Contact   |   QLink Login   |   Client Login    |   Employee Login

Posts Tagged ‘fha update’

Jul
12
2011

MCA Monthly Compliance Update – July 2011

MCA Logo

July palm trees picture from freestockphotos.biz

MCA Monthly Compliance Update

July 2011
In This Issue
Other Recent Announcements
Webinar Q&A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services

Pre-Funding Reviews

Identity Verification

TPO Management
Stay Updated
Connect with us:
View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!
Welcome to the MCA Monthly Compliance Update. To help you stay compliant and up-to-date, our newsletters contain mortgage compliance tips and updates.


We hope that you find the content informative and useful. As always, your feedback is appreciated.


New Training Series of Webinars


We asked many of you, “What is your biggest compliance challenge?” And the answer for many was a resounding, “Keeping up with the changes!” As regulations continue to change and it becomes harder to keep up, we recognized the need to offer you more specific trainings.

We are pleased to announce our new Training Series of webinars, to give you the detailed training you need. These webinars will be targeted and concise trainings, based on more specific compliance needs. Our Training Series webinars will be held once a month for 30-45 minutes and include about 15 minutes of Q&A. The Training Series webinars will be offered for a nominal fee. Our first one will be “TILA & MDIA” on July 21.

We will also continue to offer our Free Series once or twice a quarter, where the webinars will be based on more broad overviews of compliance topics. The next free webinar will be “QC Findings Are Done… Now What?” on August 25.


* Watch your inbox for an invitation to these webinars in the next few days.


- – - – - – - – - – - – - – - – - – - – - – - – - – - – -


Get compliance updates right when they come out, on Twitter and Facebook.
Other Recent Announcements

Here are a few recent announcements that we thought you should know about:


Changes in Adverse Action Disclosure Requirements


On July 6, 2011, the Federal Reserve Board and the Federal Trade Commission issued rules that will change the adverse action disclosure requirements under Equal Credit Opportunity Act and the Fair Credit Reporting Act. The rule will be effective 30 days from the day the rule is published in the Federal Register.


Announcement on FederalReserve.gov


HUD’s Final Rule Regarding SAFE Act

On June 29, 2011, HUD published the final rule regarding the SAFE Act. The rule details HUD’s oversight responsibility over minimum requirements for state level SAFE Act implementation.


Final rule on OFR.gov
Webinar Questions & Answers

GFE Webinar Q&A


We want to thank everyone who attended our webinar: “GFE Compliance” in June. As promised, we have posted the slides and answers to questions asked.


We have included the first three questions below. *Please visit our website to read all 64 questions and answers.


Question 1 – Discounts are charged in the origination charge.  What happens if you have a borrower who agreed to a discount and then changes his mind?  If you cannot change the origination charge, how can you fix this?

  • Answer – If you are including the discount points in your origination charge then you are not allowed to change your origination charge. Discount points can be shown on Box 3 of Block 2 of the GFE. If discounts are listed here, you can change them as the rate changes.

Question 2 – RESPA states that Box 1 and 2 in Important Dates do not change.  Is this true?  If not, when does it change?

  • Answer – Question 1 in the Important Dates section will change when loan locking information changes. Question 2 in the Important Dates section will not change and will remain the same on all subsequent re-issues of the GFE.

Question 3 – If the seller is responsible for the transfer tax in our state, is it required to be disclosed on the GFE?

  • Answer - Please refer to RESPA FAQ (page 34 quesiton 2) Q: How is the transfer tax disclosed in Block 8 of the GFE?

    A: The amount the borrower is likely to pay for transfer taxes is disclosed in Block 8 of the GFE. In some areas this amount, as a matter of practice, is governed by state or local laws. If state or local law is unclear or does not specifically attribute transfer tax to a seller or borrower, the amount to be disclosed on the GFE is governed by common practice or experience in the locality of the property.

    If the seller is paying a portion of the transfer tax that was not disclosed on the GFE, then that portion should be listed in the seller’s column in the 1200 series on the HUD-1. …Read the rest of the questions and answers on our website.

HUD/FHA Update

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.



Letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


ML 2011-21: Revised Instructions for Preparing American Land Title Association (ALTA)/American Congress on Surveying and Mapping (ACSM) Land Title Survey for HUD Multifamily Housing Programs


- Revises instructions for preparing ALTA/ACSM Land Title Survey for Multifamily programs.


Letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


ML 2011-22: Condominium Approval Process for Single Family Housing – Consolidation and Update of Approval Requirements


- Updates requirements and procedures of Condominium Approval Process.


Letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


ML 2011-23: Unemployment Special Forbearance: Temporary Program Changes and Clarifications


- Temporarily amends Type I special forbearance program for unemployed borrowers.


Letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update


- Communicates expectations regarding max allowable time frame to complete foreclosure process, and imposition of compensatory fees.



