Safeguard Properties

Fannie Mae SVC-2014-13 Alternative to Repurchase for Mortgage Insurance Rescission

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On July 1, Fannie Mae released Announcement SVC-2014-13: Alternative to Repurchase for Mortgage Insurance Rescission, as well as a technology update.

Announcement SVC-2014-13: Alternative to Repurchase for Mortgage Insurance Rescission 
In Announcement SEL-2014-05: Lender Selling Representations and Warranties Framework Updates, Fannie Mae introduced an alternative to repurchase for certain mortgage loans for which the mortgage insurance has been rescinded, known as an “MI stand-in”. This Announcement describes the process the servicer (or the responsible party) must follow to be considered for an MI stand-in.

TECHNOLOGY 

Changes to Servicing Reports in Message Manager 
Fannie Mae plans to add the following servicing reports, currently emailed to applicable servicers by Fannie Mae Exceptions Transactions Management or Investor Reporting analysts, to the servicing report distribution in Message Manager effective July 30 and 31, 2014: 

  • The Loan Readd Detail Report (LRDR)
  • The Servicemembers Civil Relief Act (SCRA) Cash Report

 
For more information, refer to the Message Manager Servicing Report Notification.

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.

VA Servicer Newsflash Updates, Incentives, and Guidance

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On June 5, the U.S. Department of Veterans Affairs (VA) released a VALERI Servicer Newsflash regarding updates to incentives and guidance.

VALERI Servicer Newsflash

IMPORTANT INFORMATION

Incentive Clarification -Per VA regulation 38 CFR 36.4319, CQ10413 has been opened to clarify the business rule for incentives regarding the status of delinquency for a loan and is scheduled for the VALERI 3.0 release. Until this CQ is in place, VACO is providing the following guidance for clarification of when a servicer is eligible for an incentive on a special forbearance, repayment plan or loan modification with regard to the delinquency status of the loan:

A loan must have been at least 61 days delinquent any time during the current default to be eligible for an incentive.

VA Circular 26-09-13, Change 3 -This Circular was issued on May 7, 2014, and clarifies VA’s position on paying for lockboxes and padlocks. This line item will be included and considered for payment up to the maximum allowable for securing of the property.

Hardest Hit Fund (HHF) Guidance – Servicers should seek resolution to a delinquency using traditional VA loss mitigation options followed by and including a VA Home Affordable Modification Program (HAMP) Style modification. If none of those options would successfully resolve the existing delinquency and HHF funds are available to assist the borrower in combination with any of our available loss mitigation options, then the mortgage servicer is approved to use the funds to best resolve the delinquency. The VA loss mitigation waterfall would then be followed to find the most appropriate option in combination with the HHF funds to bring the loan current.

Title Escalations -Any title escalations should go to Vendor Resource Management (VRM). If you need VA assistance, please copy the Contract Assurance (Property Management Oversight) mailbox at nashpm.vbaco@va.gov.

Title Package Extensions -Title extension requests made by servicers will only be considered by VRM if the request is received prior to the expiration of the 60-day (or whatever applies to that particular state) title submission period.

DEVELOPMENT UPDATES

On Saturday June 7, 2014, VALERI Manifest 2.28 will be deployed. The following system enhancements will be included:

CQ 10420 – The appeal line item display issue has been resolved. When the servicer reports an appealed claim with multiple items, the process is now matching the line item to the amount.

CQ 10168 – Tool tips have been added to all Appeals Links in the Servicer Web Portal (SWP). The tool tip provides a brief description for each link.

CQ 10225 – There is now a Log Out link located on all applications within the VALERI application. Users will be able to logout of VALERI from any application (Administration and SWP). Using the Exit link will bring you to the main menu but the Log Out link will log you out and take you to the sign-on page.

CQ 10306 – To correct foreclosure timeframes in New York. This change will allow 240 days for loans in the Western counties (VA loans starting with 0707) and 270 days for all other counties (VA loans starting with 0606).

Please click here to view the online newsflash.

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.

Senate Banking Committee Approves Castro as Next HUD Head

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On June 26, National Mortgage Professional published an article titled Senate Banking Committee Approves Castro as Next HUD Head.

Senate Banking Committee Approves Castro as Next HUD Head

The U.S. Senate Banking Committee has approved the nomination of San Antonio Mayor Julian Castro as next head of the U.S. Department of Housing & Urban Development (HUD) by a 16-6 vote on Wednesday.

“As Mayor of San Antonio, Mayor Castro has been on the frontlines of helping his community reach its housing and economic development goals,” said Senate Banking Committee Chairman Tim Johnson (D-SD). “In his tenure as Mayor, he has focused on attracting well-paying jobs in 21st Century industries, raising educational attainment, and revitalizing the city’s urban core. HUD is a critical partner in these efforts nationwide. Mayor Castro will bring both direct experience with and an appreciation of the important role that HUD programs play for families, communities, and taxpayers to the role of HUD Secretary.”

