• Defines Certain Terms; 
• Prescribes The Notarial Acts That A Notarial Officer May Perform; 
• Authorizes Notarial Officers To Charge A Fee Not Exceeding $5.00 For Services Rendered; 
• Requires Individuals Requesting Certain Notarial Services To Physically Appear Before The Notarial Officer; 
• Requires Notarial Officers To Determine The Identity Of The Person Appearing Before The Officer And To Prescribe Acceptable Forms Of Identification; 
• Authorizes Notarial Officers To Refuse To Perform Certain Acts; 
• Authorizes An Individual Who Is Physically Unable To Sign A Record Before A Notarial Officer To Direct Another Person To Sign On The Individual's Behalf; 
• Authorizes Notarial Acts To Be Performed By Notaries Public, Elected Judges And Clerks Of Court And The Secretary Of State; 
• Recognizes Certain Qualified Notarial Acts Performed Under The Authority Of Another State, Federally Recognized Indian Tribe, The Federal Government And Foreign States; 
• Requires A Notarial Act To Be Evidenced By A Certificate; 
• Requires Notaries Public To Have An Official Seal, To Procure A Stamping Device And To Maintain A Journal Of Notarial Acts; 
• Authorizes Notaries Public To Perform Notarial Acts With Respect To Electronic Records; 
• Authorizes Individuals To Apply To The Secretary Of State For A Commission As A Notary Public And To Prescribe The Minimum Qualifications; 
• Authorizes The Secretary Of State To Deny Or Revoke A Commission As A Notary Public For Certain Specified Acts; 
• Requires The Secretary Of State To Maintain An Electronic Database Of Notaries Public; 
• Prohibits Notaries Public From Acting In Certain Capacities And Performing Certain Acts; 
• Specifies That A Notarial Act Is Not Invalidated Due To A Failure Of A Notarial Officer To Perform Certain Statutory Duties; 
• Authorizes The Secretary Of State To Adopt Rules Necessary To Implement The Revised Mississippi Law On Notarial Acts; 
• Clarifies That A Commission As A Notary Public In Effect On July 1, 2021, Continues Until Its Expiration, At Which Time A Renewal Of The Commission Must Comply With This Act; 
• Clarifies That This Act Will Not Affect The Validity Or Effect Of Notarial Acts Performed Before July 1, 2021; 
• Specifies That This Act Supersedes Certain Federal Statutes Regarding Electronic Signatures In Commerce; 
• Amends Section 25-7-1, Mississippi Code Of 1972, In Conformity To The Preceding Provisions; 
• Repeals Sections 25-33-1 Through 25-33-33, Mississippi Code Of 1972, Which Authorize The Appointment Of Notaries Public And Prescribe Their Powers And Duties; To Repeal Section 25-7-29, Mississippi Code Of 1972, Which Authorizes Notaries Public To Charge Fees For Certain Services; 
• Amends Section 89-3-1, Mississippi Code Of 1972, To Revise Proof Necessary To Recording; 
• Amends Section 89-3-7, Mississippi Code Of 1972, To Conform The Forms Of Acknowledgment To This Act; 
• Amends Section 89-5-8, Mississippi Code Of 1972, To Conform Provisions Concerning Affidavits Relating To Identification, Marital Status, Heirship Or Other Matters Affecting Title To Real Property; 
• Repeals Section 89-3-3, Mississippi Code Of 1972, Which Provides For Acknowledgment And Proof Necessary For Recordation; 
• Repeals Section 89-3-5, Mississippi Code Of 1972, Which Provides For Acknowledgments Before Commissioned Officers Of United States Armed Forces; 
• Repeals Section 89-3-9, Mississippi Code Of 1972, Which Provides For Foreign Acknowledgments; 
• Repeals Section 89-3-11, Mississippi Code Of 1972, Which Clarifies The Construction Of Certain Foreign Acknowledgments; 
• Repeals Section 89-3-13, Mississippi Code Of 1972, Which Provides For Acknowledgments Or Proof Made In A Foreign Country; 
• Repeals Section 89-3-15, Mississippi Code Of 1972, Which Provides For Proof In The Absence Of Any Grantor Or Witness; And For Related Purposes.

