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HUD Statement on Detroit Blight Removal Task Force Report

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

On May 27, the U.S. Housing and Urban Development (HUD) released a statement regarding the Detroit Blight Removal Task Force report.

Link to report.

STATEMENT FROM HUD SECRETARY SHAUN DONOVAN
ON THE RELEASE OF THE DETROIT BLIGHT REMOVAL TASK FORCE REPORT

WASHINGTON – U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan issued the following statement today after the release of the Detroit Blight Removal Task Force report “Every Neighborhood Has a Future…And It Doesn’t Include Blight.” The report details the progress that has been made by local partners to remove blight and help revitalize neighborhoods in Detroit:

“I want to congratulate the Detroit Blight Removal Task Force on the release of the report, Every Neighborhood Has A Future. . . And It Doesn’t Include Blight. The report clearly demonstrates that the City of Detroit and the Detroit Land Bank Authority are making real progress in their efforts to eliminate blight. In the coming weeks, HUD and other federal government partners are looking forward to reviewing the recommendations of the report and will continue to work with private, philanthropic, nonprofit, and public sector partners to support their revitalization efforts.

I especially want to acknowledge and express my gratitude for the work of all of the Task Force Chairs and Members as well as members of the community who contributed input and ideas to this report. Whether it pertains to blight or other local challenges, the Obama Administration remains committed to partnering with the City of Detroit as it continues on its road to economic recovery from the recent recession. We will continue to work with our partners in Detroit to ensure we create ladders of opportunity for Americans who are working hard to make it to the middle class and turn the people of Detroit’s vision of the future into a reality.”

Please click here to view the online statement.

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 Reminds of Mortgagee Responsibilities for Sub-servicing of FHA 203(k) Mortgages

Posted on September 13, 2018October 29, 2018 by Safeguard

On May 19, the U.S. Department of Housing and Urban Development (HUD) released an update titled Mortgagee Responsibilities for Sub-servicing of FHA 203(k) Mortgages and Escrow Rehabilitation Accounts.

TO: All FHA-Approved Mortgagees

Update

Mortgagee Responsibilities for Sub-servicing of FHA 203(k) Mortgages and Escrow Rehabilitation Accounts

This FHA Single-Family Housing News e-mail reminds FHA-approved mortgagees of
their responsibilities under Mortgagee Letter (ML) 2009-42, Sub-servicing of
FHA-insured Mortgages, with regard to the servicing of 203(k) mortgages.
Specifically, one of the functions that a servicer of an FHA-insured 203(k) mortgage
is responsible for is the servicing of the rehabilitation escrow account. When this
function is delegated to another party, the sub-servicing requirements of
ML 2009-42 apply. Therefore, under ML 2009-42, only a mortgagee approved
to service FHA-insured mortgages may handle this function.

Additional Information

ML 2009-42 restates guidance that an FHA-approved servicer is not precluded from
performing servicing actions on behalf of another FHA-approved servicer, which is
an arrangement often referred to as subservicing. FHA reminds mortgagees that:

Mortgagees must ensure that these arrangements comply with HUD rules,
including the requirement that both servicers and sub-servicers have
FHA approval.
ML 2009-42 references HUD regulations at 24 CFR §203.502, which state
that “[t]he mortgagee shall remain fully responsible to the Secretary for
proper servicing, and the actions of the servicer shall be considered to
be the actions of the mortgagee. The servicer shall also be fully
responsible to the Secretary for its actions as a servicer.”

Additionally, all mortgagees are reminded of the importance of updating FHA
systems with any mortgage record changes as outlined in ML 2011-33,
Mortgage Record Changes and Data Reconciliation. HUD requires that FHA
systems accurately reflect any change with respect to the roles and
subsequent responsibilities as the parties listed as holder of the mortgage
and/or servicer.

