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FHFA Proposes Minimum Financial Eligibility Requirements for Sellers/Servicers

Posted on September 13, 2018 by Safeguard

On January 30, the Federal Housing Finance Agency (FHFA) issued a news release titled FHFA Proposes Minimum Financial Eligibility Requirements for Fannie Mae and Freddie Mac Seller/Servicers.

FHFA Proposes Minimum Financial Eligibility Requirements for Fannie Mae and Freddie Mac Seller/Servicers

FOR IMMEDIATE RELEASE

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today proposed new minimum financial eligibility requirements for Fannie Mae and Freddie Mac Seller/Servicers. These newly proposed eligibility requirements align the minimum financial requirements for mortgage Seller/Servicers to do business with Fannie Mae and Freddie Mac (the Enterprises). The proposed minimum financial requirements include net worth, capital ratio and liquidity criteria for the Enterprises’ Seller/Servicers.

The proposed minimum financial requirements ensure the safe and sound operation of the Enterprises and further FHFA’s goal of fostering liquid, efficient, competitive and resilient national housing finance markets. FHFA is releasing the proposed criteria to provide greater transparency, clarity and consistency to industry participants and other stakeholders. FHFA and the Enterprises will engage with servicing industry participants, regulators and other stakeholders to obtain their feedback and improve their understanding.

After reviewing industry and stakeholder feedback, FHFA anticipates finalizing these requirements in the second quarter of 2015, and anticipates that the requirements will be effective six months after they are finalized.

Link to Frequently Asked Questions?

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Contacts:
Stefanie? Johnson (202) 649-3030 / Corinne Russell (202) 649-303??2

Please click here to view the news release online.

Please click here to view the Freddie Mac announcement.

Please click here to view the Fannie Mae announcement.

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 Announces March 4 HARP Outreach Event in Newark

Posted on September 13, 2018 by Safeguard

On February 19, the Federal Housing Finance Agency (FHFA) published a news release announcing its fifth event to reach homeowners who are eligible for the Home Affordable Refinance Program (HARP).

FHFA Announces March 4 HARP Outreach Event in Newark

More than 20,000 NJ Homeowners Eligible for HARP

FOR IMMEDIATE RELEASE

Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced it will hold its fifth event to reach homeowners who could save on their monthly mortgage payments by refinancing through the Home Affordable Refinance Program (HARP). FHFA Director Mel Watt will join housing experts and community leaders on March 4 in a town hall-style meeting at Essex County College in Newark, NJ. The event is designed to provide tools to community leaders to encourage the more than 20,000 New Jersey residents still eligible for HARP to take advantage of the program. HARP expires in December of 2015.

“We are working with community leaders and other trusted sources to get the word out that more than 20,000 New Jersey homeowners could save, on average, more than $220 per month refinancing through HARP,” said FHFA Director Watt. “HARP expires in December of 2015, so the time to take advantage of the program is now. We will also be providing information about other forms of assistance available to homeowners in distress.”

Director Watt will kick off the event and Naa Awaa Tagoe, Senior Associate Director in the Division of Housing Mission and Goals at FHFA, will moderate a panel discussion including representatives from the U.S. Department of the Treasury, Fannie Mae, Freddie Mac, New Jersey Citizen Action, and a representative with PHH Mortgage.

According to new data from the FHFA, as of the third quarter of 2014, there are more than 652,000 eligible homeowners nationwide who would benefit financially from HARP, with more than 20,000 in New Jersey alone. FHFA’s interactive map of the U.S. shows HARP-eligible borrowers by Metropolitan Statistical Area, county or zip code.

To be eligible for HARP, homeowners must meet the following criteria:

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

Borrowers typically will get a financial benefit from HARP if they meet those criteria and have a remaining mortgage balance of $50,000 or more, a remaining term of greater than 10 years, and an interest rate at least 1.5 percent higher than current market rates.

FHFA and the Treasury Department introduced HARP in early 2009 as part of the Making Home Affordable program. As of November 2014, more than 3.2 million homeowners have refinanced through HARP. HARP is one of the few refinance programs that allows borrowers with little or no equity to take advantage of low interest rates and other refinancing benefits.