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces new servicer requirements to:
  • Simplify servicing process
  • Help servicers contact delinquent borrowers more effectively
  • Determine eligibility and offer foreclosure prevention alternatives


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Describes policy changes to:

  • Servicing fees on modified mortgage loans
  • Clarification of mortgagee clause for loans registered with MERS



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- 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



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces release of updated Servicing Guide.



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -





- Extends time period for servicers to request reimbursement for HOPE Hotline counseling.



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -





- Updates Fannie Mae’s policy on delinquency status reporting.



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


- 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



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -




- 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



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -




- Provides guidanceon servicer responsibilities regarding Emergency Homeowners’ Loan Program (EHLP).


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all Fannie Mae Announcements and Letters for the year, visit
Freddie Mac Update


- Announces Servicing Alignment Initiative

- Provides requirements to process foreclosures in Hawaii, due to recent Hawaii law changes



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
VA Update

No recent VA circulars.

- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view VA Circular/News for 2010, visit the VA website.


This information has been taken from various public resources and does not constitute legal advice.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

www.MortgageComplianceAdvisors.com
No Comments »
Jun
03
2011

MCA Monthly Compliance Update – June 2011
MCA Logo

June Butterfly Picture from freestockphotos.biz

MCA Monthly Compliance Update
June 2011
In This Issue
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services
Stay Updated
Connect with us:
View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!
Welcome to the MCA Monthly Compliance Update. To help you stay compliant and up-to-date, our newsletters contain mortgage 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 “GFE Compliance.”


June 2011 webinar

Review how to fill out the GFE correctly and avoid common mistakes.


Join our free webinar on Thursday, June 16 at 1:00 p.m. MDT.



Reserve your webinar seat now at:


Register Now

https://www1.gotomeeting.com/register/640246888


More than a year after its implementation, there is still a lot of frustration and confusion about the GFE. We have received many requests for another webinar about the GFE, so we are pleased to announce our next free webinar “GFE Compliance” on:


Thursday, June 16 at 1:00 pm MDT (3:00 pm Eastern)

(*Note: This webinar is one hour later than usual, at 1:00 instead of 12:00.)

Join us as we discuss the following:

  • How to fill out the GFE properly
  • What we’ve learned since the new GFE was implemented
  • Common GFE findings from quality control audits
  • Q&A session to answer your GFE questions

- – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


Get compliance updates right when they come out, on Twitter and Facebook.

HUD/FHA Update


No recent mortgagee letters.


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update


- Announces new Fannie Mae-approved mortgage insurer, Genworth Residential Mortgage Assurance Corporation.



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Updates selling guide related to:
  • Deferred student loans
  • Documentation requirements for retirement accounts
  • Prohibition of certain mortgage insurance agreements
  • Resubmission to DU after closing
  • MERS
  • Misc. Selling Guide updates



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces that Fannie Mae will conduct reapplication process for Retained Attorney Network in 16 states.



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- 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



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all Fannie Mae Announcements and Letters for the year, visit
Freddie Mac Update



- Makes changs 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



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Updates certain selling and servicing requirements related to:
  • Mortgage eligibility and credit underwriting
  • Property eligibility and appraisal requirements
  • MERS requirements



Bulletin on FreddieMac.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
VA Update


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 on VA.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



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 on VA.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view VA Circular/News for 2010, visit the VA website.


This information has been taken from various public resources and does not constitute legal advice.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

www.MortgageComplianceAdvisors.com

No Comments »
Apr
07
2011

MCA Monthly Compliance Update – April 2011
MCA Logo

April Tulips Picture

MCA Monthly Compliance Update

April 2011
In This Issue
LO Compensation Update
Webinar Q & A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services

TPO Management
Stay Updated
Connect with us:
View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!
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 “Evaluating Your Appraisal.”

Apr 2011 webinar


Learn compliance essentials of evaluating your appraisal.


Join our free webinar on Thursday, April 28 at 12:00 p.m. MDT.




Reserve your webinar seat now at:


Register Now


https://www1.gotomeeting.com/register/610818208

Several of you have requested a webinar about appraisals, and we are pleased to announce our next webinar “Evaluating Your Appraisal” on Thursday, April 28 at 12:00 MDT. Learn the essentials of evaluating your appraisal as they relate to mortgage compliance, including:

  • What to look for
  • How to determine the quality and completeness of the appraisal
  • Red flags that may point to problems
  • Other important appraisal issues


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


Get compliance updates right when they come out, on Twitter and Facebook.


LO Compensation Update

LO Compensation Rule is Now in Effect


On Tuesday, April 5, the US Court of Appeals for the District of Columbia ruled against a requested stay of implementation of the Loan Originator Compensation rule. The National Association of Mortgage Brokers (NAMB) and the National Association of Independent Housing Professionals (NAIHP) had filed suit to stop the implementation of the rule. Three circuit-court judges ordered the motions be denied on the grounds that NAMB and the NAIHP did not satisfy “the stringent standards required for a stay pending appeal.” The original effective date of April 1, 2011 was delayed, but the rule became immediately effective on April 5, when the Appellate Court denied the request.