Castro will replace Shaun Donovan, who has been nominated by President Barack Obama as the next Director of the Office of Management and Budget (OMB). Also on Wednesday, the Senate Homeland Security and Governmental Reform Committee approved Donovan’s nomination, which now heads to the full Senate for a vote.

“Shaun has earned a reputation as a great manager, a fiscally responsible leader, and somebody who knows how the decisions we make here in Washington affect people’s lives all across the country,” said President Obama. “And that’s why I’m absolutely confident he will do a great job leading the Office of Management and Budget, and help even more hardworking Americans get ahead.”

Mayor Castro is a graduate of Stanford University and Harvard Law School, becoming the youngest mayor of a major U.S. city when elected to lead the city of San Antonio at the age of 39 in May 2009. At his recent nomination hearing, Castro said he would ensure that taxpayers would not foot the bill again should another housing crisis arise.

“MBA commends the Senate Banking Committee for approving Julian Castro to be the next Secretary of HUD,” said David H. Stevens, president and CEO of the Mortgage Bankers Association (MBA). “We now hope the full Senate will quickly confirm not only Julian Castro as HUD Secretary, but also Shaun Donovan as the new Director of OMB. Once both are confirmed, it will only strengthen the Administration’s depth in housing issues, as both men are suitably positioned to tackle the important challenges facing our industry.”

Please click here to view the online article.

Link to MBA Statement on Senate Banking Committee Backing Julian Castro as HUD Secretary

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.

MHA HAMP Q2 2014 Base NPV Documentation Available

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On June 13, Making Home Affordable (MHA) released a HAMP update titled Q2 2014 Base NPV Documentation Supplement Available.

Q2 2014 Base NPV Documentation Supplement Available

The Q2 2014 Base NPV Model Documentation Supplement is now available for the Home Affordable Modification Program® (HAMP) for use beginning July 1, 2014. The supplement provides the following:

  • REO Sale Value Parameters
  • Historical and Projected Home Price Index
  • Foreclosure and REO Disposition Timelines and Costs
  • Home Price Decline Protection Incentive Matrix
  • Default Model Parameters
  • Pre-payment Model Parameters
  • HAMP Tier 2 Assumptions and Parameters

Servicers can access the Q2 2014 Base NPV Model Documentation Supplement in the Base NPV Model Tools & Documents section of HMPadmin.com (login required).

Important Actions for Certain Servicers: HAMP-registered servicers using an NPV model that has been implemented or customized for their own systems must implement the new Q2 2014 data tables for use beginning July 1, 2014.

To fulfill model versioning requirements, servicers should continue to use the Q1 2014 data tables for April 1 through June 30, 2014, and other appropriate supplement data tables for earlier quarters.

Base NPV v5.0 Documentation Update
Base NPV Model v5.0 Documentation has been revised to include changes to Tier 2 program parameters. It can be found in the Base NPV Model Tools & Documents section of HMPadmin.com (login required).

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.

HUD May Housing Scorecard

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On June 13, the U.S. Department of Housing and Urban Development (HUD) released an update titled Obama Administration Releases May Housing Scorecard.

OBAMA ADMINISTRATION RELEASES MAY HOUSING SCORECARD

WASHINGTON– The U.S. Department of Housing and Urban Development (HUD) and the U.S. Department of the Treasury today released the May edition of the Obama Administration’s Housing Scorecard – a comprehensive report on the nation’s housing market. The latest data show progress among key indicators, including growing equity and a rebound in the sale of new and existing homes. 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 is available online at www.hud.gov/scorecard.

“May’s Housing Scorecard shows that the housing market recovery is picking up after the harsh winter months,” said HUD Assistant Secretary for Policy Development and Research Katherine O’Regan. “More homeowners have positive equity, foreclosures continue their downward trend, and sales of new and existing homes are rebounding. While these are all good signs, it’s clear that we must remain committed to helping homeowners as they recover from the worst housing recession since the Great Depression.”

“The standards set by the Making Home Affordable program have significantly changed the mortgage servicing industry,” said Treasury Acting Assistant Secretary Tim Bowler. “Treasury is committed to holding servicers accountable to these standards, and as a result has seen continued improvement by the largest servicers.”

