the basic HARP eligibility requirements:

Their loan must be owned or guaranteed by Fannie Mae or Freddie Mac.
Their mortgage must have been originated on or before May 31, 2009.
Their current loan-to-value ratio must be greater than 80 percent.
They must be current on their mortgage payments with no late payments in the last six months and no more than one late payment in the last 12 months.

Borrowers typically will get a financial benefit from HARP if they meet these criteria and have a remaining mortgage balance of $50,000 or more, 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, $200 or more 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 and the U.S. Treasury introduced HARP in early 2009 as part of the Making Home Affordable program. HARP allows borrowers with little or no equity in their home to take advantage of low interest rates and other refinancing benefits.

FHFA launched a nationwide public awareness campaign and the website HARP.gov and HARP.gov/espanol in 2013 to reach eligible borrowers. In 2014, FHFA began a series of outreach events in the cities with the highest numbers of eligible borrowers. Events have been held in Chicago, Atlanta, Detroit, Miami, and Newark. FHFA also recently launched a Twitter campaign to raise awareness about the savings available through HARP to more than 600,000 homeowners nationwide. Follow @FHFA and #HARPFacts on Twitter for more information.

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??

Please click here to view the news release 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.

FHA Publishes Responses to Comments on Rule Delaying Foreclosure on Non-Borrowing Spouses

Posted on September 13, 2018 by Safeguard

On April 30, DS News published an article discussing the Federal Housing Administration’s (FHA) response in the Federal Register to comments pertaining to the Mortgagee Optional Election Assignment for certain Home Equity Conversion Mortgages (HECMs).

FHA Publishes Responses to Comments on Rule Delaying Foreclosure on Non-Borrowing Spouses

The Federal Housing Administration (FHA) responded in the Federal Register on Wednesday to comments on the alternative path to claim payment (the Mortgagee Optional Election Assignment) for certain Home Equity Conversion Mortgages (HECMs), which centers on the delaying of foreclosure on a surviving non-borrowing spouse following a borrowing spouse’s death.

The FHA published a notice soliciting comments on the matter on February 6, and the comment period ended on March 9. In the four and a half week comment period, FHA received seven comments on the issue. Click here to see all seven comments and the complete responses from FHA. The comments centered mainly around asking FHA to clarify the eligibility requirements for surviving non-borrowing spouses (or any heir named on the title) to receive HECM relief.

FHA and HUD amended their HECM program in January prevent reverse mortgage lenders from calling the note from a surviving non-borrowing spouse – but the amendment applied only to case numbers assigned on or after August 4, 2014, and for certain eligible case numbers assigned before that date. The requirements to qualify for HECM relief shut many out, however – the servicer has to agree to assign the loan to HUD rather than pursue foreclosure, and the surviving spouse must be either older or the same age as the deceased borrower at the time the loan was originated – or the surviving spouse must pay off the entire loan amount or 95 percent of the home’s value.

In March, a group of concerned consumer advocates submitted comments totaling 65 pages to HUD expressing concerns over non-borrowing spouses facing foreclosure and eviction following the death of a borrowing spouse. In February, a CFPB report on consumer complaints regarding reverse mortgages found that the most common complaint was on surviving non-borrowing spouses suddenly facing foreclosure when a borrowing spouse dies – finding that “some consumers report that their loan originator falsely assured them that they would be able to add the other spouse at a later date.”

Please click here to view the article online.

FHA: HECM Reasonable Diligence Timeframe Extensions

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

On April 30, the Federal Housing Administration (FHA) issued a memo announcing the immediate rescinding of Mortgage Letter 2015-03 (option of delayed foreclosure proceedings for non-borrowing spouses.)

Federal Housing Administration (FHA)

Frequently Asked Questions

—– FHA RESOURCE CENTER BULLETIN BOARD —–

Keep up to Date with Breaking FHA News – Join the FHA Info List Serv

Posted April 30th, 2015

HECM Reasonable Diligence Timeframe Extensions

The Federal Housing Administration (FHA) announced on April 30, 2015 that it is immediately rescinding Mortgagee Letter 2015-03. For any HECM with a case number issued prior to August 4, 2014 with a non-borrowing spouse, HUD is providing HECM mortgagees with an additional 60-day extension of time in which to take first legal action to commence foreclosure, and to comply with reasonable diligence timeframes for such HECMs. During this period debenture interest will not be curtailed.