To help you comply, MCA is now offering three different LO Compensation Policy templates for wholesale lenders, brokers, and retail correspondents. Depending on the volume of requests, we can generally complete your policy within 48 hours. Visit our website to learn more about our LO Compensation Policy or call 877-226-3217.


HUD Issues Guidance on GFE Completion in Response to LO Compensation Rule


On March 19, HUD issued its quarterly issue of RESPA Roundup. In this issue, HUD clarifies RESPA requirements related to proper disclosure on the GFE and HUD-1 in relation to the Federal Reserve’s Loan Originator Compensation Rule. MCA encourages you to review the HUD guidance on how to properly complete the GFE and HUD-1 now that the LO Comp rule is in effect. Visit HUD.gov.
Webinar Questions & Answers

Compliance Webinar Q&A


We want to thank everyone who attended “Compliance Q&A Webinar.” As promised, we have posted the slides and answers to the questions asked during the webinar.



We have included the first three questions below. *Please visit our website to read all 30 questions and answers.


Question 1 – Our in-house officers are paid by salary, our secondary market officers will be paid on a basis point system.  Do we have any worries?

  • Answer – Compensation given as salary is acceptable, as well as compensation based on basis points, as long as the basis points are based on loan amount.


Question 2- If you submit a loan to one investor and they don’t approve it for some reason, and then it gets submitted to a different investor, would that be an allowable CIC if the investor charges are higher than the original investor charges?

  • Answer – No, this would not be an acceptable changed circumstance. Please refer to RESPA FAQ:

xv) A mortgage broker issues a GFE based on one lender’s loan products and origination fees, but places the loan with a different lender.

A: No, this would not constitute a changed circumstance.


Question 3- Is it correct the TIL does not need to be signed? Do you recommend it be signed?
HUD/FHA Update

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 2011-16: HECM – Rescission of Mortgagee Letter 2008-38-Borrower’s recourse for repayment of HECM debt


- Rescinds ML 2008-38 “Borrower’s recourse for repayment of HECM debt”. (New guidance will be issued in future.)


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update


- Announces extension of Home Affordable Refinance Program (HARP).  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Updates Selling Guide with miscellaneous clarifications, such as clarification of LTV, CLTV, and HCLTV ratio calculations.  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Updates requirements to modify conventional mortgage loans as described in Servicing Guide…  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all Fannie Mae Announcements and Letters for the year, visit
Freddie Mac Update


- Announces changes to requirements related to:
  • Foreclosure and bankruptcy processes
  • Servicing obligations
  • Property preservation
  • Reimbursable expenses
  • Interactions with state Housing Finance Agencies



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


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.

Bulletin on FreddieMac.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



Industry Letter, dated 4/1/11: Arrangements with Mortgage Insurers

- Reminders Sellers/Servicers of various policies related to their arrangements with mortgage insurers…

Letter on FreddieMac.com



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -

To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
VA Update

No recent announcements.


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view VA Circular/News for 2010, visit the VA website.


This information has been taken from various public resources and does not constitute legal advice.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

www.MortgageComplianceAdvisors.com

No Comments »
Mar
03
2011

MCA Monthly Compliance Update – March 2011


MCA Logo

March Mountains Picture

MCA Monthly Compliance Update

March 2011
In This Issue
Audit Update
Webinar Q & A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services

Pre-Funding Reviews

Quality Control Plan Implementation
Stay Updated
Connect with us:
View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!
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 “Compliance Q&A Webinar.”


We need your questions: Please send us your compliance questions for our upcoming webinar.


Mar 2011 webinar

Get answers to your questions about RESPA/GFE, TIL, QC Plans, etc.


Join our free webinar on Thursday, March 17 at 12:00 p.m. MDT.




Reserve your webinar seat now at:


Register Now

https://www1.gotomeeting.com/register/991690536

Many of you requested a webinar just for Q&A, and we are pleased to announce our first webinar dedicated solely to answering your mortgage compliance questions. Join us on March 17 for your chance to take advantage of our combined compliance knowledge and resources. Since this webinar will be customized to answer your questions, it is vital that we receive your questions in advance. This will also help us prepare resources for you and others during the webinar.



*We need questions prior to the webinar. Please email your questions to info@mortgagecomplianceadvisors.com or submit them in the “Questions & Comments” box during registration. Thank you.

We will be happy to answer your questions about:
-  RESPA/GFE
-  TIL
-  QC Plans
-  Other

Who should attend?
This FREE webinar is designed for mortgage compliance professionals. Feel free to forward this registration link to your colleagues who also work in compliance/QC.

(You will receive a link to the SLIDES in a reminder email sent ONE HOUR before the webinar starts.)

- – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


For real time compliance news, you can now follow us on

Twitter and Facebook.
Audit Update

Did you know…?


Brokers are not required to issue an initial TIL or initial Servicing Disclosure Statement.

