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FHFA Announces New HARP Outreach Efforts

Posted on September 13, 2018 by Safeguard

On June 25, the Federal Housing Finance Agency (FHFA) released an update titled FHFA Announces New HARP Outreach Efforts.

FHFA Announces New HARP Outreach Efforts
Director Watt to Participate in Chicago Event with Community Leaders; Interactive Online Map Launched

?Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced it is taking new steps to reach homeowners who could benefit from the Home Affordable Refinance Program (HARP). FHFA Director Mel Watt will join housing experts and community leaders in a town hall-style meeting at the Woodson Regional Library in Chicago on July 8 to discuss the benefits of HARP and encourage the approximately 36,000 Chicago residents still eligible to participate in the program. These borrowers could save two to three thousand dollars each year by refinancing their mortgage. But many eligible borrowers who would benefit from doing so have failed to take advantage of the HARP program.

FHFA last year launched a nationwide public awareness campaign and HARP.gov to reach eligible borrowers and encourage them to participate in HARP. The campaign will now include town hall-style events in targeted cities that have the highest number of “in-the-money” borrowers who have yet to take advantage of a HARP refinance. Borrowers are considered “in-the-money” if they meet the basic HARP eligibility requirements, have a remaining balance of either $50,000 or more on their mortgage, have a remaining term on their mortgage greater than 10 years, and their mortgage interest rate is at least 1.5 percent higher than current market rates.

FHFA today also unveiled an interactive online map? indicating the number of estimated “in-the-money” borrowers eligible for HARP in every zip code, county and metropolitan statistical area in the country. The map is accessible through HARP.gov.

At the Chicago event, Sandra Thompson, FHFA’s Deputy Director for Housing Mission and Goals, will moderate a panel discussion featuring Director Watt, officials from Fannie Mae, Freddie Mac, Wells Fargo and a community leader from Neighborhood Housing Services of Chicago, Inc. The event is geared to local community and civic leaders who can share information about HARP with homeowners in the Chicago area. Event attendees will receive a dedicated toolkit specific to Chicago describing in greater detail the elements of HARP and how borrowers stand to benefit from the program. FHFA will announce future HARP events in the coming weeks.

“We know that there are hundreds of thousands of borrowers who can still benefit from HARP and are essentially leaving money on the table by not taking advantage of the program,” said Watt. “By engaging directly with local community leaders, faith-based organizations, local elected officials and lenders, our goal is to leverage these trusted sources to reach as many ‘in-the-money’ borrowers as we can.”

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.

FHFA and the U.S. Department of the Treasury introduced HARP in early 2009 as part of the Making Home Affordable program. HARP is one of the only refinance programs that allows borrowers with little or no equity to take advantage of low interest rates and other refinancing benefits. As of April 2014, more than 3.1 million homeowners have refinanced through HARP.

Link to HARP Toolkit?

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.6 trillion in funding for the U.S. mortgage markets and financial institutions.

To view the online release, please click here.

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.

Fannie Mae SVC-2014-12 MyCity Modification

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

On June 20, Fannie Mae released Servicing Guide Announcement SVC-2014-12, subtitled Neighborhood Stabilization Initiative – MyCity Modification for Detroit, Michigan.

Servicing Guide Announcement SVC-2014-12

Neighborhood Stabilization Initiative – MyCity Modification for Detroit, Michigan
Fannie Mae is introducing a new mortgage loan modification program for Detroit,
Michigan, MyCity Modification, as part of the Neighborhood Stabilization Initiative
recently announced by the Federal Housing Finance Agency and jointly
developed by Fannie Mae and Freddie Mac in order to help neighborhoods
recover from the housing crisis and to assist struggling homeowners.
The MyCity Modification targets borrowers whose mortgage loans are secured
by properties within the City of Detroit and who meet the eligibility requirements
below.

Introduction to MyCity Modification
This Announcement covers the following parameters of the MyCity Modification:

Effective Date
Eligibility Requirements
Complete Borrower Response Package
Servicer Evaluation for Borrowers Who are Current or Less than 90 Days Delinquent
Servicer Evaluation for Borrowers Who are 90 Days or More Delinquent
Requirements after Receipt of Fannie Mae’s Eligibility Review
Additional Requirements for Borrowers Who are 90 Days or More Delinquent
Property Valuation and Bidding Instructions
Mortgage Insurer Approval

Effective Date
Servicers are encouraged to implement the policies in this Announcement
immediately; however, servicers are required to implement these policies
no later than September 1, 2014. The MyCity Modification Trial Period
Plan Effective Date must be no later than December 1, 2015.

Please click here to view the announcement in its entirety.

Fannie Mae SVC-2014-11 Servicer Compliance with Anti-Money Laundering

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

On June 20, Fannie Mae released Servicing Guide Announcement SVC-2014-11, subtitled Servicer Compliance with Anti-Money Laundering Provisions of the Bank Secrecy Act.