Mortgagees may immediately elect to begin using this extension. Mortgagees have full discretion to elect this extension. The request for an extension is not conditioned on the continued pursuit of foreclosure or the marketing of the property. The mortgagee’s request for an extension is effective when made and FHA will not be providing any specific approval for this extension.

View these and other recent FHA INFO announcements at the FHA INFO Archive.

Please click here to view the memo online.

Please click here to view Mortgagee Letter 2015-12 [pdf].

FHA Extends Effective Date of Single Family Housing Policy Handbook

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

On April 30, the Federal Housing Administration (FHA) released a statement from Deputy Assistant Secretary for Single Family Housing Kathleen Zadareky announcing the extension of the effective date of the Single Family Housing Policy Handbook to September 14, 2015.

Statement from Deputy Assistant Secretary for Single Family Housing Kathleen Zadareky on the Decision to Extend the Implementation Date of the FHA Handbook

In response to concerns expressed by some of our stakeholders, FHA is extending the effective date of the Single Family Housing Policy Handbook to September 14, 2015. It’s become clear over the last few months that some of our industry partners require additional time to prepare to implement the Handbook. We want to accommodate these requests as we believe everyone benefits from having the necessary time to thoughtfully integrate this new handbook into their business operations.

Please click here to view the statement online.

FDIC Director Submits Resignation

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

On May 8, the Federal Deposit Insurance Corporation (FDIC) issued a press release announcing the resignation of Director Jeremiah O. Norton, which will be effective June 5, 2015.

Jeremiah O. Norton Submits Resignation as Director of the Federal Deposit Insurance Corporation

FOR IMMEDIATE RELEASE

Media Contact:
Barbara Hagenbaugh
202-898-7192
bhagenbaugh@fdic.gov

Jeremiah O. Norton submitted his resignation Friday as Director of the Federal Deposit Insurance Corporation, effective June 5, 2015.

Norton, who has served as Director since April 16, 2012, submitted his letter of resignation to President Obama.

“Jeremiah has been an extraordinarily effective and influential member of the FDIC Board,” Chairman Martin J. Gruenberg said. “He has made major contributions to important actions by the FDIC in the wake of the financial crisis. We are grateful for his service, we will miss his thoughtful insights, and we wish him well in his future endeavors.”

A copy of his resignation letter is attached. – PDF (PDF Help)

Please click here to view the press release online.

Fannie Mae SVC-2015-08 Servicer Eligibility and Oversight Requirements

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

On May 20, Fannie Mae released Servicing Guide Announcement SVC-2015-08, subtitled Servicer Eligibility and Oversight Requirements.

Servicing Guide Announcement SVC-2015-08

Servicer Eligibility and Oversight Requirements

Fannie Mae is amending its policies and requirements related to the following:

Seller/Servicer Net Worth and Liquidity Requirements
Subservicing and Outsource Vendor Requirements

Seller/Servicer Net Worth and Liquidity Requirements

Servicing Guide A3-3-01, Net Worth, Liquidity, and Credit Rating Requirements

Fannie Mae is updating its policies and requirements related to the seller/servicer’s net worth and liquidity. All approved sellers/servicers must have and maintain a Lender Adjusted Net Worth of at least $2.5 million, plus a dollar amount that represents 0.25% of the UPB of the seller/servicer’s total portfolio of mortgage loans serviced.

NOTE: The Lender Adjusted Net Worth for subservicers does not include mortgage loans serviced under a subservicing arrangement.

Seller/servicers that are depository institutions are required to meet the minimum regulatory capital requirements to be classified as “well capitalized” by their primary regulator.

All other entities must have a minimum Lender Adjusted Net Worth/Total Assets ratio of 6%, or equivalent, as determined by Fannie Mae.

