MCA Monthly Update
September 2010 |
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| Stay Updated |
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Connect with us:
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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.
Join our free monthly webinar “Revisiting the GFE: How to Resolve Common Findings.”
An in depth review of the GFE and how to prevent common errors.
Join our webinar on Thursday, September 23 at 12:00 p.m. MDT.
Reserve your webinar seat now at:
We continue to see GFE mistakes as one of the top findings in the quality control audits we perform. As a result of these continued findings, we felt further training on the GFE would be helpful. We will conduct an in-depth review of correctly completing the GFE. In addition, we will review the most common GFE mistakes we find and discuss how to proactively prevent these mistakes from occurring.
We are always happy to hear from you and encourage you to submit your questions to info@mortgagecomplianceadvisors.com.
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For real time compliance news, you can now follow us on Twitter and Facebook.
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| Federal Reserve’s Final Rules |
The Federal Reserve published final rules to protect mortgage borrowers from various unfair practices that can arise from originator compensation practices. The rules go into effect April 1, 2011. Some of these changes include:
- Prohibiting payments to the loan originator that are based on the loan’s interest rate or other terms.
- Prohibiting a mortgage broker or loan officer from receiving payments directly from a consumer while also receiving compensation from the creditor or another person…
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| Webinar Questions and Answers |
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We want to thank everyone who attended our webinar: “Understanding How the LQI Affects You.” As promised, we have posted the slides and answers to the questions asked.
Question 1 – We are a lender who funds our own loans and sells them to investors after closing. Should the Pre funding audit take place PRIOR to closing and us funding the loan at the closing table or should that take place after closing prior to shipping to an investor?
- Answer – The pre-funding audit can really occur at any time in the process. However, pre-funding is the best time, as you will have all the signed final documents to review. If you were to review the file prior to closing, you would be missing critical documents to review. While there are no rules against pre-closing audits, we do not recommend it.
Question 2 - Are SSA-89 the SSN validation required by FNMA or only if there are inconsistencies and flags?
Question 3 – We utilize a Mortgage Lock in Agreement as our intent to proceed. Does this seem sufficient to you, or do you recommend some other means of intent?
- Answer – HUD/RESPA does not give specific guidance on how to comply with this rule. However, MCA recommends a separate specific disclosure to make sure there are no questions regarding your borrower’s intentions.
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| HUD/FHA Update |
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- Provides guidance regarding enhancements to FHA’s refinance program for underwater borrowers. View the entire letter
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- Eliminates unlimited CLTV ratio and returns FHA to its former CLTV limit for case numbers assigned on or after September 7, 2010. View the entire letter
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- Provides processing instructions and guidance to issue Mortgage Insurance for refinancing Cooperative Housing Projects under Section 207 pursuant to Section 223 (f) of the National Housing Act. View the entire letter
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- For Multifamily Mortgagees: Provides guidance on ML 08-19 regarding deferring submission of final architectural plans… View the entire letter
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- For Multifamily Mortgagees: Renews policy for eligibility of projects where construction has started. View the entire letter
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- Raises annual FHA premium and lowers upfront premium, except for HECMs. Effective for case numbers assigned on or after October 4, 2010. View the entire letter
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- Introduces new minimum credit scores and LTV ratio requirements for FHA loans. Effective for case numbers assigned on or after October 4, 2010. 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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| Fannie Mae Update |
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- Updates the Selling Guide regarding the following topics:
- Mortgage loans secured by properties subject to unexpired redemption periods
- Delivery of repurchased loans
- General warranty of project eligibility
- Seasoned mortgage loan requirements
- Co-op share loan documentation
- Termination of inactive document custodians
- Title Insurance ALTA Endorsement 21-06
- Miscellaneous Selling Guide updates
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- Updates requirements for undisclosed liabilities and re-underwriting.
- Also clarifies that lender is not required to obtain a new credit report to verify additional debt.
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- Identifies “Unique Hardships” that warrant use of relief provisions for borrowers impacted by unusual circumstances that create financial hardship. View the entire announcement
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- Announces new requirements for lenders regarding borrowers who obtained Property Assessed Clean Energy (PACE) loans before July 6, 2010. View the entire announcement
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- Revises foreclosure time frames for FL, MD, NV, and NY. Fannie Mae also reserves right to impose compensatory fees for breach of servicing obligations. View the entire announcement
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- Announces that servicers must assign delinquent Florida mortgages to a FNMA attorney for mediation before initiating foreclosure proceedings. View the entire announcement
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To view all Fannie Mae Announcements and Letters for the year, visit
Fannie Mae’s website.
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| Freddie Mac Update |
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- Makes changes to selling requirements, including providing guidance on 2010 median income changes, revising underwriting requirements regarding inquiries on borrower’s credit report, etc. View the entire bulletin
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- Provides guidance regarding Freddie Mac’s purchase of mortgages with a Property Assessed Clean Energy (PACE) obligation. View the entire bulletin
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| VA Update |
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To view VA Circular/News for 2010, visit the VA website.
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Feel free to call us with any questions at 877-226-3216.
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Tags: Common GFE Errors, fannie mae news, fannie mae update, Federal Reserve Compensation, Federal Reserve Final Rules, Federal Reserve Steering, fha news, fha update, freddie mac news, freddie mac update, GFE review, gfe webinar, good faith estimate, hud news, hud update, Mortgage Compliance, mortgage compliance update, mortgage compliance webinar, mortgage QC, Mortgage Quality Control, VA circular change