In accordance with RESPA and TILA, we will not issue a finding to brokers if these documents are not in the file. Check out the regulations:

  • Servicing Disclosure Statement: Delivery. The lender, table funding mortgage broker, or dealer that anticipates a first lien dealer loan shall deliver the Servicing Disclosure Statement within 3 business days from receipt of the application by hand delivery, by placing it in the mail, or, if the applicant agrees, by fax, e-mail, or other electronic means. In the event the borrower is denied credit within the 3 business-day period, no servicing disclosure statement is required to be delivered …Read the rest on our website.
Webinar Questions & Answers

QC Plan Webinar Q&A


We want to thank everyone who attended our webinar: “Essentials of a Compliant QC Plan.” As promised, we have posted the slides and answers to the questions asked.

We have included the first three questions below. *Please visit our website to read all 10 questions and answers.


Question 1 – How do you go about verifying assets?

  • Answer – You would attempt to get the company to verify the information you have in your file is correct, via new VOD or phone conversation. You will want to assure that the asset documentation has not been forged or altered in any way.

Question 2 – We are a broker and most of our lenders will require a quarterly audit of our FHA loans.  You mentioned the detailed QC Plan reviews are trickling downhill.  Do you foresee lenders requiring their approved brokers to do more than the 10% of FHA loans being audited?  The FHA loans are all we’re auditing at this time.  Do we need to include all of our other loan types?

  • Answer – I do not anticipate any lenders requiring more than the FHA required 10% selection. We are certainly seeing a bigger focus on Quality Control from all lenders and agencies.  You are only required to audit files if your investors or licensing agencies require it.  However, I would recommend you QC at least 10% of all your loans. This will give you a good baseline of the quality and risk level of all the loans you originate.

Question 3 – What is acceptable to meet occupancy certification requirements?
HUD/FHA Update

ML 2011-09: Home Equity Conversion Mortgage (HECM) Counseling: Waiver of HECM Counseling Fees and Activities Included in the Time Recorded Portion of the HECM Counseling Certificate


- 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


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


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



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Clarifies and updates existing guidance about FHA refinance transactions.  Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces FHA servicing lenders’ tier rankings for Round 42. Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- For Multifamily Mortgagees: Extends temporary authority from ML 2010-21 until February 17, 2012. Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- For Multifamily Mortgagees: Provides guidance on use of Subordination, Non-Disturbance and Attornment Agreements (SNDA) for commercial leases in certain FHA insured projects… Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update


- For Florida mortgages: Servicers may not refer any future Fannie Mae matters to the Ben-Ezra & Katz law firm.  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Updates lenders on status of Federal Registry requirements for originators and related Fannie Mae delivery data requirements.  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Adds 14 new jurisdictions to mandatory retained attorney network…  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all Fannie Mae Announcements and Letters for the year, visit
Freddie Mac Update



- Gives terms and conditions for use of Service Loans application, which are added to Guide Chapter A50. Bulletin on FreddieMac.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



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. …


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
VA Update

- Announces completion of VA’s Loan Guaranty regulatory restructuring in Title 38 of Code of Federal Regulations (CFR), part 36.  Entire circular on VA.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -

- Announces primary changes for modifying VA loans resulting from a recent regulatory revision. Entire circular on VA.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view VA Circular/News for 2010, visit the VA website.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

1 Comment »
Feb
03
2011

MCA Monthly Compliance Update – February 2011


MCA Logo

Leaf picture

MCA Monthly Compliance Update

February 2011
In This Issue
Fed Won’t Finalize 3 Reg Z Changes
Webinar Q & A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services
Stay Updated
Connect with us:
View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!
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.



Clients now have another option to tranfer files quickly and efficiently into our quality control review system.

To get started with sending us files through the BlitzDocs system, call 877-226-3216 or reply to this email.

- – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


Join our free monthly webinar “Essentials of a Compliant QC Plan.”

Feb 2011 webinar


Learn QC Plan essentials to comply with agency/investor requirements.


Join our free webinar on Thursday, Feb 17 at 12:00 p.m. MST.



Reserve your webinar seat now at:


Register Now

https://www1.gotomeeting.com/register/355578520


Implementing a good quality control plan can help you improve operations and manage risk. Join us for a FREE webinar on February 17, where we will review the essentials of a compliant QC plan. This will include how to comply with investor requirements as well as agency guidelines from FHA, Fannie Mae, and Freddie Mac. We will cover such topics as disclosure compliance, pre-funding reviews, post-closing reviews, branch reviews, record retention, and trend tracking. We encourage you to submit questions for our panelists when registering and also during the Q&A session at the end of the webinar.


(*You will receive a link to the SLIDES in a reminder email sent ONE HOUR before the webinar starts.)


