Safeguard Properties

MHA HAMP Reporting Update May 2015 UP Survey Now Available

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

HAMP REPORTING UPDATE

May 2015 UP Survey Now Available

The May 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 Monday, June 22, 2015.

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

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.

HUD Awards New Mortgagee Compliance Manager Contract

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On June 16, DS News published an article discussing the decision by the U.S. Department of Housing and Urban Development (HUD) to award Information Systems & Network (ISN) with a contract to serve as Mortgage Compliance Manager (MCM).

HUD Awards New Mortgagee Compliance Manager Contract for $42 Million

Bethsesda, Maryland-based IT and logistical support provider Information Systems & Network (ISN) Corporation has been awarded the contract to serve as Mortgagee Compliance Manager (MCM) for the U.S. Department of Housing and Urban Development (HUD).

The MCM contract was awarded to ISN for the amount of $42,048,600. Neither HUD nor ISN could immediately be reached for comment on the awarding of the MCM contract.

According to HUD, the MCM position was established in 2010 as a way to centralize the Department’s compliance functions into a single point of contact, and was installed as the “first phase implemented under the new M&M (Management & Marketing) III property disposition procedures.”

The MCM for HUD is responsible for ensuring that lenders and loan servicers approved by the Federal Housing Administration (FHA) convey foreclosed properties to FHA in acceptable condition, according to HUD. The M&M III procedures were put in place to simplify and centralize the process of conveying foreclosed properties to FHA for FHA lenders and servicers. The M&M III procedures were also implemented to “improve communication and the dissemination of program guidance and requirements, according to HUD.

In 2010, when the position was established, the MCM contract was awarded to real estate solutions provider Michaelson, Connor & Boul, based in California and Oklahoma, which held the contract for five years.

Please click here to view the article online.

Please click here to view a synopsis of the contract 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: IRS Rejection Messages Are a Reminder to Look Out for Fraud Red Flags

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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

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

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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.

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 Disaster Relief Policies

Posted on 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.

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.

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

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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

For More Information

Please click here to view the online update.

Please click here to view Guide Bulletin 2015-09 [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.

FHFA Releases 2014 Report to Congress

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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.

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 Releases Servicing Handbook

Posted on 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.

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 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 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

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.

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

Posted on 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.

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.