FHFA launched a nationwide public awareness campaign and the website HARP.gov and HARP.gov/espanol to reach borrowers who are eligible to participate in HARP. FHFA has held HARP outreach events in Chicago, Atlanta, Detroit and Miami, the cities with the highest number of eligible borrowers.

Follow @FHFA on Twitter for information on the #HARPNewark event. A short video will also be available on the FHFA Channel on YouTube following the March 4 outreach event.

Link to HARP Toolkit

Contacts:
Stefanie? Johnson (202) 649-3030 / Corinne Russell (202) 649-303??2

Please click here to view the news release online.

FHA Mortgagee Letter 2015-04

Posted on September 13, 2018 by Safeguard

On February 4, the Federal Housing Administration (FHA) published Mortgagee Letter 2015-04, subtitled Revised Notification to Homeowners of Availability of Housing Counseling Services.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
WASHINGTON, DC 20410-8000
OFFICE OF HOUSING

MORTGAGEE LETTER 2015-04

To All FHA-Approved Mortgagees

Subject Revised Notification to Homeowners of Availability of Housing Counseling Services

Purpose This Mortgagee Letter updates the content of and provides a model template for the notice of the availability of HUD-approved housing counseling. The “Notification to Homeowners of Availability of Housing Counseling Services” provides a description of the potential services and benefits of housing counseling to delinquent borrowers.

Effective Date Mortgagees must comply with these requirements no later than 60 days from the date of this Mortgagee Letter.

Background Mortgagees must provide delinquent borrowers with a notice describing the availability of housing counseling offered by HUD-approved housing counseling agencies and by the mortgagee. Mortgagees are currently required to
prepare such a notice that provides the information required by FHA. To increase the effectiveness of this notice, FHA has prepared a model template of the notice that is user-friendly and designed to ensure borrowers understand how
housing counselors can assist them.

Affected Policy The requirements set forth in this Mortgagee Letter supplement the notification requirements outlined in Mortgagee Letters 2014-01, 2013-39, and 2002-12, and referenced in HUD Handbook 4330.1, Rev-5, Sec. 7-7(H).

Please click here to view Mortgagee Letter 2015-04 in its entirety.

FDIC Releases Additional Technical Assistance Video on CFPB Mortgage Rules

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

On February 13, the Federal Deposit Insurance Corporation (FDIC) issued a press release titled FDIC Releases Additional Technical Assistance Video on CFPB Mortgage Rules.

FDIC Releases Additional Technical Assistance Video on CFPB Mortgage Rules

FOR IMMEDIATE RELEASE

Media Contact:
Greg Hernandez (202) 898-6984
Cell: (202) 340-4922
Email: ghernandez@fdic.gov

The Federal Deposit Insurance Corporation (FDIC) today announced the release of the third in a series of three new technical assistance videos developed to assist bank employees in meeting regulatory requirements. These videos address compliance with certain mortgage rules issued by the Consumer Financial Protection Bureau (CFPB). The first video, released on November 19, 2014, covered the Ability to Repay and Qualified Mortgage Rule. The second video, released on January 27, 2015, covered the Loan Officer Compensation Rule.

The third video, released today, covers the Mortgage Servicing Rules. The three technical assistance videos are intended for compliance officers and staff responsible for ensuring the bank’s mortgage lending and servicing operations comply with CFPB rules. The third video can be accessed at https://www.fdic.gov/regulations/resources/director/technical/servicing.html.

“Today’s release of the third technical assistance video on the new mortgage rules reflects our ongoing commitment to helping community banks stay up to date on the consumer compliance requirements,” said Mark Pearce, Director of the Division of Depositor and Consumer Protection. “Similar to the other recent mortgage rules, the CFPB’s mortgage servicing rules include provisions of particular relevance to community banks, and we hope this video provides useful information tailored to community bank operations.”

The FDIC’s technical assistance videos and additional information can be accessed at https://fdic.gov/regulations/resources/director/video.html.

Please click here to view the press release online.

Fannie Mae Updates to MyCity Modification Servicer Education Webinar

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

On February 11, Fannie Mae announced updates to its MyCity Modification Servicer Education Webinar.

