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OCC Mortgage Metrics Report: 93.0 Percent of Mortgages Current at End of Third Quarter

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

On December 19, the Office of the Comptroller of the Currency (OCC) issued a news release titled OCC Reports Mortgage Performance Improvement Continues.

OCC Reports Mortgage Performance Improvement Continues

WASHINGTON — The performance of first-lien mortgages serviced by seven national banks and one federal savings association improved in the third quarter of 2014, according to a report released today by the Office of the Comptroller of the Currency (OCC).

The OCC Mortgage Metrics Report, Third Quarter 2014, showed 93.0 percent of mortgages were current and performing at the end of the quarter, compared with 92.9 percent at the end of the previous quarter and 91.4 percent a year earlier. The percentage of mortgages that were 30 to 59 days past due was 2.4 percent of the portfolio—an increase of 1.9 percent from the previous quarter, but an 8 percent decrease from a year earlier. Seriously delinquent mortgages—60 or more days past due or held by bankrupt borrowers whose payments are 30 days or more past due—made up 3.1 percent of the portfolio—a decrease of 0.9 percent from the previous quarter and 14.5 percent from a year earlier.

Foreclosure activity among the reporting servicers continued to decline. The number of mortgages in the process of foreclosure at the end of the third quarter of 2014 fell to 353,906, a decrease of 41.5 percent from a year earlier. The percentage of mortgages that were in the process of foreclosure at the end of the third quarter of 2014 was 1.5 percent. Servicers initiated 82,668 new foreclosures during the quarter, a decrease of 36.7 percent from a year earlier. The number of completed foreclosures also decreased 45.4 percent from a year earlier to 45,245. Improved economic conditions and foreclosure prevention assistance contributed to the decline in foreclosure activity.

Servicers implemented 205,689 home retention actions during the quarter—including modifications, trial-period plans, and shorter-term payment plans—compared with 58,214 home forfeiture actions during the quarter, which include completed foreclosures, short sales, and deed-in-lieu-of-foreclosure actions. The number of home retention actions implemented by servicers decreased by 1.2 percent from the previous quarter and 34.3 percent from a year earlier. In the third quarter of 2014, more than 90 percent of modifications reduced monthly principal and interest payments; 55.1 percent of modifications reduced payments by 20 percent or more. Modifications reduced payments by $257 per month on average, while modifications made under the Home Affordable Modification Program reduced monthly payments by an average of $284.

Servicers implemented 3,595,553 modifications from January 1, 2008, through June 30, 2014. Of these modifications, almost 57 percent were active at the end of the third quarter of 2014, and almost 43 percent had exited the portfolios of the reporting institutions, through payment in full, involuntary liquidation—foreclosure, short sale, or deed in-lieu-of foreclosure—or transfer to a non-reporting servicer. Of the 2,047,719 modifications that were active at the end of the third quarter of 2014, approximately 68.6 percent were current and performing at the end of the quarter, 25.7 percent were delinquent, and 5.7 percent were in the process of foreclosure.

The mortgages in this portfolio comprise 46 percent of all residential mortgages outstanding in the United States—23.6 million loans totaling $4.0 trillion in principal balances. This report provides information on their performance through September 30, 2014, and can be downloaded from the OCC’s Web site, www.occ.gov.

Please click here to view the news release online.

Please click here to view the OCC Mortgage Metrics Report, Third Quarter of 2014 [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.

New FHA Administrative Fee Defeated in Congress

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

On December 10, HousingWire released an article reviewing a provision in Senate Bill 2438 that has been formally dropped from the Transportation, Housing and Urban Development and Related Agencies Appropriations Act.

New FHA administrative fee defeated in Congress

CMLA lead opposition to costly 4bp fee on mortgage lenders

A provision in Senate Bill 2438 that would have allowed the Federal Housing Administration to charge a 4 bp administrative fee has been formally dropped from the Transportation, Housing and Urban Development and Related Agencies Appropriations Act.

The provision contained in the Senate bill would have assessed the fee on lenders, costing $40 for every $100,000 borrowed.

