Safeguard Properties

Freddie Mac Offers Morgage Relief for Military Service Members

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On November 8, Freddie Mac released a notice titled Freddie Mac Offers Mortgage Relief for Military Service Members.

Freddie Mac Offers Mortgage Relief for Military Service Members

When service members complete their military assignments, the transition back to civilian life can be difficult. In some cases they are unable to purchase new homes, or continue with the mortgage payments on their current homes.

Freddie Mac recognizes the commitment and sacrifices our service members and their families make every day, and we continue to demonstrate our support by actively seeking ways to provide mortgage relief to members of the U.S. military and their families.

How Servicers Can Help

Helping military families during and after their service to our country is a priority we all share. The Servicemembers Civil Relief Act (SCRA) and state military relief laws provide service members with various forms of relief from debt, including mortgage obligations during a period of military service. That’s why we require Servicers to comply with the SCRA to support military homeowners.

In situations where a service member experiences hardship but does not qualify for protection under the SCRA, Servicers should review Single-Family Seller/Servicer Guide (Guide) Chapters 64 and 82 for the full menu of relief or workout options, including:

  • Extending the SCRA foreclosure protection to all service members during their period of military service and for one year after their military service ends, regardless of when their mortgage obligation originated
  • Allowing foreclosure forbearance when the mortgaged premises is the Primary Residence of a service member or a dependent, even if the borrower is not a service member

If a borrower requires additional relief, please contact your Freddie Mac representative.

Borrower Spotlight – How a Captain Kept His Family’s Home While Serving His Country

Last year, Captain Jonathan Williams* received Permanent Change of Station (PCS) orders that required him to be overseas for 12 months. With 10+ years in the U.S. Marine Corps, Captain Williams, along with his wife and three young children, understood relocation was a possibility, even if it was temporary. While overseas, he still wanted to maintain stability for his family by making sure they returned back to their home in the U.S. at the end of the 12 months.

He continued making mortgage payments through his savings funds while overseas. Unfortunately, the savings fund ran out and Captain Williams knew he had to find assistance elsewhere to keep his home while serving his country abroad.

Captain Williams started with his Servicer. He requested an assessment but was disappointed when they responded saying he was ineligible for assistance since the home was not currently owner occupied. As a last resort, Captain Williams contacted the Freddie Mac Homeowner Assistance and Response Team (HART) to find out how we could help him keep his home.

How Freddie Mac Helped

After a detailed consultation with Captain Williams that showed he was in financial good standing, a HART agent determined that a Freddie Mac Standard Modification Trial Period Plan could help Captain Williams keep his home. Captain Williams is now beyond thrilled. He returns to the U.S. with his family in three months and is so relieved he does not have to worry about finding another home. Freddie Mac was able to give Captain Williams peace of mind and financial stability.

As Captain Williams’ story illustrates, together we can work toward solutions that help service members and their dependents stay in their homes.

*The service member’s name has been changed to protect his privacy.
 
More Information

To view the online notice, 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 Obtains Insurance to Cover Certain Credit Losses

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On November 12, Freddie Mac released an update titled Freddie Mac Obtains Insurance Coverage to Cover Certain Credit Losses.

Freddie Mac Obtains Insurance Coverage to Cover Certain Credit Losses

Today Freddie Mac issued a press release announcing that we have obtained an insurance policy to cover credit losses for a portion of the credit risk associated with Single-Family loans funded in the third quarter of 2012.

The new insurance coverage is part of Freddie Mac’s plan to expand risk-sharing with private firms and transfer mortgage credit risk away from taxpayers. Freddie Mac hopes to obtain more of these insurance policies in future transactions.

In July 2013, we announced another credit risk transfer initiative, the Structured Agency Credit Risk (STACR®). We announced our second STACR debt-sharing transaction on November 5, 2013.

For questions, please contact your Freddie Mac representative.

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.

Freddie Mac Guide User Enhancements and Single-Family Resources

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On November 6, Freddie Mac released an announcement titled Take Advantage of Recent Guide User Enhancements and Other Available Single-Family Resources.

