Safeguard Properties

Julian Castro Statement on HUD FY2015 Budget

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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.

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.

Johnson Congratulates Brown

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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.

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.

HUD and Treasury Announce Enhancements to Housing Program

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On December 4, the U.S. Department of Housing and Urban Development (HUD) released an update titled HUD and Treasury Announce Enhancements to Housing Program.

HUD AND TREASURY ANNOUNCE ENHANCEMENTS TO HOUSING PROGRAM
Changes Will Provide Greater Relief to Struggling Homeowners and Communities

WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today announced enhancements to programs under Making Home Affordable (MHA) to better assist struggling homeowners and communities still recovering from the effects of the financial crisis.  The enhancements are designed to motivate homeowners in MHA to continue making their mortgage payments on-time, strengthen the safety net for those facing continuing financial hardships, and help homeowners in MHA programs build equity in their homes, an important factor in stabilizing neighborhoods.

“Today’s announcement signals our commitment to helping more hardworking families continue the American dream of homeownership,” said Secretary of Housing and Urban Development Julián Castro.  “These enhancements will expand the opportunity for more folks to stay in their home, stabilizing local communities and continuing our nation’s positive economic momentum.”

“While the housing sector has strengthened in recent years, there are still many homeowners struggling to make their mortgage payments,” said Secretary of the Treasury Jacob J. Lew.  “The changes we are announcing today offer meaningful incentives for borrowers to stay current in their modifications, increase their opportunity to build equity in their homes, and provide vital safety nets for those facing greater financial strains.”

Treasury and HUD established HAMP (Home Affordable Modification Program®) in 2009 to provide relief to homeowners facing financial hardship.  Through a combination of lowered interest rates and modified loan terms, monthly payments are reduced to affordable levels.  In addition, many homeowners who remain current following their modification are eligible to earn up to $5,000 over the first five years of their modification, which is applied in repayment of their outstanding principal balance.

Under the revised guidelines announced today, all homeowners in HAMP will now be eligible to earn $5,000 in the sixth year of their modification, which will reduce their outstanding principal balance by as much as $10,000. Homeowners will also be offered an opportunity to re-amortize the reduced mortgage balance, which will have the effect of lowering their monthly payment.  As of today, approximately one million homeowners with HAMP modifications are eligible to earn the increased HAMP incentive.

In addition, in an effort to bolster the safety net for homeowners who face difficulty making their payments in HAMP Tier 1 or similar non-HAMP modifications, Treasury and HUD have introduced enhancements to HAMP Tier 2 and the Home Affordable Foreclosure Alternatives® (HAFA) Program.

HAMP Tier 2 is an alternative modification that provides a low fixed rate for the life of the loan to homeowners who do not qualify for or cannot sustain a HAMP Tier 1 modification.  The enhancements announced today include reducing the interest rate for HAMP Tier 2 by 50 basis points, which will enable more homeowners to qualify for a modification, and extending the $5,000 pay-for-performance incentive to HAMP Tier 2 borrowers in good standing at the end of the sixth year of their modification.

HAFA assists homeowners who need to transition to a more affordable living situation through a short sale or deed-in-lieu.  Treasury and HUD announced today that they have increased the amount of relocation assistance provided to homeowners to $10,000 to better reflect increased rents and the cost of moving in many parts of the country.

If you are a homeowner in need of mortgage assistance, please visit MakingHomeAffordable.gov to explore all options available to help you avoid foreclosure.

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Please click here to view the update 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.

GAO-15-81 Dodd-Frank Regulations Regulators Analytical and Coordination Efforts

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On December 18, the U.S. Government Accountability Office (GAO) released GAO-15-81, a report subtitled GAO-15-81 Dodd-Frank Regulations: Regulators’ Analytical and Coordination Efforts [Reissued on December 18, 2014].

