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VALERI Servicer Newsflash

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

On April 10, the U.S. Department of Veterans Affairs (VA) released a VALERI Servicer Newsflash.

VALERI Servicer Newsflash

IMPORTANT INFORMATION
Transfer of Custody (TOC) Processing Defect – VA has identified a defect regarding the TOC event submitted on the Bulk Upload spreadsheet. The TOC events are rejecting due to the “Date of Confirmation/ Ratification of Sale” fields not being populated; however, we have confirmed that the Date of Confirmation/Ratification of Sale is being reported on the bulk upload spreadsheet for the appropriate states, as required. This defect will be fixed with our VALERI 3.4 manifest release tentatively scheduled for June. If you find a TOC that rejected due to this reason, please report the TOC manually in the Servicer Web Portal (SWP). This action must be taken to correct the issue until the fix is released. If you have any questions or concerns, please reach out to the VALERI helpdesk at valerihelpdesk.vbaco@va.gov.

Circular 26-15-2 – Reconveyance Disputes Process was issued on March 13, 2015, and is located on the VALERI Internet site.

REMINDER
Deficiency Waiver Letter (DWL) – Under 38 CFR 36.4323, a DWL must be sent to the borrower no later than 15-calendar days after receipt of the guaranty claim payment on all loans where VA paid a maximum guaranty claim and the property was conveyed to VA. The DWL must include the amount of waived indebtedness. At time of post audit, if a servicer fails to provide evidence validating a deficiency waiver notice was sent, meeting all regulatory requirements, a regulatory infraction will be added to the loan.

DEVELOPMENT UPDATES
On Saturday, April 11, 2015, VALERI Manifest 3.3 will be deployed. The following system enhancements will be included:

CQ 10711 –The description of the DWL has changed. It now shows as “Deficiency Waiver Letter only when property conveyed and max guaranty claim”.

Please click here to view the newsflash online.

Please click here to view Circular 26-15-2 [pdf].

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.

VA Circular 26-15-4 Policy Changes for Specially Adapted Housing Compliance Inspector Exam and Compliance Inspector Qualifications

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

On April 9, the U.S. Department of Veterans Affairs (VA) issued Circular 26-15-4, subtitled Policy Changes for Specially Adapted Housing Compliance Inspector Exam and Compliance Inspector Qualifications.

Veterans Benefits Administration Circular 26-15-4
Department of Veterans Affairs
Washington, DC 20420

Policy Changes for Specially Adapted Housing Compliance Inspector Exam and Compliance Inspector Qualifications

1. Purpose. The purpose of this Circular is to update certain policies related to the Compliance Inspector (CI) exam and qualifications outlined in VA Manual M26-12, Revised, Specially Adapted Housing (SAH) Grant Processing Procedures, Loan Guaranty Operations for Regional Offices.

2. Background. Prior to the release of VA Manual M26-12, Revised, in February 2014, an exam was administered by Regional Loan Centers (RLCs) to test potential CIs on their knowledge of building codes and practices. In completing the revised manual, SAH policy staff determined that the exam was ineffective because building codes and practices vary significantly by state and region. Moreover, the exam did not address SAH-specific building practices, procedures, and minimum property requirements (MPRs). Upon release of VA Manual M26-12, Revised, SAH policy staff instructed RLCs to discontinue use of the existing CI exam until a replacement was provided.

a. The SAH policy staff created a new CI exam that focuses on SAH-specific building practices, procedures, and MPRs. This “open book” exam is designed to be used both as a training tool and a means of measuring a potential CI’s knowledge of relevant SAH material prior to being admitted to the CI panel.

3. Action. Effective immediately, the following policies are in effect regarding the CI exam and CI qualifications:

a. RLCs will begin administering the new CI exam to ALL new, potential CIs. This is an open book exam that must be passed with a score of 70 percent or greater. If the potential CI fails to achieve a score of 70 percent or greater on the first attempt, the test may be retaken after a waiting period of 10-business days. If the potential CI fails to achieve a score of 70 percent or greater on the second or future attempts, the waiting period between retakes is 6months.
b. CI applicants that possess the International Code Council (ICC) Certification or local/state licenses are no longer exempt from the testing requirement.
c. Current CI panel members are exempt from the testing requirement.
d. RLCs must record the CI’s application material in the Stakeholder Information Management (SIM) system prior to assigning any work to the CI. These documents include:
(1) VA Form 26-6681, Application for Fee or Roster Personnel Designation
(2) The Compliance Inspector Exam(s)
(3) Satisfactory Credit Alert Interactive Voice Response System (CAIVRS) screening results.
(4) An active inspector license, if required by the state. The RLC of jurisdiction is responsible for monitoring all CI licenses and ensuring that they are renewed/updated no later than the date of expiration.

