Page 405 – Safeguard Properties

FHA Releases Servicing Section Draft of Upcoming Single Family Housing Policy Handbook

Posted on September 13, 2018 by Safeguard

The Federal Housing Administration (FHA) has released the draft of the new Serving Manual. Comments on the information contained in the draft manual are due by October 17, 2014.

Single Family Draft Handbook
Servicing Mortgages

The draft Servicing section of the future Federal Housing Administration (FHA) Single Family Housing Policy Handbook (SF Handbook) was posted on September 11, 2014 for stakeholder review and feedback.

Content Document

The draft Servicing section outlines the requirements associated with servicing FHA-insured single family mortgages post-endorsement through the end of the mortgage insurance contract. The section consolidates policy from the 1994 HUD Handbook 4330.1-Administration of Insured Home Mortgages and subsequent Mortgagee Letters, relevant Housing Notices, and other servicing policies and regulations published since 1994. The draft Servicing section will provide servicing mortgagees a comprehensive resource on servicing FHA-insured single family mortgages. Specifically, this section provides guidance on:

    1. General servicing requirements for FHA-insured mortgages;
    2. Servicing of performing mortgages;
    3. Default servicing, including HUD’s Loss Mitigation Program and conveyance standards;
    4. Loss mitigation performance; and,
    5. Special mortgage program servicing for active and inactive programs, including:
             – Hawaiian Home Lands mortgages;
             – Mortgages and mortgage protection for Service Members;
             – Section 235 mortgages and recapture;
             – Hope for Homeowners;
             – Good Neighbor Next Door Program; and,
             – The Nehemiah Program.

Guidance on filing claims for FHA mortgage insurance benefits, and real estate owned or other disposition methods will be posted for feedback in the future in a separate SF Handbook section. Additionally, other items that are currently under review by FHA that are not included in today’s posting, e.g. the Cash for Keys, Property Preservation, and Reasonable Diligence timeframe requirements, will be posted later.

Reviewing and Providing Feedback

FHA invites all interested stakeholders to review the draft Servicing section and provide feedback from September 11 through October 17. Stakeholders may visit the Highlights of Changes for an overview of the key proposed policy changes in the draft Servicing section.

To facilitate FHA’s review and analysis of feedback, stakeholders are encouraged to use the Feedback Response Worksheet to record and submit feedback by October 17.

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.

FHA Announces New Single Family Loan Servicing Contractor

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

On September 24, the Federal Housing Administration (FHA) released INFO message #14-57, discussing ML 2014-19 titled “New Single Family Loan Servicing Contractor”.

FHA INFO #14-57
September 24, 2014

FHA SINGLE FAMILY HOUSING NEWS

NEWS AND UPDATES

TO:  All FHA-Approved Mortgagees
        All HUD Field Offices and Homeownership Centers
        All HUD-Approved Housing Counseling Agencies

What’s New

FHA’s New Single Family Loan Servicing Contractor

On September 18, 2014, the U.S. Department of Housing and Urban Development (HUD) issued Mortgagee Letter (ML) 2014-19 introducing our new loan servicing contractor, NOVAD Management Consulting. The new contract becomes effective September 29, 2014.

Under the contract, NOVAD Management Consulting will be responsible for servicing the Federal Housing Administration’s (FHA) Single Family Secretary-Held assets, including:

Assigned Home Equity Conversion Mortgages (HECM);
Title II mortgages;
Partial Claim subordinate mortgages;
HECM subordinate mortgages;
Section 235 subordinate mortgages;
Nehemiah subordinate mortgages;
Emergency Homeowners Loan Program (EHLP) subordinate mortgages;
Asset Control Area (ACA) mortgages;
Hope for Homeowners (H4H) subordinate mortgages; and
Good Neighbor Next Door (GNND) subordinate mortgages.

Learn More

View ML 2014-19 at http://portal.hud.gov/hudportal/documents/huddoc?id=14-19ml.pdf
Questions? Call the National Servicing Center (NSC) at 1-877- 622-8525. Persons with hearing or speech impairments may reach this number via TTY by calling the Federal Information Relay Service at 1-800-877-8339.