Take Advantage of Recent Guide User Enhancements and Other Available Single-Family Resources

We continue to listen to our customers and develop resources that make it easier for you to do business with Freddie Mac. Recent usability enhancements to our Single-Family Seller/Servicer Guide (Guide) on AllRegs®, our Single-Family News Center, and comprehensive Learning Center are just a few of the resources available to you on FreddieMac.com and AllRegs.

Guide Resources

This year, several new features have been developed to help you more easily reference the Guide and track updates, including:

  • Introduction to AllRegs [PDF] – Provides detailed information for using the Guide, including:
    • Searching and printing.
    • Viewing Guide Bulletins and Industry Letters.
    • Navigating content features.

Introduction to AllRegs joins recent Guide usability enhancements, including:

Available on AllRegs

  • Inline revision history – Tracks Guide changes by showing or hiding past and future revisions. Provides the ability to review changes made throughout the year directly in line with the current information of a section, form, exhibit, Directory, or the Glossary (each a “Guide provision”).
  • Color coded text for recent additions – Beginning on or after January 1, 2013, indicates the most recent Guide text additions by using green color coding.
  • Quick access to related Guide Bulletins – For Guide changes announced in 2013 Guide Bulletins and beyond, provides you with quick access to the associated Guide Bulletin from the Guide provision.

Available on FreddieMac.com

  • Historical Guide Snapshot – Offers the previous year’s Guide, as of the date of the last Bulletin published in that year, in a single PDF. Snapshots are currently available on FreddieMac.com for the previous three calendar years and we will continue to post the previous year’s snapshot every January.
  • Guide Update Spreadsheets – In a customizable Excel® format, summarizes by subject the affected Guide provisions for select multi-topic Guide Bulletins.

Unless otherwise specified, the Guide text is updated with every Guide Bulletin publication. With this real-time view of the Guide, and our recent usability enhancements, you can be confident you are seeing the current Freddie Mac requirements as you make your lending decisions.

Single-Family Resources on FreddieMac.com

In addition to the new features and resources available with the Guide, the following are also available to help keep you informed of the latest Single-Family business news, information, and training opportunities:

Accessing the Guide

The official electronic version of the Guide is available free of charge on AllRegs through FreddieMac.com. AllRegs offers additional features by subscription. Contact AllRegs at 800-848-4904 for more information.

Enhancing your ability to access and find the information you need in our Guide is just one of the ways Freddie Mac is committed to providing you comprehensive support to help you effectively and efficiently manage your business with us. If you have any questions about these resources, please contact your Freddie Mac representative.

To view the online announcement, 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 Extends Mortgage Relief to IL Homeowners Impacted by Tornadoes

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On November 27, Freddie Mac released an update titled Freddie Mac Immediately Extends Mortgage Relief to Illinois Homeowners Impacted by Tornadoes.

This is not new guidance.

Freddie Mac Immediately Extends Mortgage Relief to Illinois Homeowners Impacted by Tornadoes

MCLEAN, VA–(Marketwired – Nov 27, 2013) –  Freddie Mac’s (OTCQB: FMCC) full menu of mortgage relief policies for borrowers affected by disaster is being extended to homeowners whose homes were damaged or destroyed by the severe storms, straight-line winds and tornadoes in Illinois. Freddie Mac’s disaster relief policies enable servicers to help borrowers with homes in presidentially declared Major Disaster Areas where federal Individual Assistance programs are being made available. Freddie Mac is one of the nation’s largest investors in residential mortgages.

News Quote:
Attribute to Tracy Mooney, Senior Vice President of Single-Family Servicing and REO at Freddie Mac:

“Freddie Mac is urgently reminding the nation’s mortgage servicers about the full range of mortgage relief options they can provide to affected borrowers with mortgages we own or guarantee, including forbearance on mortgage payments for up to one year. We strongly encourage borrowers to contact their servicers, who are fully authorized to work with them on a case-by-case basis.”