The U.S. Department of Housing and Urban Development had been negotiating to get the proposed hike into the House version of the spending bill, but after the alarm was raised by the Community Mortgage Lenders Association and others it was dropped, HousingWire has confirmed.

“[CMLA] is pleased to have succeeded in blocking additional costs for borrowers seeking FHA-insured mortgages next year and the lenders who will originate those loans. Mid-sized and small community-based lenders help many consumers, particularly first-time buyers, to realize their homeownership aspirations with FHA-insured mortgages,” said CMLA Chair Paulina McGrath said. “The last thing that those consumers, and the lenders who serve them, needed were additional fees that increased the cost of their home loans. We are proud to have taken a principled stand opposing these fees, for the benefit of consumers and the mid-sized and small lenders who serve their financing needs.”

CMLA actively opposed the fee, while other trade associations raised serious concerns about the proposed fees.

“Notably, CMLA was the only association that actively opposed this fee,” said Glen Corso, executive director for CMLA. “CMLA’s effort was aligned with our mission to exclusively represent small and mid-sized independent and community based lenders.

In a letter to Senate and House appropriators, the Mortgage Bankers Association and a coalition of other trade associations raised concerns about the scope and limits of the fee, and the fact that procedurally, while S. 2438 was approved by the Senate Appropriations Committee, it was never considered by the full Senate.

The CMLA flat-out opposed the fee.

The administrative support fee would have generated an estimated $30 million annually.

Please click here to view the article online.

About Safeguard
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally.
Website: www.safeguardproperties.com.

Appropriators Unveil FY 2015 Omnibus Spending Package

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

On December 10, the National Council of State Housing Agencies (NCSHA) posted an article titled Appropriators Unveil FY 2015 Omnibus Spending Package.

Appropriators Unveil FY 2015 Omnibus Spending Package

Last night, House appropriators unveiled the FY 2015 omnibus, a package of 11 new FY 2015 spending bills, including bills funding HUD and the U.S. Department of Agriculture (USDA) for the remainder of the fiscal year. The package also includes a short-term continuing resolution (CR) funding the Department of Homeland Security until February 27, 2015. All federally funded agencies have been operating under a CR since FY 2015 began on October 1. That CR expires on December 11.

We expect the House to vote on the legislation December 11, and Senate leaders indicate the Senate will vote on the House-passed bill soon thereafter. The House and Senate may also pass a short-term CR, lasting a few days, to ensure continued funding while the Senate considers and votes on the omnibus after the House vote.

According to the House Appropriations Committee’s summary, the bill includes $35.6 billion for HUD programs, approximately $650 million more than the House-passed FY 2015 Transportation-HUD (T-HUD) appropriations bill, H.R. 4745, and $450 million less that the Senate Appropriations Committee-passed T-HUD bill, S. 2438. Factoring in a decrease in Federal Housing Administration (FHA) receipts, which the Appropriations Committees use to offset spending, the bill provides $90 million less total HUD program spending than in FY 2014.

The omnibus bill provides:

$900 million for the HOME Investment Partnerships program (HOME), $100 million less than its FY 2014 level, $200 million more than the House bill, and $50 million less than the Senate bill;
$17.5 billion for the renewal of Section 8 Housing Choice Vouchers, $120 million more than its FY 2014 level, $207 million less than the House bill, and $233 million less than the Senate bill. It provides $1.5 billion for Public Housing Authorities’ (PHA) administrative costs, $30 million more than its FY 2014 level, $180 million more than the House bill, and $25 million less than the Senate bill;
$9.7 billion for project-based Section 8, including $210 million for performance-based contract administrators’ administrative fees, $187 million less for all project-based Section 8 than its FY 2014 level and $16 million less than the House and Senate bills;
$2.1 billion for homeless assistance grants, $30 million more than its FY 2014 level and the House bill, and $10 million less than the Senate bill; and
$3 billion for Community Development Block Grants (CDBG), $30 million less than its FY 2014 level, equal to the House bill, and $20 million less than the Senate bill.