Please click here to view the INFO message online.

Fannie Mae SVC-2014-16 Miscellaneous Servicing Policy Updates

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

On September 8, Fannie Mae released Servicing Guide Announcement SVC-2014-16, subtitled Miscellaneous Servicing Policy Updates.

Servicing Guide Announcement SVC-2014-16

Miscellaneous Servicing Policy Updates

This Announcement describes the following policy updates and clarifications:

authorizing servicers to waive deficiency judgment rights,
introducing the Suspended Counterparty Program,
updating the P&I and T&I Letter of Authorization Forms,
submitting a post-delivery transfer of servicing or subservicing request,
adjusting Fannie Mae’s Standard Modification rate,
updating the Mortgage Release^TM Program Cancellation form, and
clarifying the MyCity Modification process for Detroit, Michigan.

Please click here to view the announcement in its entirety.

Fannie Mae Servicer REAM Deficiency Billing System Update

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

On Sept. 26, SRDBS will be improved to include new features, including the ability for sub-servicers to access the application.

SRDBS Version 3.0 Release Notes
September 24, 2014

During the weekend of September 26, 2014, Fannie Mae will implement Servicer REAM Deficiency Billing System (SRDBS) Release 3.0, which includes the changes described below for the SRDBS application.

Introduction

To assist with the collection of payments for Homeowner Association and Property Tax deficiencies paid at closing, as well as keeping in alignment with Fannie Mae Single-Family Announcement SVC-2012-21, a vendor portal for Notices of Title Defects post foreclosure and Indemnification Billings for both pre- and post-foreclosure was implemented. The vendor portal system, SRDBS, allows servicers the ability to access interactive workflows, view invoices and supporting documentation daily, as well as upload supporting documents, and provide real time feedback on a case level basis. The application is available on the SRDBS page or via the Asset Management Network (AMN) application.

Sub-Servicer Access

One important new feature will include the ability for sub-servicers to access and utilize the system. New users should contact their Technology Manager administrators for access to the application.

*For HOA/Tax deficiency amounts, servicers will now be able to upload supporting documents via a hyperlink for the item in question.

Questions?

If you have any immediate questions or concerns, please reach out to your Fannie Mae servicing team at nso_repurchases@fanniemae.com for loans that are pre foreclosure, or the REAM Repurchase Referral Group at ream_repurchase_referrals@fanniemae.com for loans that are post foreclosure.

Please click here to view the release notes online.

Fannie Mae Asset Management Network-Home Saver Solutions Network Release Notes

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

On September 18, Fannie Mae announced its upcoming implementation of AMN/HSSN Release 20.1.

AMN/HSSN 20.1 Release Notes
September 18, 2014

During the weekend of October 18, 2014, Fannie Mae will implement Asset Management Network (AMN)/HomeSaver Solutions® Network (HSSN) Release 20.1, which includes the changes described below for AMN/HSSN.

Summary:

Description:
Remove Servicers Ability to Close Short Sale Cases
New Field Added: Servicer Evaluation Date
Implement Fields in HSSN for FHFA Mandated Requirements for Mortgage Release & Short Sale Workout Cases

Please click here to view the complete AMN/HSSN 20.1 Release Notes [pdf].

Department of Veteran Affairs Update on Conveyance

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

On September 19, the Valeri (VA Loan Electronic Reporting Interface) Servicer Newsflash released several updates dealing with conveyance.

VALERI Servicer Newsflash

Friday, September 19, 2014

IMPORTANT INFORMATION
Denver Appraisal Increase – The Denver Regional Loan Center (RLC) increased the appraisal fee for single family homes and condominiums to $625.00 for the Colorado counties of Adams, Arapahoe, Broomfield, Boulder, Denver, Douglas, El Paso, Jefferson, Larimer, Mesa, Pueblo, and Weld. The change is effective for appraisals ordered on or after August 1, 2014. The VALERI application is coded to allow the maximum of $500.00 for all Colorado counties therefore mortgage servicers will need to appeal for the increased appraisal fee of $625.00.