Learn More:

Review the October 19, 2009 Mortgagee Letter 2009-42 at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee/2009ml.
Review the September 6, 2011 Mortgagee Letter 2011-33 at:
http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee/2011ml.
Call the FHA Resource Center at 1-800-CALLFHA (1-800-225-5342). Persons
with hearing or speech impairments may reach this number by calling the
Federal Information Relay Service at 1-800-877-8339.
Visit our online resource information at www.hud.gov/answers.

Please click here to view the update in its entirety.

HUD April Housing Scorecard

Posted on September 13, 2018October 29, 2018 by Safeguard

On May 9, the U.S. Department of Housing and Urban Development (HUD) released an update titled Obama Administration Releases April Housing Scorecard.

OBAMA ADMINISTRATION RELEASES APRIL HOUSING SCORECARD

Las Vegas, NV Metropolitan Area Shows Signs of Improvement

WASHINGTON– The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the April edition of the Obama Administration’s Housing Scorecard – a comprehensive report on the nation’s housing market. This month’s Housing Scorecard also features a spotlight on the Las Vegas-Henderson-Paradise, NV Metropolitan Statistical Area (Las Vegas MSA). The latest data show progress among key indicators. While house prices remain stable and equity continues to grow, new and existing home sales have slowed. While this scorecard notes positive overall trends in the housing market, officials caution that the harsh winter slowed growth as the economy recovers from the Great Recession. The full Housing Scorecard and spotlight on the Las Vegas MSA are available online at www.hud.gov/scorecard.

“April’s Housing Scorecard shows that the housing market is stabilizing, as home prices have risen nearly 7 percent from last year, and foreclosure completions are at their lowest level since mid-2007,” said HUD Assistant Secretary for Policy Development and Research Katherine O’Regan. “However, the harsh winter, fewer distressed properties on the market, and continued tight credit standards have combined to slow the pace of home sales this month, indicating we need to remain vigilant to keep the recovery robust.”

“While the housing market continues to make progress, there are still many homeowners struggling to make their mortgage payments,” said Treasury Acting Assistant Secretary Tim Bowler. “Treasury remains committed to helping homeowners through our programs under Making Home Affordable (MHA). As this report shows, nearly 1.3 million homeowners have received a permanent modification through the Home Affordable Modification Program (HAMP) and the program has saved homeowners an estimated $26.8 billion to date in monthly mortgage payments.”

The April Housing Scorecard features key data on the health of the housing market and the impact of the Administration’s foreclosure prevention programs, including:

House prices remain stable. As of February 2014, the Federal Housing Finance Agency (FHFA) purchase-only house price index rose 6.9 percent from last year and ticked up 0.6 percent (seasonally adjusted) from January. The FHFA seasonally adjusted purchase-only index for the U.S. shows that home values are on par with prices in mid-2005. The S&P/Case-Shiller 20-City Home Price Index for February posted returns of 12.9 percent over the past 12 months and was virtually the same (not seasonally adjusted) from January. Prices, however, are typically weaker at this time of the year. The Case-Shiller index shows that home values are back to their mid-2004 levels. (The Case-Shiller and FHFA price indices are released with a 2-month lag.)
Foreclosure completions are at their lowest level since mid-2007. A total of 28,840 U.S. properties were repossessed by lenders (Real Estate Owned, or REO) in March, down 5 percent from February and down 34 percent from a year ago—to the lowest level since July 2007. Newly initiated foreclosures, at 55,710 U.S. properties, were up 7 percent from February but still down 24 percent from one year ago. (Source: Realty Trac).
New Home Sales Have Slowed in Recent Months. Purchases of new homes dropped 14.5 percent to a seasonally adjusted annual rate (SAAR) of 384,000 in March—an eight-month low. New home sales were down 13.3 percent from a year earlier, the first annual decline since the third quarter of 2011. (Source: HUD and Census Bureau).
The Administration’s foreclosure mitigation programs continue to provide relief for millions of homeowners as the recovery from the housing crisis continues. More than 2.0 million homeowner assistance actions have taken place through the Making Home Affordable Program, including nearly 1.4 million permanent modifications through the Home Affordable Modification Program (HAMP), while the Federal Housing Administration (FHA) has offered nearly 2.3 million loss mitigation and early delinquency interventions through March. The Administration’s programs continue to encourage improved standards and processes in the industry, with HOPE Now lenders offering families and individuals more than 4.0 million proprietary modifications through February (data are reported with a 2-month lag). In all, more than 8.3 million mortgage modification and other forms of mortgage assistance arrangements were completed between April 2009 and the end of March 2014.