The bill also provides:

$900 million for the Section 502 single-family subsidized direct loan program and $24 billion for the Section 502 unsubsidized guaranteed loan program, both equal to their FY 2014 levels;
$28 million for the Section 515 rural rental housing loan program, equal to its FY 2014 level;
$1.1 billion for the Section 521 rural rental assistance program, $21 million less that its FY 2014 level;
$150 million for the Section 538 multifamily loan guarantee program, equal to its FY 2014 level; and
$7 million for the Section 542 rural housing voucher program, $6 million less than its FY 2014 level.

The bill also raises the cap on the number of public housing units that can participate in the Rental Assistance Demonstration program (RAD) from 60,000 to 185,000 and extends it through 2018. The bill also makes McKinney-Vento single-room occupancy (SRO) dwellings eligible to participate in RAD.

NCSHA will provide additional analysis of the bill in the coming days.

Please click here to view the article online.

MHA HAMP Reporting Update Updated Reporting Form Posted on HMPadmin.com

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

On December 10, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled Updated Reporting Form Posted on HMPadmin.com.

HAMP REPORTING UPDATE

Updated Reporting Form Posted on HMPadmin.com

The LPI Date Correction Request Form (login required) has been updated. Servicers should begin using the updated version on January 1, 2015.

This form can be found in the Data Reporting tab on the secure side of HMPadmin.com.

HAMP NPV Transaction Portal Outage

Due to system maintenance, the HAMP NPV Transaction Portal will be unavailable from 9:00 p.m. ET Friday, December 19, 2014 through 8:00 a.m. ET Monday, December 22, 2014.

Servicers will not be able to access the HAMP NPV Transaction Portal during this time period.

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

Please click here to view the online update.

MHA HAMP Reporting Update Q4 2014 Base NPV Documentation Supplement Available

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

On December 3, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled Q4 2014 Base NPV Documentation Supplement Available.

HAMP REPORTING UPDATE

Q4 2014 Base NPV Documentation Supplement Available

The Q4 2014 Base NPV Model Documentation Supplement is now available for the Home Affordable Modification Program® (HAMP) for use beginning January 1, 2015. The supplement provides the following:

REO Sale Value Parameters
Historical and Projected Home Price Index
Foreclosure and REO Disposition Timelines and Costs
Home Price Decline Protection Incentive Matrix
Default Model Parameters
Pre-payment Model Parameters
HAMP Tier 2 Assumptions and Parameters

Servicers can access the Q4 2014 Base NPV Model Documentation Supplement in the Base NPV Model Tools & Documents section of HMPadmin.com (login required).

Important Actions for Certain Servicers: HAMP-registered servicers using an NPV model that has been implemented or customized for their own systems must implement the new Q4 2014 data tables for use beginning January 1, 2015.

To fulfill model versioning requirements, servicers should continue to use the Q3 2014 data tables for October 1 through December 31, 2014, and other appropriate supplement data tables for earlier quarters.

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

Please click here to view the online update.

MHA HAMP Reporting Update November 2014 UP Survey Reminder

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

On December 8, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled November 2014 UP Survey Reminder.

HAMP REPORTING UPDATE

November 2014 UP Survey Reminder

The November 2014 Home Affordable Unemployment Program (UP) survey will be available on HMPadmin.com (login required) beginning Monday, December 15, 2014. 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 Monday, December 22, 2014.

SPA servicers that have any cumulative UP forbearance activity as of November 30, 2014 should submit an UP survey by December 22, 2014.

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.

MCM UpDate Issue #16

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

Michaelson, Connor and Boul (MCB), the Mortgagee Compliance Manager for the United States Department of Housing and Urban Development (HUD) have published MCM UpDate Issue #16.

MCM UpDate
A Newsletter for Mortgagee Compliance

Issue #16 – December, 2014

The MCM UpDate is a newsletter published by Michaelson, Connor & Boul, the Mortgagee Compliance Manager for the United States Department of Housing & Urban Development (HUD). The MCM UpDate contains valuable information for Mortgagees and their vendors to gain knowledge in the processes, procedures and guidelines to convey properties to HUD.

In This Issue:

Answers to the Most Frequently Asked Title Questions
Winterization Reminders
When It’s Mortgagor Neglect
Special Section for HUD’s Field Service Managers
and more!

