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Archive for December, 2009

Dec
17
2009

From FHA Commissioner

We found something interesting from HUD today and thought it might be helpful to you lenders. HUD posted a letter today from FHA Commissioner David H. Stevens with questions and answers for various topics, such as new FHA policies, reasoning behind changes to the FHA approval process, the new RESPA rule taking effect on January 1, 2010, etc. Read the whole letter here.

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Dec
15
2009

MCA Monthly Update – December 2009

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MCA Monthly Update
December 2009 
 
In This Issue
Underwriting & Processing Tips
FHA Update
Fannie Mae Update
Freddie Mac Update
Quick Links
Stay Updated
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Welcome to the MCA Monthly Update. To help you stay compliant and up-to-date, our newsletters contain underwriting tips, processing tips, and compliance updates. We hope that you find the content informative and useful. As always, your feedback is appreciated. 
 
If you have any questions, simply reply to this email or call us at 877-226-3216.
 
For real time compliance news, you can now follow us on Twitter and Facebook.
Underwriting & Processing Tips
 
Based on some common findings from quality control audits, we have compiled a list of five tips from the month of November.
 
1. Remember that the effective date on the HVCC disclosure(conventional loans only) is 5/1/09.
 
2. Make sure to disclose fees correctly on the GFE. Also make sure that fees are itemized correctly to ensure accurate APR disclosure.
 
3. Remember that initial disclosures must be signed within three business days of initial application date, or an initial disclosure letter must be evident in the file showing that the disclosures were sent to the borrower within three business days.
 
4. The final signed underwriting and closing packages should be obtained from the lender and retained in the file.
 
5. As of 7/30/09, the initial and final TIL must contain the verbiage, “You are not required to complete this agreement merely because you have received these disclosures or signed a loan application.”
 
FHA Update
 
PR 09-215: HUD Announces Restraint in RESPA Enforcement for First Four Months of New Rule
 

 - HUD will exercise restraint in RESPA enforcement for the first four months, for lenders who are showing a good faith effort to comply with the new RESPA requirements. The new RESPA requirements are due to take full effect January 1, 2010. View the entire press release 

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PR 09-216: FHA Proposes New Rules to Strengthen Risk Management
 
Two main parts of proposed rule:
 
 - Strengthen and Streamline Lender Approval. ”While loan correspondents (mortgage brokers) will continue to be able to originate FHA-insured loans through their relationships with approved mortgagees, they will no longer receive independent approval for origination eligibility.”
 
- Strengthen the Capacity of FHA-Approved Mortgagees. Mortgagees must “maintain a minimum of $1 million in net worth within the first year and at least $2.5 million of net worth within three years of the effective date of the rule.” View the entire press release
 
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PR 09-218: HUD Announces New RESPA Outreach Campaign
 
- Announces series of live online presentations to explore RESPA’s new requirements. View the entire press release
  
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 ML 09-46b: Condominium Approval Process for Single Family Housing

 - Replaces ML 09-19, which implements new approval process for condominium projects. Effective for case numbers assigned on or after December 7, 2009. View the entire letter
 

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ML 09-46a: Temporary Guidance for Condominium Policy
 
- Waives five provisions of ML 09-46b and provides temporary guidance for condominium project eligibility, for case numbers assigned on or after December 7, 2009 through December 31, 2010. View the entire letter
 
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ML 09-47: Home Equity Conversion Mortgage (HECM) Counseling Standardization and Roster Final Rule 
 
- Provides guidance to counselors and lenders regarding the HECM Counselor Roster final regulation, which establishes:
 
  • Testing standards to qualify individuals as HECM counselors eligible to provide HECM counseling, and
  • A roster of eligible HECM counselors View the entire letter 

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ML 09-48: Second Appraisal Reporting Requirements

- Eliminates need for a second appraisal on high balance loans in declining markets. Effective immediately. View the entire letter
 
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ML 09-49: Home Equity Conversion Mortgage Program: Subordinate Liens 
 

- Addresses FHA requirements for secured subordinate financing under the HECM Program. View the entire letter  

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ML 09-50: 2010 FHA Maximum Loan Limits
 
- Discusses maximum loan limits for 2010. Conforming limit and FHA floor remain the same as in 2009. View the entire letter
  
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ML 09-51: Adoption of the Appraisal Update and/or Completion Report (Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005)

- FHA adopts Appraisal Update and/or Completion Report. Effective for case number assignments on/after 1/1/10. View the entire letter
 
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To view all HUD Mortgagee Letters for the year, visit HUD’s website.
 
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*We offer FHA, VA, and HECM reference manuals with regulations and policies updated quarterly. For more information, visit our website or call 877-226-3216. 
Fannie Mae Update 
 
Ann. 09-34: Confirmation of Conventional Loan Limits for 2010
  
- General loan limits for 2010 remain unchanged from 2009. View the entire announcement
  
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Notice, dated 11/20/09: Form Updates: Revisions to Forms 1013, 1014, and 1072

- Revises Forms 1013, 1014, and 1072. Effective date to use updated forms is 1/1/10. View the entire notice
 
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Ann. 09-35: Updates to the Home Affordable Modification Program – MBS Mortgage Loans

- Announces updates to policies for reclassification and removal of MBS mortgage loans from MBS pools. View the entire announcement
 
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To view all Fannie Mae Announcements and Letters for the year, visit Fannie Mae’s website.  
Freddie Mac Update 
 
Bulletin 2009-27: Loan Limits, Origination Data and Credit 
 
 - Announces 2010 loan limits. Temporary loan limits in designated high-cost areas and base conforming loan limits remain at 2009 levels.  View the entire bulletin
 
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To view 2009 Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
Get reference manuals for FHA, VA, and HECM.

 
Feel free to call us with any questions, at 877-226-3216. 
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