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


For real time compliance news, you can now follow us on

Twitter and Facebook.
Fed Won’t Finalize 3 Reg Z Changes

Federal Reserve does not plan to proceed with finalizing three pending mortgage rulemakings under Regulation Z


- On February 1, the Federal Reserve announced that “it does not expect to finalize three pending rulemakings under Regulation Z, which implements the Truth in Lending Act (TILA), prior to the transfer of authority for such rulemakings to the Consumer Financial Protection Bureau (CFPB)” …  Press release on FederalReserve.gov
Webinar Questions & Answers

Common Findings Webinar Q&A


We want to thank everyone who attended our webinar: “Common Compliance Findings of 2010 & How to Prevent Them.” As promised, we have posted the slides and answers to the questions asked.


We have included the first three questions below. *Please visit our website to read all 40 questions and answers.


  • Question 1 – What kind of documents are reviewed for proof of UW signature?
    • Answer – Loan Approval, Transmittal Summary, FHA Transmittal Summary, FHA Conditional Commitment, FHA DE Approval, VA Loan Analysis, etc
  • Question 2 – What is the Tabular TIL?
    • Answer – TILA, specifically MDIA, states the following:  “The September 2010 interim rule requires creditors who extend consumer credit secured by real property or a dwelling to disclose summary information about interest rates and payment changes in a tabular format.” This will be enforced on all applications taken after January 30.  For more information, please visit FederalReserve.gov.
  • Question 3 – What are the penalties or ramifications for not disclosing correctly or timely?
    • Answer – The penalty for violating RESPA is up to $10,000 and/or 1 year in prison for each violation. The penalty for violating TILA is $5,000 and/or 1 year in prison for each occurrence. This is in addition to any restitution paid to borrowers. …Read the rest of the questions and answers on our website.
HUD/FHA Update

ML 2011-03: Extension of Temporary Guidance for Condominium Policy


- Announces extension of temporary condo policy guidance issued in ML 2009-46 A. Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


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. Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- 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


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Provides guidance on claim process for FHA refinances of borrowers in negative equity positions. Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Eliminates Master Appraisal Report (MAR) and retires several forms. Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces that FHA Single Family Claim remittances must be done through pay.gov. Effective 4/14/11. Entire letter on HUD.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update


- 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.


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Increases maximum allowable foreclosure attorney fee for properties in Maryland.  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


- Updates Selling Guide to include changes to:

  • Community land trusts
  • Non-standard payment collection options
  • Misc. updates


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all Fannie Mae Announcements and Letters for the year, visit


Freddie Mac Update


- Introduces Freddie Mac Service Loans application (to replace MIDANET)

- Incorporates requirements for Reimbursement System into Guide

- Updates other Servicing requirements


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -




- 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”


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.


VA Update


- 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

Entire circular on VA.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -




- Provides short reminder to servicers of several key provisions of Servicemembers Civil Relief Act (SCRA)…  Entire circular on VA.gov


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view VA Circular/News for 2010, visit the VA website.

Feel free to call us with any questions at 877-226-3216 or reply to this email.
No Comments »
Jan
06
2011

MCA Monthly Compliance Update – January 2011

MCA Logo

Mountain picture

MCA Monthly Compliance Update

January 2011
In This Issue
Coming in 2011
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services

Lending Manuals
Stay Updated
Connect with us:
View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!
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 “Common Compliance Findings of 2010 & How to Prevent Them.”


Jan 2010 webinar

Learn about common audit findings and tips to prevent them.


Join our free webinar on Thursday, January 20 at 12:00 p.m. MST.


Reserve your webinar seat now at:


Register Now



https://www1.gotomeeting.com/register/638319816

Join us for a free webinar on January 20, where we will look at all our quality control audit findings from all companies in the year 2010 and break it down into useful information for your company. We’ll see what the common trends were and alert you to negative trends we are seeing in the marketplace. We will also share helpful tips on how you can reduce the number of findings in your next quality control audit. We encourage you to submit questions for our panelists in the box below and also during the Q&A session at the end of the webinar.


  • Common findings from all companies’ QC audits in 2010
  • Negative trends in the marketplace
  • Tips to reduce your findings
  • Q&A session

(*You will receive a link to the SLIDES in a reminder email sent ONE HOUR before the webinar starts.)


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


For real time compliance news, you can now follow us on

Twitter and Facebook.



www.MortgageComplianceAdvisors.com
Coming in 2011

Coming in 2011 to MCA and its Clients

To further help our current clients, we will be adding and improving various services in the upcoming year. You can look forward to these changes in the coming months.