Clarification on Deficiency Waiver Letters (DWL) – The Department of Veterans Affairs (VA) requires a DWL on any loan that is conveyed to VA where VA paid a Max Guaranty claim payment.

Deed-in-Lieu (DIL) Title Package Submission Clarification – The timeframe requirement for the submission of a title package following a loan termination by DIL is the same as the requirements for a loan terminated by foreclosure sale. The hardcopy and electronic documents must be provided to VA’s contractor, Vender Resource Management (VRM), no later than 60 days after the liquidation of the loan by DIL in most jurisdictions. For jurisdictions that exceed the 60 day timeframe, please refer to the “Title Documentation, Insurance and Timeframe Requirements” spreadsheet located on the VALERI Internet web page.

VRM Title Letters – VRM will now notify servicers when a title package is approved. However, the approval notification includes the following disclaimer – “Please note that if any subsequent issues are discovered that may affect title, the title package may be subject to re-review and revised opinion of title.”

Please click here to view the entire Newsflash [pdf].

Consumer Housing Sentiment Loses Momentum as Income Growth Remains Stagnant

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

On September 8, Fannie Mae published an article titled Consumer Housing Sentiment Loses Momentum as Income Growth Remains Stagnant.

Consumer Housing Sentiment Loses Momentum as Income Growth Remains Stagnant
American consumers’ attitudes towards the housing market continue to softent; gradual housing recovery should continue in 2015.

WASHINGTON, DC – Americans’ attitudes toward the housing market continued to soften in August and suggest that housing activity may resume its modest recovery in 2015 after some pullback this year, according to results from Fannie Mae’s August 2014 National Housing Survey. Despite ongoing improvements in the labor market this year, consumers’ view on their income trend during the past 12 months appears to be more bearish. In addition, the share of consumers who said now is a good time to buy a home dipped for the second consecutive month, falling six percentage points since June to 64 percent – tying the all-time survey low.

“The August National Housing Survey results lend support to our forecast that 2015 will likely not be a breakout year for housing,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The deterioration in consumer attitudes about the current home buying environment reflects a shift away from record home purchase affordability without enough momentum in consumer personal financial sentiment to compensate for it. To date, this year’s labor market strength has not translated into sufficient income gains to inspire confidence among consumers to purchase a home, even in the current favorable interest rate environment. Our third quarter Mortgage Lender Sentiment Survey results, to be released later this month, are expected to show whether mortgage demand from the lender perspective is in line with consumer housing sentiment.”

SURVEY HIGHLIGHTS

Homeownership and Renting

The average 12-month home price change expectation fell to 2.1 percent.
The share of respondents who say home prices will go up in the next 12 months held steady at 42 percent. The share who say home prices will go down increased to 9.0 percent.
The share of respondents who say mortgage rates will go up in the next 12 months fell by four percentage points to 50 percent.
Those who say it is a good time to buy a house fell to 64 percent, matching the all-time low. Those who say it is a good time to sell also decreased—to 38 percent.
The average 12-month rental price change expectation rose to 4.1 percent.
The percentage of respondents who expect home rental prices to go up in the next 12 months increased to 53 percent.
The share of respondents who think it would be easy to get a home mortgage today increased by one percentage point.
The share who say they would buy if they were going to move fell to 64 percent, while the share who would rent increased to 32 percent—the narrowest gap in over a year.

The Economy and Household Finances

The share of respondents who say the economy is on the wrong track fell by three percentage points from last month to 56 percent.
The percentage of respondents who expect their personal financial situation to get better over the next 12 months increased to 44 percent.
The share of respondents who say their household income is significantly higher than it was 12 months ago dropped by five percentage points to 23 percent.
The share of respondents who say their household expenses are significantly higher than they were 12 months ago remained at 36 percent.

