Safeguard Properties

Freddie Mac: Check Out New Helpful Tips on Our Investor Reporting Web Page

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Investor Update
September 15, 2015

We’ve updated our Freddie Mac Investor Reporting Web page with a new information spotlight to help you better manage various aspects of investor reporting.
 
What’s New?
 
Did you know that Freddie Mac receives an average of 25,000 system edits a month?  The good news is that you can reduce that number significantly and save yourself the time and trouble of retransmission.
 
Our new September/October spotlight offers you more quick fixes to common edits, including Edits 101, 302, and 314. We’ve also started an archive of previous spotlights.

Reporting Tools
 
As always, the Web page provides you with management tools and training that make it easier than ever for you to improve investor reporting accuracy and keep your Freddie Mac portfolio on track.
 
Bookmark this Web page and make our Investor Reporting tab your one-stop shop for policy updates, links to training and resources, and easy access to technology tools such as the Service Loans application,  Servicer Performance Profile, and Remedy ManagerSM.
 
Training
 
Please register for the free webinar training Investor Accounting: Resolving Loan-Level Edits.

For More Information

  • Visit Freddie Mac’s Learning Center for additional information on our training programs and references tools.
  • Stay connected to Investor Reporting Web page updates and the latest Single-Family news. Sign up for the Single-Family Week in Review and receive a summary of the previous week’s Single-Family news and announcements every Monday morning.
  • Contact your Freddie Mac representative.

Source: Freddie Mac

FHLMC Guide Bulletin 2015-15 Increasing Modification Eligibility and More

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Investor Update
September 9, 2015

In today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-15, we announced updates to borrower eligibility for modifications and requirements related to Freddie Mac Default Legal Matters.

Key highlights include:

  • Updates to the mark-to-market loan-to-value ratio calculation for Freddie Mac Standard and Streamlined Modifications to enable more borrowers to qualify.
  • Expanded eligibility requirements for Streamlined and MyCity Modifications to maximize modification options for severely delinquent borrowers.
  • Greater flexibility for Servicers when handling Freddie Mac Default Legal Matters related to bankruptcy referrals.
  • Updates to Freddie Mac Accounts Receivables email addresses.

Please read Guide Bulletin 2015-15 for more details.

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

For More Information

Source: Freddie Mac

FHLMC Guide Bulletin 2015-14 Prepare Now for New Settlement Automation for Third-Party Foreclosure Sales

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Investor Update
September 29, 2015

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2015-14, we announced new automated settlement functionality for liquidation transactions in Workout Prospector®, which will now be available on November 16, 2015, and includes short sales, deeds-in-lieu of foreclosure, charge-offs, and third-party foreclosure sales.

To help you plan ahead, we want to ensure that you’re set up to use Workout Prospector for settling third-party sales. While you don’t have to submit third-party sales for settlement through Workout Prospector until March 1, 2016, we strongly encourage you to implement this new process, beginning on November 16.

Sign Up for Access

Please follow these simple steps to hit the ground running on November 16:

NOTE: We’ll notify you in mid-November when this new functionality is available and our training materials and resources, including the Workout Prospector Users’ Guide, are updated.

For More Information

 

Source: Freddie Mac

FHFA Issues Update on the Common Securitization Platform

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Investor Update
September 15, 2015

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today released An Update on the Common Securitization Platform.  The Update details progress made in the development of a new infrastructure for the securitization of single-family mortgages by Fannie Mae and Freddie Mac.  Developing the Common Securitization Platform (CSP) is a key goal of FHFA’s 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac.  Building and testing the CSP is a 2015 Scorecard item for both companies and for Common Securitization Solutions, LLC (CSS), a joint venture company that was established by Fannie Mae and Freddie Mac to lead the work on this project.

The Update includes details on the organizational structure of CSS and the various modules that comprise the CSP and their functions.  In addition, the Update looks ahead to the anticipated announcement in 2016 of an implementation date for Release 1, the initial use of the CSP by Freddie Mac, followed by Release 2 that will enable both Freddie Mac and Fannie Mae to use the CSP to issue Single Securities.  The Update also describes ongoing efforts to seek input from industry stakeholders, including formation of a Single Security/CSP Industry Advisory Group. 