Please click here to view the announcement in its entirety.

Fannie Mae SVC-2015-07 Servicing Guide Updates

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

On May 20, Fannie Mae released Servicing Guide Announcement SVC-2015-07, subtitled Servicing Guide Updates.

Servicing Guide Announcement SVC -2015 -07

Servicing Guide Updates

The Servicing Guide has been updated to include the following:

Changes to Requirements for Performing Property Inspections on Abandoned Properties
Updates to MI Premium Expense Reimbursement Policy
Updates to the Investor Reporting Manual
Miscellaneous Revisions
Updates to LL-2014-06: Advance Notice of Future Changes to Investor Reporting Requirements

Each of these updates is described below. The servicer must review each topic in the Servicing Guide in its entirety to gain a full understanding of the policy change(s).

Property Inspections on Abandoned Properties

Servicing Guide D2-2-11, Requirements for Performing Property Inspections has been updated to require the servicer to perform an interior inspection every 30 days until the foreclosure sale date once it has confirmed the property is abandoned.

Effective Date

The servicer is encouraged to implement this change immediately, but must do so no later than July 1, 2015.

MI Premium Reimbursement

Servicing Guide F-1-06, Expense Reimbursement has been updated to authorize the servicer to request reimbursement for borrower-paid mortgage insurance premium expenses paid after the date of default through liquidation.

Effective Date

The servicer is encouraged to implement this change immediately, but must do so no later than August 1, 2015.

Investor Reporting

Fannie Mae’s Investor Reporting Manual 4-02, Calculations Related to Principal Payments has been updated to correct the calculation for scheduled UPB when the mortgage loan is prepaid two or more months to indicate the use of “adjusted UPB” instead of “actual UPB.”

Effective Date

The servicer is encouraged to implement this policy change immediately, but must do so no later than August 1, 2015.

Miscellaneous Revisions

The Servicing Guide has been revised as follows:

Incorporated the policy changes previously communicated in Servicing Guide Announcement SVC-2015-06: Miscellaneous Servicing Policy Changes.

Updated Servicing Guide Topics

Servicing Guide C-1.2-01, Processing Additional Principal Payments
Servicing Guide D2-3.1-05, Interacting with Housing Finance Agencies and Hardest-Hit Fund Programs
Servicing Guide E-3.2-08, Processing Reinstatements During Foreclosure
Updated Servicing Guide F-1-33, Reporting a Workout Option via HomeSaver Solutions Network to remove the Comment Codes that must currently be provided in the General Comment section when
reporting a Fannie Mae Short Sale or a Fannie Mae Mortgage Release via HSSN. Instead, a field has been added in HSSN for the servicer to select the applicable Comment Code.
Revised Fannie Mae’s Workout Hierarchy to reflect that a Fannie Mae Streamlined Modification may be available when the mortgage loan was previously modified into a mortgage loan with a step-rate feature and the mortgage loan is 60 days or more delinquent. Fannie Mae’s Workout Hierarchy, which was previously located on the Servicing Guide Exhibits page on Fannie Mae’s website, is now located in Servicing Guide F-2-12, Fannie Mae’s Workout Hierarchy.

Updates to LL-2014-06: Advance Notice of Future Changes to Investor Reporting Requirements

Fannie Mae is notifying the servicer of updates to LL-2014-06 as follows:

Specifying an effective date for the policy changes described in Lender Letter LL-2014-06. The servicer must implement the policy changes when reporting mortgage loan activity that occurs on or after February 1, 2017.
Changing the reporting time for all remittance types for both removal and non-removal transactions from 5 p.m. eastern time to 8 p.m. eastern time.
Clarifying that changes to the monthly investor reporting requirements will impact the loan activity report (LAR) format and data elements.

The servicer should contact its Servicing Consultant, Portfolio Manager, or Fannie Mae’s Credit Portfolio Management’s Servicer Support Center at 1-888-FANNIE5 (1-888-326-6435) with any questions regarding this Announcement.

Malloy Evans
Vice President
Credit Portfolio Management

Please click here to view the announcement online.

