Mortgage Industry Information -- scroll down for other non-disaster
related industry association and GSE/agency information.
HURRICANE IKE -- VA
INFORMATION
The following is a link to VA's website that
contains information on VA's policy on natural disasters, which is of
special interest in the wake of Hurricane Ike. The link describes
actions to take on new VA loan originations, and VA's policy of
requesting the extension of every possible forbearance to all existing
VA loan borrowers affected by this disaster. VA also requests a 90-day
moratorium on the initiation of new foreclosures in the affected
areas. The policy states that VA considers such forbearance as
requested by VA, and eligible for the payment of interest beyond the
normal termination time frames if the borrower is unable to reinstate
the loan during that extended forbearance, and a claim is eventually
necessary. http://www.homeloans.va.gov/docs/va_policy_regarding_natural_disasters.pdf
HURRICANE IKE --
HUD NEWS RELEASE (9/15/08)
http://www.hud.gov/news/release.cfm?content=pr08-138.cfm
REMINDER FROM HUD (9/4/08)
-- To FHA servicers on Disaster
Servicing
This is a
reminder to all FHA insured loan servicers, a Presidential Major
Disaster Declaration put into motion federal recovery programs designed
to help victims of hurricanes, earthquakes, floods, tornado, other
severe weather or major fires, which the President determines warrants
supplemental federal aid. When the President declares a disaster,
certain mortgage servicing actions are triggered; mortgagees should
refer to HUD Handbook 4330.1 rev 5 for further guidance. The mortgagee
must check with the Federal Emergency Management Agency (FEMA) to obtain
the specific affected counties and corresponding declaration dates. This
information can be found on the Internet at: http://www.fema.gov/disasters
or by calling the local FEMA office.
As a reminder, the
Department of Housing and Urban Development (HUD) requires a 90-day
moratorium on all foreclosure actions on properties directly affected by
Presidentially-declared disasters. The initial moratorium applies
to not only new foreclosure initiations, but for all foreclosures in
process and has historically applied for both areas declared by FEMA for
individual assistance and/or for a public assistance
declaration. HUD has provided this guidance in paragraph 14-2 of
HUD Handbook, 4330.1 rev. 5, Administration of Insured Home Mortgages,
and has repeated it in numerous mortgagee letters. It is also
referenced on the following HUD website: http://www.hud.gov/offices/hsg/sfh/nsc/disaster.cfm.
PRESS RELEASE FROM HUD (9/3/08)
WASHINGTON - U.S. Housing and Urban Development Secretary Steve
Preston today announced a foreclosure moratorium in 34 parishes
throughout Southern and Central Louisiana and offered support to
homeowners and low-income renters forced from their homes following
Hurricane Gustav. This foreclosure relief will help families living in
presidentially declared disaster areas whose damaged homes are insured
through the Federal Housing Administration (FHA).
[On Sept. 2], President Bush issued a disaster declaration throughout
Louisiana including Acadia, Allen, Ascension, Assumption, Avoyelles,
Beauregard, Cameron, East Baton Rouge, East Feliciana, Evangeline,
Iberia, Iberville, Jefferson, Jefferson Davis, Lafayette, Lafourche,
Livingston, Orleans, Plaquemines, Pointe Coupee, Rapides, Sabine, St.
Bernard, St. Charles, St. James, St. John the Baptist, St. Landry, St.
Martin, St. Mary, Terrebonne, Vermilion, Vernon, West Baton Rouge, and
West Feliciana Parishes.
"Today, we are suspending FHA foreclosure activities throughout
Louisiana's hardest hit parishes," said Preston. "This foreclosure
moratorium will give families the time they need to figure out how to
begin the recovery process without having to worry about the prospect of
being put out of their homes."
In certain storm and flooded ravaged parishes, HUD is granting
a http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/01-7ml.doc
90-day moratorium on foreclosures of mortgages insured by
the FHA. In addition, HUD is strongly recommending that loan servicers
take such actions as special forbearance, loan modification,
refinancing, and waiver of late charges.
A presidential disaster declaration also triggers http://www.fema.gov/assistance/index.shtm a variety of federal assistance including grants for temporary
housing and home repairs, low-cost loans to cover uninsured property
losses, and other programs to help individuals and
business owners recover from the effects of the disaster.
