- Franklin Loan Corp, a southern California lender, was fined $730,000 by the CFPB for violating the LO Compensation Rule. Click here to read the fu (posted: Tuesday Nov 18, 2014)
CFPB Finalizes Minor Changes to Mortgage Rules to Ensure Access to Credit. For more information click here.(posted: Wednesday Oct 22, 2014)
- MCA and MetaSource will be exhibiting at the MBA Expo in Las Vegas, booth #925. For more info click here. (posted: Friday Oct 17, 2014)
- MCA offers a free webinar on October 17, outlining the new 2014 and existing MERS QC requirements. Click here to register for the webinar. (posted: Tuesday Oct 7, 2014)
- Fannie Mae has released a QC Vendor Management Sample Documents Tool to help lenders be compliant with the Fannie rule that you must audit 10% of your QC vendors audits. It can be found on the Fannie Mae Loan Quality page under Other (posted: Tuesday Oct 7, 2014)
- Aug. 8 - MetaSource announced today that it has acquired Mortgage Compliance Advisors (MCA). View official press release here. (posted: Friday Aug 8, 2014)
- Jul. 24 - We've got some great events on the calendar for the upcoming months. Stay tuned for MCA webinar dates! (posted: Thursday Jul 24, 2014)
- Jun. 17 - Read this month's newsletter edition for the latest in compliance news and updates. Read Here (posted: Tuesday Jun 17, 2014)
- Jun. 13 - Looking for mortgage compliance news and updates? We've got you covered - check out our News & Resources page here. (posted: Friday Jun 13, 2014)
- May 15 - Download a copy of our recent webinar presentation here! (posted: Thursday May 15, 2014)
Click on the links below to quickly jump to the information you need.
MCA Newsletters | HUD/FHA | Fannie Mae | Freddie Mac | VA | CFPB |
View 2014 MCA Webinars
- Essentials of a Compliant QC Plan: Part II
- Essentials of a Compliant QC Plan: Part I
- How To Comply: 2014 Regulations
- How To Comply: 2014 QC Plan Requirements
- How To Comply: 2014 MERS QA Standards
Our free monthly newsletter, the MCA Monthly Compliance Update, includes compliance updates and notifications of upcoming webinars.
2014 Newsletters -
- January 2014
- February 2014
- March 2014
- April 2014
- May 2014
- June 2014
- July 2014
- August 2014
- September 2014
- October 2014
- November 2014
HUD Mortgagee Letters http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm
2014 Mortgagee Letters
The purpose of this Mortgagee Letter is to announce the implementation of a change in the collection process for Section 232 Program fees for all Section 232 insured projects. Section 232 mortgage insurance is available on mortgages that finance residential healthcare facilities, such as nursing homes, assisted living facilities and board and care facilities.
To introduce HUD’s new loan servicing contractor, Novad Management Consulting, and provide the contractor’s mailing address and contact information.
This Mortgagee Letter supersedes HUD’s underwriting standards for large multifamily loans (Mortgagee Letter 2011-40 and Mortgagee Letter 2014-04), above $25 million and/or which support projects exceeding unit thresholds.
This Mortgagee Letter (ML) announces an extension of the temporary condominium project approval guidelines issued in ML 2012-18 to allow time for completion of the condominium rulemaking process.
- HUD provides guidance on the retention of foreclosure-related documents (stored electronically) in servicing files; extends the retention period to at least seven years after the life of an FHA-insured mortgage.
- HUD sets forth policies on Pre-Foreclosure Sales and Deed in Lieu transactions.
- HUD provides revisions for 2014 Annual Base City High Cost Percentage and High Cost Area.
- HUD requires mortgagees requesting voluntary termination of FHA mortgage insurance to obtain a signed Borrower’s Consent to Voluntary Termination of FHA Mortgage Insurance from each borrower on the mortgage.
- HUD announces new HECM Principal Limit Factors.
- HUD uses the authority granted in Sections 202(a) and 255(c) of the National Housing Act and in the Reverse Mortgage Stabilization Act of 2013 to amend FHA’s HECM program to mortgages with the Single Disbursement Lump Sum payment option.