News Facts:

  • Freddie Mac disaster relief policies authorize mortgage servicers to help affected borrowers in presidentially declared Major Disaster Areas where federal Individual Assistance programs have been extended. A list of these areas can be found at http://www.fema.gov/disasters.
  • Freddie Mac mortgage relief options for affected borrowers in these areas include:
    • Place borrowers on forbearance and suspend foreclosures for up to 12 months;
    • Waiving assessments of late fees against borrowers with disaster-damaged homes; and
  • Not reporting forbearance triggered by the disaster to the nation’s credit bureaus;
  • Under a new Freddie Mac mortgage modification option, after the disaster forbearance ends, the servicer can add skipped payments to the outstanding loan balance and extend the mortgage term, while keeping the borrower’s mortgage payment essentially the same.
  • Freddie Mac is also reminding servicers to consider Freddie Mac’s standard relief policies, including forbearance or mortgage modifications, for borrowers who work in eligible disaster areas but live in unaffected areas.
  • Affected borrowers should immediately contact their mortgage servicer — the company to which they send their monthly mortgage payment.
  • See freddiemac.com/singlefamily/service/disastermgmt.html for a description of Freddie Mac disaster relief policies.

Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Today Freddie Mac is making home possible for one in four home borrowers and is one of the largest sources of financing for multifamily housing. www.FreddieMac.com. Twitter: @FreddieMac

Please click here to view the online release.


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.

FNMA SVC-2013-23 Delinquency Management; Servicing Responsibilities

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On November 25, Fannie Mae released Servicing Guide Announcement SVC-2013-23, subtitled Delinquency Management and Other Servicing Responsibilities.

Servicing Guide Announcement SVC-2013-23

Delinquency Management and Other Servicing Responsibilities

Fannie Mae is updating policies as a result of certain Consumer Financial Protection Bureau (CFPB) rules and regulations that implement the mortgage servicing provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) and other eligibility requirements for liquidation workout options. The policies updated in this Announcement relate to:

  • General requirements for standard short sale/HAFA II and Mortgage Release™
  • Eligibility requirements for standard short sale/HAFA II, Mortgage Release, and streamlined documentation
  • Property valuation for mortgage loan modifications
  • Servicer requirements relating to an appeal
  • Borrower inquiries

Effective Date
Unless stated otherwise, the effective date for the changes in this Announcement is January 10, 2014.

Please click here to view the announcement in its entirety.

About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders,  and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.

FNMA Servicing Notice Approving Mortgage Loan Modifications; HSSN

Posted on by Safeguard

On November 22, Fannie Mae released a Servicing Notice subtitled Approving Mortgage Loan Modifications and Entering Cases into HomeSaver Solutions™ Network.

Servicing Notice
Approving Mortgage Loan Modifications and Entering Cases into HomeSaver Solutions™ Network

Servicers currently have the authority to approve and offer Fannie Mae modifications, as indicated in the Servicing Guide, Part VII, Section 602: Mortgage Loan Modifications and Section 609: Home Affordable Modification Program (HAMP), if all eligibility requirements and modification terms were met for the mortgage loan modification programs. Fannie Mae is reminding servicers of their authority to approve eligible mortgage loan modifications for the Fannie Mae Standard Modification and the Fannie Mae HAMP Modification.

Fannie Mae is also reminding servicers to submit to Fannie Mae all servicer-approved mortgage loan modifications in HomeSaver Solutions Network (HSSN) as “closed.” Servicers must not submit mortgage loan modification cases to Fannie Mae for review and approval if the mortgage loan meets all the eligibility and modification terms for the mortgage loan modification programs. Only mortgage loans not meeting the mortgage loan modification eligibility and term requirements indicated in the Servicing Guide must be submitted to Fannie Mae using HSSN for review and approval.

Servicers must indicate the correct Campaign ID for the appropriate mortgage loan modification program under which the case is submitted. The drop-down menu of all available Campaign IDs is located on the Create Case screen of HSSN. HSSN will return an error message if a conventional loan is submitted for a mortgage loan modification without a valid Campaign ID. Instructions regarding HSSN Campaign IDs as well as creating and submitting a closed loan modification case are available on Fannie Mae’s website.

Please click here to view the online notice.

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.

FNMA LL-2013-09 Confirmation of 2014 Conventional Loan Limits

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On November 26, Fannie Mae released Lender Letter LL-2013-09, subtitled Confirmation of Conventional Loan Limits for 2014.

