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Arlington, TX September 2014
CFPB Updates the Integrated Disclosure Compliance Guide

September 8, 2014 The CFPB has released an updated version of their Compliance Guide for the Integrated Disclosure rule effective August 2015. This includes clarification on timing requirements, and additional resource assistance.
http://files.consumerfinance.gov/f/201409_cfpb_tila-respa-integrated-disclosure-rule_compliance-guide.pdf

Arlington, TX, August 2014
FHA changes ARM look back period to 45 days

Federal Register /Vol. 79, No. 165 /Tuesday, August 26, 2014 /Rules and Regulations 50839
FHA insured ARMs originated on or after January 10, 2015, must comply with the
new notification requirements of the 2013 TILA Servicing Rule and have 45 days look back instead of the current 30 days.

Arlington, TX, August 2014
FHA makes big change in prepayment interest charges

203.558 Handling prepayments.
(a) Handling prepayments for FHA insured mortgages closed on or after January 21, 2015. With respect to FHA insured mortgages closed on or after January 21, 2015, notwithstanding the terms of the mortgage, the mortgagee shall accept a prepayment at any time and in any amount. The mortgagee shall not require 30 days’ advance notice of prepayment, even if the mortgage instrument purports to require such notice. Monthly interest on the debt must be calculated on the actual unpaid principal balance of the loan as of the date the prepayment is received, and not as of the next installment due date
Federal Register August 26, 2014 page 50838

Arlington, TX, August 2014
Fannie Mae Releases HOEPA Worksheet
August 25, 2014, FNMA has released Lender Letter 2014-14. In effort to assist in Quality Control measures FNMA has prepared a Home Ownership and Equity Protection Act (HOEPA) Worksheet. This form can be optionally used by lenders for providing required information when a loan is selected for an anti-predatory lending and HOEPA compliance review.
LL-2014-14:
https://www.fanniemae.com/content/announcement/ll1404.pdf
Worksheet:
https://www.fanniemae.com/content/tool/hoepa-worksheet.pdf

Arlington, TX, July 2014
ML 2014-13: Voluntary Termination of FHA Mortgage Insurance (07/03/14) Processing Voluntary Terminations in FHA Connection

Voluntary terminations for single-family forward mortgages must be requested via FHA Connection. Mortgagees are no longer to use Electronic Data Interchange (EDI), Business-to-Government (B2G), and bulk processes for voluntary terminations. When completing the Insurance Termination (HUD Form 27050-A) actions in FHA Connection, mortgagees must certify that all borrowers on the mortgage have signed the Borrower’s Consent to Voluntary Termination of FHA Mortgage Insurance. The voluntary termination will not be processed unless the mortgagee provides this certification.

Arlington, TX, June 2014
Freddie Mac announces the Private Mortgage Insurance Master Policy Updates

This Single-Family Seller/Servicer Guide Bulletin announces the effective date and requirements for the new private mortgage insurance master policies announced in a Federal Housing Finance Agency press release on December 2, 2013.
BLL-1413

Arlington, TX, May 2014
Fannie Mae Releases Updates to Definitions and Policies

On May 27, 2014, FNMA released Selling Guide Announcement SEL-2014-06; which includes updates to multiple definitions and policies including delayed financing, continuity of obligation, large deposits and other assets. Additionally, FMNA provides clarification on use of POAs for interactive closings, and the allowance of unemployment benefits to be included in income.
SEL-2014-06

Arlington, TX, May 2014
VA Adopts QM/ATR Regulations

The Department of Veteran Affairs (VA), by way of interim final ruling, has adopted 2014 QM/ATR regulations. It is noted that current additional standard guidelines will not change, nor will the way loans are originated be altered. Effective May 9, 2014 with comment period through June 9, 2014
2014-10661.pdf

Arlington, TX, May 2014
FHA Releases Proposed Update to SF ARM Guidelines

On May 8, 2014, FHA proposed an update to the current 30 day allowable look-back period. In keeping with revisions to TILA, it is proposed that the look-back period be increased to 45 days. Additionally, it is proposed that FHA follow suit with TILA servicing notification timeframes. Click here for the full news release.

