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Arlington, TX December 2014
FHA Provides Maximum Loan Limits

This Mortgagee Letter:

  • provides notice of FHA's single family housing loan limits for Title II Forward Mortgages and Home Equity Conversion Mortgages (HECMs); and

  • provides loan limit instructions for streamline refinance transactions without an appraisal.

The loan limits in this Mortgagee Letter are effective for case numbers assigned on or after January 1, 2015 through December 31, 2015.
http://portal.hud.gov/hudportal/documents/huddoc?id=MLFHAMaxLLCY2015.pdf

Arlington, TX December 2014
FNMA and FHLMC Increase Max LTVs

Monday December 8, 2014, Both Fannie Mae and Freddie Mac have increased maximum loan-to-value (LTV) to first time home buyers and existing customers. FNMA announced the changes to My Community Mortgage products, standard purchase, and rate term/ limited cash-out products; increasing the max LTV to 97%. By increasing LTVs FHFA is hoping to stimulate the housing market for those borrowers whom face financial challenges with down payments and closing costs. Loans are noted to be fixed rate, on one unit primary residences and underwritten through DU. Additionally, FNMA will now allow gift funds to be used as reserves in coordination with additional qualification requirements, putting them in direct competition with current FHA programs. Changes will take effect December 13, 2014.
https://www.fanniemae.com/content/announcement/sel1415.pdf

Arlington, TX November 2014
FNMA Lender Letter LL-2014-08

The Federal Housing Finance Agency (FHFA) has issued the maximum loan limits that will apply to conventional loans to be acquired by Fannie Mae in 2015. The first mortgage loan limits are defined in terms of general loan limits and high-cost area loan limits. The maximum loan limits for 2015 remain unchanged from 2014; however, a number of high-cost area county limits have increased.
https://www.fanniemae.com/content/announcement/ll1408.pdf

Arlington, TX November 2014
VA Announces Credit Report and AUS Fee Policy

Circular 26-14-36: Announces the Department of Veterans Affairs' (VA) new policy regarding credit report and Automated Underwriting System (AUS) charges to Veterans. This policy is effective, November 13, 2014.

Arlington, TX November 2014
CFPB Updates Compliance Guides

November 10, 2014, the CFPB has updated two Small Entity Compliance Guides. This includes Ability-to-Repay and Qualified Mortgage Rule, and the TILA/RESPA Mortgage Servicing Final Rules, incorporating November 3, 2014 final changes.
http://files.consumerfinance.gov/f/201411_cfpb_atr-qm_small-entity-compliance-guide.pdf http://files.consumerfinance.gov/f/201411_cfpb_small-entity-compliance-guide_tila-respa.pdf

Arlington, TX November 2014 HUD exempts non-profits from QRM same as CPRM
HUD exempts non-profits from QRM same as CPRM….Rejects CFPB announcement concerning how to cure overcharges.
http://www.gpo.gov/fdsys/pkg/FR-2014-11-03/pdf/2014-25492.pdf

Arlington, TX October 2014
CFPB Releases 2015 Rural and Underserved List

October 27, 2014, the CFPB has release the updated 2015 list for Rural or Underserved counties. This provides useful verification for those who meet specified criteria on regulatory requirements and exemptions under sections of TILA; including, 1026.43(ATR/QM) and 1026.35 (HPML).
http://www.consumerfinance.gov/guidance/?utm_source=newsletter&utm_medium=email&utm_campaign=20141027+regimp#compliance

Arlington, TX October 2014
Final Amendment to Reg Z for Small Servicers and Points and Fees Cure

The CFPB has released the finalized amendments to 2013 Mortgage Rules under Regulation Z (TILA). Specifically, pertaining to an additional definition of “Small Servicer” to assist non-profits. This includes new expanded exemptions to ability-to-repay requirements and qualifying quantities to allow non-profits a broader lending base. Further, the CFPB has finalized 1026.43(e)(iii) with new “cure” parameters for Points & Fees violations under section 1026.43(e)(i) and 1026.43(e)(ii), including; a 210 day window for creditors to cure inadvertent violations, and removal of the defined “good faith” determination, provided the mortgage loan meets the additional parameters as set forth in each designated Qualified Mortgage type (1026.43 (e)-(f)). This amendment comes with the hope of expansion of lending ability, and reduction in buffers on Points & Fees; which in most cases have been set well below actual legal limit range of 3%-8%. Exceptions to this ability to cure include; institution of any legal action by the consumer; receipt of written notice from the consumer on violation of points and fees requirements; or consumer 60 day delinquency on legal obligation. Cure will be permitted within parameters for loans consummated on or before the sunset date of January 10, 2021. Amendments will become effective on the date of publish in the Federal Register.
http://files.consumerfinance.gov/f/201410_cfpb_amendments_mortgage-rules-under-truth-in-lending-act.pdf