Dodd-Frank Regulations:
Regulators’ Analytical and Coordination Efforts [Reissued on December 18, 2014]
GAO-15-81

What GAO Found
 
Federal financial regulators—Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, National Credit Union Administration, Consumer Financial Protection Bureau, Commodity Futures Trading Commission, and the Securities and Exchange Commission—have continued to conduct required regulatory analyses for rules issued pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). While financial regulators must consider costs and benefits of their rulemakings in certain circumstances, they are not required to formally analyze them. Regulators face data and modeling challenges in their consideration of the costs and benefits of their rulemakings, particularly for more complex rulemakings intended to address systemic risk or market stability. GAO and others have recommended strategies to address these challenges.
 
Regulators coordinated, as required or voluntarily, on 34 of the 54 Dodd-Frank rulemakings GAO reviewed. The Dodd-Frank Act and rulemaking process did not require regulators to coordinate on the remaining rulemakings. GAO focused particularly on coordination efforts involving two rulemaking efforts: (1) the Volcker rule, a rule prohibiting and restricting banking entities from, among other things, trading certain financial instruments using their own funds to profit from short-term price changes; and (2) rules related to regulation of the swaps (derivatives) market. For the Volcker rule, interagency coordination led regulators to adopt a common rule and regulators voluntarily have continued coordination efforts during rule implementation. For swaps rulemakings, regulators coordinated domestically and internationally. However, such coordination did not always result in harmonized rules, and key differences among some rules have raised compliance and market efficiency concerns among market participants, industry associations, and foreign regulators with whom GAO spoke. GAO will continue to monitor these issues in future work.
 
The full impact of the Dodd-Frank Act remains uncertain because many of its rules have not been finalized or insufficient time has passed to assess the impacts of final rules. Using recently released data, GAO updated indicators from its prior reports that monitor certain risk characteristics of large U.S. bank holding companies. Although changes in the indicators are not evidence of causal links to the act’s provisions, some indicators suggest these companies’ leverage generally decreased and their liquidity generally improved since the act’s passage. GAO’s updated regression analysis suggests that the act continued to have little effect on the funding costs of these companies and may be associated with improvements in some indicators of their safety and soundness. GAO also updated its indicators of the extent to which the act’s swap reforms have been associated with increases in margins posted in over-the-counter derivatives transactions. Although margin rules for uncleared swaps have not been finalized, the indicators suggest that holding companies have been requiring their counterparties to post a greater amount of collateral against derivatives contracts. Finally, GAO discusses potential future indicators for nonbank financial companies designated for supervision by the Board of Governors of the Federal Reserve System.
 
Why GAO Did This Study
 
The Dodd-Frank Act requires or authorizes various federal agencies to issue hundreds of rules to implement reforms intended to strengthen the financial services industry. GAO is statutorily mandated to annually study financial services regulations. This report examines (1) the regulatory analyses federal financial regulators conducted in Dodd-Frank rulemakings; (2) interagency coordination on rulemakings by federal financial regulators; and (3) the impact of selected Dodd-Frank provisions and related rules.
 
GAO reviewed 54 Dodd-Frank rules (effective July 23, 2013–July 22, 2014) to determine if required regulatory analyses and coordination were conducted; developed indicators on the impact of systemic risk-related provisions and rules; and conducted an economic analysis to assess the act’s impact on large bank holding companies. GAO also examined the regulatory analyses and coordination efforts for two rules in depth: the Volcker rule and swaps rules. These rules were chosen because the former required interagency coordination in drafting, while the latter is of interest to domestic and foreign regulators. Finally, GAO interviewed staff from domestic and foreign regulators, financial services businesses, industry associations, and academics.
 
GAO is not making any recommendations in this report. Regulators provided written and technical comments, and neither agreed nor disagreed with the report’s findings.
 
For more information, contact A. Nicole Clowers at (202) 512-8678 or clowersa@gao.gov.

Please click here to view the report highlights [pdf] online.

Please click here to view the report [pdf] 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.

GAO-15-56: Information Technology: HUD Can Take Additional Actions to Improve its Governance

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On December 10, the U.S. Government Accountability Office (GAO) released GAO-15-56, a report subtitled Information Technology: HUD Can Take Additional Actions to Improve its Governance.