Fannie Mae announces new updates in n the DU Spec Version 1.8.2. - New Data Points and Enumerations.

The Indiana Department of Financial Institutions published a list of authorized Consumer Credit Fees for the period July 1, 2021, to June 30, 2022.

FHA Mortgagee Letter 2021-17 announces updates to the Single-Family Quality Control (QC) requirements for appraisal field reviews and evaluation of property and appraisal documentation, and the expiration of the temporary waiver of Single-Family QC requirements for appraisal field reviews issued December 4, 2020.

Freddie Mac Guide Bulletin 2021-21

Nevada Assembly Bill 245 increases fees that may be charged by a notary public effective July 1, 2021.

This Guide Bulletin updates the requirements in response to the Preferred Stock Purchase Agreement and the Revised General QM Rule and specifies which mortgages will be purchased and specifies the conditions to be eligible for purchase.

Specifically, this Guide Bulletin announces:

• Definitions related to the ATR/QM Rule
• Eligibility requirements for ATR Covered Mortgages and Exempt Mortgages
• Guide requirement updates in support of the ATR/QM Rule
• Negotiated provisions
• Reminders and additional updates

This lender letter provides additional details about underwriting and loan eligibility policies on certain Desktop Underwriter® implementation policies, and a change to our high LTV refinance product as a result of the revised QM loan definition.

Refer to the Lender Letter for all details, eligibility requirements, qualifying interest rates for short-term ARMs and additional updates and information.

Iowa House File 583 establishes the “Private Primary Residential Flood Insurance Model Act” to provide for the protection of lives and property from floods and to encourage a private primary residential flood insurance (primary flood) market to provide consumer choices and alternatives to the existing national flood insurance program (NFIP) effective on July 1, 2021.

The Oklahoma Department of Consumer Credit has published its annual changes in dollar amounts set forth in the Uniform Consumer Credit Code effective July 1, 2021.

Tennessee House Bill 421 amends the Industrial Loan and Thrift Companies Act (ILTCA) TCA Title 45, Chapter 5 to increase existing fees, and add additional fees, that an industrial loan and thrift company, industrial investment company, or industrial bank may charge to service various loans; effective July 1, 2021.

Mississippi Senate Bill 2638 amends Section 89-3-1, Mississippi Code Of 1972, to provide a recording procedure for electronic documents in counties that do not have electronic capability effective July 1, 2021.

Virginia House Bill 2229 amends Virginia's Residential Landlord and Tenant Act to provide that if a dwelling unit used as a single-family residence is foreclosed upon and there is a tenant in such dwelling unit on the date of the foreclosure sale, if the successor in interest acquires the dwelling unit for the purpose of occupying such unit as his primary residence, the rental agreement terminates and the tenant is required to vacate the dwelling unit on a date not less than 90 days after receiving written notice. The bill also provides that if the successor in interest acquires the dwelling unit for any other purpose, the successor in interest acquires the dwelling unit subject to the rental agreement and is required to permit the tenant to occupy the dwelling unit for the remaining term of the lease.

Under current law, the foreclosure sale acts as a termination of the rental agreement by the owner, but the tenant is permitted to remain in possession of the dwelling unit as a month-to-month tenant on the terms of the terminated rental agreement until the successor owner gives a notice of termination of the month-to-month tenancy. The bill contains technical amendments.

South Dakota Senate Bill 193 revises provisions regarding remote notarization, including defining video communication technology requirements and providing a prescribed form for the certificate of acknowledgment of a document executed; effective July 1, 2021.

Virginia House Bill 2064 modifies provisions relating to the recording of electronic documents; including compliance with the provisions of the Uniform Real Property Electronic Recording Act, requires an electronic notarial certificate to include the county or city in the Commonwealth where the notary public was physically located and indicate whether the notarization was done in person or by remote online notarization, and provides for additional forms of "satisfactory evidence of identity" when a notary is using video and audio communication; effective July 1, 2021.