The most detailed consumer attitudinal survey of its kind, the Fannie Mae 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). 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 August 2014 survey, as well as a podcast providing an audio synopsis of the survey results and 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 August 2014 Fannie Mae National Housing Survey was conducted between August 1, 2014 and August 24, 2014. 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.

To read the article in its entirety, please click here.

VALERI Servicer Newsflash

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

On August 22, the U.S. Department of Veterans Affairs (VA) released a VALERI Servicer Newsflash.

VALERI Servicer Newsflash

IMPORTANT INFORMATION
Scheduling Reports – If you have reports scheduled to run automatically and are having issues, please make sure the expiration date of that scheduled report has not lapsed. If you have verified the expiration date and the report still does not run automatically, send an e-mail to the VALERI Helpdesk with detailed information and screen shots of the issue.

FOR YOUR INFORMATION
Special Notifications and Updating the Bi-weekly Call List – When sending special notifications from the VALERI helpdesk, we receive many undeliverable e-mail notifications. When an undeliverable notification is received, we remove all contact information from the bi-weekly call distribution list.

If you are a participant on the bi-weekly call and your e-mail address changes, you should notify the VALERI Helpdesk. Servicers should designate an individual to submit additions or deletions to the bi-weekly call list as means to ensure appropriate representation by your company.

DEVELOPMENT UPDATES
The Appeal Status Report – This report has been updated to include the status of the “Review Appeal Late Acquisition” process.

The Servicer Loan Listing Report – VA recently added additional filters such as “Status”, “State/Territory”, “TVLB Flag”, “Origination Date”, and “termination date range”. If you wish to run a Servicer Loan Listing Report with all loans, simply select “NULL” for the all categories. However, if you just want a report for loans that originated in the year 2012, you would enter that year in the “origination date filter” and the report will list loans originated in 2012, and status of the loan, (active or terminated). It is recommended that you schedule this report as in many cases it is very large.

Please note, if you select NULL for all categories, you may only receive partial results depending on the size of your portfolio.

The Servicer Events Report Log Report – As of July 30, the report was returned to its original state allowing you to generate the report based on a date range of when the event was reported

Please click here to view the newsflash in its entirety.

VA Circular 26-14-19 Processing Request for Execution of Quitclaim Deeds

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

On August 1, the U.S. Department of Veterans Affairs (VA) issued Circular 26-14-19, subtitled Processing Request for Execution of Quitclaim Deeds.

Circular 26-14-19

Processing Request for Execution of Quitclaim Deeds

1. Purpose. This Circular provides guidance on the Department of Veterans Affairs (VA) handling of requests for execution of quitclaim deeds (QCD).

2. Usual Transfer and Reconveyance. When a servicer elects to convey a property to VA following loan termination, the holder typically records a deed to the property in VA’s name. VA pays for the property upon receipt of the Transfer of Custody event in the VA Loan Electronic Reporting Interface (VALERI). Servicers must provide acceptable evidence of title to VA per the Title Documentation, Insurance and Timeframe Requirements link on the VALERI webpage (http://www.benefits.va.gov/homeloans/valeri.asp). If the servicer does not provide an acceptable title timely, or if the title is deemed unacceptable, VA’s property management contractor, Vendor Resource Management (VRM) prepares a QCD to transfer the property back to the servicer, based on the authority delegated in 38 CFR 36.4345 (f). If an extension is necessary for a mortgage servicer to provide acceptable evidence of title, an extension request must be received by VA’s property management contractor via email at va-title@vrmco.com prior to the date title documents are due.

3. Title Transfers Needing Reversal. The servicer may record a deed transferring title of the property to VA in error, such as when a third party is the successful bidder at a foreclosure sale, VA denies conveyance of the property or a foreclosure sale is not valid, however a deed to VA was prepared in advance and recorded. Also, there have been some cases where deeds were recorded to VA on properties securing Federal Housing Administration (FHA) loans. Please note, VA requires written justification for every appeal of a late conveyance to demonstrate the delay was beyond the servicer’s control.

