Compliance Calendar

Oklahoma House Bill 2397 amends Section 1, Chapter 222, O.S.L. 2015 (36 O.S. Supp. 2020, Section 5008), which relates to release of mortgage affidavits by title insurance officer or agents and removes the requirement that written approval of the title insurance company shall appear on the affidavit if executed by an agent effective on November 1, 2021.

https://legiscan.com/OK/text/H...

Oklahoma House Bill 2398 amends 46 O.S. 2011, Section 15, as last amended by Section 19, Chapter 210, O.S.L. 2016 (46 O.S. Supp. 2020, Section 15), authorizes an agent of a mortgagor to make written requests to a holder of mortgage effective on November 1, 2021.

https://legiscan.com/OK/text/H...

Oklahoma House Bill 2548 enacts the Uniform Power of Attorney Act effective on November 1, 2021.

Freddie Mac announces selling guide updates introducing the CHOICEReno eXPress^SM mortgages, a new streamlined option under the CHOICERenovation^® offering, as well as additional flexibilities for CHOICERenovation mortgages.

FORBEARANCE EXTENSIONS

Freddie Mac has moved the process for requesting forbearance extensions to Resolve℠. As a result, the option to request a forbearance extension will no longer be available on Guide Form 105, Multipurpose Loan Servicing Transmittal. To submit a request for a forbearance extension, use the new navigation option called “Extensions” in the Resolve user interface. After submission, forbearance extension requests will be available in the Decision Insights pipeline to provide increased transparency into the review and decisioning.

ADDITIONAL GUIDE UPDATES AND REMINDERS

Designated Document Custodian update

As announced in Bulletin 2021-35, as a result of Computershare Trust Company, N.A.’s acquisition of Wells Fargo’s corporate trust services business, on November 1, 2021, Computershare replaced Wells Fargo as a Designated Custodian. To reflect this change, Forms 1035CS, Designated Custodial Agreement: Single-Family Mortgages and 1035CSA, Addendum to Designated Custodial Agreement: Single-Family Mortgages (Freddie Mac Form 1035CS) for Electronic Documents Related to Single-Family eMortgages have been created to serve as the Designated Custodial Agreement and Addendum to Designated Custodial Agreement for Electronic Documents, and Forms 1035WF, Designated Custodial Agreement: Single-Family Mortgages and 1035WFA, Addendum to Designated Custodial Agreement: Single-Family Mortgages (Freddie Mac Form 1035WF) for Electronic Documents Related to Single-Family eMortgages have been retired.

Seller/Servicers that previously used Wells Fargo as their Designated Custodian/Document Custodian do not need to take any action to use Computershare as their Designated Custodian/Document Custodian. If a Seller/Servicer would like to choose a different Document Custodian to work with, the Seller/Servicer can refer to the Document Custodians Accepting Third-Party Seller/Servicer (PDF 5mb opens in new window) list when choosing a new Document Custodian. Upon choosing a new Document Custodian, the Seller/Servicer should ensure a new Form 1035, Document Custodial Agreement: Single-Family Mortgages is executed. As reflected in Section 2202.6, custody of all Notes and assignments should be transferred before the existing Form 1035WF, Designated Custodial Agreement: Single-Family Mortgages is terminated.

Certificates of Incumbency

As announced in Bulletin 2021-34, to increase efficiency and avoid processing delays, we now require Seller/Servicers to provide a minimum of three authorized employees on Certificates of Incumbency (Form 988SF, Certificate of Incumbency for a Bank, Savings Bank, Savings and Loan Association, Credit Union, Corporation or Limited Liability Company, Form 988SF – HFA, Certificate of Incumbency for Housing Finance Agency, and Form 989SF, Certificate of Incumbency For Limited Partnerships). Previously, a minimum of two authorized employees was required. This change addresses recent trends of being unable to contact Authorized Employees to confirm authenticity of instructions. Seller/Servicers that do not have three authorized employees listed must submit a new Certificate of Incumbency form as soon as possible. We have also revised the title of Form 988SF – HFA to "Certificate of Incumbency for Housing Finance Agency."

Freddie Mac Guide Bulletin 2021-31 announces Selling Guide updates related to a change to the effective date for additional Document Custodian options when selling through Cash-Released XChange.

Freddie Mac Single-Family Seller/Servicer Guide Bulletin, 2021-34 announced selling updates and clarifications related to Condominium and cooperative projects, Document Custody, Certification of incumbency, and Tennessee security instruments.