What GAO Found
 
The Department of Housing and Urban Development (HUD) has partially established elements of key practices for effective information technology (IT) governance, as identified by GAO’s IT investment management guide. However, several shortcomings remain:

  • Investment boards, policies, and procedures were not fully established: HUD chartered four review boards to manage the department’s IT investments; however, the executive-level board, which is to be responsible for overall definition and implementation of the investment management process, has never met. Instead, the department’s Deputy Secretary makes decisions about which investments to fund. The lack of an operational executive-level board has affected HUD’s other active investment boards, which are operating without criteria the executive-level board was to have established for evaluating proposed investments. In addition, HUD has not yet developed all of the policies that it has identified as needed to support its IT management framework. Specifically, the department has not set a schedule for developing policies for IT investment performance, privacy, and risk management. Office of the Chief Information Officer (CIO) officials explained that operating without an executive-level board represents the preferred investment management approach of HUD’s Secretary and Deputy Secretary.
  • Process for selecting investments lacks key elements: HUD has developed elements of a process for selecting investments based on defined criteria; however, it has not fully defined and implemented practices for identifying, evaluating, and prioritizing proposed IT projects for funding, as recommended by GAO’s IT investment management guide. CIO officials acknowledged that they have not yet fully developed a standard and well-documented process and attributed weaknesses to a variety of factors, including changes in leadership, priorities, and approaches.
  • Process for overseeing investments has not been fully developed: The department has not consistently compared the performance of projects to pre-defined expectations, established thresholds to trigger remedial action for underperforming investments, or reviewed projects after implementation to compare actual investment results with decision makers’ expectations. These weaknesses were attributed by CIO officials to, among other things, the lack of a consistent, enterprise-wide way to collect and compare actual data with estimates.

Until effective governance practices are institutionalized, there is risk that HUD’s investments in IT may not reflect department-wide goals and priorities or effectively support the department’s mission.
 
While HUD has reported governance-related cost savings and operational efficiencies, the data to support such reports were not always accurate, consistent, or substantiated. This is due, in part, to the lack of a department-wide approach, as called for in Office of Management and Budget guidance, to identify and collect cost-savings information. Thus, it is unclear to what extent HUD has realized savings or operational efficiencies from its IT governance.
 
Why GAO Did This Study
 
HUD relies on IT to deliver services and manage programs in support of its mission of strengthening communities and ensuring access to affordable housing. However, the department has experienced shortcomings in its IT management capability and limitations in the systems supporting its mission.
 
A Senate report accompanying HUD’s fiscal year 2012 appropriation mandated GAO to evaluate, among other things, the department’s institutionalization of IT governance. In response, GAO reported on HUD’s IT project management in June 2013.
 
GAO’s objectives for this second review were to determine (1) the extent to which HUD implemented key IT governance practices, including effective cost estimation, and (2) what, if any, cost savings or operational efficiencies HUD has reported achieving as a result of its IT governance practices. To accomplish this, GAO compared HUD’s approach to IT governance with best practices and the department’s policies and procedures. GAO also analyzed reported cost savings and operational efficiencies, along with any available supporting documentation.
 
What GAO Recommends
 
GAO recommends that HUD ensure that its investment review boards operate as intended and complete and update associated policies; fully establish processes including key elements for selecting and overseeing investments; and fully establish a process for identifying, collecting, and reporting data about cost savings and efficiencies. HUD agreed with GAO’s recommendations.
 
For more information, contact Valerie C. Melvin at (202) 512-6304 or melvinv@gao.gov.

Please click here to view the report highlights [pdf] online.

Please click here to view the report [pdf] in its entirety.

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.

Freddie Mac Predicts Biggest Year for Home Sales Since ?07

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On December 16, DS News released an article highlighting information from Freddie Mac’s December 2014 U.S. Economic and Housing Market Outlook.

Freddie Mac Predicts Biggest Year for Home Sales Since ’07

Freddie Mac predicted that 2015 will see the highest level of home sales in the U.S. since 2007 in its December 2014 U.S. Economic and Housing Market Outlook released on Tuesday.

In the report, Freddie Mac looked back at five key consensus predictions for 2014, how they fared, and how they will affect housing and the economy next year.  In addition to home sales, the four other areas examined were mortgage originations, home values, rental market, and mortgage rates.