(LOCAL REPRODUCTION AUTHORIZED)

4. Questions. If you have any questions regarding the implementation of these procedures, please contact Betty Rhoades at (202) 632-8801 or betty.rhoades@va.gov.

5. Rescission: This Circular is rescinded January 1, 2018.

By Direction of the Under Secretary for Benefits

Michael J. Frueh
Director, Loan Guaranty Service

Please click here to view the online circular.

OCC Bulletin 2015-25: Real Estate Settlement Procedures Act

Posted on September 13, 2018October 29, 2018 by Safeguard

On April 14, the Office of the Comptroller of the Currency (OCC) issued OCC Bulletin 2015-25, subtitled Real Estate Settlement Procedures Act.

OCC BULLETIN 2015-25

Subject: Real Estate Settlement Procedures Act

Description: Revised Comptroller’s Handbook Booklet and Rescissions

Summary

The Office of the Comptroller of the Currency (OCC) issued today the “Real Estate Settlement Procedures Act” booklet of the Comptroller’s Handbook. This revised booklet replaces a similarly titled booklet issued in October 2011 and provides updated information resulting from recent changes made to Regulation X (12 CFR 1024) regarding mortgage servicing and loss mitigation.

Note for Community Banks

The “Real Estate Settlement Procedures Act” booklet applies to examinations of all national banks and federal savings associations (collectively, banks) that engage in residential mortgage lending. Specific changes to this booklet are applicable to banks that service mortgage loans and offer loss mitigation programs.

Highlights

The “Real Estate Settlement Procedures Act” booklet reflects the

transfer of rulemaking authority for Regulation X from the U.S. Department of Housing and Urban Development (HUD) to the Consumer Financial Protection Bureau (CFPB).
new requirements relating to mortgage servicing.
new loss mitigation procedures.
new prohibitions against certain acts and practices by servicers of federally related mortgage loans with regard to responding to borrower assertions of error and requests for information.
new examination procedures for determining compliance with the new requirements relating to mortgage servicing.

Background

The Dodd-Frank Wall Street Reform and Consumer Protection Act granted rulemaking authority under the Real Estate Settlement Procedures Act (RESPA) to the CFPB. In December 2011, the CFPB restated HUD’s implementing regulation at 12 CFR 1024.

On January 17, 2013, the CFPB issued a final rule to amend Regulation X. The final rule includes substantive and technical changes to the servicing transfer notice requirements and implements new procedures and notice requirements related to borrower’s error resolution and information requests. The final rule also includes new provisions related to escrow payments, force-placed insurance, and general servicing policies, procedures, and requirements.

On July 10, 2013, and September 13, 2013, the CFPB issued final rules to further amend Regulation X. The new language includes changes to the provisions on the relation to state law for Regulation X’s servicing provisions, to the procedure requirements for loss mitigation, and to the requirements relating to notices of error and information requests. On October 15, 2013, the CFPB issued an interim final rule to further amend Regulation X to exempt servicers from the early-intervention requirements in certain circumstances. The Regulation X amendments became effective on January 10, 2014.

In November 2013, the Federal Financial Institutions Examination Council’s Consumer Compliance Task Force approved the updated interagency examination procedures, which are contained in the revised “Real Estate Settlement Procedures Act” booklet.

The issuance of this booklet rescinds the following documents:

OCC Bulletin 2002-3, “Real Estate Settlement Procedures Act: Examiner Guidance—Mark-Up of Settlement Service Fees” (January 15, 2002)
OCC Bulletin 2010-35, “Real Estate Settlement Procedures Act: Updated Examination Procedures” (September 9, 2010)
OCC Bulletin 2014-7, “Consumer Compliance: Interagency Examination Procedures for Consumer Compliance” (March 14, 2014

The issuance of this booklet makes applicable to federal savings associations the following OCC document:

Advisory Letter 1998-15, “Real Estate Settlement Procedures Act (RESPA),
Escrow Accounts” (September 24, 1998)

For further information, contact your supervisory office or the OCC’s Compliance Policy Division at (202) 649 5470.