  • Roundtable discussions for clients
    • We will be hosting online Round Table Discussions with our clients to open dialogue and discussion about common compliance issues.
  • Enhanced state compliance
    • We are enhancing our state compliance service to be more effective for our clients.
  • Trend tracking reports on all findings reports
    • Trend tracking reports will be included in each new Findings Report issued. This will allow our clients to track company and underwriter performance over an extended period of time.
  • Updated website
    • We will be updating our website to include a fresh look and to contain more resources for your compliance needs.
HUD/FHA Update

ML 2010-41: Construction Specifications Institute (CSI), MasterFormat Editions


- For Multifamily Mortgagees: The construction specifications template for FHA new construction and substantial rehabilitation projects has changed… Entire letter on HUD.gov


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -


ML 2010-42: Federal Home Loan Bank – Affordable Housing Program, Homeownership Set-Aside Grant Program


- Provides guidance on FHLB AHP Homeownership Set-Aside Program in conjunction with FHA financing. Entire letter on HUD.gov


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -



- Announces that FHA now requires flood zone determination on all properties
- Prohibits FHA Mortgage Insurance for properties in designated coastal barriers


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -



- Provides loss mitigation guidance for HECMs that are delinquent due to unpaid property charges… Entire letter on HUD.gov


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -



- 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


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -


To view all HUD Mortgagee Letters for the year, visit HUD’s website.

Fannie Mae Update


- Updates state-specific requirements for co-op share loans, such as which documents must be delivered to document custodian. Updates Connecticut requirements and adds Alaska, Indiana, and Washington. Announcement on eFannieMae.com


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -




- Gives overview of:

  • Uniform Appraisal Dataset requirements

  • Uniform Collateral Data Portal

  • Future updates to Fannie Mae policies


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -



- Reminds servicers of duty to ensure security, integrity, and confidentiality of borrower, property, and other information related to loan. Announcement on eFannieMae.com


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -




- Notifies servicers of four new Broker Price Opinion (BPO) providers

- Clarifies that, effective February 1, 2011, servicers must diversify referrals among two or more BPO providers

- Announces new reimbursement rates


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -



- Amends servicing requirements regarding technology usage and electronic invoice submission charges to attorneys and trustees and foreclosure and bankruptcy referrals. Announcement on eFannieMae.com


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -



- Summarizes the updated and new loan-level price adjustments (LLPAs) Announcement on eFannieMae.com


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -


To view all Fannie Mae Announcements and Letters for the year, visit
Freddie Mac Update



- Provides requirements for the Uniform Appraisal Dataset (UAD) and Uniform Collateral Data Portal (UCDP). Bulletin on FreddieMac.com



- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -



- Extends service member foreclosure protection to 12/31/11. Bulletin on FreddieMac.com



- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -


To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
VA Update

- Provides guidance on processing Specially Adapted Housing (SAH) cases under new rules. Entire circular on VA.gov


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – -


To view VA Circular/News for 2010, visit the VA website.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

No Comments »
Nov
04
2010

MCA Monthly Compliance Update – November 2010

MCA Logo

Picture of autumn leaves

MCA Monthly Update

November 2010
In This Issue
Webinar Q & A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Our Services

Lending Manuals
Stay Updated
Connect with us:


View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!
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 “Reviewing Red Flags of Fraud.”


We have posted the slides from last month’s webinar on our website. You can find slides from every webinar on our website under the News & Resources tab.


Webinar

Review common mortgage fraud issues and the FTC’s Red Flags Rule enforced 12/31/10.


Join our free webinar on Thursday, November 18 at 12:00 p.m. MST.



Reserve your webinar seat now at:


Register Now




The December 31st enforcement date is fast approaching for the Federal Trade Commission’s Red Flags Rule. Join us for a free webinar on November 18, where we will have a review of common mortgage fraud issues, as well as valuable information and a Q&A session about the FTC’s Red Flags Rule. (It should be noted that the extension of the enforcement deadline to December 31, 2010 does not affect other federal agencies’ enforcement of the original November 1, 2008 deadline.) We hosted a webinar in May about the red flags of fraud, and this month’s webinar will update the information and discuss any new developments.



This free webinar is open to everyone, and we encourage you to submit your questions during registration or to info@mortgagecomplianceadvisors.com.

- – - – - – - – - – - – - – - – - – - – - – - – - – - – - -

For real time compliance news, you can now follow us on


Webinar Questions and Answers


We want to thank everyone who attended our webinar: “Managing the Year of Change.” As promised, we have posted the slides and answers to the questions asked.



We have included the first three questions below. *Please visit our website to read all 7 questions and answers.


Question 1 – You have stated that MDIA defines an application the same way as a GFE. So, you are saying that if we do not disclose a GFE because we do not have all of the pieces, then we do not have to issue the TIL either?

  • Answer – Yes. This is correct. TILA/MDIA shares RESPA’s definition of an application. If you do not have what is defined as an application then you are not required to disclose a TIL statement. This can be found in 12 CFR 226.19 for the Truth in Lending Act.


Question 2 - The Dodd 1 yr GFE and TIL combined implemented from what effective date?

  • Answer – The effective date is 1 year after transfer. That would be July 22, 2011. However, there is already a working copy going around, and I would expect it to be implemented well before this date.


Question 3 – I had a question related to the LO compensation that we discussed in webinar today. Changing LO compensation is a fairly easy regulation to comply with. It requires a change to the existing mind set, but logistically, it is not difficult. The requirement is to pay the LO based on total volume as a percentage or flat fee per until or some other method that doesn’t result in steering the borrower to an undesirable product.


