*Get these news updates on Twitter and Facebook as well.
- Feb. 3 - Read our February newsletter for the latest compliance tips and updates. MCA.com (posted: Friday Feb 3, 2012)
- Feb. 1 - Freddie Mac announces updates to ULDD. FreddieMac.com (posted: Wednesday Feb 1, 2012)
- Feb. 1 - Fannie Mae updates Selling Guide to include a few changes. eFannieMae.com (posted: Wednesday Feb 1, 2012)
- Jan. 30 - VA announces 2012 county loan limits. VA.gov (posted: Monday Jan 30, 2012)
- Jan. 19 - The VA extends rescission date on basic circular 26-09-15. VA.gov (posted: Thursday Jan 19, 2012)
- Jan. 19 - The VA extends the rescission date on basic circular 26-09-12. VA.gov (posted: Thursday Jan 19, 2012)
- Jan. 17 - The VA extends the rescission date on basic circular 26-08-5. VA.gov (posted: Tuesday Jan 17, 2012)
- Jan. 17 - The VA extends the rescission date on basic circular 26-09-4. VA.gov (posted: Tuesday Jan 17, 2012)
- Jan. 17 - The VA extends the rescission date for basic circular 26-09-3. VA.gov (posted: Tuesday Jan 17, 2012)
- Jan. 12 - Fannie Mae announces attorney fee updates. eFannieMae.com (posted: Thursday Jan 12, 2012)
Past MCA Newsletters | HUD/FHA | Fannie Mae | Freddie Mac | VA | Federal Reserve | FTC
Webinars
December 2011 Webinar: “Looking Back & Planning Ahead”
September 2011 Webinar: “GFE Compliance – Part 2″
August 2011 Webinar: “QC Findings Are Done…Now What?”
June 2011 Webinar: “GFE Compliance”
May 2011 Webinar: “Making the Most of Your QC Data”
April 2011 Webinar: “Evaluating Your Appraisal”
March 2011 Webinar: “Compliance Q&A Webinar”
February 2011 Webinar: “Essentials of a Compliant QC Plan”
January 2011 Webinar: “Common Compliance Findings of 2010 & How to Prevent Them”
November 2010 Webinar: “Reviewing Red Flags of Fraud”
October 2010 Webinar: “Managing the Year of Change”
September 2010 Webinar: “Revisiting the GFE: How to Resolve Common Findings”
August 2010 Webinar: “We have a QC Plan… Now what?”
July 2010 Webinar: “Understanding How The LQI Affects You”
June 2010 Webinar: “Common Compliance Findings and How to Prevent Them”
May 2010 Webinar: “Red Flags of Fraud”
April 2010 Webinar: “Managing Your Early Payment Default Risk”
March 2010 Webinar: “Continuing to Make Sense of the New GFE: A More in Depth Look”
February 2010 Webinar: “Making Sense of the New GFE”
Past Newsletters: MCA Monthly Compliance Update
Sign up for our free monthly newsletter, the MCA Monthly Compliance Update, including compliance updates and notifications of upcoming webinars.
- 2012 Newsletters
HUD Mortgagee Letters http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/index.cfm
ML 2011-40: Large Loan Risk Mitigation Policies
This Mortgagee Letter supplements risk management guidance set forth in Notice H 2010-11, Mortgagee Letter 2010-21 and Notice H 2010-13. This Mortgagee Letter addresses:
- Increased risks to the insurance fund presented by loans above $25 million in size and/or,
- Which support projects in excess of 150 housing units or,
- By loans and projects sized at certain higher thresholds, depending on the insurance program
- Underwriting standards applicable to such loans regarding Debt Service Coverage Ratio (DSCR), Loan to Cost Ratio (LTCR), Loan to Value Ratio (LTVR), funding for Initial Operating Deficit (IOD), and Debt Service Reserve (DSR)
- In addition to other underwriting and credit requirements for such loans
- Provides update to FHA’s single-family loan limits, and loan limits for Home Equity Conversion Mortgages (HECMs).
ML 2011-38: Secondary Financing Eligibility Requirements for IRC Section 115 Nonprofits
- Announces that on a temporary basis nonprofit instrumentalities of government eligible for approval by FHA will be allowed to include entities whose income is excluded from Federal taxation under section 115 of the IRC of 1986. ML 2009-38 is no longer in effect and is superseded, in its entirety, by this letter.
- Revises the implementation and reporting dates associated with Mortgagee Letter 2011-28. The revised implementation and reporting date is January 1, 2012 and February 1, 2012, respectively.
- Amends guidance provided in ML 1994-02 Secondary Financing Provided by Nonprofit Agencies and Transferability Restrictions Permitted for Property with a HUD Insured Mortgage; this required the local HUD office to obtain approval from HUD Headquarters for approval of affordable housing programs with borrowers whose household income exceeds 115 percent of the AMI.
- Offers clarification on Annual Mortgage Insurance Premiums for loans with amortization terms of 15 years or less and an LTV of 78 percent or less at origination.
ML 2011-34: Revised Lender Approval Requirements
- Notifies FHA approved lenders and applicants of requirement changes for obtaining, maintaining and utilizing FHA lender approval.
ML 2011-33: Mortgage Record Changes and Data Reconciliation
- Announces that FHA approved Holders and Servicers will be sanctioned for failure to report Mortgage Record Changes.
