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31 » VISIT US ONLINE @ DSNEWS.COM HELPING HOMEOWNERS RESOLVE MORTGAGE DELINQUENCIES In a recent Insights article, the Federal Housing Finance Agency (FHFA) highlighted a new mortgage assistance application that will allow servicers to help borrowers resolve delinquencies more quickly, and keep more people in their homes. A lesson learned from the crisis, according to the article, is ensuring that the application process is straightforward and as easy to navigate as possible. In light of this, the FHFA has worked with Fannie Mae and Freddie Mac to revise a form with one main objective—simplifying the loan-modification process for borrowers. is review process led to the GSEs' announcement of a new Mortgage Assistance Application (MAAp) that will replace the Uniform Borrower Assistance Form (UBAF). e MAAp is designed to balance five principles of loss mitigation learned from the housing crisis—accessibility, affordability, accountability, sustainability, and transparency. e article noted that extensive borrower testing revealed a number of opportunities to make the form more user friendly, including; reformatting the form with a cleaner, brighter look and consolidating related questions on the same page, adding questions that enable borrowers to express their preferred method for being contacted by their servicer, and clarifying terms that borrowers identified as being unclear. How does the new application work? By utilizing MAAp, a borrower struggling with their mortgage can fill out the application prior to being 90 days delinquent, and submit it to their servicer. "Once the servicer receives the application and supporting documentation, the servicer evaluates the borrower for foreclosure alternatives and works with the borrower to explore their options," the article reports. Solutions can include a repayment plan, forbearance plan, loan modification, short sale, or deed-in-lieu of foreclosure. In addition to changes on the application form, the MAAp reduces the supporting documentation required to demonstrate a struggling borrower's hardship and income, "a change that will simplify the assistance process for both borrowers and servicers." According to the FHFA, servicers are encouraged to implement the MAAp immediately, but must implement it by June 1, 2018. RENTAL VACANCIES POISED TO DROP As lease expirations decline on single-family rental securitizations, vacancies have started to level off. And according to Morningstar Credit Ratings' recent Single-Family Research, those vacancies are likely to drop in the near future. According to Morningstar's research, which looks at property-level information across rental securitizations, lease expirations slipped from 9 percent in July—its 2017 high—to 6.2 percent by September. Average vacancies stayed largely steady for the month, ticking up just 0.1 percent since August. But that slight increase likely won't continue, Morningstar reports. "e average vacancy rate increased slightly to 5.9 percent in September, but the decline in expiring leases could indicate a corresponding decline in the average vacancy rate soon," the report stated. Vacancies were highest in the Houston metro area, where 9.8 percent of properties sat vacant for the month. Sarasota-Bradenton-Venice, Florida, also had a high vacancy rate at 7.7 percent. According to Morningstar, it's unsure if there's a link between vacancy rates and the two states' recent natural disasters. "At this time, it is too early to attribute any changes in local rental markets to Hurricanes Harvey and Irma," Morningstar reported. Delinquencies on rental securitizations rose incrementally for the month, increasing 0.8 percent. Nine securitization deals showed delinquency rates of 1 percent or higher—up from just four deals the month before. Rents also rose across single-family rental pools as well, jumping about 3.5 percent in September. Rents rose most on recently renewed properties. "For August, the latest month for which data is available, the rent change for vacant-to- occupied properties was 1.5 percent, while the rent change for renewal properties was at 4.4 percent," Morningstar reported. Still, despite upticks, rents are largely on pace with estimates set out by RentRange, an online tool offering rent comparisons and rental estimates. e biggest exception was the Sarasota-Bradenton-Venice metro area, where renewal rents were actually lower than most RentRange estimates.