This Fannie Mae update modifies and clarifies policies related to military personnel and leave and earnings statements, permits the delivery of loans previously modified following the application of a principal curtailment and recast of the principal balance, and provides other miscellaneous updates.

Military personnel and Leave and Earnings Statement
To provide lenders with additional efficiency, we updated our policy pertaining to military personnel verification of employment. The Selling Guide currently requires a military borrower’s Leave and Earnings Statement (LES) to be dated within 30 (or 31) calendar days prior to the note date when used in lieu of a verbal verification of employment. With this update, we expanded the 30 or 31 days to 120 calendar days.

Effective: Lenders may take advantage of this update immediately. The Desktop Underwriter®(DU®) verbal VOE message will be updated to reflect this change in the DU Version 11.0 December Update.

Military income

Our current policy lists the standard documentation requirements for base pay, bonus and overtime income. With this update, we clarified that military base pay and entitlements must be documented with the borrower’s recent LES.

Effective: Lenders may take advantage of this update immediately. The DU military income message will be updated to reflect this change in the DU Version 11.0 December Update.

Principal curtailment
A principal curtailment is the application of funds used to reduce the unpaid principal balance of the loan.
We updated our policy to permit the delivery of loans that were previously modified due to the application of a principal curtailment and recast of the principal balance over the remaining loan term prior to delivery. Note that lenders must ensure both the original note amount prior to modification and the reduced loan amount after modification comply with the loan limits in effect at time of delivery. Loans must be delivered with Special Feature Code 076.

Refer to the Loan Delivery Job Aid for information about delivery of loans with prior loan modifications.
Effective: Lenders may take advantage of this policy change immediately.

Miscellaneous updates
B4-1.1-02, Lender Responsibilities and B4-1.1-04, Unacceptable Appraisal Practices: We removed a reference to the effective date of the appraisal in alignment with current requirements of Uniform Standards of Professional Appraisal Practice (USPAP). In addition, we clarified that any valuation referencing or based on a protected class under the Fair Housing Act is expressly prohibited.

A3-3-02, Concurrent Servicing Transfers and A4-1-01, Maintaining Seller/Servicer Eligibility: We clarified specific financial eligibility requirements that apply to Servicing Marketplace (SMP) lenders only.

The Texas Finance Commission/Department of Savings and Mortgage Lending adopted provisions relating to licensees that include eliminating definitions for branch office and physical office; updating advertising, books and records, and examinations requirements; creating office locations for remote work requirements; as well as other licensing requirements effective November 4, 2021.

The Finance Commission of Texas (commission), on behalf of the Department of Savings and Mortgage Lending (department), adopts amendments, new rules, and rule repeals in 7 TAC Chapter 80 and Texas Residential Mortgage Loan Companies, 7 TAC Chapter 81, Mortgage Bankers and Residential Mortgage Loan Originators, which includes amendments to advertising, books and records, examinations requirements, remote work requirements, and licensing requirements effective November 4, 2021.

New York Senate Bill 737 requires each and every principal creditor or debt collector, in each initial communication, to clearly and conspicuously disclose to the debtor that each communication can be provided in an alternative, reasonably accommodatable, format; effective November 7, 2021.

Freddie Mac Selling Guide Bulletin 2021-29 announces updates relating to an increase in the maximum loan-to-value (LTV) and total LTV (TLTV) ratios for certain Home Possible® Mortgages and the eligibility of single-wide Manufactured Homes titled as real property.

Temporary guidance regarding the 12-month forbearance limit for borrowers who are impacted by Hurricane Ida or will be impacted by a Presidentially Declared Disaster (PDD) during the 2021 Hurricane season and are currently on a forbearance plan due to COVID-19 and updates to the Schedule of Standard Attorney/Trustee Fees in the Handbook was issued.

The USDA has issued an unnumbered Letter (UL) providing temporary authorization to accept appraisals obtained by self-help grantees, certified loan application packagers, agency-approved intermediaries, and leveraged or other participating lenders subject to conditions that will expire on September 30, 2022.

PURPOSE:
This memorandum provides temporary authorization to accept appraisals obtained by self-help grantees, certified loan application packagers, Agency-approved
intermediaries, and leveraged or other participating lenders. This temporary authorization is needed given the record-high market demand for purchase
appraisals and the timeliness issue this demand can cause.
This temporary authorization is effective as of the date of this memorandum and expires on September 30, 2022.