NRS 107.086  Additional requirements for sale of owner-occupied housing: Notice; form; enrollment in mediation; election to waive mediation; adoption of rules concerning mediation; applicability. [Effective July 1, 2021.]

      1.  Except as otherwise provided in subsection 4 of NRS 107.0865, in addition to the requirements of NRS 107.085, the exercise of the power of sale pursuant to NRS 107.080 with respect to any trust agreement which concerns owner-occupied housing is subject to the provisions of this section.

      2.  The trustee shall not exercise a power of sale pursuant to NRS 107.080 unless the trustee:

      (a) Includes with the notice of default and election to sell which is mailed, or delivered by electronic transmission if authorized by the parties, to the grantor or the person who holds the title of record as required by subsection 3 of NRS 107.080:

             (1) Contact information which the grantor or the person who holds the title of record may use to reach a person with authority to negotiate a loan modification on behalf of the beneficiary of the deed of trust;

             (2) Contact information which the grantor or the person who holds the title of record may use to serve notice as required pursuant to subsection 3 if the grantor or person who holds the title does not elect to waive mediation;

             (3) Contact information for at least one local housing counseling agency approved by the United States Department of Housing and Urban Development;

             (4) A notice provided by Home Means Nevada, Inc., or its successor organization, indicating that the grantor or the person who holds the title of record may petition the district court to participate in mediation pursuant to this section if he or she files such a petition, pays a $25 filing fee, serves a copy of the petition upon the beneficiary of the deed, Home Means Nevada, Inc., or its successor organization, and the trustee by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, and pays to the district court his or her share of the fee established pursuant to subsection 12; and

             (5) A form upon which the grantor or the person who holds the title of record may indicate an election to waive mediation pursuant to this section and one envelope addressed to the trustee and one envelope addressed to Home Means Nevada, Inc., or its successor organization, which the grantor or the person who holds the title of record may use to comply with the provisions of subsection 3;

      (b) In addition to including the information described in paragraph (a) with the notice of default and election to sell which is mailed or delivered by electronic transmission, as applicable, to the grantor or the person who holds the title of record as required by subsection 3 of NRS 107.080, provides to the grantor or the person who holds the title of record the information described in paragraph (a) concurrently with, but separately from, the notice of default and election to sell which is mailed or delivered by electronic transmission, as applicable, to the grantor or the person who holds the title of record as required by subsection 3 of NRS 107.080;

      (c) Serves a copy of the notice upon Home Means Nevada, Inc., or its successor organization;

      (d) If the owner-occupied housing is located within a common-interest community, notifies the unit-owners’ association of the common-interest community, not later than 10 days after mailing or delivering by electronic transmission, as applicable, the copy of the notice of default and election to sell as required by subsection 3 of NRS 107.080, that the exercise of the power of sale is subject to the provisions of this section; and

      (e) Causes to be recorded in the office of the recorder of the county in which the trust property, or some part thereof, is situated:

             (1) The certificate provided to the trustee by Home Means Nevada, Inc., or its successor organization, pursuant to subsection 4 or 7 which provides that no mediation is required in the matter; or

             (2) The certificate provided to the trustee by Home Means Nevada, Inc., or its successor organization, pursuant to subsection 8 which provides that mediation has been completed in the matter.

      3.  If the grantor or the person who holds the title of record elects to waive mediation, he or she shall, not later than 30 days after service of the notice in the manner required by NRS 107.080, complete the form required by subparagraph (5) of paragraph (a) of subsection 2 and return the form to the trustee and Home Means Nevada, Inc., or its successor organization, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission. If the grantor or the person who holds the title of record does not elect to waive mediation, he or she shall, not later than 30 days after the service of the notice in the manner required by NRS 107.080, petition the district court to participate in mediation pursuant to this section, at the time of filing such a petition, pay to the clerk of the court a fee of $25 and his or her share of the fee established pursuant to subsection 12. The grantor or the person who holds the title of record shall serve a copy of the petition, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, upon the beneficiary of the deed of trust and Home Means Nevada, Inc., or its successor organization. Upon receipt of the copy of the petition, Home Means Nevada, Inc., or its successor organization, shall notify the trustee and every other person with an interest as defined in NRS 107.090, by certified mail, return receipt requested or, if authorized by the parties, by electronic transmission, of the petition of the grantor or person who holds the title of record to participate in mediation pursuant to this section. Upon receipt of a petition pursuant to this section, the district court shall assign the matter to a senior justice, judge, hearing master or other designee and schedule the matter for mediation. If the grantor or person who holds the title of record satisfies the requirements of this subsection to participate in mediation pursuant to this section, no further action may be taken to exercise the power of sale until the completion of the mediation.