A 4 percent jump is expected for home sales up to 5.6 million in 2015, which would be the highest annual level home sales have experience since 2007, according to the report.  A weaker than expected economy and a harsh winter brought down home sales for the first half of 2014 in spite of the healthy gains that were predicted at the start of the year.  But home sales and the economy made a strong comeback for the second half of 2014, and analysts expect that recovery to continue on into 2015.

Home price gains experienced moderate gains in 2014, as were predicted following the double-digit increases in 2013.  In 2014, home value gains grew at a rate of 4.5 percent, and in 2015, they are expected to increase by 3.0 percent, according to the report.  Rental vacancies fell to their lowest level since 2000 in the last year, and 30-year fixed mortgage rates are expected to average 4.4 percent in 2015 after hovering just below 4 percent in December.

“The recent drop in oil prices has been an unexpected boon for consumers’ pocketbooks and most businesses,” said Frank Nothaft, Freddie Mac vice president and chief economist. “Economic growth has picked up over the final nine months of 2014 and lower energy costs are expected to support growth of about 3 percent for the U.S. in 2015.  Therefore we expect the housing market to continue to strengthen with home sales rising to their best sales pace in eight years, national house price indexes up, and rental markets continuing to display low vacancy rates and the highest level of new apartment completions in 25 years.”

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.

Freddie Mac Holiday Eviction Suspension

Posted on by Safeguard

On December 9, Freddie Mac published a press release announcing a  holiday eviction moratorium between December 17, 2014 and January 2, 2015.

Holiday Eviction Suspension

Freddie Mac is temporarily suspending all scheduled eviction lockouts between December 17, 2014, and January 2, 2015. The eviction lockout suspension applies to all foreclosed occupied single family homes and 2-4 unit properties that had Freddie Mac-owned or guaranteed mortgages.

For More Information

Review our press release.
Direct questions to your Freddie Mac representative or contact Customer Support
(800-FREDDIE).

Please click here to view the online update.

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.

FHLMC Updated Guide Bulletin 2014-19 and Scorecard Preview

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On December 2, Freddie Mac released an update titled Updated Guide Bulletin 2014-19 and Scorecard Preview.

Updated Guide Bulletin 2014-19 and Scorecard Preview

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-19, we announced updates to the Freddie Mac Servicer Success Scorecard (Scorecard).  Today, we’re reissuing this Guide Bulletin to correct certain calculation descriptions in Attachment A.  Click here [pdf] to see a summary of the corrections. We apologize for any confusion this may have caused.

In addition, we want to remind you that a preview of your 2015 Scorecard will be available in your Servicer Performance Profile this Friday, December 5.  Simply click on the Servicer Success Scorecard link in your Servicer Performance Profile, enter your user ID and password, and select the Servicer Success Scorecard – 2015 Preview folder.

What to Expect with the 2015 Scorecard Preview

You will be able to preview your performance against the 2015 Scorecard metrics in December based on October 2014 data.  The preview is available until your January 2015 performance data becomes live on March 6, 2015.

You will notice that the rank, percentile, target, and rating columns do not include information.  Effective January 1, 2015, rank and percentile are calculated based on your peer group and will begin populating data on March 6, 2015.  However, if you service 25 or more loans that are 90 days or more delinquent, you can request a preview of your rank information from your Account Manager or Customer Support (800-FREDDIE).  This information will be available beginning December 12. Target and rating will only apply to File Review Monitoring criteria in the 2015 Scorecard, so these columns will be removed for all other criteria on March 6, 2015.

Training and Resources

We’ll continue to communicate with you about the Scorecard preview, resources, and training leading up to March 6, 2015. 

For More Information

Please click here to view the update online.

Please click here to view (updated) Guide Bulletin 2014-19 [pdf].

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.

FHLMC Guide Bulletin 2014-25 Expansion of the Freddie Mac MyCity Modification

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On December 18, Freddie Mac released an update titled Guide Bulletin 2014-25: Expansion of the Freddie Mac MyCity Modification.