Arlington, TX, May 2014
CIRC. 26-14-13: Policy Clarification on Unallowable Fees (05/07/14)

The purpose of this Circular is to clarify the Department of Veterans Affairs (VA) policy on the treatment of unallowable fees when lenders charge a loan origination fee that is less than one percent of the loan amount on purchase and cash-out transactions, and less than one percent of the payoff amount on interest rate reduction refinance loans (IRRRLs)...Click here for the full news release.

Arlington, TX, May 2014
VA Announces New Requirements for Appraisal Processing in WebLGY

Purpose. The purpose of this Circular is to announce that effective June 1, 2014, all Department of Veterans Affairs (VA) appraisals will be processed in WebLGY under the VA Appraisal Management System (AMS). Therefore, beginning June 1, 2014, all VA appraisals must be uploaded in WebLGY in Mortgage Industry Standards Maintenance Organization (MISMO) compliant XML 2.6 GSE file format as VA will no longer accept appraisals uploaded in WebLGY in PDF format. Prior to June 1, 2014, VA appraisals must continue to be uploaded in WebLGY in PDF file format.

Arlington, TX, May 2014
PEIRSONPATTERSON, LLP TRUST REVIEW AND DOCUMENTATION UPDATES

Recently, our firm reviewed signature lines and borrower names on Notes and Security Instruments where the borrower is a trust. For secondary market loans, we have always conformed signature lines to the requirements of the FNMA Selling Guide, and will continue to do so. We have decided, however, to make a few minor changes that will more closely conform our trust documents to the requirements of a majority of secondary market investors. There are many different investor interpretations for trust documentation, but these changes will bring our documents in line with the requirements of the greatest number of investors while still fully complying with applicable legal and FNMA Selling Guide requirements.

I. Borrower Names on Page 1 of the Security Instrument

We previously reflected the borrower’s name on page 1 of the security instrument as “XXXXX, individually and as trustee of the XXXXX trust.” Going forward, we will reflect the borrower on page 1 of the security instrument as each individual trust settlor whose income and/or assets were used to qualify for the loan. Rather than showing [trust settlor], individually and as trustee of the XXXX trust”, we will now simply show the name of the applicable trust settlor without additional verbiage.

Example of how borrower’s name will be reflected on Page 1 of the Security Instrument:

DEFINITIONS

(B) “Borrower” is John Doe. Borrower is the grantor under this Security Instrument.

Reflecting the borrower this way on Page 1 of the DOT is consistent with the following FNMA Selling Guide requirement:

B2-2-05, Inter Vivos Revocable Trusts (01/17/2013)

Underwriting Considerations

The mortgage must be underwritten as if the individual establishing the trust (or at least one of the individuals, if there are two or more) were the borrower (or a co-borrower, if there are additional individuals whose income or assets will be used to qualify for the mortgage).

While remaining consistent with applicable FNMA Selling Guide requirements, reflecting the borrowers on a trust loan in this manner on Page 1 of the DOT will also conform to the greatest number of investor requirements.

II. Signature Blocks on Note

The FNMA Selling Guide requires that each trustee and each settlor who is a credit applicant must sign the Promissory Note on a trust loan. Our Note signature blocks have met, and will continue to meet, this requirement. In order to conform the signature lines on the Note to the name appearing on the Security Instrument, as required by many investors, we are also adding an additional signature line for the name of each individual settlor who is also a credit applicant.

