Mortgage Compliance Advisors - Your One Stop for Quality Control Services and Resources » fha announcement http://www.mortgagecomplianceadvisors.com Mortgage Compliance Advisors can serve all your compliance and quality control needs, including quality control audits, pre-funding reviews, consulting services, and more. Fri, 03 Feb 2012 20:23:37 +0000 http://wordpress.org/?v=2.9 en hourly 1 MCA Monthly Update – April 2010 http://www.mortgagecomplianceadvisors.com/index.php/mca-monthly-update-april-2010-2 http://www.mortgagecomplianceadvisors.com/index.php/mca-monthly-update-april-2010-2#comments Thu, 08 Apr 2010 20:36:56 +0000 admin http://www.mortgagecomplianceadvisors.com/?p=1310

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MCA Monthly Update
April 2010
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.

Managing Your Early Payment Default 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:
Register Now
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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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For real time compliance news, you can now follow us on Twitter and Facebook.

www.MortgageComplianceAdvisors.com
Underwriting & Processing Tips

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?

  • Answer - Additional lines may only be added to Blocks 3, 6, 11 of the GFE.

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Question 2 - Can a separate line item be added for lock extension fee?

  • Answer - Additional lines may only be added to Blocks 3, 6, 11 of the GFE.

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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?
  • Answer - A change in properties can be viewed to fit into the following definitions of allowable changed circumstance (1/28/10 RESPA FAQ’s pg. 15 #1):  A, 2) information particular to the borrower or transaction that was relied on in providing the GFE and that changes, or is found to be inaccurate after the GFE has been provided and 3) New information particular to the borrower or transaction that was not relied on in providing the GFE.  Change in legal address also constitutes a changed circumstance.  The originator is still bound by the dates of the initial GFE, however, we suggest contacting your lender to determine what is acceptable to them.

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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?
  • Answer - We recommend contacting your lender or LOS provider for recommendations on this type of fee disclosure.   The lender/investor may have procedures used to determine a specific fee (such as an origination fee), has been disclosed as a percentage rather than a dollar amount, thus allowing the percentage to increase with the loan amount.

…Read the rest of the questions and answers on our website.
HUD/FHA Update
- 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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ML 10-07: Revisions to Model Home Equity Conversion Mortgage (HECM) Loan Agreement (Loan Agreement) and Fannie Mae Form 1009…

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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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*We offer FHA, VA, and HECM reference manuals with regulations and policies updated quarterly. For more information, visit our website or call 877-226-3216.

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:
  • Requirement for lenders to have written procedures for the approval of third-party originators and management procedures for third-party originations
  • Revisions to requirements related to the lender’s QC process and the lender’s QC plan
  • Revisions to requirements related to lenders that outsource their QC process
  • New requirement for a prefunding QC review process
  • Updates to the timing for lenders to select and conduct post-closing QC reviews and to loan sampling methodologies
  • Revisions to the post-closing QC mortgage review process
  • Addition of the Mortgage Loan File Document Submission Requirements exhibit
  • New requirement for a QC process audit review
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- Makes various updates to the selling guide, changing the following items:
  • Texas Section 50(a)(6) mortgages
  • DU Refi Plus™ and Refi Plus
  • Borrower-paid fees when purchasing a preforeclosure sale or short sale
  • Borrower Social Security number invalid format
  • Conversion of construction-to-permanent financing
  • Fannie Majorsmortgage pooling requirements
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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

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- 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.
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.
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.

Feel free to call us with any questions at 877-226-3216.

]]> http://www.mortgagecomplianceadvisors.com/index.php/mca-monthly-update-april-2010-2/feed 0 From FHA Commissioner http://www.mortgagecomplianceadvisors.com/index.php/from-fha-commissioner http://www.mortgagecomplianceadvisors.com/index.php/from-fha-commissioner#comments Thu, 17 Dec 2009 22:06:46 +0000 admin http://www.mortgagecomplianceadvisors.com/?p=286 We found something interesting from HUD today and thought it might be helpful to you lenders. HUD posted a letter today from FHA Commissioner David H. Stevens with questions and answers for various topics, such as new FHA policies, reasoning behind changes to the FHA approval process, the new RESPA rule taking effect on January 1, 2010, etc. Read the whole letter here.

]]> http://www.mortgagecomplianceadvisors.com/index.php/from-fha-commissioner/feed 0 The Effects of HUD's Announcement from September 18, 2009 http://www.mortgagecomplianceadvisors.com/index.php/the-effects-of-huds-announcement-from-september-18-2009 http://www.mortgagecomplianceadvisors.com/index.php/the-effects-of-huds-announcement-from-september-18-2009#comments Thu, 01 Oct 2009 14:59:00 +0000 admin http://www.mca.oxzen.com/the-effects-of-huds-announcement-from-september-18-2009/ On September 18, 2009, HUD published a press release announcing numerous changes that are either proposed or already implemented, which affect FHA lenders and FHA loans. The most sweeping proposed change is that HUD/FHA will approve only Sponsor (investor, full eagle) lenders. FHA will then have the Sponsors approve the FHA brokers with whom they are willing to do business. Within one year, HUD intends to require an increase in the Sponsor’s net worth of $1,000,000 (increased from the present $250,000).

While the final rules are not yet in effect, it appears they will be implemented after a “notice and comment period.” Although these changes raise many questions which will require upcoming information from HUD/FHA, the following reflects our views on how this will affect lenders and brokers.

It is clear from the language of the press release that HUD is trying to make it easier for brokers to do FHA business, while at the same time putting more responsibility and accountability on both the broker and the Sponsor to make justified loans. HUD stated in the press release that “these lenders must have skin in the game,” which seems a clear indication that brokers and Sponsors will be held more accountable for loans produced than in the past.

Given the apparent intent of this new rule, it seems that the Sponsor will now be responsible to see that brokers are in compliance with the Quality Control expected by FHA, and presumably desired by the Sponsor. These Quality Control programs help ensure loans that comply with all regulations and laws, as well as minimize losses from bad loans. It is likely that even though the net worth requirements for brokers will be reduced or eliminated, Sponsors will continue to require Quality Control Plans and Quality Control audits in order to do business with them.

As HUD/FHA comes out with further announcements, we will keep you updated through our newsletter and social networks. Visit HUD’s website to read the entire press release from September 18, 2009.

Keeping up with changing regulations can be a daunting task. Mortgage Compliance Advisors offers lending manuals for FHA, VA, and HECM that are easy to use and updated quarterly. For more information, visit www.MortgageComplianceAdvisors.com or call 877-226-3152.

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