This month’s Housing Scorecard also features a regional spotlight on market strength in the Las Vegas-Henderson-Paradise, NV Metropolitan Statistical Area (Las Vegas MSA). Like many areas across the country, the economic and housing market conditions in the Las Vegas area are improving, but the housing crisis and recession hit this area particularly hard and their economic recovery started later. The Administration’s broad approach to stabilize the housing market has been provided help to homeowners throughout the Las Vegas MSA.

“As the national housing market continues to improve, the Las Vegas metropolitan area is also showing signs of recovery from the recession,” said O’Regan. “As the regional spotlight shows, the Las Vegas MSA was one of the hardest-hit areas during the housing crisis. House prices plummeted by 60 percent during the housing downturn in the Las Vegas area and there was a sharp increase in the number of distressed mortgages. While it’s clear Administration efforts have helped the area rebound, more work must be done to help homeowners in this area struggling from an excess of housing construction and unsustainable mortgage lending in the years leading up to the housing crisis and recession.”

The Housing Scorecard Regional Spotlight features data on the health of the Las Vegas MSA housing market and impact of efforts to help homeowners at the local level including:

Economic and housing market conditions in the Las Vegas MSA are improving. Although the recovery from the recession started later in Las Vegas, jobs have been increasing at an average annual rate of 18,450, or 2.3 percent, from the first quarter of 2011 through the fourth quarter of 2013. As of January 2014, the rate of distressed mortgages has fallen from a peak of 19.8 percent to 7.6 percent compared to a decline from 8.0 to 4.5 percent nationally. The share of underwater mortgages remains high but has dropped to 32.6 percent as of the fourth quarter of 2013, down from 55.0 percent a year earlier.
Administration Programs Are Providing Much Needed Relief to the Last Vegas MSA. The Administration’s broad approach to stabilizing the Las Vegas housing market has contributed to the improvements as more than 82,100 homeowners received mortgage assistance between April 2009 and March 2014. Furthermore, the Las Vegas MSA has benefitted from $154 million in funding from the Neighborhood Stabilization Program, and the State of Nevada has received $194 million from the Hardest Hit Fund program.

The National Mortgage Servicing Settlement is continuing to provide relief for those in the Las Vegas metropolitan area and throughout the state of Nevada. Under the landmark National Mortgage Servicing Settlement, more than 20,400 Nevada homeowners have benefitted from over $1.9 billion in refinancing, short sales and completed or trial loan modifications, including principal reduction on first and second lien mortgages provided as of June 30, 2013. Nationwide, the settlement has provided more than $50 billion in consumer relief benefits to more than 631,000 families. That is in addition to the $2.5 billion in payments to participating states and $1.5 billion in direct payments to borrowers who were foreclosed upon between 2008 and 2011.

Please click here to view the online update.

HUD Announces Disaster Assistance for AR Storm Victims

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

On April 29, the U.S. Department of Housing and Urban Development (HUD) issued a release titled HUD Secretary Announces Disaster Assistance for Arkansas Storm Victims.

HUD SECRETARY ANNOUNCES DISASTER ASSISTANCE FOR ARKANSAS STORM VICTIMS
Foreclosure protection offered to displaced families

WASHINGTON – U.S. Housing and Urban Development Secretary Shaun Donovan today announced HUD will speed federal disaster assistance to the State of Arkansas and provide support to homeowners and low-income renters forced from their homes due to severe storms, tornadoes and flooding.