Example of signature blocks on the Note:

_______________________________________

Signature                                                   Date
John Doe

_______________________________________

Signature                                                   Date

Jane Doe

_______________________________________

Signature
John Doe, individually and as Trustee of The John Doe and Jane Doe
Revocable Living Trust under trust instrument dated January 15, 2012

_______________________________________

Signature
Jane Doe, individually and as Trustee of The John Doe and Jane Doe
Revocable Living Trust under trust instrument dated January 15, 2012

These signature blocks are consistent with the following FNMA Selling Guide requirement:

E-2-06, Signature Requirements for Mortgages to Inter Vivos Revocable Trusts (01/17/2013)

Form of Signature Required on Mortgage Note for an Institutional Trustee and for an Individual Trustee Who Is Not Both a Settlor and a Credit Applicant

Each institutional trustee of the inter vivos revocable trust and each individual trustee of the inter vivos revocable trust who is not both a settlor and a credit applicant must sign the promissory note (and any necessary addendum), using a signature block substantially similar to the following, inserted in the Borrower’s Signature lines:

_______________________________________, as Trustee of the _________ [Complete Legal Name of Trust] Trust under trust instrument dated ___________________, __________.

Form of Signature Required on Mortgage Note for an Individual Trustee Who Is Both a Settlor and a Credit Applicant

Each individual trustee of the inter vivos revocable trust who is both a settlor and a credit applicant must sign the promissory note (and any necessary addendum), using a signature block substantially similar to the following, inserted in the Borrower’s Signature lines:

_________________________________________, individually and as Trustee of the _________ [Complete Legal Name of Trust] Trust under trust instrument dated _____________, __________.

While remaining consistent with applicable FNMA Selling Guide requirements, reflecting the signature lines on the Note for a trust loan in this manner also conform to the greatest number of investor requirements.

III. Signature Blocks on Deed of Trust

The FNMA Selling Guide requires that each trustee must also sign the Security Instrument. Each settlor who is a credit applicant must also acknowledge the Security Instrument via a specific signature line. Our Security Instrument signature blocks have met, and will continue to meet, these requirements. In order to more closely conform the Security Instrument signature blocks to those on the Note, as required by many investors, we are also adding an additional signature line for each individual settlor who is a credit applicant (thereby reflecting them appropriately as both the settlor and the borrower per FNMA underwriting requirements).

Example of signature blocks on the Security Instrument:

_______________________________________

Signature                                                   Date
John Doe

_______________________________________

Signature                                                   Date

Jane Doe

_______________________________________


Signature
John Doe, individually and as Trustee of The John Doe and Jane Doe
Revocable Living Trust under trust instrument dated January 15, 2012

_______________________________________

Signature
Jane Doe, individually and as Trustee of The John Doe and Jane Doe
Revocable Living Trust under trust instrument dated January 15, 2012

BY SIGNING BELOW, the undersigned, Settlor(s) of The John Doe and Jane Doe Revocable Living Trust under trust instrument dated January 15, 2012, acknowledges all of the terms and covenants contained in this Security Instrument and any rider(s) thereto and agrees to be bound thereby.

_____________________________________________________
John Doe, Trust Settlor

_____________________________________________________
Jane Doe, Trust Settlor

These signature blocks are consistent with the following FNMA Selling Guide requirement:

E-2-06, Signature Requirements for Mortgages to Inter Vivos Revocable Trusts (01/17/2013)

Form of Signature Required on Security Instrument for All Trustees

Each trustee of the inter vivos revocable trust must sign the security instrument (and any necessary rider), using a signature block substantially similar to the following, inserted in the Borrower’s Signature lines:

_______________________________________, as Trustee of the _________ [Complete Legal Name of Trust] Trust under trust instrument dated ___________________, __________.

Form of Settlor/Credit Applicant’s Signature Acknowledgment Required on Security Instrument

The following must be added to the security instrument (and any necessary rider) following the Borrower’s Signature lines (and then must be signed by each settlor of the inter vivos revocable trust who is a credit applicant):

BY SIGNING BELOW, the undersigned, Settlor(s) of the_______________________ [Complete Legal Name of Trust] Trust under trust instrument dated _________, ______________, acknowledges all of the terms and covenants contained in this Security Instrument and any rider(s) thereto and agrees to be bound thereby. _________________________________ (Seal) Trust Settlor.

While remaining consistent with applicable FNMA Selling Guide requirements, reflecting the signature lines on the Security Instrument for a trust loan in this manner also conform to the greatest number of investor requirements.