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

  • Homeowners’ equity shows another strong gain. According to the Federal Reserve, homeowners’ equity was up nearly $795 billion in the first quarter of 2014, reaching more than $10.8 trillion, the highest level since the second quarter of 2007.  Homeowners’ equity has risen sharply since the beginning of 2012, with equity up 73 percent, or nearly $4.6 trillion through the first quarter of 2014.  The change in equity since April 1, 2009 now stands at more than $4.7 trillion.
  • In the first quarter of 2014, more than 300,000 borrowers returned to a position of positive equity in their homes. According to CoreLogic, the number of underwater borrowers (those who owe more on their mortgage than the value of their home) has fallen 48 percent–from 12.108 million to 6.284 million–lifting more than 5.8 million homeowners above water from the beginning of 2012 through the 1st quarter of 2014. Approximately 12.7 percent of residential properties with a mortgage are still underwater, however.
  • Foreclosure starts continue their downward trend. Lenders started the public foreclosure process on 49,240 U.S. properties in May, down 10 percent from the previous month and down 32 percent from one year ago to the lowest level since December 2005—a 101-month low (although foreclosure starts were up from a year ago in 12 states). (Source: Realty Trac)
  • Purchases of new homes rebounded in April after declining for four out of the previous five months. New home sales were up 6.4 percent to 433,000 (SAAR) in April, following a 407,000 pace in March, but were down 4.2 percent from one year ago. (Source:  HUD and Census Bureau).
  • Sales of previously owned (existing) homes rose in April for the first time this year. The National Association of Realtors® (NAR) reported that existing homes—including single-family homes, townhomes, condominiums, and cooperatives—sold at a seasonally adjusted annual rate (SAAR) of 4.65 million in April, up 1.3 percent from March but still 6.8 percent below the 4.99 million pace a year-earlier. The weakness in sales reflects low inventory, strict bank lending standards, fewer distressed properties on the market, and less favorable housing affordability.
  • The Administration’s foreclosure mitigation programs continue to provide relief for millions of homeowners as the recovery from the housing crisis continues. 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 April 2014. 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 2.3 million loss mitigation and early delinquency interventions through April. 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 March (data are reported with a 2-month lag).

Please click here to view the online scorecard.

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 Single Family Seller/Servicer Guide Quick Tips

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On June 26, Freddie Mac released an update titled Quick Tips Video Highlights Single-Family Seller/Servicer Guide Features.

Quick Tips Video Highlights Single-Family Seller/Servicer Guide Features

Check out our new “Quick Tips for Single-Family Seller/Servicer Guide Features” video to see how you can quickly and easily identify and track changes in our Single-Family Seller/Servicer Guide (Guide).

The video walks you through our Guide features on AllRegs®, including:

  • Highlighted titles in the table of contents to indicate where changes were made in the past 60 days. 
  • Green text to show recent additions in the Guide language.
  • Quick access to recently published Guide Bulletins impacting a section, exhibit or form in the Guide. 
  • The “Inline Revision History” feature which helps you review future or past requirements.

The video also highlights our Historical Guide Snapshots on FreddieMac.com, which is a convenient way to review archived Guide requirements.

You must be signed up to receive our Guide Bulletins

As a reminder, Guide Bulletins are the main source of announcing changes to the Guide. Make sure you are signed up to receive the AllRegs e-alert and our Single-Family Update emails so you know when a Bulletin has been issued and our Guide has been updated. The complete Guide is posted on AllRegs and is accessible through FreddieMac.com.   

We’re listening to your feedback and want to provide you with the tools to more easily access our Guide requirements. The “Quick Tip” video is one more way we’re making it easier for you to do business with us.

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.

Freddie Mac Representation and Warranty Framework Version 2

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On June 26, Freddie Mac released an update titled Version 2 of the Representation and Warranty Framework Effective July 1.

Version 2 of the Representation and Warranty Framework Effective July 1

Beginning next month, mortgages you deliver to Freddie Mac will be covered by the enhanced version of the selling representation and warranty framework (referred to as Version 2 of the framework) that was announced in Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-8 [PDF]. This means you’ll have even greater certainty regarding your repurchase risk exposure for mortgages with Freddie Mac settlement dates on or after July 1, 2014.

As a reminder, the eligibility requirements originally introduced in September 2012 (referred to as Version 1 of the framework) will continue to apply to mortgages with Freddie Mac settlement dates on and after January 1, 2013, and before July 1, 2014.

For More Information
Review the following for details on the eligibility requirements of Version 1 and Version 2 of the framework.

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.

FHLMC Guide Bulletin 2014-13 Mortgage Insurance Master Policies

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On June 24, Freddie Mac issued Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-13 regarding implementation of new mortgage insurance master policies.

Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-13
Private Mortgage Insurance Master Policy Updates

If you plan to sell mortgages that require private mortgage insurance, you need to make sure the mortgages are covered under the appropriate master policies as described in today’s Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-13.