      4.  If the grantor or the person who holds the title of record indicates on the form described in subparagraph (5) of paragraph (a) of subsection 2 an election to waive mediation, fails to petition the district court pursuant to subsection 3 or fails to pay to the district court his or her share of the fee established pursuant to subsection 12 as required by subsection 3, Home Means Nevada, Inc., or its successor organization, shall, not later than 60 days after Home Means Nevada, Inc., or its successor organization, receives the form indicating an election to waive mediation or 90 days after the service of the notice in the manner required by NRS 107.080, whichever is earlier, provide to the trustee a certificate which provides that no mediation is required in the matter.

      5.  Each mediation required by this section must be conducted by a senior justice, judge, hearing master or other designee pursuant to the rules adopted pursuant to subsection 12. The beneficiary of the deed of trust or a representative shall attend the mediation. The grantor or his or her representative, or the person who holds the title of record or his or her representative, shall attend the mediation. The beneficiary of the deed of trust shall bring to the mediation the original or a certified copy of the deed of trust, the mortgage note, each assignment of the deed of trust or mortgage note and any documents created in connection with a loan modification. If the beneficiary of the deed of trust is represented at the mediation by another person, that person must have authority to negotiate a loan modification on behalf of the beneficiary of the deed of trust or have access at all times during the mediation to a person with such authority.

      6.  If the beneficiary of the deed of trust or the representative fails to attend the mediation, fails to participate in the mediation in good faith or does not bring to the mediation each document required by subsection 5 or does not have the authority or access to a person with the authority required by subsection 5, the mediator shall prepare and submit to the district court a recommendation concerning the imposition of sanctions against the beneficiary of the deed of trust or the representative. The court may issue an order imposing such sanctions against the beneficiary of the deed of trust or the representative as the court determines appropriate, including, without limitation, requiring a loan modification in the manner determined proper by the court.

      7.  If the grantor or the person who holds the title of record is enrolled to participate in mediation pursuant to this section but fails to attend the mediation, the district court shall dismiss the petition. Home Means Nevada, Inc., or its successor organization, shall, not later than 30 days after the scheduled mediation, provide to the trustee a certificate which states that no mediation is required in the matter.

      8.  If the mediator determines that the parties, while acting in good faith, are not able to agree to a loan modification, the mediator shall prepare and submit to the district court a recommendation that the petition be dismissed. The court may dismiss the petition and if the petition is dismissed, transmit a copy of the order of dismissal to Home Means Nevada, Inc., or its successor organization. Home Means Nevada, Inc., or its successor organization, shall, not later than 30 days after receipt of such an order, provide to the trustee a certificate which provides that the mediation required by this section has been completed in the matter.

      9.  If the parties agree to a loan modification or settlement, the mediator shall notify the district court. Upon receipt of such notification, the court shall enter an order describing the terms of any loan modification or settlement agreement.

      10.  Upon receipt of the certificate provided to the trustee by Home Means Nevada, Inc., or its successor organization, pursuant to subsection 4, 7 or 8, if the property is located within a common-interest community, the trustee shall, not later than 10 days after receipt of the certificate, notify the unit-owners’ association of the existence of the certificate.

      11.  During the pendency of any mediation pursuant to this section, a unit’s owner must continue to pay any obligation, other than any past due obligation.