Updates to Fannie Mae’s MyCity Modification Servicer Education Webinar

Updates to Fannie Mae’s MyCity Modification – Servicer Education Webinar

Join Fannie Mae to review expanded requirements for Fannie Mae’s MyCity Modification in accordance with D2-3.2-11 of the 2015 Servicing Guide.

Topics to be discussed include:
Expanded requirements for Fannie Mae’s MyCity Modification.
Eligibility criteria.
Borrower evaluation.
Calculation of payments.
Modification terms.
Fannie Mae’s Workout Hierarchy.
Borrower Solicitation.
Campaign Codes.
Evaluation Notice.

Servicers are encouraged to implement policies in this Announcement immediately; however, servicers are required to implement Fannie Mae’s MyCity Modification solution by April 1, 2015.

Recommended Audience:

Training is recommended for servicing, collections, foreclosure, and default prevention managers who service loans in Detroit, Michigan and Chicago/Cook County and are responsible for workouts for loans in default.

Training Materials:

Training materials will be emailed to all registrants the day of the session. Additionally, training materials will be available for download at the end of the session.

Please click here to view the announcement in its entirety.

Fannie Mae SVC-2015-03 Servicing Guide Updates

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

On February 11, Fannie Mae issued Servicing Guide Announcement SVC-2015-03, subtitled Servicing Guide Updates.

Servicing Guide Announcement SVC-2015-03

Servicing Guide Updates

The Servicing Guide has been updated to include the following:

Miscellaneous Revisions
Servicing Guide Revision History on AllRegs

Miscellaneous Revisions

The Servicing Guide has been revised as follows:

Incorporated Lender Letter LL-2014-09: Updates to Foreclosure Bidding Instructions and Third Party Sales into Servicing Guide E-3.3-04, Issuing Bidding Instructions, Servicing Guide E-3.5-02, Handling Third-Party Sales, and Servicing Guide F-1-31, Remitting and Accounting to Fannie Mae.
Incorporated Announcement SVC-2015-02: Mortgage Insurer Deferred Payment Obligation and Calculation of Indemnification Claim into Servicing Guide A1-3, Repurchases, Indemnification, and Make Whole Payment Requests.
Updated the Mortgage Insurer Delegations for Workout Options Exhibit to include Fannie Mae Streamlined Modification Post Disaster Forbearance and Fannie Mae Cap and Extend Modification for Disaster Relief.
Updated the Fannie Mae Workout Hierarchy Exhibit in accordance with Announcement SVC-2014-22 to include MyCity Modification.

Servicing Guide Revision History on AllRegs

Beginning with the February 2015 Servicing Guide, all policies and requirements in the Servicing Guide subjected to a revision as a result of a Servicing Guide Announcement will have a revision history. The default view will be the current policies and requirements; however, the revision history option in AllRegs will allow the servicer to view Servicing Guide content in its previous form – prior to revision by a more recent Servicing Guide Announcement. The servicer may select the option to “Show” or “Hide” the revision history. For example, Servicing Guide E-3.3-04, Issuing Bidding Instructions, includes the existing policy as well as a revision history that reflects the policy prior to the changes introduced in LL-2014-09 and included in this Servicing Guide update.

The Servicing Guide published on AllRegs at the end of each future year will be an archive that reflects the policies and requirements as they exist at the end of the year and will show all revision histories as applicable. Servicing Guide revision histories will begin anew at the beginning of each year.

Please note the following related to the AllRegs revision history:

Current Servicing Guide policies and requirements are always displayed first with an option to view the revision history.
The revision history view will allow the servicer to view the same topic in its previous version.
Revision histories are shown in blue shaded boxes but will not highlight or otherwise identify the differences.
Revision histories are cumulative; for example, if there are three amendments to a policy topic in the same calendar year, there will be three revision histories. To view revision histories for a prior year, the servicer must refer to an archived version of the Servicing Guide.
The servicer must always adhere to current Fannie Mae policies and requirements.

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

Malloy Evans
Vice President
National Servicing Organization

Please click here to view the announcement online.

Fannie Mae Standard Modification Interest Rate Adjustment

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

On February 6, Fannie Mae issued Servicing Notice: Fannie Mae Standard Modification Interest Rate Adjustment.

