FHA Extends Remote Work Flexibilities for Lenders and Appraisers

helm on May 19, 2020

In addition to to issuing an extension of FHA’s foreclosure and eviction moratorium for single family homeowners, FHA also announced an extension for remote work flexibilities.

Extensions Through June Provide Peace of Mind to Struggling Homeowners While Supporting New Mortgage
Originations During COVID-19 Recovery

WASHINGTON -5/14/2020  The Federal Housing Administration (FHA) announced an extension of its foreclosure and eviction moratorium through June 30, 2020, for homeowners with FHA-insured Single Family mortgages, while also supporting new FHA-insured mortgage originations through an extension of temporary policy flexibilities for lenders and appraisers. The extensions will support the President’s economic recovery efforts as the Nation continues to work to defeat the COVID-19 invisible enemy.

FHA’s Single Family foreclosure and eviction moratorium extension announced today applies to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages, and directs mortgage servicers to:

  • Halt all new foreclosure actions and suspend all foreclosure actions currently in process, excluding legally vacant or abandoned properties; and
  • Cease all evictions of persons from FHA-insured Single Family properties, excluding actions to evict occupants of legally vacant or abandoned properties.

Additionally, the Single Family mortgage origination policy extensions announced today allow alternatives for lenders to re-verify a borrower’s employment, and for appraisers to conduct desktop or exterior-only appraisals, to continue through June 30, 2020. These temporary measures allow lenders and appraisers to continue their necessary work for new FHA-insured mortgages in light of social distancing requirements.

“We made it clear at the beginning of this pandemic that no American should have to worry about losing their home amidst a crisis. Today’s announcement ensures that commitment,” said U.S. Department of Housing and Urban Development Secretary Ben Carson. “While we have made great strides in fighting this virus, the fact remains that many Americans are still struggling as we work diligently to get our economy back on sound footing, which I have full confidence we will do through the leadership of the President.”

“For those among the over 8.1 million single family homeowners with FHA-insured mortgages who need assistance, our highest priority is to ensure that they have the time through the foreclosure moratorium, and the assistance they need through special COVID-19 mortgage forbearance, to remain in their homes long-term,” said HUD Deputy Secretary and Federal Housing Commissioner Brian Montgomery. “At the same time, extending our policy flexibilities will ensure that affordable FHA-insured mortgage financing continues to remain available to support first-time and other homebuyers, and the Nation’s housing market.”

Homeowners with FHA-insured mortgages must continue to make their mortgage payments during the foreclosure and eviction moratorium if they are able to do so, or seek mortgage payment forbearance pursuant to the CARES Act from their mortgage servicer, to avoid future foreclosure actions when the moratorium expires.

Pursuant to the CARES Act, FHA requires mortgage servicers to:

  • Offer borrowers with FHA-insured mortgages up to six months or more of delayed mortgage payment forbearance when the borrower requests it. FHA does not require a lump sum payment at the end of the forbearance period.
  • Assess borrowers who receive COVID-19 forbearance for its special COVID-19 National Emergency Standalone Partial Claim before the end of the forbearance period. The COVID-19 National Emergency Standalone Partial Claim puts all deferred mortgage payment amounts owed into a junior lien which is only repaid when the borrower sells the home, refinances the mortgage, or the mortgage is otherwise extinguished.

FHA Press Release 5/14/2020

Foreclosure Prevention & Refinance Report Released

helm on May 14, 2020

The Foreclosure Prevention & Refinance Report and Federal Property Manager’s Report as of February 2020 has been posted.  This report quantifies the number of foreclosure prevention actions taken by Fannie Mae & Freddie Mac, the Enterprises, year-to-date and cumulative since the beginning of the conservatorships in September 2008.

Issued by FHFA 5/14/2020
Foreclosure Prevention, Refinance and FPM Report – February 2020

April New Home Purchase Mortgage Applications Decreased 12 Percent

helm on May 14, 2020

WASHINGTON, D.C. (May 14, 2020) — The Mortgage Bankers Association (MBA) Builder Application Survey (BAS) data for April 2020 shows mortgage applications for new home purchases decreased 12 percent compared from a year ago. Compared to March 2020, applications decreased by 25 percent. This change does not include any adjustment for typical seasonal patterns.

“New home purchase applications severely weakened in April, which coincided with the peak of the social distancing efforts and restrictions on non-essential activities to help slow the spread of COVID-19. During what’s typically the prime home buying season, activity fell 25 percent from March and decreased 12 percent from a year ago,” said Joel Kan, MBA’s Associate Vice President of Economic and Industry Forecasting. “MBA estimates that new home sales dropped to an annualized pace of 533,000 units – the slowest since December 2016. This decline was in line with data from our Weekly Applications Survey, which indicated a pullback in March and most of April.”

Added Kan, “There’s evidence now that unrealized, pent-up demand is being released as states start to reopen. We expect that heading into the summer, more prospective homebuyers will gradually return to the market.”