- Offers guidance regarding commercial income in the calculation of the maximum insurable mortgage.
- Provides guidance to counselors and lenders regarding revisions to HUD form 92902, HECM Counseling Certificate, and more.
ML 2011-30: The Uniform Appraisal Dataset (UAD) and Appraisal Reporting Forms
- FHA will adopt the Uniform Appraisal Dataset and two of the compliant appraisal reporting forms. Necessary data system changes must be assumed on or after January 1, 2012.
- Notification of FHA’s single family housing loan limits for Forward Mortgages and HECMs. Loan limits will become effective beginning October 1, 2011 through December 31, 2011.
- Identifies the circumstances under which mortgagors must successfully complete a trial payment plan under FHA’s Loss Mitigation Program.
- Amendment to the AIA Document B108 has been updated and will replace the retired B181-1994.
- Provides guidance to counseling agencies, HECM counselors, and lenders regarding HUD-approved intermediaries
- Advises supervised lenders and mortgagees with consolidated assets below audited financial reporting thresholds of changes to FHA requirements regarding submission of audited financial statements
ML 2011-24: Annual Base City High Cost Percentage and High Cost Area Revisions for 2011
- Designates Annual Base City High Cost Percentages and High Cost Areas, effective 1/1/11.
ML 2011-23: Unemployment Special Forbearance: Temporary Program Changes and Clarifications
- Temporarily amends Type I special forbearance program for unemployed borrowers.
- Updates requirements and procedures of Condominium Approval Process.
- Revises instructions for preparing ALTA/ACSM Land Title Survey for Multifamily programs.
ML 2011-20: Termination of the HOPE for Homeowners (H4H) Program
- Provides instructions on how to process cases during phasing out of HOPE for Homeowners (H4H) program
- Provides FHA guidance regarding financing of homebuyer transaction costs for homebuyers who acquire HUD REO single-family properties under $100 down sales incentive
- Homebuyer acquisition costs that may be financed for eligible homebuyers are limited to UFMIP
- Removes the 1% origination fee cap from 203(k) Rehabilitation Mortgage Insurance Program
- Clarifies that supplemental origination fee under this program is not affected
ML 2011-17: Use of HUD/FHA Logo, Name and Acronym in Advertising
- Explains requirements regarding use of official logos and names of HUD and FHA.
- Rescinds ML 2008-38 “Borrower’s recourse for repayment of HECM debt”. (New guidance will be issued in future.)
ML 2011-15: Revision to Procedures for Partial Payment of Claims of Section 232 Mortgages
- For Multifamily Mortgagees: Addresses and implements policies with respect to Partial Payments of Claim (PPC) as they relate to the Section 232 program.
ML 2011-14: Subordination, Non-Disturbance and Attornment Agreements
- For Multifamily Mortgagees: Provides guidance on use of Subordination, Non-Disturbance and Attornment Agreements (SNDA) for commercial leases in certain FHA insured projects…
- For Multifamily Mortgagees: Extends temporary authority from ML 2010-21 until February 17, 2012.
ML 2011-12: Tier Ranking Scores – Incentive Round 42
- Announces FHA servicing lenders’ tier rankings for Round 42.
ML 2011-11: FHA Refinance Transactions
- Clarifies and updates existing guidance about FHA refinance transactions.
ML 2011-10: Annual Mortgage Insurance Premium Changes and Guidance on Case Numbers
- Introduces 25 basis point increase to Annual Mortgage Insurance Premiums, effective 4/18/11
- Provides guidance on validity period of case numbers and new requirements for requesting them
- Provides guidance to counselors and lenders regarding
- When HECM counseling fee should be waived
- Activities performed by HECM counselor that are included in amount of time recorded on form HUD-92902
- Allowing agencies to establish counseling fees based on certain criteria
- Announces that FHA Single Family Claim remittances must be done through pay.gov. Effective 4/14/11.
ML 2011-07: Elimination of the Master Appraisal Report (MAR)
- Eliminates Master Appraisal Report (MAR) and retires several forms.
- Provides guidance on claim process for FHA refinances of borrowers in negative equity positions
- Announces changes to the annual audited financial statement reporting requirements for lenders in parent-subsidiary structures
- Announces new requirements for reporting loan fees for participants in FHA Multifamily Programs
ML 2011-04: FHA Capture of Nationwide Mortgage Licensing System and Registry (NMLS) Information
- Announces that HUD will begin collecting NMLS information from entities that originate FHA loans.
ML 2011-03: Extension of Temporary Guidance for Condominium Policy
- Announces extension of temporary condo policy guidance issued in ML 2009-46 A.
ML 2011-02: Quality Control Requirements for Direct Endorsement Lenders
Clarifies FHA’s quality control requirements in light of changes to lender eligibility criteria:
- All FHA-approved mortgagees must perform quality control reviews of their Sponsored Third Party Originators
- Mortgagees can determine the appropriate sample amount of loans for those reviews (such as 10% of all loans)
- All Early Payment Defaults (EPDs) still need to be reviewed
- Must be reviewed within 45 days from the end of the month the loan is reported as 60 days past due
- Rejected applications still need to be reviewed
- Must be reviewed within 90 days from the end of the month in which the decision was made
ML 2011-01: Home Equity Conversion Mortgage Property Charge Loss Mitigation
- Provides loss mitigation guidance for HECMs that are delinquent due to unpaid property charges…
HUD Housing Handbooks
HUD Forms
RESPA information, FAQs, etc.