Today, President Obama issued a disaster declaration for Faulkner County. The President’s declaration allows HUD to offer foreclosure relief and other assistance to certain families living in this county.

“Families who may have been forced from their homes need to know that help is available to begin the rebuilding process,” said Donovan. “Whether it’s foreclosure relief for FHA-insured families or helping these counties to recover, HUD stands ready to help in any way we can.”

HUD is:

Offering the State of Arkansas the ability to re-allocate existing federal resources toward disaster relief – HUD’s Community Development Block Grant (CDBG) and HOME programs give the State and communities the flexibility to redirect millions of dollars to address critical needs, including housing and services for disaster victims. HUD is currently contacting State and local officials to explore streamlining the Department’s CDBG and HOME programs in order to expedite the repair and replacement of damaged housing;
Granting immediate foreclosure relief – HUD granted a 90-day moratorium on foreclosures and forbearance on foreclosures of Federal Housing Administration (FHA)-insured home mortgages;
Making mortgage insurance available – HUD’s Section 203(h) program provides FHA insurance to disaster victims who have lost their homes and are facing the daunting task of rebuilding or buying another home. Borrowers from participating FHA-approved lenders are eligible for 100 percent financing, including closing costs;
Making insurance available for both mortgages and home rehabilitation – HUD’s Section 203(k) loan program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. It also allows homeowners who have damaged houses to finance the rehabilitation of their existing single-family home; and
Offering Section 108 loan guarantee assistance – HUD will offer state and local governments federally guaranteed loans for housing rehabilitation, economic development and repair of public infrastructure.
Information on housing providers and HUD programs – The Department will share information with FEMA and the State on housing providers that may have available units in the impacted counties. This includes Public Housing Agencies and Multi-Family owners. The Department will also connect FEMA and the State to subject matter experts to provide information on HUD programs and providers.

Read about these and other HUD programs designed to assist disaster victims.

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HUD’s mission is to create strong, sustainable, inclusive communities and quality
affordable homes for all. HUD is working to strengthen the housing market to
bolster the economy and protect consumers; meet the need for quality
affordable rental homes: utilize housing as a platform for improving quality of
life; build inclusive and sustainable communities free from discrimination; and
transform the way HUD does business. More information about HUD and its
programs is available on the Internet at www.hud.gov and
http://espanol.hud.gov. You can also follow HUD on twitter @HUDGov,
on facebook at www.facebook.com/HUD, or sign up for news alerts
on HUD’s Email List.

Please click here to view the online release.

Freddie Mac Extends Relief to Tornado-Impacted Communitites

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

On May 1, DS News published an article titled Freddie Mac Extends Relief to Tornado-Impacted Communities.

Freddie Mac Extends Relief to Tornado-Impacted Communities

In a release issued this week, Freddie Mac announced it has opened up its “full menu” of relief policies for homeowners whose homes were damaged or destroyed by late April storms that swept across parts of the South and the Great Plains.

Freddie Mac’s disaster relief policies extend to jurisdictions declared by President Obama to be Major Disaster Areas and where Individual Assistance Programs are being made available, which as of May 1 included parts of Arkansas and Mississippi.

Mortgage relief options for affected borrowers in impacted areas include foreclosure suspension for up to 12 months, waived assessments of penalties or late fees against borrowers with damaged homes, and not reporting forbearance or delinquencies caused by the disaster to credit bureaus.

Freddie Mac also reminds servicers to consider standard relief policies for borrowers who work in eligible disaster areas but who live in unaffected jurisdictions.

“We strongly encourage borrowers to contact their servicers to discuss mortgage relief,” said Tracy Mooney, SVP of single-family servicing at Freddie Mac.

Please click here to view the online article.