Source: Adam DeSanctis
Mortgage Bankers Association
adesanctis@mba.org
(202) 557-2727

COVID Resources

Lauren Wiley on April 1, 2020

          New York Department of Financial Services–Industry Letters

MEETING THE CHALLENGE WITH 2020 VISION

helm on April 1, 2020

New York MBA is holding a series of Webinars to engage members, share information and discuss the current lending environment. All members are invited to attend, and all employees of member companies are eligible to attend for free.

Future members are able to attend one complimentary webinar session. Additional sessions can be accessed for a nominal fee. Future members can join New York MBA at any time by going to our membership page or by clicking here.

New York MBA addresses all facets of the real estate finance industry including Branch Licensing, Originations, Processing, Underwriting, Closing, Compliance, and Loan Servicing. In addition to sessions that will address current top-of-mind topics, there will be an ongoing tract of Loan Servicing Webinars that will kick-off on September 23rd at noon with:

New York and the Ever-Changing Foreclosure Landscape

 

New York MBA Executive Board–Working for You!

helm on November 22, 2019

Steven A. Milner – Founder and CEO of US Mortgage Corporation and NY MBA President, and Jim Bopp,  National Renovation Lending Manager of Platinum Home Mortgage Corporation and NY MBA Immediate Past President shown here with MBA’s President and CEO Bob Broeksmit, CMB at the MBA CEO Listening Tour held last week in Iselin NJ (at the headquarters of Homebridge Financial Services, Inc.).   They were joined by other MBA Senior Staff and industry CEOs and Senior Management for a conversation about mortgage industry business, policy, and hot button topics and how MBA could better serve its membership and the industry as a whole.  Keep an eye our for future MBA and NY MBA strategic plans and initiatives as we head into 2020 and beyond. 

ONE VOICE. ONE VISION. ONE RESOURCE! 

Join MBA now!

Already a member of MBA, join New York MBA today!

 

NYMBA meets with Governor Cuomo’s Staff on Manufactured Housing Title Conversion

helm on November 5, 2019

October 25, 2019:  NYMBA, with other industry professionals, met with the Governor’s staff about the need for titling conversion in New York. Currently, manufactured housing is titled as personal property/chattel and there is no mechanism to convert title to real property. New York is the only state that does not allow for title conversion for manufactured housing.

With over 190,000 manufactured housing units in New York State, primarily located in rural upstate, western New York, and areas of Long Island and Staten Island, manufactured housing remains a source of affordable housing and a means for low and moderate income New Yorkers to establish wealth and financial security.

The Governor’s staff was very receptive to having a process for title conversion as it benefits many New Yorkers around the state and we look forward to continuing the conversation.

Loan Servicers meet with NYS Legislators

helm on October 5, 2019

2019 Fahy McDonald Working meeting (2)

October 4, 2019:  Loan Servicing Committee members were asked to meet with some members of the New York State Legislature regarding “Zombie Properties” and foreclosures in the state. Assembly members Fahy and McDonald and Senator Breslin were interested in how bid prices are arrived at for properties at foreclosure auctions. The issue of maintenance and upkeep of vacant properties that are mortgaged was also raised.

Jodi Gaines, NYMBA committee chair, provided an overview of the Loan Servicing Committee and the working groups that were formed in an effort to address vacancy and blight; the foreclosure court backlog in New York; improving relationships and communications among all stakeholders; and industry professionals sharing best practices.

NYMBA reviewed investor and insurer requirements and instructions to banks/ loan servicers relative to arriving at bid prices at foreclosure sale/auction. Most financial institutions focus on current economic variables, not speculation–per shareholder and credit risk policies and have proprietary foreclosure bid strategies. NYMBA dispelled the perception that banks/servicers hold onto REOs as it is more costly to hold properties in inventory compared to selling them to a third party.

Each of New York State’s 62 counties has its own procedures and processes for handling foreclosure matters. Zombie Properties are identified as vacant and abandoned–including non-mortgaged properties; as a result of a number of circumstances: the death of a property owner, tax payment delinquencies and mortgage default are among the top causes. These properties are typically neglected resulting in a negative affect on neighboring property values and a drain on local governments.

Foreclosure timelines in New York are one of the longest in the country. Court delays occur due to the unique processes judges in each county employ when working with foreclosures. Until the backlog of foreclosure cases is addressed, New York will continue to encounter issues with vacancy, abandonment and blight. NYMBA continues to be an advocate for a fast-track foreclosure process of vacant and abandoned properties. NYMBA’s loan servicing committee offered suggestions to improve efficiency thereby reducing the length of time it takes to complete foreclosures in New York.

NYMBA continues to be a resource to law makers and stakeholders, and works toward identifying concerns, presenting solutions and preserving the housing market for New York consumers. New York Mortgage Bankers Association supports homeownership for New Yorkers throughout the state.

DFS Proposes New Rules for Loan Servicers

helm on July 2, 2019

June 29, 2019:  The DFS has proposed changes to Title 3 NYCRR Part 419: Servicing Mortgage Loans: Business Conduct Rules. NY MBA responded in a joint letter with MBA, which you can view by clicking HERE.