IV. Portfolio Trust Loans

Since FNMA Selling Guide requirements do not apply to portfolio loans that will not be sold in the secondary market, a lender making a portfolio trust loan has considerably more flexibility in underwriting and documenting trust loans. For portfolio loans, we will continue to accommodate lender preferences regarding allowable trust to be used as borrower, signature lines, and use of trust riders. As long as we do not feel a request could impact the legal compliance of the loan, we will continue to treat portfolio loans in a flexible manner.

V. Review of Trust Certifications

We previously required a copy of the full trust and all amendments when performing a trust review. The laws of many jurisdictions, however, permit or require a third-party dealing with a trustee to rely on an abstract or certification of trust rather than the entire trust document. As a result, we have received requests to review trust certifications in those states where they are permitted or required.

Review of a trust certification is permissible under FHLMC Selling Guidelines as long as state law permits or requires the use of a certification. The FNMA Selling Guide is silent on this issue.

From Freddie Mac Selling Guide:

6. Seller Review - The Seller must review:

  • Either (a) the trust agreement for the Living Trust or, (b) an abstract, certification or other summary of the trust agreement if and to the extent the laws of the applicable jurisdiction require or permit a third-party dealing with a trustee to rely on such abstract, certification or other summary. Based on such review, the Seller must determine that:

    • The Settlor (or each Settlor, if there is more than one) has retained the power to revoke or amend the trust
    • There is specific authorization for the trustee(s) to borrow money and to purchase, construct, or encumber realty as more fully described in Section 22.10(a)2 above
    • There is no unusual risk or impairment of lenders' rights (such as distributions required to be made in specified amounts from other than net income)
    • The beneficiary need not grant written consent for the trust to borrow money or, if such consent is required, it has been granted in writing for purposes of the Mortgage
    • If the trust agreement requires more than one trustee to borrow money or to purchase, construct or encumber realty, that the requisite number of trustees have signed the loan documents

We have reviewed all applicable state laws on this issue and concluded that a trust certification may be relied upon in all states except the following:

Colorado, Connecticut, Hawaii, Illinois, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, New York, Oklahoma, and Rhode Island.

For these 12 states we continue to recommend a review the full trust in order to comply with Fannie/Freddie requirements, unless the trustee can point to legal authority indicating a trust certification is sufficient.

For all other states, we will accept either a full trust or a trust certification for review going forward.

Accordingly, we have updated our trust review checklist to accommodate client requests for trust certification reviews. Our standard trust review checklist will now reflect the following updates:

1. The checklist now reflects whether PeirsonPatterson, LLP’s review is of the entire trust documentation or of a certification of the trust in lieu of a full trust.

2. If PeirsonPatterson reviewed only a certification of the trust, a statement that the Firm’s review is limited solely to the face of the documents provided for review and that PeirsonPatterson makes no comment on any aspect of the trust that may be reflected in trust or other documentation that was not submitted for review.

We believe the minor changes we are making to our loan documents and review process for trust loans will make our already compliant process even stronger, while also being more accommodating to our clients. Thank you for your business!


Arlington, TX, April 2014
CFPB has released a Guide to Completing TILA-RESPA Integrated Disclosure Forms
-  On April 17, 2004, CFPB has releasted a Guide to Completing TILA-RESPA Integrated Disclosure Forms, a companion to the Small Entity Compliance Guide we released recently. The guide provides instructions for completing the Loan Estimate and Closing Disclosure and also highlights common situations that may arise when completing the forms. It may also be helpful to settlement service providers, software providers, and other firms that serve as business partners to creditors.


Arlington, TX, April 2014:
FNMA Updates DU Government Loans Release Notes
-  On April 15, 2014, Fannie Mae has provided DU Release Notes for Government loans. This update includes variations and changes to the Credit Risk Assessment on VA loan casefiles; thereby, FNMA notes that customers may see an increase in approvals. This changes will be put in place the weekend of May 17, 2014, and will affect all VA loans created on or after October 19, 2013 and submitted or resubmitted on or after May 17, 2014.