With President Bush's disaster declaration, HUD will:
http://www.hud.gov/offices/cpd/communitydevelopment/programs/dri/factsheetcfm:
Offer states the ability to re-allocate existing federal resources
toward disaster relief - HUD's Community Development Block Grant (CDBG)
and HOME programs give the State the flexibility to redirect millions of
dollars to address critical needs, including housing and services for
tornado victims. HUD will contact State and local officials to explore
their needs for streamlining the Department's CDBG and HOME programs in
order to expedite the repair and replacement of damaged housing;
http://www.hud.gov/offices/hsg/sfh/ins/203h-dft.cfm: Make 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 are eligible for 100 percent financing, including
closing costs;
http://www.hud.gov/offices/hsg/sfh/203k/203k--df.cfm: Make 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
http://www.hud.gov/offices/cpd/communitydevelopment/programs/108/index.cfm:
Offer 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.
As families return to their neighborhoods in the wake of Hurricane
Gustav, HUD staff will be ready to help offer critical housing
information through HUD's National Housing Locator System (NHLS). This
web-based locator combines vacant sales and rental housing data from
federal housing resources and three widely used commercial apartment
locators. Currently, there are more than 69,000 homes and apartments
available in Louisiana, Texas, Mississippi, Alabama, Georgia and
Florida.
HURRICANE
GUSTAV -- EXECUTIVE ORDER SUSPENDING LEGAL DEADLINES IN
LOUISIANA
An Executive Order suspending all legal
and administrative deadlines throughout the state of Louisiana was
signed by Governor Jindal. The Order is retroactive from August 29
through Friday, Sept. 12. Some sheriff's offices in the state have
taken the position that it suspends the time within which to oppose
judicial (foreclosure) sales throughout the state and, therefore,
sheriff sales are being cancelled on Wed., Sept. 10, in many parishes
(Foreclosure sales are every Wednesday in Louisiana in all parishes,
except Orleans where they are on Thursday) by many sheriffs around the
state. Not all sheriffs are cancelling sales at this time, but
they may change their mind. The full import of this Order
is not known or whether it is entirely legal for the
Governor to do so. After Hurricane Katrina, Governor Blanco signed
a similar order but the legislature, in a special session, made such
order the law. There is no session planned for the aftermath of
Gustav.
Government Agency & GSE Response to Katrina and Rita AND TO THE
CALIFORNIA WILDFIRES (10/07)
Louisiana and the City of New
Orleans
>Louisiana
Recovery Authority
>Irons v. US Bank,
Inc., No. 2007-CA-0570 (La. Ct. App., 4th
Cir.): Decision re borrower's attorneys' fees lien on hazard insurance
proceeds. (8/14/07)
>Louisiana's Road Home: Info re
remittances from disbursement accounts of funds not used
to record formerly-required Certificates of Final Disbursement
(5/15/07); Fact Sheet re Changes in Covenants
and Grant Agreements (4/20/07); Required language in letters re
disbursement account
releases (4/18/07); Homeownership Assistance
Program Lender Memorandum of
Understanding (11/16/06); Policy
Amendments (April 2007)
>Louisiana HB 1289/Act No. 739: re time
within which certain insurance claims must be filed. Has been signed by
the governor. NOTE: On 7/10/06, Louisiana Attorney General filed a
petition for declaratory judgment in the
19th Judicial District Court in Baton Rouge concerning
this legislation.
>Louisiana HB 1302/Act No. 802
: re Hurricanes Katrina and Rita insurance claims. Has been
signed by the governor. NOTE: On 7/10/06, Louisiana Attorney General
filed a petition for declaratory judgment in the
19th Judicial District Court in Baton Rouge concerning
this legislation.
>LA Dept. of Insurance Advisory Letter 06-04: re
extending ins. claim filing deadlines (6/5/06).
> House Bill 602 re prepayment penalties
for consumer credit transactions & residential mortgage
loans.
> News re deadline to repair & secure property by
8/29/06: St.
Bernard Parish
> Act 21, effective 4/1/06
requires settlement payments on claims arising under homeowners'
insurance be placed in interest-earning escrow accounts.
> House Bill 15 would establish penalties for
mortgage holders who fail to remit insurance settlement payments in
excess of debt to the mortgagor.
> House Bill 7 introduced
2/6/06, would prohibit mortgage holder from keeping more of the
settlement proceeds from an insurance claim than are
necessary to pay unpaid loan balance when settlement payment
is made jointly to mortgage holder and mortgagor.
> Louisiana Recovery website: http://louisianaspeaks.org
> New Orleans City website offers info re demolition
process, answers to FAQs re demolition, etc.
Also see City of New Orleans Imminent Health Threat Ordinance Fact
Sheet (March 20, 2007).
> Per Orleans Parish county clerk, address all mail to: Orleans
Parish Recorder of Mortgages, 421 Loyola Ave., New Orleans, LA 70112
> U.S. BK Court, E. District of LA (New Orleans) -- Procedure for Secured Creditors re Receipt of Ins.
