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Posts Tagged ‘early payment default’
May
07
2010
07
2010
MCA Monthly Update – May 2010
We want to thank everyone who attended our webinar “Managing Your Early Payment Default Risk.” As promised, below you will find answers to the questions asked during the webinar. You can also download the slides from the webinar.
Question 1 – HUD just eliminated the Correspondent level of FHA approval. Will only DE’s apply to market watch?
- Answer – The market watch will now (once the regulation takes effect) only apply to the Sponsor (DE) lender. HUD no longer puts out a market watch list; however, they still do keep track of the lenders (sponsors) they have concerns about.
Question 2 – Are there other reports besides the Neighborhood watch, we the lender need to be reviewing?
- Answer – Outside of Neighborhood Watch, we suggest you practice effective communication with your lenders to determine how the loans you originate are performing.
Question 3 – A.) Is Sponsor responsible for tracking and if so How do they find out about EPD’s for 100% review, or B.) Is the investor responsible for reviewing the loan they purchased?
- Answer – The Sponsor is responsible for finding out about the EPD through Neighborhood Watch HUD website. The investor is not the one that would be responsible to HUD for the EPD.
Question 4 – When reviewing Neighborhood Watch, how can we determine if a company is on the HUD Watch list vs. being terminated?
- Answer – If the percentage reaches termination threshold, HUD will contact the appropriate parties. Neighborhood Watch will provide lender status as (A) active, (T) terminated or (M) merged.
Question 5 – How would a small sampling of loans affect the ratio, especially in HUD review for termination?
- Answer – When HUD is analyzing the number of default loans compared to the region, or the nation, it does consider the total number of loans that were closed to see how that affects the default ratios. While there is no guarantee that a small number of loans with just a few defaults will make HUD overlook the ratios, it is one aspect of the overall analysis.
(Mortgage Compliance Advisors, LLC (MCA) makes reasonable efforts to ensure the accuracy of the answers. MCA makes no express or implied warranty of any kind respecting the information presented and assumes no responsibility for errors or omissions. This online chat is not legal advice and should not be used as a substitute for proper professional or legal advice.)
Apr
08
2010
08
2010
MCA Monthly Update – April 2010
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MCA Monthly Update |
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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.
Join our free monthly webinar “Managing Your Early Payment Default Risk.”
We want to thank those who attended last month’s webinar, especially our panelists. We had great interaction and discussion, and we look forward to the next webinar.
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We have posted the slides from March’s webinar on our website. You can find slides from every webinar on our website under the News & Resources tab.
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Because we receive many questions about Early Payment Defaults (EPDs), April’s webinar will focus on managing your EPD risk.
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Learn what constitutes an EPD, its effects, and how to limit your exposure.
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Join our webinar on Thursday, April 22 at 12:00 pm MST.
Reserve your webinar seat now at:
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Today, mortgage lenders are working to reduce the risk of one of their loans going into early payment default (EPD). Join us for our next free monthly webinar to learn what constitutes an early payment default, how it can affect your business, and steps you can take within your organization to limit your exposure.
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We are always happy to hear from you and encourage you to submit your questions to info@mortgagecomplianceadvisors.com.
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If you have any questions, simply reply to this email or call us at 877-226-3216.
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| Underwriting & Processing Tips |
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To add to the questions from February’s webinar, we received many excellent and challenging questions during our March webinar “Continuing to Make Sense of the New GFE: A More in Depth Look.” As promised, we have posted the slides from the webinar on our website, as well as answers to all 32 questions asked during the webinar.
We have included the first four questions below. *Please visit our website to read all 32 questions and answers.
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Question 1 - On the 2010 GFE – if a borrower gave an incorrect house number on a purchase, do we need to re-disclose as a changed circumstance?
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Question 2 - Can a separate line item be added for lock extension fee?
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Question 3 - Borrower is in the process of purchase loan and decided to purchase a different home – Is this a changed circumstance or new transaction and start with new application and RESPA?
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Question 4 - How do you disclose the loan origination is a % and not a flat fee so if the loan increases our origination could increase?
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| HUD/FHA Update |
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- Last September, FHA announced new regulations to strengthen risk management, and then solicited public comments. (These requirements deal with net worth requirements, streamlined lender approval, etc.) HUD published a press release on April 5 that discusses these changes and states that the “final rule [will] be published in the next few days.” View the entire press release
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- HUD has updated the RESPA FAQs (4/2/2010). View the FAQs
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- Revises model HECM Loan Agreement (and exhibits) and Fannie Mae form 1009. Effective 8/1/10. View the entire letter
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- Announces that effective 4/1/10, HUD REO appraisals will be valid for 120 days. Also announces conditions for ordering second REO appraisal when utilizing FHA financing. View the entire letter
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- Announces FHA servicing lenders’ Tier Ranking Scores for Round 38. View the entire letter
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- Revises Form HUD 92264-A, “Supplement to Project Analysis.” It changes line “c” of Criterion 4 from “Site not Attributable to Dwelling Use” to “Warranted Price of Land.” View the entire letter
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- Under certain conditions, servicers are eligible for Success Payments for FHA-HAMP mortgages. View the entire letter
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- Announces that those applying to become FHA lenders must submit application fees online. View the entire letter
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- Provides additional guidance on Appraisal Update Report. 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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- Introduces “Alt Mod” – an alternative to HAMP modification for borrowers who were accepted into HAMP trial period but were not eligible for a HAMP permanent modification. View the entire letter
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- Revises Selling Guide to update quality control standards, specifically:
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- Makes various updates to the selling guide, changing the following items:
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- Makes several miscellaneous changes to servicing policies. View the entire announcement
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. LL-2010-05: Selling Loans during Lapse of National Flood Insurance Program Authority .
- During lapse of National Flood Insurance Program, Fannie Mae will purchase loans in Special Flood Hazard Areas without flood insurance, under certain conditions. View the entire letter
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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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- Revises multiple policies effective for mortgages with applications dated on or after 6/13/10, such as Freddie Mac no longer purchasing Initial Interest Mortgages, increased minimum Indicator Scores, etc. View the entire bulletin
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- Announces Florida Condominium Effort to increase the availability of financing for Florida condos. View the entire bulletin
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To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
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| VA Update |
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- Extends rescission date of Circular 26-08-4 to 1/1/12. Stations can continue to issue VA Notices of Value or Master Certificates of Reasonable Value within the 6-month validity period. View the entire change
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- Adds contact information for veterans to Circular 26-10-2. View the entire change
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- Provides guidance on submission of title documents to VA’s property management contractor (for Florida properties). View the entire circular
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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.
Feb
04
2010
04
2010
MCA Monthly Update – February 2010
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