Mortgagee Letter 2014-10: Home Equity Conversion Mortgage (HECM) Program – Prohibition on Misleading or Deceptive Program Descriptions or Advertising and Prohibition on Restriction of Mortgagor’s Freedom of Choice
- HUD reminds mortgagees of the full extent of mortgagor choice in the HECM and prohibits the restriction of such choice.
- HUD informs lenders about changes to FHA’s systems that alter the way lenders execute post-approval updates and complete FHA’s annual recertification process.
- HUD clarifies whether nonprofit organizations assisting with a government’s entity secondary financing program require HUD approval and placement on the Nonprofit Organization Roster.
- HUD uses the authority granted in the Reverse Mortgage Stabilization Act of 2013 to amend the FHA’s HECM program regulations and requirements concerning due and payable status where there is a Non-Borrowing Spouse at the time of the loan closing.
- HUD addresses and implements policies regarding portfolio applications and master leases (as they relate to the Section 232 Program).
- HUD updates the Lender application submission templates for mortgage insurance under the FHA’s multifamily housing program.
- HUD updates underwriting standards for large multifamily loans.
- FHA will accept electronic signatures on documents requiring for mortgage insurance, servicing and loss mitigation, and insurance claim documentation.
- This ML provides policy guidance for revised manual underwriting requirements.
- Notifies mortgagees that HUD-PA-426, “How To Avoid Foreclosure”, brochure has been replaced.
HUD Housing Handbooks
RESPA information, FAQs, etc.
HUD Press Releases
Neighborhood Watch: Early Warning System (Check your compare ratio of defaults, etc.)
HUD Webcast Schedule
FHA Final Rule regarding strengthening risk management
Lender Announcement and Letters www.fanniemae.com
2014 Lender Letters and Selling Guide Updates
The Selling Guide states that a mortgage loan that is subject to the Home Ownership and Equity Protection Act of 1994 (HOEPA), as described in Section 32 of Regulation Z, is not eligible for delivery to Fannie Mae.
Pursuant to the Financial Crimes Enforcement Network’s (FinCEN) Final Rule effective April 28, 2014, Fannie Mae is defined as a “financial institution” under the Bank Secrecy Act (BSA). As a result, Fannie Mae must implement a formal anti-money laundering (AML) program, and begin filing Suspicious Activity Reports (SARs) with FinCEN, by August 25, 2014.
Under the direction of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac have worked with approved mortgage insurers to update their master primary policies and related endorsements and other forms (Forms). Most Forms had not been updated in approximately 20 years.
With this Announcement, Fannie Mae, jointly with Freddie Mac and at the direction of the Federal Housing Finance Agency, is announcing a number of significant enhancements to the selling representations and warranties framework introduced in Announcement SEL – 2012 – 08.
As a result of lender inquiries and after consultation with the Federal Housing Finance Agency, Fannie Mae is updating its policy requirements relating to the treatment of unemployment benefits for DU Refi Plus and Refi Plus mortgage loans
- Fannie Mae updates guidance regarding the treatment of vacant properties in the city of Chicago.
This Lender Letter is being issued in response to a Federal Housing Finance Agency directive to Fannie Mae to provide a number of clarifications regarding property and appraisal requirements for properties in small towns and rural areas.
Fannie Mae is revising its policy concerning priority of common expense assessments for mortgages secured by units in condo and planned unit development (PUD) projects to permit no more than six months of regularcommon expense assessments to have priority over Fannie Mae’s mortgage lien.
- Fannie Mae has approved the acquisition of CMG Mortgage Insurance Company and its affiliates by Arch U.S. MI holdings, Inc.
2014 Servicing Guide Announcements
- Policy updates regarding execution of legal documents, loan modification agreements, and assumption agreements.
- Updated document preparation requirements for Mortgage Releases.
- Clarification of streamlined modifications and modification eligibility.
- Policy for conduct of foreclosure proceedings and delinquency status code definitions.
- Redesigned Servicing Guide is presented in a way that assumes users will access it electronically.