Please click here to view the update online.

Massachusetts AG Urges FHFA to Make More Changes to Buyback Policy

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

On December 10, DS News published an article discussing a letter written by Massachusetts Attorney General Martha Coakley to FHFA Director Mel Watt featuring changes the agency could make to its Fannie Mae and Freddie Mac REO buyback policy.

Massachusetts AG Urges FHFA to Make More Changes to Buyback Policy

The Federal Housing Finance Agency (FHFA) recently changed its policy regarding buyback of REO properties through Fannie Mae and Freddie Mac, but Massachusetts Attorney General Martha Coakley thinks the agency could do more.

Coakley sued the GSEs in June, claiming their refusal to engage in foreclosure buyback programs was a violation of Massachusetts’ foreclosure prevention law. The suit was dismissed and Coakley is considering making an appeal; however, many viewed the recent FHFA policy changes as a partial victory for Coakley.

In a letter to FHFA Director Mel Watt dated December 8, Coakley praised the changes announced by the agency that went into effect in late November allowing a former homeowner, or a third party representing that homeowner, to buy back his or her house following a foreclosure at fair market value instead of the entire amount on the mortgage. But Coakley also spelled out three ways in which she thought the agency could further improve its buyback policy.

“We are pleased that FHFA now has agreed to reverse in part its position regarding buyback programs that were a major component of our lawsuit. We are considering this development as we weigh our options for appeal in that case,” Coakley wrote in her letter. “Because of this policy change, numerous families in Massachusetts will no longer face eviction at the hands of the GSEs, but will instead be able to repurchase their homes at the market rate. This policy change also makes financial sense for the GSEs, as they will recoup at least the property’s current market value, yet they will avoid the cost of owning, maintaining and marketing these REO properties, as well as the cost incurred by suing to evict families from their former homes. By any measure, this is an outcome that benefits all stakeholders: the GSEs, the affected families, and the communities in which they live. As encouraged as we are by this policy change, we believe it does not go far enough.”

First, Coakley said the policy should cover a larger inventory of houses. The changes announced applied only to the GSEs’ existing inventory (as of November 25, 2014) of single-family REO properties, which currently totals about 121,000. The policy change does not apply to homes on which the foreclosure process began after November 25, 2014.

Second, Coakley encouraged the FHFA to include pre-foreclosure sales, or short sales (sales in which the buyer pays less than the outstanding mortgage balance for the home) in its buyback policy.

“There is no principled reason to limit the new policy to sales of REO properties,” Coakley wrote. “Instead, the opposite is true: in a short sale, the GSEs avoid the cost of foreclosure altogether, which is also an enormous benefit to the homeowner and surrounding community.”

Third, Coakley urged the FHFA in her letter to re-evaluate its policies on principal reductions to mortgage loans, saying that this could be used as an effective anti-foreclosure tool.

“A loan that is modified such that the borrower can afford to stay in the home and continue paying the modified loan is generally more financially advantageous for lenders and investors when compared to foreclosure,” Coakley wrote. “As such, the adoption of principal reduction represents a financial benefit to the GSEs, while also stabilizing families and neighborhoods.”

Please click here to view the article online.

Julian Castro Statement on HUD FY2015 Budget

Posted on September 13, 2018 by Safeguard

On December 17, the U.S. Department of Housing and Urban Development issued a press release titled Julian Castro Statement on HUD FY2015 Budget.

JULIÁN CASTRO STATEMENT ON HUD FY2015 BUDGET

WASHINGTON – U.S. Housing and Urban Development Secretary Julián Castro today issued the following statement in response to President Obama signing the Consolidated and Further Continuing Appropriations Act, 2015. HUD’s $45 billion budget allows the Department to support the individuals and organizations that we currently serve, but also limits HUD’s ability to help some new families reach the middle class or pursue their dream of homeownership. As the President has said, the legislation is a compromise and no one got everything they wanted. But, it is a step towards proving that a divided government can work without governing by crisis or threatening an economic recovery that’s growing stronger – which the President believes is a hopeful sign for next year.