Servicing Guide Announcement SVC-2014-11

Servicer Compliance with Anti-Money Laundering Provisions of the Bank Secrecy Act

Servicing Guide, Part I, Section 202: Servicer’s Basic Duties and
Responsibilities; Section 305.01: Submitting the Lender Record
Information Form; Section 305.07: Compliance with Applicable
Law; and Section 307: Compliance with Applicable Laws; and
Part VII, Section 609.02.10: Compliance with Applicable Laws

Pursuant to the Financial Crimes Enforcement Network’s (FinCEN) Final Rule effective
April 28, 2014, Fannie Mae is defined as a “financial institution” under the Bank
Secrecy Act (BSA). Fannie Mae must implement a formal anti-money laundering (AML)
program and begin filing Suspicious Activity Reports (SARs) with FinCEN, by
August 25, 2014.

Please click here to view the announcement in its entirety.

Fannie Mae SVC-2014-10 Unemployment Forbearance Updates

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

On June 4, Fannie Mae issued Servicing Guide Announcement SVC-2014-10, subtitled Updates to Fannie Mae Unemployment Forbearance.

Servicing Guide Announcement SVC-2014-10

Updates to Fannie Mae Unemployment Forbearance

Effective Date
Servicers are encouraged to implement the revised policies immediately; however, implementation of these policies must occur no later than September 1, 2014.

Granting Unemployment Forbearance

Servicing Guide, Part VII, Section 403: Forbearance and Section 403.01: Forbearance for Unemployed Borrowers
Fannie Mae is updating its requirements to allow the servicer to approve a borrower for the initial Fannie Mae Unemployment Forbearance program provided that;

the borrower’s mortgage payment is in imminent default or the mortgage loan delinquency is less than or equal to 12 months as of the evaluation date; and
all other applicable Unemployment Forbearance eligibility requirements are met, as stated in the Servicing Guide.

As a reminder, the initial unemployment forbearance period is the lesser of six months or upon notification from the borrower of re-employment.

Delegation for Extending Unemployment Forbearance

Servicing Guide, Part VI, Section 302.01: Mortgage Loans Reported as Forbearance for Six Consecutive Months; Part VII, Section 403: Forbearance; Servicing Guide Announcement SVC-2012-01: Introduction of Fannie Mae Unemployment Forbearance; Servicing Guide Announcement SVC-2013-20: Delinquency Management and Default Prevention Updates Related to the Consumer Financial Protection Bureau Mortgage Servicing Rules and Other Servicing Responsibilities
The servicer is now authorized to approve an Unemployment Forbearance extension without obtaining Fannie Mae approval, if all other applicable Unemployment Forbearance extension eligibility requirements are met, as stated in the Servicing Guide. As a reminder, an extension of any Unemployment Forbearance must not be for a term that would cause the delinquency to exceed 12 months of the borrower’s contractual monthly mortgage loan payment, including taxes and insurance if the servicer is collecting escrows for such expenses.

Also, as a reminder, the servicer is authorized to offer forbearance (a temporary suspension or reduction in borrower payments) for no more than six consecutive months while the mortgage loan remains in the MBS pool. If forbearance extends beyond the sixth consecutive month of forbearance, then the mortgage loan must be removed from the MBS pool immediately after six months of forbearance have been reported.

If the mortgage loan does not meet the eligibility requirements for the
Unemployment Forbearance program, and the servicer believes, based
on the borrower’s circumstances, that a Fannie Mae Unemployment
Forbearance is appropriate, the servicer must submit an Unemployment
Forbearance recommendation to Fannie Mae for approval
to forbearance_ext_requests@fanniemae.com.

*****

Servicers should contact their 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.

Leslie A. Peeler
Senior Vice President
National Servicing Organization

Please click here to view the online announcement.

Fannie Mae Servicing Portal Release Notes Version 2.0

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

On June 6, Fannie Mae released an update titled Single-Family Servicing Management Portal Release Notes Version 2.0.

Single-Family Servicing Management Portal Release Notes Version 2.0

During the week of June 17, 2014, Fannie Mae plans to deploy the Single-Family
Servicing Management Portal, which will be added to the suite of applications
that are available via the servicing section of the Single-Family Business Portal.

Key Functions

The new Single-Family Servicing Management Portal will support the Servicer Total
Achievement and Rewards™ (STAR™) Program Operational Assessment process.
The Portal provides users with the following features:

Important STAR Program news and announcements
A complete inventory of final STAR Operational Assessment reports for each individual servicer
A central location for submitting Operational Assessment documentation –
and the ability to upload and download supporting documentation
Easy access to the STAR Performance Scorecard

For More Information

If you have questions about these Release Notes, please call the Fannie Mae Customer Contact Center
at 1-877-722-6757 or contact your Technology Account Manager.