- Fannie Mae updates project insurance requirements for PUDs, condos, and co-ops.
- Fannie Mae discusses the upcoming modification interest rate adjustment as well as updates to several Fannie Mae forms.
- Fannie Mae clarifies policy updates for documenting military indulgence relief requests, submitting financial statements and reports, and more.
- Fannie Mae announces enhancements to its selling representations and warranties framework in Announcement SEL-2014-05.
- Fannie Mae introduces a new loan modification program for Detroit, Michigan – MyCity Modification – as part of the Neighborhood Stabilization Initiative recently announced by the FHFA. The program’s purpose is to help neighborhoods recover from the housing crisis and to assist struggling homeowners.
- Pursuant to FinCEN’s Final Rule (effective April 28, 2014), Fannie Mae must implement a formal anti-money laundering (AML) program and begin filing Suspicious Activity Reports (SARs) with FinCEN by August 25, 2014. Fannie Mae now requires servicers to adhere to the following: be in compliance with all applicable provisions of the BSA and its implementing regulations, report all instances of non-compliance; develop internal policies and controls to identify suspicious activities that may involve money laundering, fraud, terrorist financing, or other financial crimes.
- Fannie Mae allows servicers to approve borrowers for the Fannie Mae Unemployment Forbearance program, as well as for Unemployment extensions (provided that specific requirements are met).
- In conjunction with FHLMC and FHFA, Fannie Mae announces short sale and mortgage release policy updates and clarifications.
- Fannie Mae announces the publication of the 2014 Reverse Mortgage Loan Servicing Manual (Reverse Manual).
- Fannie Mae administers several updates for its servicing policies which include calculating the repurchase price on negative amortization loans, stay of foreclosure and other legal proceedings, and more.
- Fannie Mae updates several delinquency management and default prevention servicing policies.
- Fannie Mae updates guidance for submitting lender-placed insurance certification to Fannie Mae.
- Fannie Mae updates the modification terms for mortgage loan with pre-modified mark-to-market LTV ratios less than 80%.
- The Allowable Attorney and Trustee Foreclosure Fees exhibit on Fannie Mae’s website is updated to reflect changes in the maximum allowable foreclosure attorney fees for properties in the state of New York.
- Effective May 1, 2014, Fannie Mae will begin issuing warning letters and assessing compensatory fees for late and inaccurate reporting.
- Fannie Mae clarifies and updates policies regarding individual mortgage loan files, servicing quality control reviews, final requests for reimbursement, attorney expenses, and transfer of variances and waivers.
- Fannie Mae reviews the Standard Modification Interest Rate and may adjust it based on market conditions.
- This announcement updates servicer incentive fees for repayment plans, short sales, and mortgage releases.
- This announcement updates servicing policy on handling overcharges for special ARMs, accepting bankruptcy schedules of assets and liabilities in a Borrower Response Package, and more.
- Fannie Mae updates requirements for borrower notification of the interest rate adjustment for a mortgage loan that has been modified and is subject to interest rate adjustments, including Fannie Mae HAMP modifications.
- Servicers are reminded for loan modifications that they must obtain a property valuation using Fannie Mae’s Automated Property Service (APS for NPV), Freddie Mac’s Automated Valuation Model (AVM), or a third-party AVM.
Fannie Mae Selling Guide
Fannie Mae Selling & Servicing Guide Forms
Form 4506-T Lender Tips
Freddie Mac Single-Family Seller/Servicer Guide Bulletins and Industry Letters
2014 Letters and Notices
- Updates mortgage eligibility and credit underwriting requirements for Home Possible Mortgages, Higher-Priced Covered Transactions (HPCTs), and Higher-Priced Mortgage Loans (HPMLs).
- Revises property eligibility requirements for condominiums and updates certain property and appraisal requirements.
- Freddie Mac updates its servicing requirements regarding streamlined modification eligibility requirements, Loan modification eligibility exclusion expense offset that result in receivables to Freddie Mac.
- Freddie Mac updates its servicing requirements regarding alternative to foreclosure and alternatives to foreclosure.