Ok, so I’m with the regulators so far. Then, here is where I get lost. The regulation also says that companies that broker loans are also subject to the regulations. Ok, so now a brokerage firm or even a lender when acting as a broker also can not be paid differently for different pricing tiers or loan programs? So, effectively investors have to stop by brokerage firms how they are currently paying them. It is not simply paying the loan officer appropriately, but you also have to change the way you pay the firm. The interesting part is that secondary market transactions are exempt, so investors can still pay lenders but not brokers in spread premiums that change with loan program. So, it appears that the regulation much like RESPA is trying to put brokers at a competitive disadvantage. Am I understanding this correctly?

  • Answer – Yes, according to the rule, an originator is a loan originator and a broker company. Therefore, a broker company cannot be compensated based on the terms of the loan.
HUD/FHA Update

ML 2010-35: Borrower Certification for FHA Refinance of Borrowers in Negative Equity Positions


- Announces that mortgagees must obtain signed certification form from borrower if underwater borrower is refinancing. View the entire letter


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Eliminates requirements that sum of all liens not exceed geographical max mortgage limit for both purchase and refinance transactions. View the entire letter


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -

To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update

*To view an announcement, visit https://www.efanniemae.com/sf/guides/index.jsp.
Click “2010” on the right, under “Announcements and Lender Letters.” You will then have access to all 2010 announcements.


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces Appraiser Independence Requirements, which replace HVCC. Effective immediately.  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces misc. servicing policy changes, including:

  • Retirement of Payment Reduction Plan
  • Clarification of mandatory pre-filing mediation policy for mortgage loans in Florida
  • Waiver of escrow deposit accounts
  • Flood insurance requirements
  • Submissions of underwriting and servicing review files


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Provides guidance to servicers for interactions with Hardest Hit Fund Unemployment and Reinstatement Programs.  Announcement on eFannieMae.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all Fannie Mae Announcements and Letters for the year, visit
Freddie Mac Update

*To view an announcement, visit http://www.freddiemac.com/sell/guide/. The bulletins and industry letters are on the right.


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces Appraiser Independence Requirements, which replace HVCC
- Makes changes to requirements regarding:

  • Property eligibility
  • Credit
  • Eligibility requirements for Freddie Mac counterparties
  • Operational
  • Mortgage insurance


Bulletin on FreddieMac.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces that Freddie Mac will accept insurance from State Farm Florida Insurance Company…  Bulletin on FreddieMac.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



-  Provides guidance to servicers for interactions with Hardest Hit Fund Unemployment and Reinstatement Programs. Bulletin on FreddieMac.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



-  Announces that servicers may not refer any new Freddie Mac foreclosure or bankruptcy cases to Law Offices of David J. Stern, P.A. in Florida. Bulletin on FreddieMac.com


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.
VA Update


- Announces enactment of Veterans’ Benefits Act of 2010

  • Changes to funding fee exemption status
  • Creation of Specially Adapted Housing (SAH) assistive technology grant program


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -

To view VA Circular/News for 2010, visit the VA website.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

1 Comment »
Oct
06
2010

MCA Monthly Compliance Update – October 2010

MCA Logo

Picture of autumn leaves

MCA Monthly Update

October 2010
In This Issue
Webinar Q & A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Quick Links

Lending Manuals
Stay Updated
Connect with us:

View our profile on LinkedIn Follow us on Twitter Find us on Facebook

Join Our Mailing List!

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 “Managing the Year of Change.”

We have posted the slides from last month’s webinar on our website. You can find slides from every webinar on our website under the News & Resources tab.


Webinar


A review of the  year’s major changes in the mortgage industry.

Join our free webinar on Thursday, October 21 at 12:00 p.m. MDT.





Reserve your webinar seat now at:


Register Now




As the mortgage industry continues to experience major reform, the year 2010 will forever be remembered as a year of change. To help lenders and brokers manage these implementations, Mortgage Compliance Advisors is pleased to offer a free webinar reviewing the major changes of the year. Last month’s webinar covered the GFE, and this month we will review other major changes of the year, including a panel discussion of the updates and an open Q&A session. Join us on Thursday, October 21 at 12:00 pm Mountain Daylight Time, as we discuss the following topics:


  • Fannie Mae changes (including LQI)
  • MDIA
  • FHA changes
  • Dodd-Frank Wall Street Reform and Consumer Protection Act (briefly)

If you send us your questions in advance, our compliance professionals will try to incorporate the answers into the presentation. Please submit your questions during the registration process or email info@mortgagecomplianceadvisors.com.


- – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


For real time compliance news, you can now follow us on


Webinar Questions and Answers



We want to thank everyone who attended our webinar: “Revisiting the GFE: How to Resolve Common Findings.” As promised, we have posted the slides and answers to the questions asked.



We have included the first three questions below. *Please visit our website to read all 35 questions and answers.


Question 1 – On purchase transactions, since the seller chooses the title company, are title charges still held to that 10% tolerance?