Lender Letter LL-2013-09

To: All Fannie Mae Single-Family Sellers and Servicers
Confirmation of Conventional Loan Limits for 2014

The Federal Housing Finance Agency (FHFA) has issued the maximum loan limits that will apply to conventional loans to be acquired by Fannie Mae in 2014. The first mortgage loan limits are defined in terms of general loan limits and high-cost area loan limits. The maximum loan limits for 2014 remain unchanged from 2013; however, a number of high-cost area county limits have increased.

Please click here to view LL-2013-09 in its entirety.

About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders,  and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.

FHLMC Guide Bulletin 2013-25 2014 Loan Limits

Posted on by Safeguard

On November 26, Freddie Mac released an update titled Freddie Mac Announces 2014 Loan Limits.

Freddie Mac Announces 2014 Loan Limits

With Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-25, we are announcing that our 2014 base conforming loan limits will be maintained at the existing 2013 levels. The loan limits in designated high-cost areas will also remain unchanged with the exception of some counties where the loan limit will increase.

The Guide Bulletin is in line with the Federal Housing Finance Agency (FHFA) announcement today regarding the 2014 conforming loan limits.

It is important that you review the information on the FHFA website for the 2014 loan limits permitted for specific counties in high cost areas. Super conforming mortgages that you intend to sell to Freddie Mac are subject to the loan limits set by FHFA for designated high-cost areas.

If FHFA releases further information on future changes to the loan limits, we will provide you with more information at that time.

Get More Information

Please click here to view the online update.

About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders,  and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally. Website: www.safeguardproperties.com.

FHLMC Guide Bulletin 2013-24 Helping Borrowers Avoid Foreclosures

Posted on by Safeguard

On November 25, Freddie Mac released Guide Bulletin 2013-24, which announces servicing updates that help more borrowers avoid foreclosure.

Guide Bulletin 2013-24 Announces Servicing Updates That Help More Borrowers Avoid Foreclosure

In Single-Family Seller/Servicer Guide Bulletin (Guide) Bulletin 2013-24 we are announcing requirement changes that allow Servicers to help more borrowers avoid foreclosure through short sales and deeds in lieu of foreclosure (DILs). Some changes included in Guide Bulletin 2013-24 are:

  • Updating eligibility requirements for exceptions to borrower documentation for short sales and DILs. We’ve expanded eligibility to include borrowers whose mortgage debts have been discharged in a Chapter 7 bankruptcy regardless of the borrower’s FICO score. Additionally, mortgages that were originated as investment properties are no longer eligible for the exception to borrower documentation. Servicers must now review a complete Borrower Response Package (BRP) to evaluate these borrowers for a short sale or DIL.
  • Updating Servicer delegations for short sales and DILs. Servicers must submit a short sale or DIL recommendation to Freddie Mac for approval when the borrower’s cash reserves exceed $50,000.
  • Revising our short sale and DIL processing and foreclosure suspension requirements. Servicers must delay, or ensure that foreclosure counsel delays, the next legal action in the foreclosure process when they:
    • Receive a First Complete BRP more than 37 days prior to a scheduled
      foreclosure sale date, and
    • The evaluation results in an offer to proceed with a short sale or DIL.
  • Revising our BRP review requirements for short sales. Servicers are no longer required to conduct an expedited review when a completed BRP with a short sale purchase offer is received greater than 37 days prior to a scheduled foreclosure sale date. However, Servicers must continue to expedite a review of a complete BRP received between 37 days and 15 days prior to a scheduled foreclosure sale date.
  • Updating our Trial Period Plan requirements. If a borrower accepts an original Trial Period Plan offer after receiving an appeal decision, and the borrower remains eligible for the original offer, Servicers must reissue the original offer with a new Trial Period Plan due date. Any delinquent amounts accrued during the appeal review process will be included in the modified principal balance.

Read Guide Bulletin 2013-24 for more detailed information on these updates.

Investor Accounting Manager Retirement
Effective November 15, 2013, Investor Accounting ManagerSM (IAM) was retired. With the retirement of IAM, Servicers are only able to access investor accounting reports through the Freddie Mac Service Loans application. If you need access to the application, visit the Service Loans Application Resource Center for instructions on how to register.

Training and Resources
Please visit Freddie Mac’s Learning Center for additional information on our training programs and references tools.