Servicing Notice

Fannie Mae Standard Modification Interest Rate Adjustment

Fannie Mae is adjusting the Fannie Mae Standard Modification Interest Rate required for all Fannie Mae conventional mortgage loan modifications, excluding Fannie Mae HAMP Modifications. The servicer must implement the new interest rate indicated on the Fannie Mae Standard Modification Interest Rate Exhibit for any mortgage loan modification evaluation conducted on or after February 13, 2015.

NOTE: As a reminder, the interest rate used to determine the final modification terms must be the same fixed interest rate that was used when determining eligibility for the Trial Period Plan and calculating the Trial Period Plan payment.

Please click here to view the notice online.

Fannie Mae MBS Call-In Elimination Process Requirements

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

On January 30, Fannie Mae announced that MBS Call-In Elimination Servicer Process Requirements and Investor Reporting Scenarios are now available.

Fannie Mae MBS Call-In Elimination Process Requirements

A key goal of FHFA’s 2012 Strategic Plan for Enterprise Conservatorships involves introducing a new securitization infrastructure to align and improve the business practices of Fannie Mae and Freddie Mac. The new securitization infrastructure, the Common Securitization Platform (CSP), will be used by Fannie Mae, and Freddie Mac. In preparation for using the CSP, Fannie Mae is updating its Single Family Investor Reporting requirements:

Elimination of Mortgage Backed Security (MBS) Pool Balance Reporting: Eliminate the need for servicers to report Single Family MBS SWAP security balances to Fannie Mae.
Changes to Due Dates for Fannie Mae Monthly Investor Reporting
Adjust Removal Transactions Reporting: Require servicers to report removal transactions (payoffs, repurchases and foreclosures) as the transactions are processed by servicers.
Align Data Reporting Cycle: Align the investor reporting due dates for Scheduled/Scheduled (S/S), Scheduled/Actual (S/A), and Actual/Actual (A/A) remittance type mortgage loans.

Fannie Mae is targeting the third quarter of 2016 for these changes to be effective. Fannie Mae will notify servicers once a specific effective date is established.

Please click here to view the announcement in its entirety.

Please click here for a link to Fannie Mae’s MBS Call-In Elimination page.

Fannie Mae Consumer’s Positive Financial Attitudes a Good Sign for Housing

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

On February 9, Fannie Mae published a release titled Consumers’ Positive Financial Attitudes a Good Sign for Housing.

Consumers’ Positive Financial Attitudes a Good Sign for Housing

WASHINGTON, DC – Consumer optimism toward the housing market gained some momentum last month following a dip in December, likely getting a boost from their increasingly positive financial outlook, according to results from Fannie Mae’s January 2015 National Housing Survey™. The share of respondents who said their household income is significantly higher than it was 12 months ago rose 4 percentage points to 29 percent, and the share expecting their personal financial situation to improve over the next year increased to 48 percent – both all-time survey highs. After dropping in December, the share who said it is a good time to buy a home increased 3 percentage points to 67 percent, and the share saying they would buy rather than rent if they were to move jumped 5 percentage points to 66 percent, marking the first increase since September 2014.

“Consumers are as positive about their personal finances at the start of 2015 as they have been since we launched the National Housing Survey in 2010, and this optimism seems to be spilling over into housing market attitudes,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “Consumers are more optimistic about the environment both for buying and for selling a home today, and the share who plan to own on their next move has jumped back up, reversing a three-month trend toward renting. These results are in line with lender optimism about future growth in their mortgage origination business, as shown in our Mortgage Lender Sentiment Survey™. Overall, these are good signs to start off 2015 and are consistent with our expectation that strengthening employment and economic activity will boost the speed of the housing recovery.”

SURVEY HIGHLIGHTS

Homeownership and Renting

The average 12-month home price change expectation rose to 2.5 percent.
The share of respondents who say home prices will go up in the next 12 months rose to 49 percent. The share who say home prices will go down remained constant at 8 percent.
The share of respondents who say mortgage rates will go up in the next 12 months decreased by 3 percentage points to 45 percent.
Those who say it is a good time to buy a house increased to 67 percent. Those who say it is a good time to sell increased to 44 percent—tying an all-time survey high.
The average 12-month rental price change expectation decreased to 3.6 percent.
The percentage of respondents who expect home rental prices to go up in the next 12 months fell slightly to 52 percent.
The share of respondents who think it would be easy to get a home mortgage today fell to 50 percent, while the share saying it would be difficult to get a mortgage rose 3 percentage points to 47 percent.
The share who say they would buy if they were going to move rose to 66 percent, while the share who would rent decreased 5 percentage points to 29 percent.