      12.  The Supreme Court shall adopt rules necessary to carry out the provisions of this section. The rules must, without limitation, include provisions:

      (a) Ensuring that mediations occur in an orderly and timely manner.

      (b) Requiring each party to a mediation to provide such information as the mediator determines necessary.

      (c) Establishing procedures to protect the mediation process from abuse and to ensure that each party to the mediation acts in good faith.

      (d) Establishing a total fee of not more than $500 that may be charged and collected by the district court for mediation services pursuant to this section and providing that the responsibility for payment of the fee must be shared equally by the parties to the mediation. On or before the first Monday of each month, the clerk of the district court shall pay over to the county treasurer an amount equal to $100 of each fee charged and collected pursuant to this paragraph. The county treasurer shall remit quarterly all such amounts turned over to the county treasurer to the State Controller for deposit to the Account for Foreclosure Mediation Assistance created by paragraph (b) of subsection 13 of NRS 107.080.

      (e) Prescribing a form supplied by the district court to file a petition to participate in mediation pursuant to this section.

      13.  Except as otherwise provided in subsection 15, the provisions of this section do not apply if:

      (a) The grantor or the person who holds the title of record has surrendered the property, as evidenced by a letter confirming the surrender or delivery of the keys to the property to the trustee, the beneficiary of the deed of trust or the mortgagee, or an authorized agent thereof; or

      (b) A petition in bankruptcy has been filed with respect to the grantor or the person who holds the title of record under chapter 7, 11, 12 or 13 of Title 11 of the United States Code and the bankruptcy court has not entered an order closing or dismissing the case or granting relief from a stay of foreclosure.

      14.  A noncommercial lender is not excluded from the application of this section.

      15.  Each mediator who acts pursuant to this section in good faith and without gross negligence are immune from civil liability for those acts.

      16.  Home Means Nevada, Inc., or its successor organization, shall, at least once each calendar quarter, submit to the Interim Finance Committee a report:

      (a) Concerning the status of the Account for Foreclosure Mediation Assistance; and

      (b) Any other information required by the Interim Finance Committee.

      17.  The Administrator of the Division of Internal Audits of the Office of Finance shall cause to be conducted, not less than annually, an audit of Home Means Nevada, Inc., or its successor organization.

      18.  Home Means Nevada, Inc., or its successor organization, shall develop and maintain an Internet portal for a program of foreclosure mediation to streamline the process of foreclosure mediation. Home Means Nevada, Inc., or its successor organization shall:

      (a) Make available on the Internet portal the option to receive by electronic transmission any notification required as part of the process of foreclosure mediation;

      (b) Require authorization in writing from any party who wants to receive notification by electronic transmission; and

      (c) Authorize notification by electronic transmission at each stage of the process of foreclosure mediation.

      19.  As used in this section:

      (a) “Common-interest community” has the meaning ascribed to it in NRS 116.021.

      (b) “Noncommercial lender” means a lender which makes a loan secured by a deed of trust on owner-occupied housing and which is not a bank, financial institution or other entity regulated pursuant to title 55 or 56 of NRS.

      (c) “Obligation” has the meaning ascribed to it in NRS 116.310313.

      (d) “Owner-occupied housing” means housing that is occupied by an owner as the owner’s primary residence. The term does not include vacant land or any time share or other property regulated under chapter 119A of NRS.

      (e) “Unit-owners’ association” has the meaning ascribed to it in NRS 116.011.

      (f) “Unit’s owner” has the meaning ascribed to it in NRS 116.095.

      (Added to NRS by 2009, 1752; A 2011, 1683, 2033, 3538; 2013, 1552, 3479; 2015, 1345, 3323; R 2015, 3334; A 2017, 546, 4091, 4105, 4106, effective July 1, 2021)

Wyoming House Bill 8 consolidates consumer credit provisions governing supervised loans into existing law for consumer loans; authorizing sales finance activities for specified licensees; providing for refunds upon termination of consumer credit sales and loans; exempting supervised financial institutions from specified notification and fee requirements; providing payoff calculations by assignees; amending the scope and applicability of the Wyoming Uniform Consumer Credit Code; making conforming amendments; repealing obsolete provisions; authorizing rulemaking; specifying applicability; effective July 1, 2021.