For assistance with the Single-Family Servicing Management Portal, reference the Portal Job Aid.

Please click here to view the online update.

VA Circular 26-11-1 Change 1 Relocation Assistance for VA Borrowers

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

On May 14, the U.S. Department of Veterans Affairs (VA) issued Circular 26-11-1 Change 1, subtitled Relocation Assistance for VA Borrowers.

Circular 26-11-1
Change 1

Relocation Assistance for VA Borrowers

1. Purpose. The purpose of this change is to extend the rescission date of the basic Circular so that stations continue to provide guidance on VA’s position with respect to this procedure.

2. Therefore, Circular 26-11-1, is changed as follows:

Page 2, paragraph 9: Delete “January 1, 2014.” and insert “January 1, 2016.”

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

Please click here to view the online circular.

Link to Circular 26-11-1

VA Circular 26-09-12 Change 3 Property Preservation Requirements and Fees

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

On May 7, the U.S. Department of Veterans Affairs (VA) issued Circular 26-09-12 Change 3, subtitled Property Preservation Requirements and Fees.

Circular 26-09-12
Change 3

Property Preservation Requirements and Fees

1. Purpose. The purpose of this change is to provide clarification on the minimum requirements for Department of Veterans Affairs (VA) guaranteed home loans with regard to securing of the property and fees that will be reimbursed by VA for those services in a claim under the loan guaranty.

2. Therefore, Circular 26-09-12, as amended by Change 2 on December 18, 2012, is changed as follows:

Page 5, paragraph 10, subsection a: Insert “If a property requires the installation of a padlock or lockbox, VA will reimburse as long as the servicer does not exceed the maximum allowable for securing of the property.”

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

Please click here to view the online circular.

Links to Circular 26-09-12 and Circular 26-09-12 Change 2.

Senate Banking Committee Statements at Housing Reform Markup

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

On May 15, the United States Senate Committee on Banking, Housing, & Urban Affairs released prepared statements at the housing reform markup.

JOHNSON STATEMENT AT THE HOUSING FINANCE REFORM MARKUP

Washington, DC – Today, Chairman Tim Johnson (D-SD) resumed consideration of S. 1217, the Housing Finance Reform and Taxpayer Protection Act of 2013. The legislation being marked up included a bipartisan agreement drafted by Chairman Johnson and Ranking Member Crapo and is designed to stabilize the housing finance market and strengthen the American economy. It will create greater competition in the housing finance system and reduce risk to the taxpayer while ensuring affordable, fair access to all creditworthy borrowers.

Below is Chairman Chairman Johnson’s Statement as Prepared for Delivery.

“When we opened up this markup two weeks ago it appeared we were very close to gaining additional bipartisan support for this bill. That being the case, I consulted with Ranking Member Crapo and other members of the Committee and decided to recess for a short time to take one last shot at finding additional support. After exhausting every option to try and strike a deal quickly that would add votes at the committee level, I have concluded it is best to move forward with the majority we have now in committee and continue working to build support for the bill as it moves to the floor.

“This bill represents our effort to draft the final chapter of financial reform by addressing the most significant unresolved issue from the financial crisis – the housing finance system.

“Recently, Fannie Mae and Freddie Mac’s regulator released the results of the G-S-E’s stress tests as required by Dodd-Frank. Under the projected adverse scenarios, the G-S-Es would require between $84 billion and $190 billion from the Treasury Department. This report illustrates exactly why we need reform.

“Understanding the urgency, Ranking Member Crapo and I agreed to work together on this issue, and from the start we committed to make this a bipartisan, inclusive, and transparent process.
That was never more evident than in the last few weeks as good-faith, bipartisan negotiations continued. I would like to thank Ranking Member Crapo for his partnership throughout this process to draft a serious, bipartisan product. Neither of us got everything we wanted, but our primary goal was to create a new system that would be built to last. I would also like to thank the Administration – specifically, the NEC, HUD, and Treasury – for their work with Senators Corker and Warner on S. 1217 and their input regarding various pieces of the discussion draft.

“The legislation before us today is designed to stabilize the housing finance market and strengthen the American economy. It is modeled after the Federal Deposit Insurance Corporation, which has protected Americans’ bank deposits and helped provide for a vibrant community banking industry for more than 80 years.

“As the economy and housing market continue to recover, the legislation goes to great lengths to ensure a smooth transition from the old system to the new system. It is carefully constructed to ensure small lenders continue to have access to the secondary market. And there are market-based incentives built in to make sure rural and underserved communities are not shut out of the housing market.

“This legislation will create greater competition in the housing finance system, reducing risk to the taxpayer while ensuring affordable, fair access to all creditworthy borrowers.