- Freddie Mac updates its servicing requirements regarding alternative to foreclosure, amendment of mortgage modification signature, transfer of ownership and assumption, and more.
- Freddie Mac announces the effective date and requirements for the new private mortgage insurance policies announced in the FHFA press release on December 2, 2013.
- Freddie Mac updates and revises its selling and servicing requirements regarding MERS requirements, fraud training and reporting, verification of large deposits, and more.
- Freddie Mac introduces its MyCity Modification, a temporary offering designed specifically to assist eligible Borrowers whose mortgage premises are located in the city of Detroit, Michigan.
- Freddie Mac updates and revises its servicing requirements, which includes requirements for Freddie Mac Standard Short Sales and Standard Deeds-In-Lieu of Foreclosure, and more.
- Freddie Mac updates and revises its servicing requirements, which includes foreclosure requirements, expense reimbursement requirements, and more.
- Freddie Mac makes several significant enhancements to the selling representation and warranty framework introduced in 2012. Changes include how a mortgage becomes eligible for relief, and more.
- Freddie Mac implements new updates regarding the treatment of vacant properties in Chicago, Illinois.
- Freddie Mac updates its selling and servicing requirements to add specificity regarding Document Custodian functions, new guide-related enhancements reminding Sellers/Servicers of existing resources for Freddie Mac news, and more.
- This Bulletin has been issued in response to a Federal Housing Finance Agency directive to Freddie Mac to provide certain clarifications and guidance regarding property and appraisal requirements for properties located in rural market areas.
- This Bulletin announces revisions to its modification requirements, includes changes to processing requirements and more.
- Freddie Mac updates and revises its Servicing requirements.
- Freddie Mac announces update to Guide Form 16SF, Annual Eligibility Certification Report, to enhance its usability and provide additional functionality. Also, this Bulletin revises its requirements for reimbursement of condominium, HOA and Planned Unit Development (PUD) assessments.
- Freddie Mac updates and revises its Servicing requirements including step-rate mortgages, foreclosures, third-party use of Workout Prospector and BPOdirect, and Electronic Default Reporting Requirements.
Freddie Mac Resources for Sellers/Services (including news and Seller/Servicer Guide)
Freddie Mac Forms and Electronic Documents
2014 Letters and Notices
Circular 26-14-34 – October 29, 2014: Annual Increase in Construction Cost Index and Specially Adapted Housing (SAH), Special Housing Adaptations (SHA), and Temporary Residence Adaptations (TRA) Grants
- This circular’s purpose is to extend the rescission date of the basic circular so that stations continue to provide guidance on VA’s position with respect to procedure.
- This circular provides clarification on the minimum requirements for VA guaranteed home loans with regard to securing of the property and fees that will be reimbursed by VA for those services in a claim under the loan guaranty.
- Effective June 1, 2014, this circular announces all VA appraisals will be processed in WebLGY under the VA Appraisal Management System (AMS).
- This circular clarifies VA policy on the treatment of unallowable fees when lenders charge a loan origination fee that is less than one percent of the loan amount purchase on cash transactions, and less than one percent of the payoff amount on interest rate reduction refinance loans.
- This circular announces the new mandatory stacking order for files selected for VA full file loan review, effective May 1, 2014.
- Effective immediately, VA Fee Appraisers may use Freddie Mac Form 442 or Fannie Mae Form 1004D Part B.
- This circular reaffirms VA policy that all properties must meet VA minimum property requirements (MPRs) prior to VA loan guaranty.
- This circular provides clarification of the VA policy for individual properties with rainwater catchment systems that serve as collateral for a VA home loan in the State of Hawaii.
- The purpose of this circular is to provide the mailing address for the recently formed Contract Assurance Unit.
- This circular clarifies lender requirements for home loans guaranteed by the VA under TILA and the CFPB’s ATR and QM Rule.
VA Lender’s Handbook, circulars, etc.
CFPB Press Releases
QM/ATR, HOEPA, LO Comp, ECOA Valuations, Servicing
TILA/RESPA Integrated Disclosure Rule