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Dec
03
2010

MCA Monthly Compliance Update – December 2010

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MCA Monthly Compliance Update

December 2010
In This Issue
End of Year Tips
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services

Lending Manuals
Stay Updated
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Welcome to the MCA Monthly Compliance Update. To help you stay compliant and up-to-date, our newsletters contain compliance tips and updates. We hope that you find the content informative and useful. As always, your feedback is appreciated.

Happy Holidays!Happy Holidays!
Our next free webinar will be on January 20


We have posted the slides from last month’s webinar on our website.


You can find slides from every webinar on our website under the News & Resources tab.


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Have a suggestion for a webinar topic? Email us.


Join our free monthly webinar “Common Compliance Findings of 2010 & How to Prevent Them.”


Jan 2010 webinar

Learn about common audit findings and tips to prevent them.


Join our free webinar on Thursday, January 20 at 12:00 p.m. MST.


Reserve your webinar seat now at:


Register Now




https://www1.gotomeeting.com/register/681262872

Join us for a free webinar on January 20, where we will look at all our quality control audit findings from all companies in the year 2010 and break it down into useful information for your company. We’ll see what the common trends were and alert you to negative trends we are seeing in the marketplace. We will also share helpful tips on how you can reduce the number of findings in your next quality control audit. We encourage you to submit questions for our panelists in the box below and also during the Q&A session at the end of the webinar.


  • Common findings from all companies’ QC audits in 2010
  • Negative trends in the marketplace
  • Tips to reduce your findings
  • Q&A session


(*You will receive a link to the SLIDES in a reminder email sent ONE HOUR before the webinar starts.)


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For real time compliance news, you can now follow us on Twitter and Facebook.



www.MortgageComplianceAdvisors.com
End of Year Tips

Tips for Wrapping up the Year

Since we had no additional questions from our last webinar, this month we thought we’d include some tips to end your year well. Read the full article.


December is a good time to conduct an internal review of all policies and procedures to ensure that you are compliant with company polices. By doing this in December, you can start the New Year knowing you are compliant. Below are some suggestions of what you should review:


  • Review your QC plan and process

    • Review your quality control plan and process to assure it contains all the required components.  Also, review your QC process to ensure your company is following the plan and that the QC plan is adequate for your business.

  • Review the implementation of your Red Flags Policy
    • The FTC’s Red Flags Rule went into effect in 2008 but the enforcement date is December 31, 2010. If you have a Red Flag program in place, you are required to review it annually and make any necessary changes.

  • Get ready to submit your HMDA
    • HMDA annual submission is due March 1. Ensure that your information is correct so there will be no delays in submitting your report on time.  *Read the rest on our website…
HUD/FHA Update

ML 2010-37: HECM Program: Clarification of Policies Regarding the Requirement that HECM Lenders Provide Prospective HECM Borrowers with a List of HECM Counseling Agencies


- Clarifies HECM requirement to provide borrower with list of HECM counseling agencies. View the entire letter


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- Clarifies eligibility requirements for annual certification

  • Clarification of term “unresolved findings”
  • Definition of a corporate officer
  • Properly notifying HUD of business and address changes
  • Timeframes associated with criminal activity
  • Clarification of compliance with SAFE Act
  • Reminder of annual recertification requirements
  • Guidance on completing electronic annual certification
  • New info to mortgagees unable to certify


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- Introduces revised HECM – HUD-1 closing certification. For all HECM case numbers assigned on or after 12/1/10. View the entire letter


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- Announces 2011 FHA single-family loan limits. View the entire letter


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To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update

*To view a Fannie Mae announcement, visit https://www.efanniemae.com/sf/guides/index.jsp. Click “2010” on the right, under “Announcements and Lender Letters.” You will then have access to all 2010 announcements.


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- Florida: Announces that servicers may not refer any future Fannie Mae matters to the Law Offices of David J. Stern, P.A. (the “Stern Firm”).  Announcement on eFannieMae.com


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- Announces 2011 conventional loan limits.  Announcement on eFannieMae.com


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- Announces that Fannie Mae will continue to accept hazard insurance coverage from State Farm Florida Insurance, retroactive to 8/3/10.  Announcement on eFannieMae.com


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- Updates and clarifies several policies, including:

  • Unique hardships policy for problem drywall
  • Termination of option to submit manually prepared reports
  • Delivery of repurchased loans


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- To manage Florida pre-filing mediation, all parties must use Clarifire application.  Announcement on eFannieMae.com


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- Announces new energy improvement feature as standard offering available to all lenders, as well as other related updates.  Announcement on eFannieMae.com


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- Updates Selling Guide, including:

  • Project eligibility requirements and resources
  • Income documentation
  • Community HomeChoice, Community Solutions, and MyCommunityMortgage
  • PACE loan programs
  • Misc. updates


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To view all Fannie Mae Announcements and Letters for the year, visit
Freddie Mac Update

*To view a Freddie Mac announcement, visit http://www.freddiemac.com/sell/guide/. The bulletins and industry letters are on the right.


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- Announces changes to servicing requirements and additional guidance on HAMP

  • Designated counsel may request Note directly from document custodian in foreclosure actions
  • Guidance on late charges associated with forbearance agreements and repayment plans
  • Modified mortgage must be fully amortizing fixed-rate mortgage
  • Updated contact information for servicers to notify Freddie Mac that conversion option has been exercised for convertible ARM


Bulletin on FreddieMac.com



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- Announces that Freddie Mac is maintaining temporary loan limits in designated high-cost areas at 2010 levels through 9/30/11, and base loan limits will remain at 2010 levels.  Bulletin on FreddieMac.com



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- Announces new pooling option for super conforming mortgages
- Announces improvements to Selling System
- Reminds Sellers that Notes may not be endorsed by using stickers




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- Revises postsettlement delivery fees, effective 3/1/11.  Bulletin on FreddieMac.com



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To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
VA Update


- Announces transfer of some functions from The Appraisal System (TAS) to WebLGY, so that all functions of loan origination will be performed through one application.  View the entire circular


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To view VA Circular/News for 2010, visit the VA website.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

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One Response to “MCA Monthly Compliance Update – December 2010”

  1. Read our MCA Monthly Compliance Update, including Year End Tips and info about our next webinar. says:
    December 3, 2010 at 6:48 pm

    [...] Dec 3 – Read our MCA Monthly Compliance Update, including Year End Tips and info about our next webinar. Read more [...]

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  • May 16 - Freddie Mac updates selling requirements on SSN validation, Relief Refinance Mortgages, and more. FreddieMac.com
  • May 16 - Fannie Mae updates Selling Guide to include changes to DU Refi Plus, HHF, mortgage loan policy, and more. eFannieMae.com
  • May 9 - Fannie Mae provides new document custodian requirements regarding compliance audits and certification practices. eFannieMae.com
  • May 7 - Read MCA's May newsletter for the latest compliance updates and tips. MCA.com
  • May 2 - HUD revises High Cost Areas for 2012 and Annual Base City High Cost Percentage. HUD.gov