MCA Monthly Update – January 2010

admin — Thu, 07 Jan 2010 17:52:58 +0000

MCA Monthly Update
January 2010

In This Issue

Underwriting & Processing Tips

Quick Links

Quality Control File Audits

Red Flags Rule Implementation

FHA Approval Services

Quality Control Plan Implementation

Training and Consulting Services

Lending Manuals

Stay Updated

Twitter

Facebook

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.

*MCA has a new website!

Visit our newly redesigned website to find upcoming regulation deadlines, the latest compliance news, updated FAQs, and other helpful resources.

www.MortgageComplianceAdvisors.com

If you have any questions, simply reply to this email or call us at 877-226-3216.

For real time compliance news, you can now follow us on Twitter and Facebook.

Underwriting & Processing Tips

1. The new RESPA regulations went into full effect 1/1/10. Visit HUD’s useful website for RESPA information. Some topics include:

2. “If a GFE is issued on the old form prior to January 1, 2010, then the old HUD-1 form must be used even if closing will occur after January 1, 2010. For GFEs issued on the old form, the loan originator has the option to reissue the GFE (with the same terms and charges) on the new form, in which case the settlement agent must complete the new HUD-1 form.” (from HUD’s FAQs for RESPA)

3. A good practice is to make sure that your file always includes an underwriting loan approval from the lender.

4. To allow us to provide you with a quality audit, your submissions should contain the following:

Initial disclosures and application
Credit, income and asset documentation (if applicable)
Signed underwriting package
Closing package (Collateral documents)
*If possible, purge file of duplicates

FHA Update

PR 09-231: HUD Announces Standards for Compliance with SAFE Act

- HUD proposes minimum standards that states must meet to comply with SAFE Act in licensing loan originators. View the entire press release

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Commissioner Letter, dated 12/17/09

- Letter from the FHA Commissioner, which contains brief Q & A about recent policy changes, including FHA approval process and RESPA. View the entire letter

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ML 09-52: Short Sales and Short Pay Offs

- Provides guidance for borrower eligibility for short sales and short payoffs. Effective immediately. View the entire letter

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HUD 4155.1: Chapter 6 (Special Underwriting)

- Contains the latest updated version of Chapter 6 (Special Underwriting) of HUD Handbook 4155.1. View the entire chapter

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HUD 4155.2: Chapter 4 (Property Valuation and Appraisals)

- Contains the latest updated version of Chapter 4 (Property Valuation and Appraisals) of HUD Handbook 4155.2. View the entire chapter

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ML 09-53: Real Estate Settlement Procedures Act (RESPA) and FHA Related Policies

- Clarifies how fees must be disclosed on the new GFE and HUD-1, consistent with the RESPA changes. 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

Ann. 09-36: Updates to the Home Affordable Modification Program…

- Updates HAMP, including requirements for tax returns, income documentation, and title endorsement and recordation. Effective date is 1/1/10. View the entire announcement

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Ann. 09-37: FHA-Approved Condo Projects, Credit Score Versions, DU Refi Plus and Refi Plus Updates, and Other Updates to the Selling Guide

- Updates policies for FHA-approved condo projects, credit score versions, DU Refi Plus and Refi Plus, etc. View the entire announcement

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Ann. 09-38: Miscellaneous Servicing Policy Changes

- Contains several updates and clarifications for various servicing policies, such as temporary review period for HAMP Trial Modifications, Risk Profiler, Quality Assurance Reviews for Acquired Properties, etc. View the entire announcement

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To view all Fannie Mae Announcements and Letters for the year, visit Fannie Mae’s website.

Freddie Mac Update

Bulletin 2009-28: Home Affordable Modification Program

- Provides information about the Treasury’s Mortgage Modification Conversion Drive, announces changes to HAMP, and changes capitalization threshold on all mortgages being modified. Effective immediately. View the entire bulletin

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To view 2009 Freddie Mac Bulletins/Industry Letters, visit Freddie Mac’s website.

VA Update

Circular 26-07-03, Change 3

- Extends rescission date of Circular 26-07-03 from 1/1/09 to 1/1/14. View the entire circular

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To view VA Circulars/News from 2009, visit the VA website.

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

From FHA Commissioner

admin — Thu, 17 Dec 2009 22:06:46 +0000

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.

Mortgage Compliance Advisors - Your One Stop for Quality Control Services and Resources » new respa rule

MCA Monthly Update – January 2010

From FHA Commissioner