FHLMC Guide Bulletin 2014-9 Updates to Servicing Requirements

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

On May 15, Freddie Mac released an update titled Guide Bulletin 2014-9 Announces Updates to Servicing Requirements.

Guide Bulletin 2014-9 Announces Updates to Servicing Requirements

Today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-9 announces updates to several servicing requirements. Here are the highlights:

Foreclosures

Expedite Freddie Mac Default Legal Matters with the New York Foreclosure Inquest Program as an alternative foreclosure process. Read Guide Section A66.10 for more information.
You’re no longer required to refer mortgages secured by a Primary Residence to foreclosure within 5 business days after the 121st day of delinquency.
Use our revised foreclosure sale bidding guidelines for states with the right of redemption.

Freddie Mac Reimbursement System

Permitted vendors can access the Reimbursement System to submit claims on your behalf using the expense and income codes in Guide Exhibit 74.
We added 6 new income codes to improve reporting accuracy.

Read Guide Bulletin 2014-9 [PDF] for additional information on these updates and more – including changes to Guide Form 105, Guide Exhibit 88, and requirements for submitting your subsequent Transfer of Servicing requests.

Reminders

Online Self-Service Password Reset – Be sure to create your online user profile today. Click here for more information.
Freddie Mac Interest Rate – Effective July 8, 2014, Freddie Mac will evaluate market rates and update the Standard Modification interest rate, if necessary, on a monthly basis.

Reference Guides Updates

We updated our Electronic Default Reporting Quick Reference Guide [PDF] to reflect changes we announced in Guide Bulletin 2014-1 [PDF]. The new codes became mandatory on May 1, 2014.
To help you understand foreclosure timeline compensatory fees, we updated our Foreclosure Time Line Compensatory Fees Reference Guide [PDF]. Log in using your assigned Servicing Applications secure user ID and password.

More Information

Sign up for the latest emails on Single-Family news, updates, alerts, and education opportunities on our Subscription Center.
Visit Freddie Mac’s Learning Center for additional information on our training programs and references tools.
Contact your Freddie Mac representative.

Please click here to view the online bulletin.

FHLMC Guide Bulletin 2014-8: Enhancements to Representation and Warranty Framework

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

On May 12, Freddie Mac issued an update titled Enhancements to the Representation and Warranty Framework Announced in Guide Bulletin 2014-8.

Enhancements to the Representation and Warranty Framework Announced in Guide Bulletin 2014-8

Today, we are announcing enhancements to the selling representation and warranty framework with Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-8 [PDF]. These enhancements were developed with Fannie Mae, and at the direction of the Federal Housing Finance Agency.

What’s Changing

The framework enhancements include:

Relaxing the definition of acceptable payment history for determining when a mortgage is eligible for relief from certain selling representations and warranties.
Granting relief from certain selling representations and warranties after a satisfactory conclusion of a quality control (QC) review of the mortgage.
Providing Sellers with written notification of mortgages that have met the eligibility requirements for relief.

Framework Versions 1 and 2

The current framework is referred to as “Version 1” and its requirements will continue to apply to mortgages with Freddie Mac settlement dates on and after January 1, 2013, and before July 1, 2014.
The framework, as modified by the enhancements, is referred to as “Version 2” and will be effective for mortgages with Freddie Mac settlement dates on and after July 1, 2014.

New Repurchase Alternative

In today’s Bulletin, we are also announcing that if the primary mortgage insurance (MI) on a mortgage is rescinded:

A repurchase will not automatically be required.
The mortgage file will be called in for a QC review. Freddie Mac may offer an alternative to repurchase, if the mortgage is determined to be eligible for a repurchase alternative.
A Seller/Servicer may be allowed to “stand-in” and pay the full MI claim payable under the original policy if the mortgage and the Seller/Servicer meet certain eligibility requirements.
The MI stand-in option is effective for mortgages with Freddie Mac settlement dates on or after July 1, 2014.