Grovetta N. Gardineer
Deputy Comptroller for Compliance Operations and Policy

Related Link
“Real Estate Settlement Procedures Act” (PDF)

Please click here to view the online bulletin.

MHA HAMP Reporting Update September 2015 Release Communications Plan Posted

Posted on September 13, 2018 by Safeguard

On April 24, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled September 2015 Release Communications Plan Posted.

HAMP REPORTING UPDATE April 24, 2015

September 2015 Release Communications Plan Posted

The communications plan for the September 2015 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 September 2015 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.

Please click here to view the online update.

MHA HAMP Reporting Update March 2015 UP Survey Reminder

Posted on September 13, 2018 by Safeguard

On April 9, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled March 2015 UP Survey Reminder.

HAMP REPORTING UPDATE

March 2015 UP Survey Reminder

The March 2015 Home Affordable Unemployment Program (UP) survey will be available on HMPadmin.com (login required) beginning Wednesday, April 15, 2015. Servicers that have executed a Servicer Participation Agreement (SPA) and have cumulative UP forbearance activity must complete and upload their UP survey response to the HAMP Reporting Tool by Wednesday, April 22, 2015.

SPA servicers that have any cumulative UP forbearance activity as of March 31, 2015 should submit an UP survey by April 22, 2015.

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.

Please click here to view the online update.

MHA HAMP Reporting Update March 2015 UP Survey Now Available

Posted on September 13, 2018 by Safeguard

On April 15, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled March 2015 UP Survey Now Available.

HAMP REPORTING UPDATE

March 2015 UP Survey Now Available

The March 2015 UP 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 Wednesday, April 22, 2015.

SPA servicers that have any cumulative UP activity as of March 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.

Please click here to view the online update.

MHA HAMP Reporting Update HMPadmin.com Weekend Availability

Posted on September 13, 2018 by Safeguard

On April 27, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled HMPadmin.com Weekend Availability.

HAMP REPORTING UPDATE

HMPadmin.com Weekend Availability

Due to system maintenance, users of HMPadmin.com may find the site intermittently unavailable from 8:00 a.m. through midnight on Saturday, May 2, 2015. Servicers may not be able to access HMPadmin.com during those hours.

The HAMP Reporting Tool and NPV Transaction Portal will not be impacted by this system maintenance.

Servicers can use the links in this email to navigate directly to those portals.

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

Please click here to view the online update.

HUD Returns Detroit Housing Commission to Local Control

Posted on September 13, 2018 by Safeguard

On March 31, the U.S. Department of Housing and Urban Development (HUD) issued a press release titled HUD Returns Detroit Housing Commission to Local Control.

HUD RETURNS DETROIT HOUSING COMMISSION TO LOCAL CONTROL

WASHINGTON – After almost 10 years, the U.S. Department of Housing and Urban Development (HUD) announced today that it returned the Detroit Housing Commission (DHC) to local control from federal receivership effective March 16, 2015. HUD took possession of the DHC in July 2005 because of un-auditable financial records, the distressed physical condition of housing units, significant regulatory compliance deficiencies, and HOPE VI grants that were in default for lack of progress with redevelopment projects.

Part of the improvement actions taken by HUD and the DHC included hiring an Executive Director to manage and oversee day-to-day operations, completing reductions in staffing levels to fit the current asset management of the DHC, increasing the occupancy rate of public housing units to 97 percent (up from 70% in 2005).

“Today represents an important milestone in Detroit’s road to recovery,” said HUD Secretary Julián Castro. “After a decade of federal oversight, I am pleased to say that the once-troubled Detroit Housing Commission has made a complete turnaround and that HUD is handing back the keys to Mayor Mike Duggan and the agency’s Board of Commissioners. It’s because of our partnership with local leaders and public housing residents that the people of this great city once again have a housing commission that they can count on.”

“The Detroit Housing Commission plays a critical role in making sure low-income Detroiters have access to quality, affordable housing,” said Detroit Mayor, Mike Duggan. “I’d like to thank our partners at HUD and the Housing Commission for their hard work in making this day possible. We look forward to building on the progress they already have made.”