Proceeds
Mississippi
> Mississippi Development Authority
> eNewsletter from the Governor's Office of Recovery and
Renewal (2/13/07) addresses MS Alternative Housing
Program, Temporary Housing Program Extension, Homeowner Grant Program,
New Director of Office of Recovery and Renewal, Mortgage Revenue Bond
Program, and Public Housing Funding.
Fannie
Mae
>News Release re California wildfires (dated 10/25/07)
>FNMA Hurricane Relief Web
page
FEMA
> National Flood Insurance
Program www.floodsmart.gov.
> List of Federal Disaster
Declarations with related information.
Freddie
Mac
> Reminder dated
10/24/07 for servicers doing business in areas affected by
California wildfires: Review Freddie Mac's
disaster relief policies and guidance for delivering properties in
impacted areas. Freddie Mac's disaster relief solutions include:
short-term suspension of collection, foreclosure, and eviction
proceedings for up to 12 months from the date a disaster strikes; not
assessing late charges or reporting to credit repositories for borrowers
on forbearance or repayment plans; and monitoring and coordinating the
insurance claim process. If servicers have a unique situation that
warrants special relief consideration, they should contact (800) FREDDIE
or their Freddie Mac Servicing Representative. Note: Freddie Mac
has extended mortgage relief options to all National Guard members,
firefighters, police, or other first respondents involved in California
wildfire response efforts.
>FHLMC Special Hurricane Relief Web
page
HUD
>HUD's Announcement re assistance to victims of
California wildfires (dated 10/24/07)
>HUD's Hurricane Katrina Resource Page
USDA - Rural
Development
> Relief to Borrowers Affected by
the Florida Tornados of February 2, 2007 (See Letter dated
2/8/07)
> USDA Rural Development Disaster Web
page with links to USDA Hurricane Katrina
Resources
VA
> VA Loan Guaranty Policy Regarding Natural
Disasters (VA guidance for lenders and
servicers concerning VA policy on the recent
California wildfires, circulated 10/23/07). Due to the extent of
the devastation caused by the wildfires, VA encourages servicers to
consider additional measures to assist veteran borrowers, such as
suspending reporting delinquent loans in the areas, and waiving
collection of late charges on loans in the disaster areas. More
information about the disaster areas can be found at the FEMA website:
www.fema.gov.
Further Hurricane Katrina
Resources Relevant to the Industry
> Leonard v. Nationwide
Mutual Insurance Company, Civil Action No. 1:05CV475 LTS-RHW, Memorandum
Opinion (S.D. Miss. Aug. 15, 2006). Court addressed cause and
extent of damage, and whether Nationwide is legally obligated to
reimburse the plaintiffs for any or all of damage.
> Flood Insurance Reform and Modernization Act of 2006 (FIRM),
HR 4973
> Hurricanes Katrina & Rita Flood
Insurance Buy-in Act of 2005, HR
3922
> Questions re local U.S. Trustee's Office: www.usdoj.gov/ust/r05. New Orleans Ch. 13
cases: see website for Ch. 13 trustee S.J. Beaulieu,
Jr.
> FEMA Hurricane Katrina ins. coverage issues: Americans for
Insurance Reform report on Insurance Industry's
Failed Response to Hurricane Katrina, with
recommendations (1/11/06).
USFN Articles
> Close-up View of Hurricane
Katrina: the Impact on Mississippi Foreclosures (Winter
'06 USFN Report)
> Hurricanes Katrina and Rita --
Legal Deadlines Extended in Louisiana (Nov/Dec '05
e-Update)
_____________________
Industry
Associations
Mortgage Bankers Association of
America -- MBA's Housing and Economic Recovery Act of 2008 Resource
Center
Commercial Law League of America
American Bankruptcy Institute
MERS - Mortgage Electronic Registration
System -- Also see MERS
Servicer Identification System (a fast, free way of
identifying the servicer of a mortgage loan registered on the
MERS® System).
Industry News
Resources
Adfinet
AllRegs
National Mortgage News
Mortgage Servicing News
Daily Bankruptcy News
Agencies/GSEs
Fannie Mae
FDIC (Federal
Deposit Insurance Corporation) -- Other
online resources: FDIC: Insuring Your Deposit and Agents for Service of Process
Freddie Mac
HUD (Department of Housing and Urban
Development) For frequently asked questions, also
see http://faq.fha.gov/.
IRS (Internal Revenue
Service)
SBA
(Small Business Administration)
US Dept. of Agriculture, Rural
Development
VA (Department of Veterans
Affairs) -- Also see VALERI (VA Loan Electronic Reporting
Interface)
Real Estate
Information
RealtyGuide
International
Realtor.com
Appraisal Institute
Mortgage Rates
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