For More Information

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 2013-23 Updates and Reminders

Posted on by Safeguard

On November 15, Freddie Mac released a notice titled Seller/Servicer Updates and Reminders Announced Guide Bulletin 2013-23.

Seller/Servicer Updates and Reminders Announced Guide Bulletin 2013-23

As a result of customer feedback, Single-Family Seller/Servicer Guide (Guide) Bulletin 2013-23 withdraws our recent fraud training requirements until further notice. We also are amending the applicability of our higher-priced mortgage loans (HPML) requirements announced in response to the Consumer Financial Protection Bureau (CFPB) final rule; and announcing implementation of our new Quality Control Information Manager (QCIM) application. Additionally, we are making updates to payment history verification, tax information verification, and Freddie Mac Relief Refinance MortgageSM requirements.

Review today’s Bulletin for complete details on these and other Guide revisions and reminders that may impact the way you do business with Freddie Mac.

Originate & Underwrite, Sell & Deliver, and Servicing

  • Withdrawing fraud training requirements for third-party vendors. To gain a better understanding of customer feedback and refine the requirements, we are withdrawing fraud training requirements for third-party vendors announced in Bulletin 2013-18 [PDF] until further notice.
  • Complying with applicable laws. You are reminded that Freddie Mac requires you to comply with all applicable federal, state and local laws, ordinances, regulations, and orders. Although you may be in compliance with Freddie Mac requirements, you cannot assume that you also are in compliance with all applicable federal, state and local laws, ordinances, regulations, and orders.

Originate and Underwrite

  • Updating payment history verification requirements for manually underwritten mortgages. We are updating requirements for verifying a borrower’s payment history for manually underwritten mortgages to provide consistency, reduce redundancies, and manage risk. These changes are effective for mortgages with settlement dates on or after April 1, 2014, but we recommend that you begin implementing them as soon as possible.

Originate & Underwrite and Sell & Deliver

  • Updating Relief Refinance Mortgage requirements
    • Eligibility date. As announced in our October 22, 2013, Single-Family News Center article, to make our eligibility requirements more transparent to borrowers, we have revised our requirements for Relief Refinance Mortgages to provide that the eligibility of the mortgage being refinanced is now based on the note date instead of the Freddie Mac settlement date.
    • Land trusts. In response to Seller questions, we are updating the Guide to confirm that a mortgage owned by Freddie Mac and secured by a property in which the legal and equitable title is held in a land trust is eligible for refinance as a Relief Refinance Mortgage – Same Servicer if all other requirements applicable to Relief Refinance Mortgages – Same Servicer are met.
  • Announcing that certain higher-priced mortgage loan (HPML) requirements are applicable to higher-priced covered transactions. In Guide Bulletin 2013-16 [PDF], we announced certain new mortgage eligibility requirements applicable to HPMLs in response to CFPB’s final rule regarding ability-to-repay. We are amending the scope of those requirements to include higher-priced covered transactions, as defined in the CFPB’s final rule, instead of solely HPMLs. These requirements pertain to Relief Refinance Mortgages and ARMs with initial periods of seven or 10 years.

Sell & Deliver and Servicing

  • Adding Quality Control Information Manager Agreement. With the availability of QCIM, we are adding an agreement for customers using our new QCIM application. QCIM enables users to track performing and non-performing loans through the quality control process.
  • Reminders for mortgages originated under energy retrofit programs, including property-assessed clean energy (PACE). We are reminding you that Freddie Mac will not purchase mortgages secured by properties subject to PACE obligations that provide for first lien priority, except for Relief Refinance Mortgages – Open Access originated in accordance with Guide requirements.

Other Guide Updates
Review today’s Guide Bulletin for details on other important Guide updates, including:

  • Updating tax information verification requirements for borrowers with income derived from sources in Puerto Rico, Guam, and the U.S. Virgin Islands.
  • Clarifying signature requirements for security instruments.
  • Updating requirements for resubmitting construction conversion and renovation mortgages through Loan Prospector® as announced in Guide Bulletin 2013-11 [PDF].
  • Removing the reference to money order receipts as an acceptable form of payment history documentation for Home Possible® Mortgages.

For More Information

Please click here to view the online release.

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.