4. Processing Quitclaim Deeds.

a. Loans assigned to a Loan Technician in VALERI. Whenever a servicer or its agent determines that a QCD is needed to transfer any interest previously conveyed to VA, the request will be sent via e-mail to the assigned VA Loan Technician in VALERI. The e-mail will explain the reason for the request and include an electronic version of the QCD to be executed by VA, along with instructions for transmittal of the executed deed to the party that will handle recordation.

b. Loans not assigned to a Loan Technician in VALERI. Any request for a QCD on a VA-guaranteed loan not assigned to a VA Loan Technician, will be sent to the Loan Administration Officer (LAO) at the VA Regional Loan Center (RLC) nearest to the location of the property. If the LAO finds that the need for a QCD is the result of a prior default, the request will be forwarded for handling to the LAO of the previously-assigned VA Loan Technician. The LAO will establish that VA has no interest in the property and then review the deed in accordance with the following paragraph.

c. VA Review. In the case where the loan is assigned to a VA Loan Technician, the assigned technician will update VALERI notes and forward the request to the LAO. If the case is not assigned to a VA Loan Technician, the LAO will update the VALERI notes. In both cases, the LAO will review the deed to ensure that it conveys only the interest VA may have had in the
property, without any type of warranty. In addition, the effective date of the QCD must be the same date as the initial transfer of the property to VA. By using the same date as the initial transfer to VA, the QCD essentially demonstrates that VA never accepted title to the property, despite the previously recorded deed.

d. VA Execution. Execution of the QCD ensures the property is transferred from VA’s name to the correct holder of the property. If the deed appears acceptable under the general guideline described above, it will be sent to the Loan Guaranty Officer (LGO) or Assistant LGO for execution and transmittal in accordance with the request. Under 38 CFR 36.4345(b) the LGO or ALGO has the authority to execute deeds in any area of the country on behalf of the Secretary of Veterans Affairs. Timely execution of the QCD will avoid delays in the servicers ability to respond to liens, code violations, taxes, etc. that may have been assessed on the property.

5. VA-Initiated Quitclaim Deeds. In some cases, there may be a delay or no request from the servicer for a QCD when conveyances are not accepted or the QCD to VA may have been erroneously recorded without any notice to VA. VA’s first notice may be in the form of a tax bill or a code violation from local authorities. In such cases, after
determining that VA should not be the owner of a property, the responsible LAO, as
described in paragraph 4.b above, will ensure that contact is initiated with the
servicer to prepare a QCD for VA’s execution. If the servicer delays the preparation
of the QCD, the RLC will prepare and execute a QCD back to the servicer.

6. Rescission:

a. Circular 26-09-15 and all changes are rescinded immediately.

b. This Circular is rescinded July 1, 2017.

By Direction of the Under Secretary for Benefits
Michael J. Frueh
Director, Loan Guaranty Service

Please click here to view the online Circular.

USDA Updates Guidance Concerning Foreclosure Fees and Timeframes

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

On July 22, the U.S. Department of Agriculture (USDA) issued a servicing update titled Schedule of Standard Attorney Fees & Foreclosure and Reasonable Diligence Timeframes.

Schedule of Standard Attorney Fees & Foreclosure and Reasonable Diligence Timeframes

The Single Family Housing Guaranteed Loan Program (SFHGLP) is updating its guidance concerning allowable foreclosure fees and foreclosure timeframes. The SFHGLP will utilize the Housing and Urban Development’s (HUD) current Schedule of Standard Attorney Fees and the Foreclosure and Reasonable Diligence Timeframes. All foreclosures initiated on or after August 1, 2014, will be subject to the attached schedules.

For Policy questions, please contact the Single Family Housing Guaranteed Loan Division by dialing (202) 720-1452 or the Centralized Servicing Center by dialing (866) 550-5887.

Please click here for the HUD Schedule of Standard Attorney Fees and HUD Foreclosure and Reasonable Diligence Timeframes.