FHA Connection
HUD Press Releases
Neighborhood Watch: Early Warning System (Check your compare ratio of defaults, etc.)
HUD Single Family Events and Training (many are free)
HUD Webcast Schedule
FHA Final Rule regarding strengthening risk management
2011 Fannie Mae Lender Announcements and Letters https://www.efanniemae.com/sf/guides/ssg/2011annlenltr.jsp
Loan Quality Initiative (LQI) https://www.efanniemae.com/sf/lqi/index.jsp
SEL-2012-01: Selling Guide Updates
- The Selling Guide has been updated to include changes to Construction-to-Permanent Financing, Part D Ensuring Quality Control, and Miscellaneous Selling Guide Updates.
SVC-2012-02: Attorney Fee Updates
- In this announcement, Fannie Mae describes updates to the following:
- Maximum Allowable Pre-foreclosure Mediation Fees in Florida
- Maximum Allowable Foreclosure Attorney Fees for the States of Hawaii, Iowa, Kentucky, Louisiana, New Mexico, North Dakota, Oklahoma, South Dakota, and Wisconsin
SVC-2012-01: Introduction of Fannie Mae Unemployment Forbearance
- Fannie Mae is introducing an Unemployment Forbearance program which provides servicers the flexibility to assist borrowers who have a financial hardship due to unemployment.
- These new requirements are consistent with the mortgage loan servicing guidelines for Unemployment Forbearance established by the Federal Housing Finance Agency for Fannie Mae and Freddie Mac.
- The Fannie Mae Unemployment Forbearance program:
- Provides a viable alternative for borrowers who are unemployed (including borrowers facing imminent default)
- Allows the borrower to receive a reduction or suspension of the monthly mortgage payment for a specified period of time
- Prohibits the servicer from proceeding with foreclosure proceedings during the forbearance period
- Includes borrower requirements outlining their responsibility for communicating with the servicer and providing necessary documentation
- Uses standard processes, documents, and time frames
LL-2012-01: Hope Hotline Borrower Counseling
- In this Lender Letter, servicers are reminded that HOPE Hotline reimbursement fee cases initiated prior to January 1, 2012, must be invoiced no later than March 31, 2012, and reimbursement requests must be submitted to Fannie on or before April 30, 2012.
- Fannie has been providing reimbursement to servicers that pay counseling fees on behalf of borrowers to support delinquency resolution through the Homeowner’s HOPE Hotline. The HOPE Hotline refers borrowers to a network of HUD-approved housing counseling agencies dedicated to helping borrowers avoid foreclosure.
- Extension of HOPE Hotline Borrower Counseling Reimbursement expired on January 1, 2012 (as stated in Lender Letter LL-2011-07).
SEL-2011-14: Guaranty Fee Increase
- Fannie Mae announces that it is required to increase the guaranty fee charged for all mortgages delivered on or after April 1, 2012, by 10 basis points.
SVC-2011-23: Condominium Insurance Requirements
Fannie Mae announces policy changes to the following:
- Requirements for master or blanket insurance policies that combine insurance coverage for multiple condominiums and other residential or substantially residential projects that are unaffiliated,
- HO-6 insurance policy coverage amount, and
- HO-6 insurance requirements and elimination of “walls-in” insurance coverage terminology
SVC-2011-22: Documentation Requirements for Foreclosure and Bankruptcy Referral Packages
Fannie Mae reminds servicers of their obligations to provide attorneys, or trustees, with complete referral packages, clarifying certain requirements, and imposing more specific requirements to ensure that its cases are processed in an efficient and timely manner.
SEL-2011-13: Selling Guide Updates
Fannie Mae has update its Selling Guide to include changes to the following, and more:
- Refi Plus and DU Refi Plus
- Temporary Leave Income
- Lender Application, Inactivity, and Reactivation Fees
- Condo Project Insurance Requirements,
- And More
LL-2011-09: Extension of the Uniform Loan Delivery Dataset Implementation Date
- Fannie Mae extends two key implementation dates for the Uniform Loan Delivery Dataset (ULDD) previously communicated in Lender Letter LL-2011-06.
- Reiterates key dates for the Uniform Appraisal Dataset and Uniform Collateral Data Portal (UCDP) announced in Announcement SEL-2011-11.
Notice: City of Chicago’s Vacant Property Ordinance
- Fannie Mae notifies that the City of Chicago has recently enacted an Ordinance, which amends its Municipal Code to impose registration fees, taxes, fines, penalties, and maintenance obligations on mortgagees of residential mortgage loans in connection with vacant properties located in the City of Chicago (the Ordinance).
- FHFA has also required that Fannie Mae notify servicers that they will be required to track and report on all payments, expenditures, and costs made by servicers or under their direction to comply with the Ordinance that would not otherwise have been incurred absent adoption of the Ordinance.
- A copy of the FHFA directive, including a citation to the Ordinance, is attached to this Fannie Mae Notice.
LL-2011-08: Confirmation of Conventional Loan Limits for 2012
Fannie Mae publishes its 2012 loan limits for all conventional mortgage loans.