BACKGROUND:
In general, appraisals for the direct programs are ordered under the nationwide contract with Appraisal Management Companies (AMCs). Given the demand for
appraisals and the remoteness of some rural homes authorized third parties may be able to work with local appraisers to obtain acceptable appraisals timelier than the
contracted AMCs. Authorized third parties include self-help grantees; certified packagers; Agency-approved intermediaries; or non-Agency funding sources who
are supplementing the Agency loan with a market rate or other subsidized financing product in accordance with HB-1-3550, Paragraph 10.2, of at least $500.
Cash contributions by the applicant, gifts from individuals, donations of land, and seller contributions do not count as leveraged or participation amounts and
therefore these sources are not authorized third parties.

Mortgagee Letter, 2021-26, reveals the FHA Catalyst: Multifamily Applications Module and requires that Multifamily Accelerated Processing (MAP) Lenders electronically submit FHA multifamily mortgage insurance applications through the secure, centralized, web-based portal.

This VALERI newsflash covers information on VALERI System Release, partial claim article, recording partial claim documents, appraisal fee changes and foreclosure attorney fee changes.

VALERI System Release – A system deployment was completed on November 18, 2021. Release notes are available at https://www.benefits.va.gov/HO....

Partial Claim Article – A new “Servicer Article: Partial Claim” is available in Knowledge in VALERI. The article provides information on the Partial Claim program, reporting of the event, required documents, and VA and servicing contractor (BSI) addresses.

Recording Partial Claim Documents – If Partial Claim documents submitted in VALERI require corrections, the Partial Claim will not be approved. Incorrect documents recorded prior to submission will require the servicer to complete and record a post consummation signing through an amendment. The borrower must re-sign and acknowledge the re-signing due to errors on the original documents.

Appraisal Fee Changes – Appraisal fees will change nationwide effective December 1, 2021, and will be reflected on the VALERI Fee Cost Schedule located at
http://www.benefits.va.gov/HOM... on December 1, 2021.

Foreclosure Attorney Fee Changes – The new maximum allowable foreclosure attorney fees were published in the Federal Register Notice on November 8, 2021, and will be effective for all guaranty claims submitted on or after December 8, 2021. The updated Allowable Attorney Fees document and the VALERI Fee Cost Schedule will be available on December 1, 2021, at http://www.benefits.va.gov/HOM....

This rule revises Regulation F, 12 CFR part 1006, which implements the Fair Debt Collection Practices Act (FDCPA), to prescribe Federal rules governing the activities of debt collectors, as that term is defined in the FDCPA.

FINAL RULES
October final rule
The final rule addresses, among other things, communications in connection with debt collection and prohibitions on harassment or abuse, false or misleading representations, and unfair practices in debt collection.

December final rule
The final rule, among other things, clarifies the information that a debt collector must provide to a consumer at the outset of debt collection communications and provides a model notice containing such information, prohibits debt collectors from bringing or threatening to bring legal action against a consumer to collect a time-barred debt, and requires debt collectors to take certain actions before furnishing information about a consumer’s debt to a consumer reporting agency.

Debt Collection Practices in Connection with the Global COVID-19 Pandemic - April 2021
The interim final rule requires debt collectors to provide written notice to certain consumers of their protections under the CDC Order’s eviction moratorium and clarifies that certain misrepresentations are prohibited.

Under the CFPB’s Debt Collection Rule, debt collectors communicating by text message must confirm that the consumer’s telephone number has not been re-assigned to another user by using the FCC's Reassigned Numbers Database which has now been published.

The Single Family Housing Guaranteed Loan Program (SFHGLP) is pleased to announce the Manufactured Housing Pilot Program has been renewed. The Pilot Program was extended via an Unnumbered Letter dated November 30, 2021 and remained largely unchanged from previous Unnumbered Letters on this topic. As a Pilot Program, the number of participating states remains restricted, with the following states included: Colorado, Iowa, Louisiana, Michigan, Mississippi, Montana, Nevada, New Hampshire, New York, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

This memorandum reviews two manufactured housing pilots that were implemented under the Section 502 programs in a limited number of states. The Rural Housing Service extended these pilots via an Unnumbered Letter (UL) dated December 7, 2020, to help the Agency continue assessing the pilots’ impact.

The first pilot involves financing existing manufactured homes; the second pilot involves the ownership requirement for new energy-efficient manufactured and modular homes in land-lease communities operating on a nonprofit basis. These allowances remain unchanged from the last UL. As pilot programs, the number of participating states remain restricted while providing for adequate regional representation.