For More Information

Read Guide Bulletin 2014-8 [PDF] to learn more about the enhancements being made to selling representation and warranty framework.
Review Guide Section 6.14 for the complete eligibility requirements and the exceptions under the framework.
Visit our Freddie Mac Representation and Warranty Framework Web page.
Register for our new webinar, Selling Representation and Warranty Framework, Version 2.
Visit the Learning Center for updated reference tools in support of the framework.

Please click here to view the update in its entirety.

FHFA Prepared Remarks on Future of Fannie Mae and Freddie Mac

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

On May 13, the Federal Housing Finance Agency (FHFA) released an update titled Prepared Remarks of Melvin L. Watt, Director, FHFA at the Brookings Institution Forum on the Future of Fannie Mae and Freddie Mac.

Prepared Remarks of Melvin L. Watt, Director, FHFA at the Brookings Institution Forum on the Future of Fannie Mae and Freddie Mac

Managing the Present: The 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac

Thank you to the Brookings Institution for hosting this event and thank you for that introduction.

Let me begin my remarks today by talking about the Federal Housing Finance Agency’s (FHFA) work over the last four months. Since January, the agency has continued to carry out its day-to-day responsibilities as the regulator of the Federal Home Loan Banks and as the conservator and regulator of Fannie Mae and Freddie Mac (the Enterprises). Many of these decisions and responsibilities are often considered routine and may go unnoticed. But they are absolutely critical to the effective and efficient operation of the housing finance market. I can’t touch on all of these responsibilities in my remarks today, but I do want to give you a summary of what FHFA has been working on since I arrived and I hope this provides you with insight into the direction we’ll be headed in the future, particularly with reference to Fannie Mae and Freddie Mac.

In addition to overseeing our day-to-day operations, my work has also involved an overall assessment of FHFA as well as Fannie Mae and Freddie Mac. During this time, I’ve witnessed the dedication and expertise of FHFA staff at all levels, as well as the tenacity and dedication of the employees of Fannie Mae and Freddie Mac who continue to stay the course during these most difficult and uncertain times. And I would be remiss not to acknowledge and thank these staffs for their hard work. There’s been a constant urgency since the financial crisis. It has been a marathon, but I’m sure it has felt like a sprint. And everyone has continued to excel at every step along the way.

I also want to publicly thank Ed DeMarco for his lifelong career in public service, including his time as Acting Director of FHFA. In the face of the greatest economic collapse since the Great Depression, FHFA helped prevent an extremely bad situation from getting much worse. It’s hard to imagine things being worse given the depth of the housing market collapse, but I very much believe that FHFA and Ed DeMarco’s leadership prevented an even deeper financial collapse by stabilizing Fannie Mae and Freddie Mac.

Throughout his time at FHFA, Ed was instrumental in establishing the foundation for all that we will do going forward. So, while you may notice from my comments today certain changes in focus, you should know that I firmly believe we will be building on a very solid foundation.

As part of an overall assessment of the agency, we have been very focused on the numerous policy decisions that were and are in the pipeline. In making decisions about the future strategic direction of the Enterprise conservatorships, the principle we are following is how best to fulfill our obligations under current law. This means, first and foremost, that we must ensure that Fannie Mae and Freddie Mac operate in a safe and sound manner. It means that we’ll work to preserve and conserve Fannie Mae and Freddie Mac’s assets. And it means that we’ll work to ensure a liquid and efficient national housing finance market. Our job at FHFA is to balance these obligations, and that’s a message I’ll come back to throughout my remarks.

Another way of stating the principle that will be guiding us is that FHFA is focused on how we manage the present – the present conservatorships of the Enterprises and the present housing finance market under the present statutory mandates.