“Developing the CSP is a large scale, multi-faceted project,” said FHFA Director Melvin L. Watt.  “This Update details significant progress that has been made to date in building and testing the CSP, and toward launching a Single Security.  Together, these projects will bring us much closer to the goal of improving the overall liquidity of the mortgage market. They will also reduce costs for Fannie Mae and Freddie Mac and taxpayers,” Watt said.

FHFA welcomes public input on this Update from interested parties.  Input can be submitted electronically via FHFA.gov, or to the Federal Housing Finance Agency, Office of Strategic Initiatives, 400 7th Street, S.W., Washington, DC 20024.  All submissions received will be made public and posted to FHFA’s website.

Link to An Update on the Common Securitization Platform

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

Source: FHFA

FHFA: Foreclosure Prevention Actions Top 3.5 Million Through Second Quarter 2015

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Investor Update
September 28, 2015

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today reported that Fannie Mae and Freddie Mac completed 63,593 foreclosure prevention actions in the second quarter of 2015, bringing the total number of foreclosure prevention actions to over 3.5 million since the start of the conservatorships in September 2008. These measures have helped more than 2.9 million borrowers stay in their homes, including more than 1.8 million who received permanent loan modifications. ?

Further details can be found in FHFA’s second quarter Foreclosure Prevention Report, which also includes data on Fannie Mae and Freddie Mac home retention actions, delinquency data and real estate owned (REO) inventory. FHFA publishes the report data in an online, interactive Borrower Assistance Map accessible through FHFA.gov.

Other foreclosure prevention data for Fannie Mae and Freddie Mac noted in the quarterly report include:

  • The REO inventory of Fannie Mae and Freddie Mac declined 14 percent during the second quarter to 86,515, marking the first time REO inventory has been below 100,000 since 2009.
  • The number of 60+ day delinquent loans declined another 6 percent during the quarter.
  • Approximately 31 percent of all permanent loan modifications in the second quarter helped to reduce homeowners’ monthly payments by over 30 percent.
  • The serious delinquency rate of Fannie Mae and Freddie Mac loans fell to 1.6 percent at the end of the second quarter.

Attachments:
Foreclosure Prevention Report – 2Q2015
3.64 MB

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

Source: FHFA

FHA INFO #15-70: Single Family Partial Claim Documentation and Delivery

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Investor Update
September 2, 2015

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 15-18, “Single Family Partial Claim Documentation and Delivery Requirements,” the purpose of which is to:

  • Remind mortgagees of the procedures for preparing and submitting Partial Claim documents to HUD;
  • Revise the required timeframe for mortgagees to submit to HUD the original promissory note associated with a Partial Claim; and
  • Describe the penalties for a mortgagee’s noncompliance with HUD’s Partial Claim requirements at 24 CFR § 203.371 and other published guidance.

The policies set forth in this Mortgagee Letter modify or supersede, where there is conflict, Mortgagee Letters 2013-32, 2013-19, 2012-22, 2009-23, 2008-21, and 2003-19 (Sections H, Q, and R).

The revisions to Mortgagee Letter 15-18 are effective immediately for all partial claim documents executed on or after September 1, 2015.

Quick Links

Source: HUD (Please click to view update in its entirety.)

Fannie Mae Utilizes Technology to Achieve Housing Goals

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Investor Update
September 24, 2015

Fannie Mae has built a strong and flexible technology organization in order to help the Enterprise more efficiently achieve its goals, which are to help provide people with access to affordable mortgage credit and to reduce risk to the taxpayer, according to a commentary from Bruce Lee, SVP and Chief Information Officer at Fannie Mae.

“When we announced in December 2014 that Fannie Mae would again purchase loans with as little as 3 percent down payments, our technology organization worked to update our systems quickly so that lenders could begin delivering these loans to us within days,” Lee said. “Thousands of families have benefited from this loan option.”

Today, various Fannie Mae technology tools that run on an interconnected technical infrastructure are used by lenders and servicers to help at-risk borrowers prevent foreclosure, to underwrite mortgage loans, and to subsequently check the quality of those loans.