Virginia House Bill 1882 that a deed of trust that has been recorded and secures indebtedness or other obligations under a loan document may be amended, modified, supplemented, or restated from time to time, without the necessity of recording an amendment to such deed of trust; and requires that the interest rate of a prior mortgage be stated on the first page of a refinance mortgage effective July 1, 2021.

Wyoming Senate File 0029 creates the Wyoming Revised Uniform Law on Notarial Acts, which repeals the Wyoming Uniform Law on Notarial Acts and allows for remote online notarization and remote ink notarization effective July 1, 2021.

Fannie Mae and Freddie Mac posted FAQs to address interim guidance to lenders on several policy areas to support mortgage originations.

EVALUATION OF 30-DAY (FORMERLY REFERRED TO AS “OPEN-END”) ACCOUNTS

Effective for Mortgages with Settlement Dates on or after July 6, 2021

We are updating requirements for the treatment of 30-day accounts (i.e., accounts that require the balance to be paid in full monthly and previously referred to as “open-end” accounts). Due to the terms of these accounts, we are removing the option of including 5% of the balance as the qualifying monthly payment in the debt-to-income (DTI) ratio. The full amount of the outstanding account balance must be included in the debt payment-to-income ratio, or the Seller must verify that the Borrower has sufficient funds to pay off the outstanding account balance. The funds must be in addition to any funds used to qualify the Borrower for the Mortgage transaction, and the source of funds must be an eligible source as described in Section 5501.3.

Loan Product Advisor^® feedback messages will be updated by July 6, 2021 to reflect these changes.

Guide impact: Section 5401.2

Florida House Bill 483 clarifies that supervising witnessing of an electronic record by an online notary public is a notarial act; specifies the applicability of online notarization procedures to the supervision of witnessing of electronic record; modifies witnessing procedures; revises statutory forms for an affidavit for acceptance of & reliance upon power of attorney, for notice of election relating to the descent of homestead property, for self-proof of will or codicil, for disposition of certain assets at death, & for petition of summary relief for sale or transfer of property owned by absentee, to reflect means of notarization effective July 6, 2022.

AVAILABILITY OF SELLER'S QUALITY CONTROL RECORDS

Previously, Section 3402.11 required Sellers to retain all records of their quality control findings and make those records available to Freddie Mac upon request. We have updated Section 3402.11 to specify that upon request, the Seller must provide records that clearly indicate:

• The Freddie Mac loan number
• The Seller's final determination (from its quality control department) of whether the Mortgage is an investment quality Mortgage, and
• Other loan-level information that is requested by Freddie Mac

Freddie Mac continues to reserve the right to conduct a postfunding quality control review of any Mortgages sold to Freddie Mac, as reflected in Section 3401.1(b).

Sellers can access FAQs related to these changes here(opens in new window).

Guide impact: Section 3402.11

GIFT FUNDS USED TO PAY BORROWER'S EARNEST MONEY DEPOSIT

Previously, our Guide required that in all instances gift funds be transferred directly from the donor's account in a financial institution to the Borrower's account or to the settlement or closing agent. In response to Seller inquiries, we have reviewed our requirements and are expanding them to also permit a gift donor to pay the Borrower's earnest money deposit (EMD) directly to the builder or real estate agent if the Seller provides evidence of the transfer of funds from the donor's account in a financial institution to the earnest money deposit holder. All other gift fund requirements in Section 5501.3 continue to apply.

For any Mortgage where the source of the Borrower's EMD is gift funds, the Seller must enter the EMD amount as gift funds in Loan Product Advisor, and not as EMD. Refer to the Freddie Mac Learning Loan Product Advisor resource page (opens in new window) for additional information.

Guide update: Section 5501.3

UNIFORM INSTRUMENTS – UPDATED SECURITY INSTRUMENTS, NOTES AND RIDERS

We are updating the Fannie Mae/Freddie Mac Uniform Instruments, which include our Security Instruments, Notes and Riders. With the exception of those that are being retired, these updates impact all Uniform Instruments. Changes include, but are not limited to, revisions for federal, State and local law changes and to simplify language.