Notice: Authorization for File Transfers from the Baum Law Firm
Announces authorization for transfer of any Fannie Mae foreclosure or bankruptcy matter in New York from Steven J. Baum, P.C., to any other Retained Attorney Network firms in the state of New York (listing posted on Fannie Mae site).
SVC-2011-20: Updates to Flood Insurance Policy
Fannie Mae updates and reminds servicers of its flood insurance policy, which requires:
- Adequate flood insurance at loan origination, and as long as loan is outstanding or property is in an Special Flood Hazard Area (SFHA)
- Flood coverage for a loan mortgage if the remapping of a flood zone results in the security property being in an SFHA (even though no flood insurance was required when the mortgage loan was originated)
Notice: Suspension of New Referrals to the Baum Law Firm
Announces that after November 15, 2011, servicers may not refer any new Fannie Mae foreclosure or bankruptcy cases in New York to Steven J. Baum, P.C. All new referrals after this date must be made to other Retained Attorney Network firms in the state of New York. The listing is posted on eFannieMae.com.
SEL-2011-12: Updates to Refi Plus and DU Refi Plus
Announces changes to the Home Affordable Refinance Program (HARP), in efforts to attract eligible borrows who can benefit from refinancing their mortgage loan.
SVC-2011-19: Updates to Bankruptcy Proceeding Policy
Updates are to remind servicers of the protocol that borrowers filing for bankruptcy must follow. The servicer is:
- required to take all actions that are necessary to protect Fannie Mae’s interests
- responsible for providing a complete referral package to the bankruptcy attorney – and
- responsible for providing any missing or requested additional documentation, verifications, certifications, information, or signatures to the bankruptcy attorney within three to five business days of the bankruptcy attorney’s request
SVC-2011-18: Updates to Delinquency Management and Default Prevention Requirements
Updates include the following:
- Post Referral to Foreclosure Solicitation Letter
- Uniform Borrower Assistance Form
- Distant Employment Transfer Including Permanent Change of Station Orders
- Imminent Default Eligibility for Fannie Mae Modifications
- Housing Finance Agency and Other Third Party Modification Assistance
- Conversion from Fannie Mae non-HAMP Trial Period Plan to a Forbearance Plan
- Modifying Texas Section 50(a)(6) Loans
- Calculating the Monthly Housing Expense-to-Income Ratio
- Timeline for Preparing the Modification Agreement
- Extending the Term with a Modification
- Notifying Credit Repositories
- Reminder of Duties Regarding the Fannie Mae HAMP
- Certification Prior to Foreclosure Sale
SVC-2011-17: Lender-Paid Mortgage Insurance and Excess Servicing Fee on Modified Mortgage Loans
- Fannie Mae will no longer allow servicers to include a factor in the servicing fee for lender-paid mortgage insurance coverage that is paid through annual or monthly renewal premiums, or allow an excess servicing fee after a mortgage loan has been modified.
SEL-2011-11: Selling Guide Updates
The Selling Guide has been updated to include the following topic changes:
- Uniform Appraisal Dataset and Uniform Collateral Data Portal Requirements
- eCommitONE
- Part C, Selling, Securitizing, and Delivering Loans
- Miscellaneous Selling Guide Updates
LL-2011-07: Extension of HOPE Hotline Borrower Counseling Reimbursement
- Announces that servicers may request reimbursement for counseled cases initiated through the Homeowner’s HOPE Hotline on and after October 1, 2011, through December 31, 2011. Cases must be invoiced no later than March 31, 2012, and the reimbursement request must be submitted on or before April 30, 2012.
Notice: Post Referral to Foreclosure Solicitation Letter
- Announces that the attorney, or trustee, conducting foreclosure proceedings must send the borrower a Post Referral to Foreclosure Solicitation Letter within five business days after referral to foreclosure.
Notice: Permanent Change of Station Orders
- Servicers may evaluate a borrower for a foreclosure prevention alternative if the borrower is unable to make his or her mortgage payment as a result of a distant employment transfer.
SVC-2011-16: Updates to Allowable Attorney Foreclosure Fees
- Updates the allowable attorney foreclosure fees for mortgage loans, participation pool mortgage loans, and more.
SEL-2011-10: Selling Guide Updates
The Selling Guide has been updated to include changes to the following topic matters:
- Reporting of Rental Income
- Concurrent Servicing Transfers
LL-2011-06: Implementation of the Uniform Loan Delivery Dataset Requirements
- Fannie Mae has assumed a common set of loan delivery data requirements applicable to government-sponsored enterprises’ loan delivery process and business policies.
SVC-2011-15: Miscellaneous Servicing Policy Changes
Announces policy changes to the following topic matters:
- Update to attorney (trustee) foreclosure process and fees
- Increase in HAMP incentive fees
- Availability of forbearance option at balloon maturity
- Termination of the option to submit manually prepared IRS Form 1099-C
SEL-2011-09: Selling Guide Updates
The Selling Guide has been updated to include changes to the following topic matters:
- Changes to ARM Products Available for Whole Loan Committing
- Addition of Links to Desktop Underwriter (DU) Quick Steps
- Miscellaneous Selling Guide Update
- As follow up to the announced suspension of MIC, PIC, and PMAC, Fannie Mae has notified servicers that they should continue to renew coverage on existing policies unless otherwise communicated.