The Agency will continue to focus on helping to secure quality housing for Americans, ending homelessness, making our communities more resilient from natural disasters, protecting people from housing discrimination and providing and preserving rental housing assistance for millions of extremely poor Americans, among other priorities.

“HUD is the Department of Opportunity. We support millions of Americans with the housing they need to succeed and we invest in making communities economically strong and inclusive. Our mission isn’t a Republican or a Democratic issue-it’s an American issue,” said HUD Secretary Julián Castro. “As needs for our services have gone up in states, cities and counties across the country, HUD’s resources have gone down. As we have time and time again, we’ll continue to find creative ways to have the greatest impact with the resources we have available so that we can continue expanding opportunity for all.”

HUD’s budget will allow for the continuation of key administration priorities including;

Choice Neighborhoods Initiative – Redevelops severely distressed public and HUD-assisted housing and brings comprehensive neighborhood revitalization to blighted areas. HUD will receive $80 million in FY15 Choice Neighborhoods funds to transform distressed public and assisted housing into sustainable, mixed-income housing with connections to key assets and services supporting positive outcomes for families living in the development and in the surrounding neighborhood.
Tribal Lands to Access HUD-Veterans Affairs Supportive Housing (HUD-VASH) – For the first time, the successful HUD-VASH program is expanded to include those veterans living in Indian country. This allows HUD to support an additional 10,000 housing vouchers with critical supportive services from VA. HUD-VASH combines housing vouchers with critical supportive services from VA and is a critical component of the Administration’s effort to eliminate veteran homelessness by the end of 2015.

“It is unacceptable that after their service and sacrifice, too many of our veterans find themselves living without a roof over their heads,” said Secretary Castro. “The expansion of HUD-VASH to include Indian country is a significant step forward in reducing homelessness among veterans. These vouchers will help communities build on the progress of reducing homelessness among veterans by a third in just four years, providing targeted assistance to those in need to ensure that every veteran has a home.”

Two important priority initiatives not included in this year’s budget were:

Funding to end chronic homelessness in 2016 – HUD requested a $301 million increase in homeless assistance grants for FY 2015 to develop permanent supportive housing for individuals and families experiencing chronic homelessness. The Department did not receive the full request, directly impacting the thousands of communities across America fighting to end chronic homelessness by the end of 2016.
Homeowners Armed with Knowledge (HAWK) – This pilot program for new homebuyers was created in 2014 to further incorporate housing counseling into the home buying process for borrowers using FHA insured financing. The implementation of HAWK is now delayed for at least a year.

The Federal Housing Administration (FHA) provided the following statement on HAWK:

“Over the last few years FHA has proposed a number of steps to better serve borrowers and lenders in an ongoing effort to expand credit access and ultimately continue moving the economy in a positive direction,” said Biniam Gebre, Acting FHA Commissioner and Assistant Secretary for Housing. “We are disappointed programs that could have served many families will not be permitted under the bill.”

Under the program, homebuyers who committed to housing counseling would have qualified for tangible savings on their FHA-insured loans. The average buyer would have saved approximately $9,800 over the life of their loan. HUD continues to believe the HAWK program is a strong step toward integrating housing counseling into the home buying process and ensuring broad access to housing counseling services.

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Please click here to view the press release online.

Johnson Congratulates Brown

Posted on September 13, 2018 by Safeguard

On December 12, the U.S. Committee on Banking published a news release featuring Chairman Tim Johnson’s statement congratulating Senator Sherrod Brown on being named Ranking Member for the Banking Committee next Congress.

JOHNSON CONGRATULATES BROWN

WASHINGTON – Senate Banking Committee Chairman Tim Johnson (D-SD) released the following statement congratulating Senator Sherrod Brown (D-OH) on being named Ranking Member for the Banking Committee next Congress.

“Sen. Brown has been a hardworking, fair-minded, and active member of the Banking Committee who possesses a keen understanding of the Committee’s issues. I’ve enjoyed working with him over the years and I know he’ll do a great job as Ranking Member. As a lifelong Dodgers fan, the only bad thing I can say about Sherrod is his unwavering support for the Cleveland Indians.”

Please click here to view the news release online.