Arlington, TX, April, 2014:
FNMA has released Selling Guide Announcement SEL-2014-03
-  On April 15, 2014 Fannie Mae released Announcement SEL-2014-13,. This announcement includes updates to the Selling Guide including; Property Eligibility and Appraisal Requirements, QM clarifications, and the incorporation of MERS Rider for specific Geographic Areas. Further it provides information on the retirement of additional ARM plans, an update to the Standard ARM Matrix and the new web based PDF Selling Guide:


ARLINGTON, TX, April, 2014:
CFPB Releases TILA-RESPA Integrated Disclosure Compliance Guide
-  On March 31, 2014 the CFPB released a Small Entity Compliance Guide for the new TILA-RESPA Integrated Disclosure Rule, to assist in determining compliance obligations for creditors, and understanding for settlement service providers, and investors. The CFPB additionally has plans to release a companion guide, detailing how to complete the new disclosure forms in the weeks to come.


ARLINGTON, TX, April, 2014:
Freddie Mac Releases Guidance on Rural Appraisals
-  FHLMC has released Bulletin 2014-5 to provide guidance regarding appraisals in the rural market area. This includes information on appraiser selection, property eligibility with unique properties, and selection of comparable sales and analysis.


ARLINGTON, TX, January, 2014:
Wells Fargo Approval
-  Wells Fargo Funding has announced the approval of PPDocs’s version of the Wells Fargo Fee Details Form. Wells has confirmed that the form include the data needed to complete their pre-purchase points and fees review and may be submitted. A number of other investors are also adopting the Fee Details Form. Sellers to Wells Fargo may begin using the form immediately.


ARLINGTON, TX, January, 2014:
Bureau Updates Consumer Booklets
-  The Consumer Financial Protection Bureau has published in today's Federal Register a notice of availability of three revised consumer publications, including a consumer information brochure and two booklets required under the Real Estate Settlement Procedures Act (RESPA), Regulation X, the Truth in Lending Act (TILA), and Regulation Z. The CFPB is making technical and conforming changes to each of the three publications in conjunction with the January 2014 effective dates for many provisions of the Bureau's rulemakings that regulate practices in mortgage origination and servicing. Those who provide these publications may use earlier versions until existing supplies are exhausted. However, when reprinting these publications, the most recent version should be used.

  • What You Should Know About Home Equity Lines of Credit(HELOC Brochure)
  • Consumer Handbook on Adjustable-Rate Mortgages(CHARM Booklet)
  • Shopping for Your Home Loan, Settlement Cost Booklet


ARLINGTON, TX, November, 2013:
PPDocs Training Sessions: Ordering Docs for 2014 Changes
-  As a continual effort to keep our clients informed on system changes, we are offering a comprehensive training session on how to order documents within the PPDocs system come January. Please keep in mind this is not meant to educate you on the changes themselves rather how to adjust for those changes in regards to data entry. This next training will commence Wednesday, December 18, 2013 at 10:30 am (CST) – please register at support@ppdocs.com.

The training will be conducted via WebEx, an online meeting center where we will conference via phone as well as sharing our desktop so each of you may see the steps involved. Because of the number of people participating in this training session we are asking you to mute your phone and direct all questions to cfpb@ppdocs.com – your questions will be answered in an inclusive email to all participants within 48 hours.

The final training will be held on December 18, 2013 at 10:30am (CST).


ARLINGTON, TX, November, 2013:
Upcoming Fee Changes for 2014
- Game changing Dodd-Frank "Ability to Repay" (ATR) regulations go into effect, January 10, 2014. These broad sweeping changes will expand the risk for everyone in the mortgage industry. To prepare for these upcoming changes, we have committed and will continue to commit substantial resources to our staffing and to the training and education thereof. These, along with other factors, have had a significant financial impact on the firm and have substantially increased our cost of doing business in recent years. Therefore, effective January 1st, 2014, we will be increasing our fee by $25 for most of our loan document preparation. This marks the first time the firm has instituted a fee adjustment in its history. An updated fee matrix is available online under “my account” page.