- Admonishment that PMI Mortgage Insurance Co. (MIC), sister company PMI Insurance Co. (PIC), and subsidiary PMI Mortgage Assurance Co. (PMAC) has been suspended as approved mortgage insurers. This announcement content is effective immediately.
Servicing Notice, dated 8/3/11: Updated Property Preservation Reimbursement Amounts
- Updates servicers on allowable reimbursements for property maintenance.
- Gives servicers guidance on Fannie Mae’s suspension of RMIC and RMIC-NC as approved mortgage insurers.
- Fannie Mae suspends RMIC and RMIC-NC as approved mortgage insurers, effective immediately.
Servicing Notice, dated 7/27/11: Delinquency Status Codes Update
- Updates delinquency status codes.
SEL-2011-06: Selling Guide Updates
- Updates Selling Guide:
- UAD and UCDP requirements
- Qualified participants policy change
- Performing modified loans policy update
- Nonstandard payment collection options clarification
- Housing Goals data update
- Reorganized topics
- Misc. Selling Guide updates
- Announces new effective date of 10/1/11 for delinquency management and default prevention requirements.
Selling Notice, dated 7/19/11: Area Median Incomes 2011
- Announces that 2011 HUD AMIs will be available on Area Median Income Search page of eFannieMae.com. Lenders must use AMIs to determine borrower eligibility for MyCommunityMortgage loans.
LL-2011-05: Participation in HUD’s Emergency Homeowners’ Loan Program
- Provides guidance on servicer responsibilities regarding Emergency Homeowners’ Loan Program (EHLP).
- Reminds lenders to ensure that required mortgage insurance is maintained
- Provides new requirements for reporting notifications of mortgage insurance rescissions, mortgage insurer-initiated cancellations, and claim denials
- Confirms Fannie Mae’s repurchase policies, required timelines and remedies relating to representation and warranty violations
SEL-2011-05: Selling Guide Updates
- Updates Selling Guide, including:
- Delayed financing exception
- Removal of reverse mortgages
- Misc. condo and co-op updates
- Misc. Selling Guide updates
- Updates to the Requirements for Document Custodians
SVC-2011-11: Updates to Delinquency Status Codes
- Updates Fannie Mae’s policy on delinquency status reporting.
LL-2011-04: Extension of HOPE Hotline Borrower Counseling Reimbursement
- Extends time period for servicers to request reimbursement for HOPE Hotline counseling.
SVC-2011-10: June 2011 Servicing Guide Update
- Announces release of updated Servicing Guide
Servicing Notice, dated 6/10/11: Hawaii Legislative Changes Affecting Non-Judicial Foreclosures
- Announces that Fannie Mae foreclosures in Hawaii must be commenced as judicial foreclosures
- and all pending Fannie Mae non-judicial foreclosures in Hawaii that haven’t been proceeded to sale should be dismissed and converted to judicial foreclosures
- Describes policy changes to:
- Servicing fees on modified mortgage loans
- Clarification of mortgagee clause for loans registered with MERS
SVC-2011-08: Delinquency Management and Default Prevention
- Announces new servicer requirements to:
- Simplify servicing process
- Help servicers contact delinquent borrowers more effectively
- Determine eligibility and offer foreclosure prevention alternatives
SVC-2011-07: Updates to Foreclosure Time Frames and Imposition of Compensatory Fees
- Communicates expectations regarding max allowable time frame to complete foreclosure process, and imposition of compensatory fees
SVC-2011-06: Updates to Imminent Default Definition and Determining Market Value for Preforeclosures
- Updates several servicing policies, including:
- Imminent default definition for mortgage loan modifications
- Determining property market value for preforeclosure sales and deeds-in-lieu of foreclosure
Servicing Notice, dated 5/26/11
- Announces that Fannie Mae will conduct reapplication process for Retained Attorney Network in 16 states.
SEL-2011-04: Selling Guide Updates
- Updates selling guide:
- Deferred student loans
- Documentation requirements for retirement accounts
- Prohibition of certain mortgage insurance agreements
- Resubmission to DU after closing
- MERS
- Misc. Selling Guide updates
LL-2011-03: New Fannie Mae-Approved Mortgage Insurer
- Announces new Fannie Mae-approved mortgage insurer, Genworth Residential Mortgage Assurance Corporation.
SVC-2011-05: Miscellaneous Servicing Policy Changes
- Introduces Adverse Action Notice (Form 182)
- Describes new incentive payment process for preforeclosure sales and deeds-in-lieu of foreclosure
- Extends military indulgence as result of Helping Heroes Keep their Homes Act of 2010
- Prohibits servicers from modifying terms of approved mortgage insurance master policy
- Prohibits loss sharing, indemnification, settlement or similar agreements between servicers and mortgage insurance companies
SVC-2011-03: Updates to Fannie Mae’s Mortgage Modification Requirements
- Updates requirements to modify conventional mortgage loans as described in Servicing Guide…
SEL-2011-03: Selling Guide Updates
- Updates Selling Guide with miscellaneous clarifications, such as clarification of LTV, CLTV, and HCLTV ratio calculations.
SEL-2011-02: Extension of the Home Affordable Refinance Program
- Announces extension of Home Affordable Refinance Program (HARP).
SVC-2011-02: Updates to the Mandatory Retained Attorney Network
- Adds 14 new jurisdictions to mandatory retained attorney network…
LL-2011-02: Mortgage Loan Data Requirements Update
- Updates lenders on status of Federal Registry requirements for originators and related Fannie Mae delivery data requirements.