Guide Bulletin 2014-25 Announces MyCity Modification Expansion

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-25 [pdf], we’re announcing the expansion of the Freddie Mac MyCity Modification to include Cook County, Illinois. We’re also revising MyCity Modification requirements for the City of Detroit, Michigan, previously announced in Guide Bulletin 2014-11 [pdf].

This expansion is another opportunity for you to provide eligible borrowers with a loan modification option that may offer significant payment relief.

Only Servicers with loans in Cook County, Illinois, and the City of Detroit, Michigan, or those who may acquire servicing of applicable loans in those locations in the near future, will be impacted by the requirements described in Guide Bulletin 2014-25 [pdf], related to the MyCity Modification.

MyCity Modification Changes

  • For the City of Detroit, Michigan, and Cook County, Illinois
  • Servicers must proactively offer the MyCity Modification to borrowers who are 90 or more days delinquent.
  • Servicers are now fully delegated to approve all eligible borrowers.
  • The expiration date for the MyCity Modification for the City of Detroit has been extended to December 1, 2016.
  • The property valuation requirement for the MyCity Modification for the city of Detroit has been changed, requiring that the Servicer order a property valuation.

  • For Cook County, Illinois

  • Eligibility is limited to one- to four-unit single-family properties with property values equal to or less than $250,000.
  • However, two- to four-unit properties valued over $250,000, that otherwise meet the eligibility requirements, must be sent to Freddie Mac for review.

What You Need to Do

To implement the updated MyCity Modification, follow the eligibility and documentation requirements, along with any other instructions provided by Freddie Mac, for all evaluations on or after April 1, 2015. For a complete list of those requirements, please refer to Guide Bulletin 2014-25 [pdf]. 

Effective Date

The MyCity Modification Trial Period Plan effective date must be no later than December 1, 2016.

Please click here to view the online update.

Please click here to view Guide Bulletin 2014-25 [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.

FHLMC Guide Bulletin 2014-24 Selling and Servicing Updates

Posted on by Safeguard

On December 15, Freddie Mac released an update titled Guide Bulletin 2014-24: Selling and Servicing Updates.

Guide Bulletin 2014-24 Announces New Representation and Warranty Tracking Application and Other Requirement Updates

Today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-24 announces selling and servicing updates that may impact the way you do business with Freddie Mac. Key changes are summarized below.

Freddie Mac Loan Coverage AdvisorSM launches on January 12, 2015.

  • This new web-based application calculates, tracks, and publishes the selling representation and warranty relief status for every loan you sell to us.
  • Get access by submitting Guide Form 906 [pdf], Loan Coverage Advisor Authorized User Role Form. 
  • Visit our Loan Coverage Advisor Web page to learn more about the features and benefits.

NOTE: We are discontinuing the temporary process of sending the Selling Representation and Warranty Relief Date Report to our Seller/Servicers in early 2015. Once you obtain access to Loan Coverage Advisor, you can easily pull this report from Loan Coverage Advisor at your own convenience.

  • Receipt and Treatment of Confidential Information. We are clarifying that mortgage insurers and other vendors are service providers with whom you may share confidential information. Your legal counsel must determine that the sharing of confidential information with service providers is legally required or necessary.
  • Organizational Changes to Forms, Exhibits, and the Glossary. We are making it easier to access Guide forms and exhibits in AllRegs®. In early 2015, we are pulling all selling and servicing forms into one comprehensive “Forms” folder and all exhibits into one “Exhibits” folder. The Guide glossary will also be split into three sections.
  • 2015 Loan Limits. The Guide has been updated to reflect the 2015 base conforming loan limits and the high-cost area loan limits announced on November 24, 2014.
  • ULDD Updates. We are publishing the fourth quarter 2014 Uniform Loan Delivery Dataset (ULDD) Addendum that includes, among other updates, the new valid value of “Home Possible Advantage” for ULDD Data Point Loan Program Identifier for Freddie Mac Home Possible Advantage MortgagesSM. Please review the addendum in its entirety to determine if there are impacts to your systems or processes and for applicable effective dates.

Please read the Bulletin for detailed information on these and other Guide updates.

For More Information

Please click here to view the online update.

Please click here to view Guide Bulletin 2014-23 [pdf].

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.