Fannie Mae Standard Modification Interest Rate Adjustment

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

On May 7, 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 May 14, 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.

Fannie Mae: Recorded Webinars and More Training Opportunities Available

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

On May 13, Fannie Mae announced several recorded webinars that are currently available on FannieMae.com.

Recorded Webinars Available on FannieMae.com
The following recorded webinars are currently available on the HFI™ Spotlight page:

Updates to Fannie Mae’s MyCity Modification:
Reviews updated requirements for Fannie Mae’s MyCity Modification as announced in Servicing Guide Announcement SVC-2014-22 and incorporated into the 2015 Servicing Guide at D2-3.2-11.

Updates to Borrower “Pay for Performance” Incentives for a Fannie Mae HAMP Modification:
Covers the policy updates and requirements indicated in Lender Letter 2015-01: Notification of Future Updates to Borrower “Pay for Performance” Incentives for a Fannie Mae HAMP Modification.

Third Party Sales Foreclosure Bidding Instructions:
Designed to help servicers understand Fannie Mae’s updates to foreclosure bidding instructions and third party sales as covered in Lender Letter LL-2014-09. This course explains the policy changes and the process for requesting foreclosure sale bidding instructions from Fannie Mae prior to a scheduled foreclosure sale.

Build the Skills You Need
With HFI InDepth, you’ll learn from expert instructors and get your questions answered — all in an online virtual classroom. Register today for an upcoming course:

Visit Fannie Mae’s HFI InDepth Page today to see the full calendar of classes and to register!

Please click here to view the Fannie Mae servicing news update online.

White House Threatens to Veto Bill That Cuts CFPB Funding

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

On April 21, DS News published an article discussing H.R. 1195, a proposed amendment that according to the White House, would reduce the amount of funding the Consumer Financial Protection Bureau (CFPB) director can request.

White House Threatens to Veto Bill That Cuts CFPB Funding

President Barack Obama has threatened to veto a proposed amendment to the Consumer Financial Protection Act of 2010 that the White House claims would reduce the amount of funding the CFPB director can request.

H.R. 1195, known as the Bureau of Consumer Financial Protection Advisory Boards Act, was introduced in the House by Robert Pittenger (R-North Carolina) and Denny Heck (D-Washington) on March 2. The bill calls for the establishment of advisory boards or councils within the CFPB of 15 to 20 members each for small businesses, credit unions, and community banks. The stated purpose of each advisory board or council is to “advise and consult” with the CFPB on issues that impact their respective groups. The bill was approved in the House Financial Services Committee earlier this year by a vote of 53 to 5.

A recently proposed amendment to the bill by House Financial Services Committee Jeb Hensarling (R-Texas), however, reduces the amount of funding the CFPB director can request by about $45 million and $100 million for the fiscal years of 2020 and 2025, respectively. The White House said in its statement that “These reductions to the caps could result in, among other things, undermining critical protections for families from abusive and predatory financial products.”

The bill’s co-sponsor, Heck, is urging his fellow Democrats to oppose the amendment to the bill, saying that Hensarling “put the torch” to his bill.

Republicans have been attempting to chip away at the CFPB, and at the Dodd-Frank Act which created the Bureau, for the last three years but have made an extra push since gaining a majority in both the House and the Senate last November. Democrats have vowed to fight the Republicans’ attempts to reduce Dodd-Frank or the CFPB’s power, but last week, a bill passed in the House with overwhelming bipartisan support (a vote of 401 to 2) that would subject the CFPB to the provisions of the Federal Advisory Committee Act, making the proceedings of each advisory committee and subcommittee of the CFPB open to the public. The bill was one of several introduced in early March by Representative Sean Duffy (R-Wisconsin).

Other legislation attempting to reform the CFPB is currently pending. In February, Representatives Steve Stivers (R-Ohio) and Tim Walz (D-Minnesota) revived a bipartisan bill that would create an independent Inspector General for the CFPB that is appointed by the president and approved by the Senate. The Bureau currently shares an IG with the Federal Reserve, a position that is appointed by the Fed chair and not subject to Senate approval.

Please click here to view the article online.