Notice, dated 2/10/11: Termination of Relationship with Ben-Ezra & Katz Law Firm
- For Florida mortgages: Servicers may not refer any future Fannie Mae matters to the Ben-Ezra & Katz law firm.
SEL-2011-01: Selling Guide Updates
- Updates Selling Guide to include changes to:
- Community land trusts
- Non-standard payment collection options
- Misc. updates
SVC-2011-01: Increase in Foreclosure Attorney Fees for the State of Maryland
- Increases maximum allowable foreclosure attorney fee for properties in Maryland.
- Provides further guidance on servicer responsibilities in connection with the HHF Unemployment and Reinstatement Programs.
- Clarifies modification eligibility of unemployed borrower who becomes re-employed.
View 2010 Fannie Mae Lender Announcements and Letters
View 2009 Fannie Mae Lender Announcements and Letters
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
Freddie Mac Resources for Sellers/Services (including news and Seller/Servicer Guide)
2012 Freddie Mac Bulletins and Industry Letters
Bulletin 2012-3: Uniform Loan Delivery Dataset Update
- Announces revised effective dates for ULDD implementation, new requirements for delivery of ULDD data, and an updated Appendix A for Loan Delivery Data.
Bulletin 2012-2: Unemployment Forbearance
- This bulletin announces Freddie’s introduction of unemployment forbearance, which is a new forbearance relief option that Servicers must use to assist Borrowers who are experiencing a financial hardship due to unemployment.
- In addition, Freddie is revising its Home Affordable Modification Program (HAMP) requirements to provide that Borrowers who were in a HAMP Trial Period Plan prior to entering into an unemployment forbearance plan may be re-evaluated for a new HAMP Trial Period Plan upon completion of the unemployment forbearance plan.
Bulletin 2012-1: Relief Refinance Mortgages
- This bulletin revises certain requirements announced in Bulletin 2011-22 for the Freddie Mac Relief Refinance Mortgage – Same Servicer and Relief Refinance Mortgage – Open Access offerings.
- The revisions will provide more Borrowers with an opportunity to refinance their Freddie Mac-owned Mortgages and to improve their financial position.
2011 Freddie Mac Bulletins and Industry Letters
Bulletin 2011-26: Guarantee Fees Increase
- Freddie Mac announces that mortgages with settlement dates on or after April 1, 2012 will be implementing a 10 basis point increase in Required Spreads for all products. Freddie will also be making a change in its cash program pricing.
Freddie Mac provides the following updates to its selling requirements:
- Mortgage eligibility and credit underwriting
- Property eligibility and appraisal requirements
- 2012 loan limits
Bulletin 2011-24: State Housing Finance Agencies’ Modification Assistance Programs
- Freddie Mac provides servicer requirements for participation in modification assistance programs offered by HFAs in connection with the HHF initiative
- Freddie also offers further guidance with respect to a Servicer’s obligation regarding collection and solicitation activities once notified of a Borrower’s approval for modification, unemployment or reinstatement assistance
Industry Letter 12-12-2011: City of Chicago, Illinois’s Vacant Property Ordinance
- Freddie Mac announces FHFA’s directive relating to Sections 13-12-125, 126 and 135 of the Municipal Code of the City of Chicago, Illinois (“Ordinance”)
- The Ordinance, which was revised on July 28, 2011, imposes obligations upon mortgagees. Obligations include imposing registration, inspection and maintenance obligations upon mortgagees in connection with vacant properties located in the City of Chicago.
- The revised Ordinance became effective on September 18, 2011. A copy of the Directive is included as Attachment A to the Industry Letter.
Announces the following updates to servicing requirements:
- Eliminating requirement that Borrower must have had the Mortgaged Premises listed for sale in order to be eligible for a DIL
- Adding new Guide Form 902 and 902SA, Freddie Mac Service Loans Application Authorized User Roles Form (For Use by Servicers Only) and Freddie Mac Service Loans Application Authorized User Roles Form (For Use by Servicing Agents Only), respectively
- Clarifying Servicer and Servicing Agent obligations and revising Servicing Agent requirements
- And More.
Bulletin 2011-22: Relief Refinance Mortgages
Announces a series of changes to the Home Affordable Refinance Program (HARP), in an effort to attract eligible borrowers who can benefit from refinancing their home mortgages.
Provides the following updates and revisions to selling requirements:
- Mortgage eligibility and credit underwriting
- Appraisal requirements
- Repurchase late fee remittance
Announces enhancements to the Freddie Mac Servicer Success Scorecard and Servicer Performance Profile web site. Also clarifies remedies in the event of a termination of Servicing.
The following servicing requirements have been updated:
- Use of statistical model results to predict borrower delinquency
- Solicitation and collection efforts
- Post-Referral to Foreclosure Solicitation Letter
- Additional guidance on Uniform Borrower Assistance Form
- Tiered incentive fee structure for all HAMP modifications effective on or after 10/1/11
- Spanish translations for certain borrower solicitation documents now available
The following selling requirements have been updated:
- Seller/servicer approval
- Mortgage eligibility and credit underwriting
- Property eligibility and appraisal requirements
- Delivery requirements
- Mortgage insurance
Bulletin 2011-17: Post-Referral to Foreclosure Solicitation Letter Update
- Updates Post-Referral to Foreclosure Solicitation Letter
- In light of a large increase in insurer rescissions, cancellations and denials of coverage Freddie Mac reminds Sellers/Services of the rules surrounding mortgage insurance coverage.