Our team has been hard at work over the past few months to prepare for what’s ahead. We have created a QM analyzer along with a Compliance Certificate for you to test current and future loans against the new rules. With it, you can easily test your secondary market loans as well as the portfolio loans that you keep in house. Whether you are a small creditor, serve a rural and underserved area, or simply want to test for a General QM, Temporary QM or an ATR Standard, we can help. Our compliance and legal teams, as well as our staff, will be at your fingertips to answer any questions and to offer guidance. Most importantly, our support staff will be available to walk you through the ordering process and answer any questions you may have along the way. As always, our staff is available to you and dedicated to your continued success in the mortgage business. In addition, each month we host webinars that detail the changes to our site and how to test your loans against the new rules. If you haven’t had time to sit in on one, we’ve made some of our most recent webinars available here.

We wanted to inform you of our fee adjustment early so that you can begin properly disclosing our fee on the GFE for transactions anticipated to close after the first of the year. Although the fee increase is very minimal and paid for by the borrower, we wanted to give you plenty of notice. Please note that our fee is excluded from the QM points and fees test. We appreciate your business and look forward to working with you as always.


WASHINGTON, D.C., November, 2013:
CFPB Releases Online Database of Housing Counselors
- The Bureau of Consumer Financial Protection released an online tool to help consumers find local housing counseling agencies near them in order to answer consumer questions and address concerns. The online database can be found at the following link: http://www.consumerfinance.gov/find-a-housing-counselor/


WASHINGTON, D.C., October, 2013:
Selling Guide Updates, DU Updates and New Training Tool
- In this Announcement, a number of topics have been updated in the Selling Guide, including the addition of new requirements for the use of a power of attorney, the adoption of the note date as an eligibility criterion for DU Refi Plus™ and Refi Plus™ loans, and the discontinuance of master hazard insurance policies for multiple unaffiliated projects in a single insurance policy. An updated version of FAQs for Project Insurance Requirements is now available on Fannie Mae's business portal.
-Joint Press Release


WASHINGTON, D.C., October, 2013:
Federal regulators provide guidance on Qualified Mortgage fair lending risks
- Five federal regulatory agencies today issued a statement to address industry questions about fair lending risks associated with offering only Qualified Mortgages. Creditors have asked for clarity regarding whether the disparate impact doctrine of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B, allows them to originate only Qualified Mortgages. For the reasons described in the statement, the five agencies do not anticipate that a creditor's decision to offer only Qualified Mortgages would, absent other factors, elevate a supervised institution's fair lending risk.
-Joint Press Release


WASHINGTON, D.C., October, 2013:
CFPB Issues Further Guidance for New Servicing Rules
- On October 15, 2013 the CFPB drafted additional guidance on implementation of upcoming RESPA and TILA Servicing Final Rules. This bulletin covers several procedures including servicers’ obligations under the Fair Debt Collection Practices act, the Early Intervention Rule and communication requirements with successors in interest.
-Bulletin: Implementation Guidance for Certain Mortgage Servicing Rules
-Article: CFPB Provides Guidance on Mortgage Servicing Rules


WASHINGTON, D.C., October, 2013:
Federal Reserve to put on FREE webinar on Fair Lending Hot Topics
- The Federal Reserve has announced they will host an Interagency "Fair Lending Hot Topics" webinar on Thursday, October 24, 2013. During this session, representatives from the Non-Discrimination Working Group will discuss a variety of emerging fair lending issues and hot topics. Speakers at this event will represent a variety of agencies, including:

  • Department of Justice;
  • Consumer Financial Protection Bureau;
  • Federal Deposit Insurance Corporation;
  • Office of the Comptroller of the Currency;
  • Federal Reserve Board;
  • Department of Housing and Urban Development; and,
  • National Credit Union Administration.