The updated Security Instruments, Notes and Riders have a tagline dated July 2021 and may be used for all Mortgages originated on or after July 8, 2021. However, Sellers must use the updated Uniform Instruments for all Mortgages with a Note Date on and after the mandatory effective date of January 1, 2023.

If Sellers use the updated Uniform Instruments for Mortgages with Note Dates prior to January 1, 2023, they must use the updated Security Instrument, Note and Rider, if applicable. Sellers may not use the updated July 2021 Uniform Instruments in combination with any earlier versions currently in use for each Mortgage.

The updated Security Instruments, Notes and Riders are available on our new 2021 Uniform Instruments web page (opens in new window).

We have created new Exhibit 4A, List of Uniform Instruments, that includes the updated Uniform Instruments. We have also created new Exhibit 5A, Authorized Changes for Notes, Riders and Security Instruments, applicable to the updated Security Instruments, Notes and Riders. These exhibits will complement existing Exhibits 4 and 5, which will be retired after the mandatory effective date.

Guide impacts: Sections 4101.1 through 4101.5, 4101.8, 4201.16, 4301.7, 4502.11, 4602.3, 4604.4, 5704.5, 6301.8, Exhibits 4, 4A (new), 5, 5A (new) and Glossary

Revisions to Authorized Changes page for Notes

An authorized change has been added for the Mississippi Note.

Guide impact: Exhibit 5

CASH-RELEASED XCHANGE^® DOCUMENT CUSTODIANS

Effective August 16, 2021

Based on Seller feedback, we are adding options for Sellers to select from multiple Document Custodians when selling loans through Cash-Released XChange^®. Sellers are currently restricted to only use Bank of NY Mellon as the Document Custodian for the program. Beginning August 16, 2021, Cash-Released XChange Sellers will have the option to use Deutsche Bank or U.S. Bank as their preferred Document Custodian.

If a Seller wishes to use one of the new Document Custodians as their preferred Document Custodian selection, they must:

• Execute Form 1035 with Deutsche Bank or U.S. Bank, as applicable. (See Exhibit 43 for contact details.)
• Have the Document Custodian submit executed Form 1035 to institutional_eligibility@freddiemac.com
• Submit a request to Freddie Mac Servicing Released Executions at Freddie_mac_servicing_released_executions@freddiemac.com

All of the Seller's Notes will be required to be certified by the preferred Document Custodian after the effective date of the change. For Sellers that will continue use Bank of NY Mellon, no further action is needed.

Sellers can begin submitting requests to use Deutsche Bank or U.S. Bank as their preferred Document Custodian on July 12, 2021. Requests received by 5 pm Eastern on August 10, 2021, will be effective as of August 16, 2021. Thereafter, the standard process will be that requests submitted by close of business on Tuesdays will be effective the following Thursday. To illustrate, requests received after 5 pm Eastern on August 10, 2021, and before 5 pm Eastern on August 17, 2021, will be included in the next weekly update on August 19, 2021.

Guide impacts: Sections 2202.3, 6101.7, 6301.8, 6304.1, 7101.9, Exhibits 28A, 43 (new) and Directory 4

Ginnie Mae APM 21-02 announces they will continue the temporary measure allowing for the electronic execution and transmission of form HUD 11711A (Release of Security Interest) and form HUD 11711B (Certification and Agreement) to minimize potential market disruptions.

Uniform Loan Delivery Dataset updates

In the June 8, 2021 Uniform Loan Delivery Dataset (ULDD) joint announcement (PDF 5mb opens in new window), Freddie Mac published the ULDD specification addendum included in Appendix A – Freddie Mac XML Data Requirements V.4.5.4 (PDF 5mb opens in new window) ("ULDD Addendum").