The DHC has demonstrated consistent accountability and progress, which prompted HUD to return the Housing Commission to local control. Since 2007 the DHC has received a full audit with an unqualified financial opinion, and since 2010 it has met significant financial and management requirements to comply with HUD regulations. In 2014, the DHC received a passing HUD inspection score for every public housing development for the first time in more than two decades, and achieved the designation of “Standard Performer” while improving their public housing assessment score of 84 percent, up from 24 percent in 2005.

The DHC has also substantially completed the construction of the delayed HOPE VI projects, including the Cornerstone Estates, Emerald Springs Apartments, the Woodbridge Estates and the Gardenview Estates, creating or rehabilitating over 500 public housing units.

A new five member Board of Commissioners was appointed by Mayor Mike Duggan on March 16, 2015 and will be providing oversight of the DHC. For more information on the DHC please visit www.dhcmi.org.

Please click here to view the press release online.

HUD Awards $36 Million in Housing Counseling Grants

Posted on September 13, 2018 by Safeguard

On April 14, the U.S. Department of Housing and Urban Development (HUD) issued a press release titled HUD Awards $36 Million in Housing Counseling Grants.

HUD AWARDS $36 MILLION IN HOUSING COUNSELING GRANTS
NEW: Housing Counseling Federal Advisory Committee created

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today awarded more than $36 million in grants to hundreds of national, regional and local organizations to help families and individuals with their housing needs and to prevent future foreclosures. HUD’s housing counseling grants and the additional funding they help to leverage will assist more than 1.5 million households find housing, make more informed housing choices, or keep their current homes.

See list of all counseling agencies awarded funding today.

HUD is also establishing a new Housing Counseling Federal Advisory Committee to help the Department provide consumers with the knowledge they need to find and sustain decent housing. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 requires HUD’s Secretary to appoint no more than 12 individuals from various backgrounds to offer advice to the Department regarding the functions of the Office of Housing Counseling. Read HUD’s Notice, which includes information on applying for a position on the Housing Counseling Federal Advisory Committee.

“Access to knowledge and information is vital to every family’s success,” said HUD Secretary Julián Castro. “These grants will expand housing opportunities for families across our nation. The evidence is clear: housing counseling works. We look forward to working with our housing counseling partners to empower American families with the tools to prosper.”

More than $34 million will directly support the housing counseling services provided by 29 national and regional organizations, six multi-state organizations, 20 State Housing Finance Agencies (SHFAs) and 215 local housing counseling agencies. In addition, HUD is awarding $2 million to three national organizations to train housing counselors who will receive the instruction and certification necessary to effectively assist families with their housing needs.

The comprehensive housing counseling housing grants announced today were competed through the Department’s two-year (FY2014 – FY2015) Comprehensive Housing Counseling Grant Program Notice of Funding Availability (NOFA) published March 4, 2014. On April 2, 2015, HUD published a FY 2015 Supplemental NOFA that makes FY2015 funding available to eligible housing counseling agencies that did not receive funding in the awards announced today.

If additional funds are available after the Department makes awards under the Supplemental NOFA, additional funding may become available to the agencies awarded funding today. Should funding become available, HUD may amend these awards and provide additional grant funding.

National and regional agencies distribute much of HUD’s housing counseling grant funding to community-based organizations that assist low- and moderate-income families to improve their housing conditions. In addition, these larger organizations help improve the quality of housing counseling services and enhance coordination among counseling providers. Read a summary of each grant, organized by state.

Recent research from the Federal Reserve Bank of Philadelphia and the Urban Institute continues to find substantial benefits to housing counseling for families who purchase their first homes and those struggling to prevent foreclosure. Read more about research evidence on the role housing counseling can play in reducing mortgage delinquency and foreclosure and helping first-time buyers access and sustain homeownership.

Grant recipients utilize funding to address the full range of families’ housing counseling needs. This includes helping homebuyers realistically evaluate their readiness for a home purchase, understand their financing and downpayment options, and navigate what can be an extremely confusing and difficult process. Grantees also help households find affordable rental housing and offer financial literacy training to individuals and families struggling to repair credit problems that restrict their housing options.

In addition to providing counseling to homeowners and renters, these organizations assist homeless persons in finding the transitional housing they need to move toward a permanent place to live. Finally, grantees also assist senior citizens seeking reverse mortgages or (HECM). These agencies provide counseling for the rapidly growing number of elderly homeowners who seek to convert equity in their homes into income that can be used to pay for home improvements, medical costs, and other living expenses.