Arlington, TX October 2014
Freddie Mac Announces Guide Bulletin 2014-18 (Selling)

Revisions to Freddie Mac's Mortgage eligibility and credit underwriting requirements

  • Update the Home Possible* Mortgages offering
  • Update eligibility requirements and provide guidance applicable to Higher-Priced Covered Transactions and Higher-Priced Mortgage Loans
  • Update certain property and appraisal requirements

http://www.freddiemac.com/singlefamily/news/2014/1015_bll1418.html

Arlington, TX October 2014
CFPB Releases Proposed Revisions to TILA-RESPA Integrated Disclosure Rule

October 10, 2014, The CFPB has release proposed revisions to the Integrated Disclosure Rule. These revisions include; the allowance of revised Loan Estimate to be issued by the next business day when rate is locked, amendments to the Cash to Close section language, and the addition of permitted verbiage on the Loan Estimate for construction loans, similar to that of the current 60 day GFE disclosure.
http://files.consumerfinance.gov/f/201410_cfpb_final-proposal_trid-amends-and-corrections.pdf

Arlington, TX October 2014
CIRC. 26-14-26: “Any Qualified Veteran” as the Borrower on VA Appraisals (10/01/14)

Fee Appraiser Requirement. Fee appraisers should insert “Any Qualified Veteran” in the borrower field on the appraisal report for all VA case assignments instead of the veterans name. Historically, lenders have indicated that having the correct borrower’s name on the appraisal report was necessary to sell the loan on the secondary market. VA has conferred with major purchasers of VA-guaranteed home loans on the secondary market. These major purchasers have reported that they are only concerned with the name on the guaranty and the mortgage note. Thus, this matter should only affect a small number of cases. VA also has conferred with the Appraisal Foundation regarding Uniform Standards of Professional Appraisal Practice (USPAP) requirements. They concurred that VA would not violate USPAP by replacing the Veteran’s name with “Any Qualified Veteran.”

Arlington, TX October 2014
CIRC. 26-14-28: VA Announces Reduction in Validity Period on NOVs for Proposed Construction

VA will utilize 6-month validity periods for all proposed construction cases. If a Veteran is under contract during a validity period, processing may continue until that transaction is either completed or terminated. On a case-by-case basis, VA may extend validity periods when requests for such actions are reviewed and found to be appropriate under prevailing conditions. Effective immediately, personnel who are authorized to issue a VA NOV will ensure that the validity period is for a period not to exceed 6 months. Currently, WebLGY defaults to a 6-month validity period.

Arlington, TX October 2014
FNMA makes important changes to Selling Guide

This Announcement describes updates to the following:
Automated Asset Verification
Rental Income Treatment
Employment-Related Assets
Texas 50(a)(6) Title Insurance
Affordable Lending for Native American and Rural Housing
List of Approved Mortgage Insurance Forms
Miscellaneous Selling Guide Updates
FNMA Announcement

Arlington, TX October 2014
Reminder! USDA Annual Fee Increasing October 1st

USDA will be increasing their annual fee from .4% to .5% on October 1st 2014 for both purchase and refinance transactions. In order to maintain the .4% annual fee, loans must have received a GUS Final Submission and be issued a conditional commitment by close of business September 30, 2014.
USDA News Release

Arlington, TX October 2014
VA Extends Credit Policy Updates

VA has released Circular 26-12-6 , Ch 1. Which extends rescission date from October 1, 2014 to October 1, 2016. Included in 26-12-6 is the update to employment and income verification requirements.
http://www.benefits.va.gov/homeloans/documents/circulars/26_12_6.pdf

Arlington, TX September 2014
Reminder: USDA Updated Eligible Areas, October 1st

USDA has updated their list of rural eligible areas effective October 1st 2014. Multiple counties previously considered, will now be ineligible under new parameters. The USDA website can be used to distinguish these properties under the Future Eligible Area search. All application materials must be fully submitted for funding consideration on properties located within ineligible areas as of October 1, 2014, to maintain eligibility.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfhprop&NavKey=propproperty@11

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/


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