Why not take advantage of this free opportunity to look at the current issues? It may help uncover some problems at your bank and allow you to fix any problems before examiners arrive. This webinar may also spur some areas to focus on when putting together your Fair Lending Risk Assessment.

Written questions can be submitted via email in advance of the event, or may be submitted during the event using online chat. Log-in and email information will be provided with registration confirmation.
-Register


WASHINGTON, D.C., October, 2013:
Fannie Mae Servicing Guide Announcement
- Fannie Mae released Announcement SVC-2013-20; which outlines updates to their Servicing Guide in response to the CFPB Mortgage Servicing Final Rule. Updates include; borrower solicitations, delinquency management, foreclosure alternatives and process of appeals to be implemented on packages received on or after January 10, 2014.
-Servicing Guide Announcement


WASHINGTON, D.C., October, 2013:
Freddie Mac Bulletin on Servicing Released
- On October 11, 2013 Freddie Mac released Bulletin 2013-21; which indicates their response to the CFPB Mortgage Servicing Final Rule. This outlines the new policies and procedures regarding servicing including; delinquency management, right of appeals, foreclosure, and error resolution, to be implemented for complete borrower packages received on or after January 10, 2014.
-Bulletin


WASHINGTON, D.C., October, 2013:
Freddie Releases Bulletin on Gov’t Shutdown
- Freddie Mac has released Bulletin 2013-19 as an updated response to the government shutdown; with guidance affective October 8, 2013. Temporary issues include verifications for government employees, and 4506-T processing.
-Read Bulletin


WASHINGTON, D.C., October, 2013:
Freddie Mac Releases QM Industry Letter 100113
- Freddie Mac has released an Industry Letter outlining its Quality Control procedures moving forward, and updates regarding Ability-to-Repay and Qualified Mortgage regulation alignments for purchasing.
-Information Relating To The CFPB Final Rule On Ability To Repay


WASHINGTON, D.C., October, 2013:
VA Releases Response to Gov't Shutdown
- Department of Veterans Affairs has released a response to the government shutdown indicating that they will continue to operate within normal parameters.
-Circular 26-13-20


WASHINGTON, D.C., October, 2013:
HUD Releases proposed QM rules for Insured and Single Family Mortgages
- HUD has released their proposed rule aligning procedures with TILA Ability-to-Repay and Qualified Mortgage. Proposal includes stipulations on regular periodic payments, term limitation and points and fees requirements. Comment period ends October 30, 2013.
-Proposed Rule (web)
-Proposed Rule (Web PDF)
-Proposed Rule (Newspaper Article)


WASHINGTON, D.C., October, 2013:
Fannie Releases Lender Letters on ATR/QM QC policy, and Gov’t Shutdown Allowances
- Fannie Mae has released two lender letters on October 1, 2013. Lender Letter 2013-07 reiterates FNMA Quality Control procedures and additional changes aligning existing policies with the upcoming ATR and QM requirements. Additionally, Lender Letter 2013-08 provides guidance on temporary revisions to required procedures in light of the government shutdown.
-Quality Control and Additional Information Related to the ATR and QM Requirements
-Federal Government Shutdown


WASHINGTON, D.C., September, 2013:
Consolidation of Title I and Title II Lender ID Numbers
- FHA announces the consolidation of Title I and Title II Lender Identification (Lender ID) numbers. Lenders will now have a single Lender ID. Effective March 31, 2014.
-Mortgagee Letter 2013-35


WASHINGTON, D.C., September, 2013:
V.A. Same Sex Marriage rules
- V.A. Circular 26-13-18 - Effective immediately, the Department of Veterans Affairs (VA) will, to the extent legally possible, begin reviewing applications for the home loan guaranty benefit for same-sex married couples in a manner consistent with processes currently used for opposite-sex married couples.
-Circular 26-13-18


WASHINGTON, D.C., September, 2013:
Fannie Mae DU Updates
- FNMA has released an announcement outlining changes to DU casefiles submitted to 9.1. In addition to ATR/QM changes indicated in SEL-2013-06, they will further remove product allowances for ARM loans. This includes interest only features or terms greater than 30 years; with changes beginning for files submitted on or after November 16, 2013.
-Selling Guide Announcement SEL-2013-07
-Standard ARM Plan Matrix