As a result, one topic that is not on FHFA’s agenda, because it’s not part of our statutory mandate, is housing finance reform legislation. My guess is that there were many people who expected that I would start talking about reform legislation the minute I got to FHFA. I am well aware, and regularly express my belief, that conservatorship should never be viewed as permanent or as a desirable end state and that housing finance reform is necessary. However, Congress and the Administration have the important job of deciding on housing finance reform legislation, not FHFA. Instead, our task is to continue to fulfill our statutory mandates, to execute our Strategic Plan and to manage the present status of Fannie Mae and Freddie Mac.

Today, we are releasing a new Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac along with their 2014 Conservatorship Scorecard. Both documents are built around three strategic goals: MAINTAIN, REDUCE and BUILD. I’d like to walk through each of these goals and discuss how they build upon and, in some cases, reformulate FHFA’s past conservatorship goals.

Please click here to view the speech in its entirety.

Fannie Mae SVC-2014-09 Updates to Short Sale and Mortgage Release Requirements

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

On May 30, Fannie Mae issued Servicing Guide Announcement SVC-2014-09, subtitled Updates to Short Sale and Mortgage Release^TM (Standard Deed-in-Lieu of Foreclosure) Requirements.

Servicing Guide Announcement SVC-2014-09

Updates to Short Sale and Mortgage Release^TM (Standard Deed-in-Lieu of Foreclosure) Requirements

This Announcement describes the following Fannie Mae short sale and Mortgage Release policy updates and clarifications:

streamlined documentation for short sale and Mortgage Release eligibility;
expanded eligibility requirements for servicemembers with permanent change of station (PCS) orders;
documenting borrower’s intent to pursue a short sale or Mortgage Release;
non-retirement liquid assets and borrower contribution requirements;
review of credit report for new mortgage loans;
counteroffer response timeframe;
addition to Short Sale Affidavit (Form 191);
submission of short sales involving relocation programs;
subordinate lien payment limitations;
additional limitation for short sales;
remittance of short sale proceeds;
property inspection prior to Mortgage Releases; and
relocation incentives.

In addition, Fannie Mae is updating its distant employment transfer/relocation hardship requirements, which apply to all foreclosure prevention alternatives.

Effective Date

Servicers are encouraged to implement the requirements in this Announcement immediately; however, servicers are required to implement these changes by August 1, 2014, unless otherwise noted in this Announcement.

Please click here to view the announcement in its entirety.

Fannie Mae SVC-2014-08 Miscellaneous Servicing Policy Updates

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

On May 21, Fannie Mae released Servicing Guide Announcement SVC-2014-08, subtitled Miscellaneous Servicing Policy Updates.

Servicing Guide Announcement SVC-2014-08

Miscellaneous Servicing Policy Updates

This Announcement describes and updates Fannie Mae policies regarding

calculating the repurchase price,
release of security,
servicer oversight and business continuity requirements, and
stay of foreclosure and other legal proceedings for servicemembers.

Effective Date

Unless otherwise stated, the servicer is encouraged to implement the new policies in
this Announcement immediately; however, servicers are required to implement
these policies no later than September 1, 2014.

Calculating the Repurchase Price

Servicing Guide, Part VI, Section 202: Repurchase Proceeds
Fannie Mae is clarifying its policy for calculating the repurchase price when a
mortgage loan (other than a reverse mortgage) was originally purchased at
a premium or discounted purchase price and has undergone negative
amortization. Fannie Mae will limit both the purchase discount and the
purchase premium to the amount of the original purchase discount or
premium, if applicable.

In addition, Fannie Mae is clarifying that the purchase price used to calculate the
repurchase amount is expressed as a percentage of par. If a discount was paid
at the time that Fannie Mae purchased the mortgage loan, this percentage will
be less than 100%. Conversely, the percentage will be greater than 100% if a
premium was paid at the time that Fannie Mae purchased the mortgage loan.