Bulletin 2014-13 provides the implementation details of the new mortgage insurance master policies announced by the Federal Housing Finance Agency (FHFA) on December 2, 2013. Today’s Bulletin includes information on:

  • Effective Date. If a mortgage has an Application Received Date on or after October 1, 2014, and requires mortgage insurance, it must be insured under one of the new master policies to be eligible for sale to Freddie Mac.
  • Relief Refinance Mortgages. Our Freddie Mac Relief Refinance MortgagesSM allow the carryover of the mortgage insurance from the mortgage being refinanced. Relief Refinance Mortgages can maintain the same insurance coverage under their original master policies regardless of the new Relief Refinance Mortgage’s Application Received Date.

Get More Information
Please review the following for more information. 

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 2014-12 Updates to ARMs MERS Fraud Prevention

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On June 19, Freddie Mac released Single-Family Seller/Servicer Guide (Guide) Guide Bulletin 2014-12 regarding updates to ARMs, MERS and fraud prevention.

Updates to ARMs, MERS, Fraud Prevention, and more in Guide Bulletin 2014-12

Today we issued Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-12 announcing selling and servicing updates that may impact the way you do business with Freddie Mac. Key changes are summarized in this email. To help you prepare for all changing requirements, please read the Bulletin for the detailed information.

Originate & Underwrite, Sell & Deliver and Servicing

  • ARMs with lookback periods less than 45 days. In response to the Consumer Financial Protection Bureau’s final rules on providing borrowers with payment adjustment notices, we will no longer purchase ARMs with lookback periods less than 45 days. 
  • MERS®-registered mortgages. The term “MERS Governing Documents” has been added to the Guide Glossary. If there are conflicts between the MERS Governing Documents and Guide, the requirements in the Guide will prevail. The Bulletin provides additional guidance and clarifies certain requirements for MERS-registered mortgages.
  • Fraud prevention. The Bulletin updates and clarifies our requirements for fraud training and reporting.

Originate & Underwrite

  • Freddie Mac Relief Refinance MortgagesSM. To provide you with more flexibility, we’ve updated certain requirements for Relief Refinance Mortgages. 
  • Determining debt payment-to-income (DTI) ratios. We’ve updated our requirements regarding student loans, open-end accounts, and paying off or paying down borrowers’ existing debts.
  • Verifying large deposits. When evaluating deposits on a borrower’s account statements, you must document the source of a deposit that exceeds 50 percent of the total monthly qualifying income for the mortgage. This threshold is increased from 25 percent and applies only to certain transactions. Other requirements and guidance for evaluation of deposits have also been included. 

Loan Prospector® will be updated with feedback messages that align with the changes for Relief Refinance Mortgages and DTI ratios. Review the revised feedback messages.

Important Reminder

In our August 20, 2013, Guide Bulletin 2013-16 [PDF], we announced that we would no longer purchase the following mortgages with Application Received Dates on or after January 10, 2014:

  • Home Possible® Mortgages with an original maturity in excess of 30 years.
  • Pre-payment penalty mortgages.

You have until July 31, 2014, as announced in Bulletin 2013-16, to deliver these mortgages if they have Application Received Dates before January 10, 2014.

For More Information

  • Review Guide Bulletin 2014-12 [PDF].
  • Review the applicable Guide chapters for complete information on the revised requirements.
  • Contact your Freddie Mac representative.

Please click here to view the online bulletin.

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 2014-11 MyCity Modification

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On June 18, Freddie Mac issued Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-11, which introduces the MyCity Modification.

Guide Bulletin 2014-11: MyCity Modification

In Single-Family Seller/Servicer Guide (Guide) Bulletin 2014-11 [PDF], we’re introducing the Freddie Mac MyCity Modification, a temporary offering within the city of Detroit, Michigan, to assist struggling homeowners by providing a loan modification option that may offer significant payment relief. Our goal is to help provide eligible borrowers with more affordable terms so they can stay in their homes.

Only Servicers with loans in the eligible Detroit ZIP codes, or those who may acquire servicing of applicable loans in those ZIP codes in the near future, will be impacted by the requirements described in Guide Bulletin 2014-11 related to the MyCity Modification. These specific ZIP codes are listed in today’s Guide Bulletin.  Servicers must follow the MyCity Modification guidelines and submit their recommendations for borrowers on and after September 1, 2014.

Reminders

  • Freddie Mac Standard and Streamlined Modifications – Updated requirements [PDF] take effect on July 1 for mortgages with pre-modification mark-to-market loan-to-value ratios less than 80 percent.
  • Online Self-Service Password Reset – Create your online user profile before July 21 for Single-Family business applications. Click here for more information.
  • Freddie Mac Interest Rate – Effective July 8, Freddie Mac will evaluate market rates and update the Standard Modification interest rate, if necessary, on a monthly basis.

For 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 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.