  • Answer – Yes. Fees disclosed in Blocks #4 or #5 are bound by 10% tolerance. If a settlement service provider list is provided to the borrower at the time of initial GFE disclosure, and the borrower chooses a settlement agent not disclosed on the service provider list, the actual charges at settlement may be listed under Fees That Can Change.


Question 2 - Regarding Important Date #1: Does a new GFE need to be issued when a rate lock is extended?

  • Answer – A new GFE will need to be issued with the Important Dates Section updated to reflect correct lock information.


Question 3 – Is a credit report provider required to be on the settlement service list? If yes, what if you don’t charge your borrower a credit report fee ever? Do you still have to list a company on your list?

  • Answer – A settlement service provider list must be provided for any service the borrower may shop for. If the borrower is allowed to shop for a credit report provider, the list must be provided. If you do not ever charge a credit report, you are not required to show the credit report, or company, on the provider list.
HUD/FHA Update


Reminder: Multiple FHA changes went into effect on October 4, such as changes to

MIP, minimum credit score, and LTV eligibility requirements.


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- For Multifamily Mortgagees: Revises certain provisions of temporary authority to Multifamily Hub Directors to waive the Three-Year Rule for Section 223 (f) applications… View the entire letter


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -




- For Multifamily Mortgagees: Announces Annual Base City High Cost Percentages and High Cost Areas.  View the entire letter


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- For Multifamily Mortgagees: Implements several policy changes to Partial Payments of Claim (PPC) and Mortgage Modifications.  View the entire letter


- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Enhances FHA Connection to support Sponsored Originations. Effective October 4, 2010.  View the entire letter


- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces HECM Saver, with lower upfront costs for mortgagors who want to borrower smaller amount than would be available with HECM Standard.

- Also effective October 4, 2010, amount of HECM loan proceeds available to mortgagors will be reduced.



- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all HUD Mortgagee Letters for the year, visit HUD’s website.
Fannie Mae Update



- Fannie Mae suspends California Housing Loan Insurance Fund (CaHLIF) as an approved mortgage insurer.  View the entire announcement


- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Fannie Mae is working with FHFA to develop and adopt appraiser independence requirements that will replace HVCC.  View the entire announcement


- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -




- The Selling Guide is being updated to include changes to the following topics:

  • Simplified high-LTV ratio transactions and borrower contribution requirements
  • Updated employment and income policies
  • Revolving debts in debt-to-income ratio
  • Joint credit reports
  • Reporting and validation of mortgage insurance
  • Undisclosed liabilities
  • Updated foreclosure policies for DU loan casefiles
  • Miscellaneous Selling Guide Updates
  • Unit number special feature code and other updates

View the entire announcement


- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


SVC-2010-14: Home Affordable Modification Program: Introduction of Second Lien Modification Program


- Provides guidance on Second Lien Modification Program (2MP), which is designed to work in tandem with HAMP. Servicers must implement no later than January 1, 2011.  View the entire announcement



- – - – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


SVC-2010-15: Updates to Fannie Mae’s Forbearance, Income Eligibility, and Home Affordable Modification Program Requirements


- Updates servicing guide regarding forbearance, income eligibility, and HAMP requirements.  View the entire announcement



- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



LL-2010-10: Extension to Fannie Mae’s Alternative Modification to the Home Affordable Modification Program


- Extends timeframe to November 30, 2010 for servicers to submit their Alt Mod cases.  View the entire letter



- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


LL-2010-11: Servicer Review of Procedures Relating to the Execution of Affidavits, Verifications, and Other Legal Documents


- Directs all servicers to immediately review policies related to execution of affidavits, verifications, and other legal documents connected with default process.  View the entire letter



- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view all Fannie Mae Announcements and Letters for the year, visit

Freddie Mac Update



- Extends settlement deadline for HAMP Backup Modifications to December 1, 2010.  View the entire bulletin


- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Updates Guide, including enhancements to fraud prevention, Exclusionary List, OFAC compliance, etc. View the entire bulletin


- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



- Announces that servicers must review affidavit policies related to foreclosure by October 18, 2010.  View the entire letter


- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -


To view Recent Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.


VA Update



- Effective September 13, 2010, Loan Guaranty Service will temporarily relocate to Alexandria, VA. View the entire circular


- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -




- – - – - – - - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - – - -



To view VA Circular/News for 2010, visit the VA website.

Feel free to call us with any questions at 877-226-3216 or reply to this email.

No Comments »
Sep
02
2010

MCA Monthly Compliance Update – September 2010

MCA Logo
Picture of autumn leaves
MCA Monthly Update
September 2010
In This Issue
Federal Reserve’s Final Rules
Webinar Q & A
HUD/FHA Update
Fannie Mae Update
Freddie Mac Update
VA Update
Quick Links

Lending Manuals
Stay Updated
Connect with us:

View our profile on LinkedIn Follow us on Twitter Find us on Facebook
Join Our Mailing List!

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.