WASHINGTON, D.C., September, 2013:
CFPB Finalizes Amendments to 2014 Rules
- On September 12, 2014 the CFPB finalized several proposed amendments applicable to ECOA, RESPA and TILA. These finalizations are cited to strengthen consumer protections, assist in clarifying numerous interpretations and help facilitate the highest level of compliance possible for the upcoming changes slated for January 2014.
-Read Document


WASHINGTON, D.C., August, 2013:
Fannie and Freddie Release ATR and QM Updates
- In light of the most recent amendments and updates to the CFPB Ability-to-Repay (ATR) and Qualified Mortgages (QM) final rules, FNMA and FHLMC have released announcements indicating revised sections of their respective Selling Guides to align with requirements addressed. These updates include loan terms, amortization, and Points and Fees restrictions. Additionally, FNMA and FHLMC address “ATR Exempt” loan eligibility requirements, and provide that in staying consistent with current requirements, all loans to Inter Vivos Revocable Trusts must underwritten as ATR Covered Loans in order to be eligible for sale to FNMA or FHLMC. Further, FHLMC indicates that effective for applications on or after January 10, 2014 Prepayment Penalty Mortgages will not be eligible for purchase.
-Fannie Mae Update
-Freddie Mac Update


WASHINGTON, D.C., July, 2013 - The CFPB has released an official Readiness Guide, that can be used by institutions of all sizes to evaluate their readiness for the impending mortgage rule changes. The guide provides many topics that institutions may need to consider as they implement these rule changes.
-CFPB Mortgage Implementation Readiness Guide


WASHINGTON, D.C., July, 2013 - On July 2, 2013 FHLMC released Industry Letter; Freddie Mac’s New Mortgage Eligibility Criteria outlining upcoming changes to loan requirements in coordination with the CFPB’s Ability-to-Repay (ATR) and Qualified Mortgage (QM) requirements effective January 10, 2014. Much like FNMA, FHLMC will be removing eligibility for loans including toxic features, extended terms and those exceeding the Points and Fees threshold.
-Read Letter


WASHINGTON, D.C., July, 2013 - On July 2, 2013 FNMA released LL-2013-06: Additional Information about Ability to Repay and Qualified Mortgage Requirements, to provided lenders with updated status on their upcoming requirements pertaining to ATR and QM loans. This includes removal of specific toxic features, extended loan terms and Points and Fees requirements on any loans to be purchased with application dates on or after January 10, 2014.
-Read Letter


TEXAS, June, 2013 - Breaking News!!!! In Texas, home equity loans as of closings on 06/21/13, discount points must be included in 3% cap. It makes no difference whether Discount Point Acknowledgement form is used or not.
-Click here for the release


WASHINGTON, D.C., June, 2013 - In order to ensure that the industry is compliant and ready to initiate all new borrower protections, the CFPB has launched the Regulatory Implementation web page. In the webpage provided they have consolidated all of the new 2013 mortgage rules, and providing all related implementation materials and guides into one quick reference location.
-Website


WASHINGTON, D.C., June, 2013 - With today’s postings, compliance guides are now available for all of the new mortgage rules originally issued by the CFPB in January. The CFPB plans to update these guides periodically as rule clarifications are finalized as part of the ongoing commitment to supporting implementation of the new mortgage rules.
-2013 Loan Originator Rule
-2013 Mortgage Servicing Rule


WASHINGTON, D.C., June, 2013 - the Consumer Financial Protection Bureau released its first round of updates to its examination procedures to address several of the new mortgage regulations issued by the Bureau earlier this year. The updated examination procedures cover the extended escrow account period for higher-priced mortgage loans and the prohibitions on mandatory arbitration clauses and waivers of certain consumer rights, each of which were effective on June 1, 2013.
-CFPB site.


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