Announces completion and changes to the following:
- Freddie Mac Standard Modification
- SAI requirements related to the suspension of foreclosure actions, borrower contact, and occupancy verification for non-borrowers
Other announcements:
- Retirement of MIDANET
- Guidance on foreclosure suspension for borrowers approved for assistance under the Hardest Hit Fund initiative and HUD’s Emergency Homeowners’ Loan Program
Bulletin 2011-15: Selling and Servicing
Updates selling and servicing requirements regarding the following topic matters:
- Quality Control
- Mortgage eligibility and credit underwriting
- Pooling requirements
- Loan limits
- Mortgage insurance
Industry Letter, dated 8/12/11: MI Requirements and Remedies for Compliance Violations
- Performs as a reminder to Sellers/Servicers that mortgages sold to Freddie Mac must comply with the requirements of the Single-Family Seller/Servicer Guide, and other Purchase Documents including requirements related to mortgage insurance coverage
- Updates Guide for ULDD data delivery requirements and retirement of Midanet for delivery.
- Announces requirements for new Freddie Mac Servicing Success Program, elimination of tier-based fee, and other servicing announcements.
Bulletin 2011-12: Emergency Homeowners’ Loan Program
- Provides guidance and requirements for Servicer participation in HUD’s Emergency Homeowners’ Loan Program (EHLP).
- Announces Servicing Alignment Initiative
- Provides requirements to process foreclosures in Hawaii, due to recent Hawaii
Bulletin 2011-10: Selling and Servicing
- Updates certain selling and servicing requirements related to:
- Mortgage eligibility and credit underwriting
- Property eligibility and appraisal requirements
- MERS requirements
- Makes changes to servicing requirements, or updates:
- Mortgage clause notice
- Designated counsel for DC and WV
- Short payoff remittance requirements
- Mortgage data ownership and usage
- Servicing in accordance with applicable law
- Guide updates
Bulletin 2011-8: Uniform Loan Delivery Dataset Exhibit and Resource Update
- Updates two Guide Exhibits: 34A (Special Characteristics Codes Mapped to ULDD MISMO Data Points) and 34B (Other Delivery Codes Mapped to ULDD MISMO Data Points)
- Updates reference tools to ULDD area of Freddie Mac’s website
- Changes selling requirements related to:
- Amendments to purchase documents
- Mortgage eligibility and credit underwriting
- Delivery requirements
- Guide update
Industry Letter, dated 4/1/11: Arrangements with Mortgage Insurers
- Reminders Sellers/Servicers of various policies related to their arrangements with mortgage insurers…
Bulletin 2011-6: Uniform Loan Delivery Dataset Updates
- Updates Guide to reflect revised requirements and additional information about Uniform Loan Delivery Dataset (ULDD) implementation dates and delivery requirements.
- Announces changes to requirements related to:
- Foreclosure and bankruptcy processes
- Servicing obligations
- Property preservation
- Reimbursable expenses
- Interactions with state Housing Finance Agencies
Bulletin 2011-4: Selling and Servicing
- Lowers max LTV, TLTV, and HTLTV ratios to 95% for all conventional mortgages
- Provides additional guidance for treatment of sales concessions, etc. …
Bulletin 2011-3: Freddie Mac Service Loans Application Terms and Conditions for Use
- Gives terms and conditions for use of Service Loans application, which are added to Guide Chapter A50.
- Revises certain credit underwriting and mortgage eligibility requirements
- Requiring verification of funds
- Eliminating Freddie Mac-owned streamlined refinance mortgages
- Requiring that a purchase money mortgage be seasoned for 120 days in order to be refinanced as “no cash-out”
- Introduces Freddie Mac Service Loans application (to replace MIDANET)
- Incorporates requirements for Reimbursement System into Guide
- Updates other Servicing requirements
View 2010 Freddie Mac Bulletins and Industry Letters
View 2009 Freddie Mac Bulletins and Industry Letters
Freddie Mac Forms and Electronic Documents
VA (Department of Veterans Affairs)
New VA Circulars http://www.homeloans.va.gov/new.htm
Circular 26-12-1 – January 25, 2012: 2012 Department of Veterans Affairs Loan Limits
- Announces that 2012 county loan limits have been posted, and have declined due to market conditions.
- Provides information that there is no maximum VA loan, meaning that lenders can make VA loans in excess of county loan limit.
- VA guaranty will be limited to 25 percent of the county loan limit.
Circular 26-09-15 – January 18, 2012: Processing Requests for Execution of Quitclaim Deeds
- Extends the rescission date of the basic circular regarding the VA’s position on this procedure.
Circular 26-09-12 – January 18, 2012: Property Preservation Requirements and Fees
- Extends the rescission date of the basic circular regarding the VA’s position on this procedure.
- Extends the rescission date of the basic circular regarding the VA’s position on this procedure.
Circular 26-09-4 – January 6, 2012: Market Conditions Addendum to VA Appraisal
- Extends the rescission date of the basic circular regarding the VA’s position on this procedure.
- Extends the rescission date of the basic circular regarding the VA’s position on this procedure.