Housing counseling agencies support fair housing by assisting borrowers in reviewing their loan documentation, to avoid potential mortgage scams, unreasonably high interest rates, inflated appraisals, unaffordable repayment terms, and other conditions that can result in a loss of equity, increased debt, default, and even foreclosure. Likewise, foreclosure prevention counseling helps homeowners facing delinquency or default employ strategies, including expense reduction, negotiation with lenders and loan servicers, and loss mitigation, to avoid foreclosure.

There are many ways to find a HUD-approved housing counseling agency. Visit HUD’s website or call (800) 569-4287 for our interactive telephone directory. Get the free housing counseling i-phone app from the app store (not yet available for android). Watch HUD’s video on how housing counseling can help families find (and keep) housing.

Please click here to view the press release online.

HUD Announces Changes to Distressed Asset Stabilization Program

Posted on September 13, 2018 by Safeguard

On April 24, the U.S. Department of Housing and Urban Development (HUD) published a press release titled HUD Announces Changes to Distressed Asset Stabilization Program.

HUD ANNOUNCES CHANGES TO DISTRESSED ASSET STABILIZATION PROGRAM
HUD requires Investors to delay foreclosure for a year and offers a non-profit only pool sale

WASHINGTON – Today, HUD announced significant changes to its Distressed Asset Stabilization Program (DASP). In an effort to better serve homeowners looking to avoid foreclosure, loan servicers will now be required to delay foreclosure for a year and to evaluate all borrowers for the Home Affordable Modification Program (HAMP) or a similar loss mitigation program. HUD is making additional improvements to the Neighborhood Stabilization Outcome (NSO) sales portion of DASP which are aimed at increasing non-profit participation. Updates include giving non-profits a first look at vacant properties, allowing purchasers to re-sell notes to non-profits, and offering a non-profit only pool.

Previously, loan servicers could foreclose 6 months after they received the loan and were encouraged, though not required to assess a borrower’s qualifications for loss mitigation programs. Purchasers of the geographically targeted neighborhood stabilization pools have always been required to ensure that at least 50 percent of the loans in a pool achieve outcomes that help areas hardest hit by foreclosure avoid the neighborhood decline associated with numerous vacant properties.

“These changes reflect our desire to make improvements that encourage investors to work with delinquent borrowers to find the right solutions for dealing with the potential loss of their home and encourage greater non-profit participation in our sales,” said Genger Charles, Acting General Deputy Assistant Secretary, Office of Housing. “The improvements not only strengthen the program but help to ensure it continues to serve its intended purposes of supporting the MMI Fund and offering borrowers a second chance at avoiding foreclosure.”

All of these changes will be subject to stronger reporting requirements including tougher penalties for not complying with quarterly reporting responsibilities and a new requirement to report on borrower outcomes, even when a note is sold after the original purchase.

HUD plans to hold its first sale of 2015 in June.

Distressed Asset Stabilization Program

FHA’s note sales program was resumed in 2010 as a direct sale pilot program that allows pools of mortgages headed for foreclosure to be sold to qualified bidders and encourages them to work with borrowers to help bring the loan out of default. In many cases, this is a less expensive alternative to foreclosure and sale as a real estate-owned (REO) property. An FHA servicer can place a loan into the loan pool if the following criteria are met:

The borrower is at least six months delinquent on their mortgage
The servicer has exhausted all steps in the FHA loss mitigation process

In 2012, as part of an effort to address its seriously delinquent loan portfolio, FHA announced that, over the next several years, it would significantly increase the number of loans it makes available for purchase as well as add a new neighborhood stabilization pool to encourage investment in communities hardest hit by the foreclosure crisis. The “Neighborhood Stabilization Outcome” (NSO) pools, as an additional safeguard in distressed communities requires that 50 percent of the loans within a purchased pool achieve a neighborhood stabilizing outcome. If the servicer and borrower are unable to avoid taking the loan through foreclosure, the servicer must achieve some other neighborhood stabilizing outcome, which may include holding the property for rental for at least three years.

Typically, HUD’s Distressed Asset Stabilization Program sales are broken into two or more sales, consisting of at least one “National Sale” featuring loans from a diversified cross -section of the country, and a “Neighborhood Stabilizing Outcome” or “NSO” Sale featuring loans drawn from specifically targeted geographic areas.

Please click here to view the press release online.