Department of Veterans Affairs Loan Guaranty Service

Transcription

1 Department of Veterans Affairs Andy Trevayne, Central Office Servicer Liaison Add Your Company Logo Here

2 Introduction: Servicing VA Loans in

3 Introduction: Servicing VA Loans in 2011» VA-Guaranteed Mortgage Statistics» Expanded Loss-Mitigation Efforts» Servicemembers Civil Relief Act» Streamlined Processes: Adequacy of Servicing and Post-Audits» VA and Servicer Communications 3

4 VA-Guaranteed Mortgage Statistics 4

5 VA Guaranteed Loan Originations, Total Purchase Refinance Year to Date 2011 Projected Total 2011 Average Interest Rate in 2010: 4.88% Average Interest Rate (to date) in 2011: 4.30% 5

6 VA Guaranteed Loan Origination Trends 60,000 50,000 40,000 30,000 20,000 10,000 - Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Feb-07 Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 6

7 VA Guaranteed Loan Foreclosure Trends 2,500 2,000 1,500 1, Oct-02 Feb-03 Jun-03 Oct-03 Feb-04 Jun-04 Oct-04 Feb-05 Jun-05 Oct-05 Feb-06 Jun-06 Oct-06 Feb-07 Foreclosures Completed Jun-07 Oct-07 Feb-08 Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 7

8 Expanded Loss Mitigation Efforts 8

9 VA Loan - Loss Mitigation Successes Fiscal Year Incentive Payments: $ 4.3 million - Savings: $ 1 billion - Foreclosures : 15,145 Fiscal Year Incentive Payments: $10.5 million - Savings: $2 billion - Foreclosures : 20,506 Projected 2011 Totals (Estimates) - Incentive Payments: $13.5 million - Savings: $ 2.3 billion - Foreclosures: 17,000 9

10 Loss Mitigation Trends Top Three Loss Mitigation Tools in Fiscal Year 2010» Loan Modifications 9,869» Repayment Plans 9,530» Compromise Sales 4,681 Projected Top Three Loss Mitigation Tools in Fiscal Year 2011» Loan Modifications 15,855» Repayment Plans 8,244» Compromise Sales 4,923 10

11 Loss Mitigation Changes New Loan Modification Rules» Maximum interest rate calculation for standard loan Typical loan: Freddie Mac rate, rounded to nearest one-eighth, plus 50 basis points Loans held by a state housing finance agency can remain unchanged» Foreclosure-related costs can be capitalized into modified loan Relocation Assistance» Up to $1,500 in relocation assistance for occupants who complete a compromise sale or execute a deed-in-lieu» See Circular , January 6,

12 Servicemembers Civil Relief Act 12

13 Servicemembers Civil Relief Act Servicemembers Civil Relief Act (SCRA)» Eases the economic and legal burdens of active-duty military personnel» 50 U.S.C. Appendix Important SCRA Provisions Include:» Restrictions on interest charges» Courts must approve foreclosures» Protects servicemembers who cannot attend court proceedings SCRA and VA Loans» VA expects all servicers to comply with SCRA for all eligible borrowers» VA encourages servicers to establish controls for compliance» VA does not enforce SCRA, but will consider it with on-going monitoring activities and servicer audits See VA Circular ; January 26,

14 Streamlined Processes: Adequacy of Servicing and Post-Audits 14

15 Streamlined Processes New Adequacy of Servicing Timeframes» VA s Goal: Ensure all borrowers have every possible opportunity to retain their homes or avoid foreclosure» Adequacy of Servicing reviews earlier--at 120 days of delinquency Reviews were conducted after 210 days of delinquency in the past» Subsequent reviews every 90 days thereafter» Servicers have supported VA s efforts Servicers uploading case notes into VALERI within 10 days Some servicers have automated their process to upload notes Post Audits» Servicers have supported elimination of additional time granted at phasein of process» Servicers upload the required documents within 30 days VA technicians conduct audit with documents received by deadline 15

16 VA and Servicer Communications 16

17 VA And Servicer Communications Servicer Calls» Bi-weekly calls between VA and Servicers» VA communicates updates to Servicers» Servicers share concerns, make suggestions to improve efficiency» pass code 81624# VALERI Servicer News Flash» As needed to communicate changes to VA policy or VALERI system VALERI Web Site» Servicer Site Visits &Servicers - Visit VA Headquarters!» Periodic visits with Servicers to discuss procedure and improve system 17

18 Department of Veterans Affairs Andy Trevayne, Central Office Servicer Liaison Add Your Company Logo Here 18