Circular 26-11-22 – December 23, 2011: Final Loan Modification Regulation Revision
- Announces a final change to the regulation for modifying Department of Veteran Affairs (VA) guaranteed home loans that was previously published as an interim final rule.
- The slightly revised final rule, as published in the Federal Register, 76 FR 78827, on December 20, 2011, will become effective January 19, 2012.
- This circular provides purpose to extend the rescission date of the basic circular so that stations continue to provide guidance on VA’s position with respect to this procedure.
- Circular 26-09-8 changed as follows: Page 1, Paragraph 5 – Delete “January 1, 2012.” and insert “January 1, 2013.”
Circular 26-11-21 – December 15, 2011: Policy Changes Affecting Value Adjustments and Photographs
- Announces changes to two issues – value adjustments to the Department of Veteran Affairs (VA) Notice of Value (NOV) by Lender’s Staff Appraisal Reviewers (SARs), and the requirement for interior photographs of subject properties.
Circular 26-11-19 – November 22, 2011: Funding Fee Update
- Announces that H.R. 674 Section 265 raises funding fees to the pre-November 18, 2011 levels. The fees specified in Section 265 are valid through September 30, 2016.
Circular 26-11-18 – November 15, 2011: Funding Fee Updates
- Provides lenders with information on pending Congressional action affecting VA funding fees.
Circular 26-11-17 – November 4, 2011: Future Funding Fee Changes
- Discusses the possibility of future funding fee changes for VA home loans.
Circular 26-08-14 – October 28, 2011: VA Acceptance of Homebuyer Assistance Programs
- Extends the rescission date of Circular 26-08-14, so that stations continue to provide guidance on VA’s position with respect to this procedure.
Circular 26-11-16 – October 13, 2011: Funding Fee Refund Procedures
- Announces that the VA Funding Fee Payment System (FFPS) has been updated to calculate the funding fee changes noted in Circular 26-11-15. Procedures for obtaining a refund of excess fees are described herein.
Circular 26-11-15 – October 6, 2011: Updated Funding Fee Changes
- Announces that the Veterans Health Facilities Act Capital Improvement Act of 2011 (H.R. 2646) includes a provision resulting in funding fees reverting to the same rates that existed prior to October 1, 2011 for loans closed October 6, 2011 through, and including, November 17, 2011. Rates for loans closed prior to H.R. 2646, and for loans closed on or after November 18, 2011 are also discussed.
Circular 26-11-14 – September 26, 2011: Uniform Appraisal Dataset (UAD)
- Announces the adoption of Uniform Appraisal Dataset (UAD) compliant appraisal reports for Department of Veterans Affairs (VA) Loan Guaranty Program purposes.
- Announces the transfer of all COE processing from the Winston-Salem Eligibility Center (EC) to the Atlanta RLC.
Circular 26-11-12 – September 8, 2011: Funding Fee Changes Effective October 1, 2011
- Announces changes in funding fees for Department of Veterans Affairs (VA) loans closed on or after October 1, 2011.
- Announces the first release of COEs incorporating the FF exemption status and Income Verification.
- Announces Department of Veterans Affairs (VA) policy following a decision by the Michigan Court of Appeals that declared void all non-judicial foreclosures in the name of Mortgage Electronic Registration System (MERS).
Circular 26-11-8: Elimination of the Prior Loan Validation Requirement
- Announces that Prior Loan Validation (PLV) is no longer required on VA Interest Rate Reduction Refinance Loans (IRRLs).
Circular 26-11-7: SAHSHA Data and GWOT Reporting
- Reminds Loan Guaranty personnel to keep accurate and timely records in SAHSHA.
- Reminds staff to maintain Loan Guaranty reports that track designated participants in Global War on Terrorism (GWOT).
Circular 26-11-6: Additional Relief Following Tornado Outbreaks
- Describes how mortgagees may provide relief to borrowers affected by high number of tornado outbreaks in April 2011.
Circular 26-11-5: New Loan Modification Regulation
- Announces primary changes for modifying VA loans resulting from a recent regulatory revision.
Circular 26-11-4: Loan Guaranty Regulatory Update
- Announces completion of VA’s Loan Guaranty regulatory restructuring in Title 38 of Code of Federal Regulations (CFR), part 36.
Circular 26-11-3: Servicemembers Civil Relief Act
- Provides short reminder to servicers of several key provisions of Servicemembers Civil Relief Act (SCRA)…
Circular 26-11-1: Relocation Assistance For VA Borrowers
- Provides authority and instructions for servicers to pay relocation assistance to borrowers participating in two different loss mitigation options:
- Deed-in-lieu of foreclosure (DIL)
- Short sale with VA compromise claim
VA Lender’s Handbook, circulars, etc.
VA Forms
Final Rules on Loan Originator Compensation and Steering
- Prohibits payments to the loan originator that are based on the loan’s interest rate or other terms.
- Prohibits a mortgage broker or loan officer from receiving payments directly from a consumer while also receiving compensation from the creditor or another person…
- Read the Federal Reserve’s one page summary with highlights
- Read the actual final rules
- Read the “Compliance Guide to Small Entities”
- Get the recording of the Fed’s LO Compensation webinar
Federal Trade Commission
Red Flag extension moved to December 31, 2010
More in-depth information about Red Flags Rule