“But this is not the final product. This is only the first step toward real reform, and we will continue to work together to improve the bill and attract additional support.

“Since taking over as Chairman I don’t think we have worked better as a Committee than we have on addressing housing finance reform. I want to thank Ranking Member Crapo and all of my colleagues on the Committee for fully engaging in this process and working so hard to move this effort forward. Everyone has been thoughtful, cooperative, and constructive. That is why the bill we will vote on today includes ideas and contributions from nearly every member of the committee — including many ideas from Members who are not quite ready to support the bill.

“I do not expect to get as many votes today as I had hoped we would, but what is most important is that we have enough support to keep this process moving forward. I am encouraged by the progress we have made over the last few weeks bridging the divide on many issues, and I remain committed to working with Members of the Committee to get to a place where more of you can support this important legislation on the floor. I believe that is a commitment shared by many of my colleagues here today, and I would be interested to hear from Members about their interests in continuing to work together on this effort.

“Lastly before turning to Ranking Member Crapo, I also want to thank all of the staff who have worked so many long hours to get us to this point today. I know that the majority and minority Banking Committee staffs have worked countless late nights, many lasting into the early morning hours, and I think they have forgotten what it means to get the weekend off. I know every Member here would agree that this could not have been done without our dedicated staffs, so I sincerely thank everyone involved in this effort.

“Ranking Member Crapo thank you again for your partnership during this effort.”

Please click here to view Chairman Johnson’s online statement.

CRAPO STATEMENT AT HOUSING FINANCE REFORM MARKUP

Washington, D.C. – Today, the Senate Banking, Housing and Urban Affairs Committee resumed consideration of S. 127, the Housing Finance Reform and Taxpayer Protection Act of 2013. The legislation being marked up included a bipartisan agreement drafted by Chairman Tim Johnson (D-South Dakota) and Ranking Member Crapo, and is designed to stabilize the housing finance market and strengthen the American economy. The legislation will end the government domination of the U.S. housing market and re-establish the private sector as the engine of housing finance.

Ranking Member Crapo’s Statement as Prepared for Delivery:

“Thank you, Mr. Chairman. I appreciate our working relationship and look forward to moving this legislation not only through the Committee, but to the Floor. This Committee is set to approve housing finance reform legislation with a bipartisan majority. Today is an important day and one of which we should all be proud.

“Thank you again to you, Mr. Chairman; to all of my colleagues on the Committee and their staffs; and to the countless individuals and stakeholder groups who have helped make this process successful.

“For the first time in the nearly six-year conservatorship of Fannie Mae and Freddie Mac, both the House Financial Services Committee and the Senate Banking Committee will have passed legislation to reform this system.

“This is an important milestone.

“The Chairman and I will continue to grow support for this important legislation to repair our broken housing economy. We have the opportunity to fix our flawed system and set up a more sustainable, efficient, permanent housing finance system that will provide future economic opportunities for millions of families and individuals throughout America.

“Again I thank everyone for their continued work on moving this legislation, and look forward to working with all of you as we continue to the finish line. Thank you, Mr. Chairman.”

Please click here to view Ranking Member Crapo’s online statement.

MHA HAMP Reporting Update: Servicer Reporting Overview and Timeline

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

On May 14, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled Updated MHA Servicer Reporting Overview and Timeline.

HAMP REPORTING UPDATE

Updated MHA Servicer Reporting Overview and Timeline

An updated version of the MHA Servicer Reporting Overview and Timeline has been posted to the Job Aids section of HMPadmin.com. The document details when and how to report loan-level data to the HAMP Reporting Tool.

Updated Reason Code and Descriptions

An updated version of the MHA Reason Codes and Descriptions document has been posted to the Loan Reporting ocuments section of HMPadmin.com.

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

Please click here to view the online update.

MHA HAMP Reporting Update April 2014 UP Survey Available

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

On May 15, Making Home Affordable (MHA) released a HAMP Reporting Update, subtitled April 2014 UP Survey Now Available.

HAMP REPORTING UPDATE

April 2014 UP Survey Now Available

The April 2014 UP survey is now available on HMPadmin.com (login required). Servicers that have executed a Servicer Participation Agreement (SPA) and that have cumulative UP activity must complete and upload their UP survey response to the HAMP Reporting Tool (login required) by Thursday, May 22, 2014.

SPA servicers that have any cumulative UP activity as of April 30, 2014 must submit an UP survey at this time.

For details on downloading and submitting the UP survey response, log in to HMPadmin.com, navigate to the HAMP Loan Reporting Tools & Documents area, and select the UP Survey tab.

Questions?
For more information, email the HAMP Solution Center or call 1-866-939-4469.
For questions specifically regarding the survey contents, email the HAMP Servicer Survey team.

Please click here to view the online update.