Release of Security

Servicing Guide, Part III, Chapter 7: Releases of Security; Section 701:
Release or Grant of a Easement; Section 702: Release of Oil, Gas,
or Mineral Rights; Section 704: Partial Release of Real Property;
Section, 705: Partition of Real Property; Section 706: Substitution
of Security; and Section 707: Condemnation or Taking by
Eminent Domain

Fannie Mae is updating the documents required to evaluate a request to release all
or a portion of the property securing a mortgage loan and revising the
Application for Release of Security (Form 236). When Fannie Mae’s approval of a
release of security is required, the servicer must submit Form 236 and all required
documents as specified on the Form 236 to Fannie Mae via email
to partial_releases@fanniemae.com. Fannie Mae will review the request and follow
up with the servicer accordingly. The servicer is no longer required to contact
their Servicing Consultant, Portfolio Manager, or Fannie Mae’s National Servicing
Organization’s Servicing Solutions Center for these approvals.

Servicer Oversight and Business Continuity Requirements

Servicing Guide, Part I, Section 202: Servicer’s Basic Duties and
Responsibilities; Section, 301.01: Servicer’s Audit and Control
Systems; and Section 307: Compliance with Applicable Laws

Fannie Mae currently requires each Fannie Mae–approved servicer (and any
subservicer or third-party originator it uses) to be aware of, and in full
compliance with, all federal, state, and local laws (including statutes,
regulations, ordinances, administrative rules and orders that have the effect
of law, and judicial rulings and opinions) that apply to any of its origination,
selling, or servicing practices or other business practices (including the use
of technology) that may have a material effect on Fannie Mae. Fannie Mae
is clarifying the servicer’s oversight responsibilities to include all outsourcing
and third-party vendors used by the servicer. The servicer must also have
policies and procedures in place to ensure that all outsourcing firms and
third-party vendors used by the servicer are fully compliant with the
requirements of the Servicing Guide (where applicable), and must perform
annual quality control tests accordingly. Test results must be provided to
Fannie Mae upon request.

Servicing Guide, Part I, Chapter 3: Maintaining Eligibility
Fannie Mae is updating the servicer’s oversight responsibilities to require all
subservicers, third-party originators, outsourcing firms and/or third party
vendors used by the servicer to implement and maintain business continuity
plans that ensure their ability to regain critical business operations in the
event of a disruption or disaster.

Additionally, the servicer must implement and maintain business continuity plan(s)
that ensure the servicer’s ability to regain critical business operations in the
event the subservicers, third-party originators, outsourcing firms, and/or third
party vendors used by the servicer fail to maintain business continuity, suffer
complete business failure, or dissolution.

All plans must be comprehensive, in a written format, accessible to critical staff,
annually tested and updated. Test results must be provided to Fannie Mae
upon request.

Stay of Foreclosure and other Legal Proceedings for Servicemembers

Servicing Guide, Part III, Chapter 1, Exhibit 1: Military Indulgence; Servicing
Guide Announcement SVC-2013-10, Miscellaneous Servicing Policy Updates;
and Part IV, Section 205: Effect of Servicemembers Civil Relief Act
Fannie Mae is updating its requirements for foreclosure proceedings for active duty
servicemembers.

The Honoring America’s Veterans and Caring for Camp Lejeune Families Act of
2012 provides for a 12-month extended stay of foreclosure and other legal
proceedings from the date on which military service ends. This extended stay
expires December 31, 2014, and effective January 1, 2015, the 12-month stay
reverts back to 90 days under the Servicemembers Civil Relief Act.

However, for Fannie Mae mortgage loans, the 12-month extended stay of
foreclosure and other legal proceedings period will remain in effect beyond
the originally communicated expiration date of December 31, 2014.
Additionally, the servicer must also stay any foreclosure proceedings that
were already in process or postpone the initiation of foreclosure
proceedings against a servicemember eligible for military indulgence. The
servicer is no longer permitted to obtain the eligible servicemember’s
written consent and/or petition the court to continue or commence
foreclosure proceedings.

*****

Servicers should contact their Servicing Consultant, Portfolio Manager, or Fannie
Mae’s National Servicing Organization’s Servicing Solutions 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.