Those tools include:

  • Desktop Underwriter (DU), which has been used for more than 20 years, and has been continually enhanced during that time. DU is a comprehensive underwriting system that helps lenders evaluate loans and determine if those loans meet the credit risk standards and eligibility criteria set forth by Fannie Mae. It has helped lenders provide mortgages to millions of Americans at an increased speed and lower cost.
  • Collateral Underwriter (CU), which builds on the success of DU. It helps reduce risk for Fannie Mae and lenders by helping lenders evaluate appraisals for loans and ensuring values are appropriate and property information is accurate. Lee said that CU “is a key part of building a stronger housing system for the future. We recently integrated CU with DU to further support our lenders’ risk management and underwriting capabilities.”
  • EarlyCheck helps lenders identify potential problems earlier in the process, which provides greater certainty that the loan will meet Fannie Mae’s eligibility requirements. Lenders who use EarlyCheck have the opportunity to fix potential issues prior to selling the loan to Fannie Mae, which reduces the risk of repurchase.
  • Servicing Management Default Underwriter (SMDU) helps those who service Fannie Mae loans determine what loss mitigation options are available to borrowers who are struggling to make mortgage payments. With SMDU, servicers can make real-time decisions to help those borrowers prevent foreclosure through any number of loss mitigation options (loan modifications, short sales, repayment plans).

Technology is also playing a key role in reducing Fannie Mae’s risk profile, Lee said.

“In order to build our Connecticut Avenue Securities (CAS) offering, which allows investors to take some of the credit risk that Fannie Mae traditionally held on loans in its book of business, we had to build a new set of tools, platforms, and reporting capabilities,” he said. “In addition, technologies such as Desktop Underwriter and Collateral Underwriter help to reduce risk on the loans that Fannie Mae acquires. These tools have been instrumental in transferring a portion of the credit risk on nearly $400 billion of mortgages since 2013.”

Source:

DS News

Fannie Mae Technology Solutions Page

Fannie Mae Updated Florida AAA Matrix

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Investor Update
September 25, 2015

Excess Attorney Fee Request Guidelines

Fannie Mae’s approval is required for any foreclosure-related or bankruptcy-related attorney fees that exceed the maximum allowable attorney fees set forth in our Servicing Guide, Servicing Guide exhibits and related updates, or other Fannie Mae guidance.

The AAA Matrix provides state-specific excess fee process guidelines and includes an excess fee process overview, as well as additional procedures and specific fee request requirements.
 
The matrix refers to applicable Servicing Guide provisions and other policies. Fannie Mae provides the AAA Matrix directly to the attorneys and updates the matrices as needed.
 
The process encompasses only attorney fees for legal services provided. It does not cover costs (anything other than an attorney fee). We review and reimburse costs to servicers through the expense reimbursement (or claims) process.
 
Only attorneys may submit excess fee requests. Fannie Mae does not accept excess fee requests from servicers.

Source: Fannie Mae (Excess Attorney Fee Guidelines page full version)

Fannie Mae SVC-2015-12 Servicing Guide Updates

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Investor Update
September 9, 2015

The Servicing Guide has been updated to include the following:

  • Updates to E-filing and TX Posting Costs
  • Adjustments to Standard and Streamlined Modifications
  • Increase to Mortgage Release Incentives
  • Updates to the Application of Borrower HAMP Incentives
  • Retirement of Form 181HFA
  • Correction to Insured Loss Events Requirements
  • Reminder of Payment Change Notification Requirements for Mortgage Loans Subject to StepInterest Rate Adjustments
  • Miscellaneous Revision

 

Source: Fannie Mae

Fannie Mae Standard Modification Interest Rate Adjustment

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Investor Update
September 9, 2015

The Fannie Mae Standard Modification Interest Rate is subject to periodic adjustments based on an evaluation of prevailing market rates. The servicer must use the current Fannie Mae Standard Modification Interest Rate indicated below when evaluating a borrower for a conventional mortgage loan modification, excluding Fannie Mae HAMP Modifications.

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.

Source: Fannie Mae