The Economy and Household Finances

The share of respondents who say the economy is on the right track increased by 3 percentage points to 44 percent.
The percentage of respondents who expect their personal financial situation to get better over the next 12 months increased to 48 percent—an all-time survey high.
The share of respondents who say their household income is significantly higher than it was 12 months ago rose 4 percentage points to 29 percent—an all-time survey high.
The share of respondents who say their household expenses are significantly higher than they were 12 months increased to 35 percent.

The most detailed consumer attitudinal survey of its kind, Fannie Mae’s National Housing Survey™ polled 1,000 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). To reflect the growing share of households with a cell phone but no landline, the National Housing Survey has increased its cell phone dialing rate to 60 percent as of October 2014. For more information, please see the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.

For detailed findings from the January 2015 survey, as well as technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey page on fanniemae.com. Also available on the site are in-depth topic analyses, which provide a detailed assessment of combined data results from three monthly studies. The January 2015 National Housing Survey was conducted between January 1, 2015 and January 22, 2015. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.

Please click here to view the release online.

Comment Period for Amendments to CFPB?s TILA/RESPA Rules Open Until March 16

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

On February 17, DS News published an article discussing an announcement from the Federal Register detailing the timeframe in which interested parties may comment on proposed amendments to the Consumer Financial Protection Bureau’s TILA/RESPA rules.

Comment Period for Amendments to CFPB’s TILA/RESPA Rules Open Until March 16

The commenting period for the proposed amendments to the Consumer Financial Protection Bureau (CFPB)’s TILA/RESPA rules is open until March 16, according to the Federal Register website.

The proposed amendments were first published in the Federal Register on December 15. CFBP’s mortgage rules were first proposed in 2013 and went into effect in January 2014; the proposed amendments to the rules are under the Real Estate Settlement Procedures Act (Regulation X, or REPSA) and the Truth in Lending Act (Regulation Z, or TILA).

“These proposed amendments focus primarily on clarifying, revising, or amending provisions regarding force-placed insurance notices, policies and procedures, early intervention, and loss mitigation requirements under Regulation X’s servicing provisions; and periodic statement requirements under Regulation Z’s servicing provisions,” the rule states on the Federal Register site. “The proposed amendments also address proper compliance regarding certain servicing requirements when a consumer is a potential or confirmed successor in interest, is in bankruptcy, or sends a cease communication request under the Fair Debt Collection Practices Act.”

Noteworthy proposed amendments include:

For the purpose of RESPA, expanding the definition of “borrower” to include successors in interest, which are defined as members “of any of the categories of successors in interest who acquired an ownership interest in the property securing a mortgage loan in a transfer protected by the Garn-St Germain Act.”
Loosening the requirement that servicers provide both the name of the trust and appropriate contact information for the trustee, which can be burdensome, particularly when the trustee is Fannie Mae or Freddie Mac. The amendment would require the servicers to request only the loan’s owner or assignee by providing the name and contact information for Fannie Mae and Freddie Mac if one of the GSEs is the trustee, investor, or guarantor of the loan, and the servicer would not be required to provide the name of the trust. However, the servicer would still be required to give the name or number of the trust pool should the borrower specifically request that information, regardless of whether one of the GSEs is involved in the loan.
Requiring lenders to offer loss mitigation options to borrowers more than once over the lifetime of a loan, should a borrower become current on his or her loan after a delinquency. Currently, lenders are required to offer loss mitigation to a borrower only once over the life of a loan regardless of the borrower’s payment history.

Interested parties may submit a comment on the proposed amendments by visiting www.regulations.gov or emailing FederalRegisterComments@cfpb.gov and putting CFPB-2014-0033 AND/OR RIN 3170-AA49 in the subject line of the email. The amendments were reportedly conceived based on feedback received from mortgage servicers. According to a report from JD Supra, more than 40 comments had been submitted as of February 17.

Please click here to view the article online.