We are making the following updates in Chapter 6302 to align with updates in the ULDD Addendum:

• Clarifying the notes for ULDD Data Point Refinance Cash Out Amount (Sort ID 293) to provide additional detail on calculation of the amount
• Refreshing the website link in the notes for ULDD Data Point Country Code (Sort ID 555)
• Revising a company name in the notes for ULDD Data Point Credit Score Provider Name (Sort IDs 591.1). Loan Selling Advisor® will be updated on August 30, 2021 to support the addition of two new Technical Affiliate Code valid values and the deletion of six existing Technical Affiliate Code valid values.
• Adding specificity to the notes for ULDD Data Points HMDA Gender Collected Based On Visual Observation Or Name Indicator (Sort ID 608.1) HMDA Ethnicity Collected Based On Visual Observation Or Surname Indicator (Sort ID 609.4) and HMDA Race Collected Based On Visual Observation Or Surname Indicator (Sort ID 610.1) based on Seller feedback

The ULDD Addendum included additional updates announced in prior Bulletins.

Sellers should review the ULDD Addendum in its entirety to determine impacts to their systems or processes and for applicable effective dates. Visit Freddie Mac's ULDD web page (opens in new window) to view the Addendum and other resources and to stay abreast of Addendum updates.

Guide impacts: Sections 6302.9 and 6302.16

American Land Title Association forms

We are advising Sellers of two American Land Title Association (ALTA) Title Insurance Policy Form updates recently announced by the ALTA Board of Directors. ALTA Form 47.1, Operative Law endorsement, which was effective April 2, 2021, applies to jurisdictions where State and Native American Indian tribal authorities overlap and tribal law could impact interests in the Mortgaged Premises. In jurisdictions where tribal and State laws may overlap, the endorsement is acceptable, although not required. However, any exclusions in coverage found in this endorsement, which may be included and/or noted as optional, must be removed from the policy for the Mortgage to be eligible for sale to Freddie Mac. We will update Section 4702.4 in a future Bulletin to address this endorsement.

In addition, the ALTA Board of Governors has recommended adoption of the 2021 ALTA Forms Collection, which is a comprehensive revision to several title insurance policy forms used throughout the industry. This includes a replacement for the current ALTA 2006 Loan Policy forms required in Section 4702.2. We will update the Guide after the final forms have been published and fully reviewed by Freddie Mac.

Enhanced Relief Refinance® Mortgages

Exhibit 19 has been updated to reflect changes to Enhanced Relief Refinance® Mortgages as announced in Bulletin 2021-19. We will be updating the Guide at a future date to reflect the additional requirements announced in Bulletin 2021-19, as applicable.

Guide impact: Exhibit 19

Fannie Mae SEL-2021-06 announces Selling Guide updates have been made to reduce asset documentation requirements for certain refinances, clarification of when an appraisal update or new appraisal is needed, clarification of the lenders’ responsibility for notifying Fannie Mae of discrepancies in the terms of a trade, Uniform Instrument updates, and updates to the name and description of Special Feature Code (SFC) 107, New York Co-op Flexibilities.

Asset documentation requirements for refinance transactions

In response to feedback provided by lenders and in alignment with the DU validation service, we have reduced certain documentation requirements related to refinance transactions. For limited cash-out and cash-out refinance transactions, lenders may use the most recent one-month period of account activity (30 days) to document bank statements or investment portfolio statements.

Effective: Lenders may take advantage of this revised policy requirement immediately. DU will be updated in a future release to only require a bank statement covering a one-month period on refinance transactions. Until that time, lenders may apply the one-month requirement to DU loan casefiles.

Age of appraisal

For loans delivered with an appraisal, the property must have been appraised within the 12 months that precede the date of the note and mortgage. With this update, we have clarified that the age of the appraisal is the difference between the effective date of the original appraisal report and the date of the note and the mortgage. The appraisal is valid for up to four months and, further, can be used up to 12 months if the value of the property has not declined (as evidenced by an appraisal update report on Form 1004D with an effective date within four months of the date of the note and the mortgage). However, when the age of the original appraisal report is more than 12 months, a new appraisal (rather than an update) is required. An exception is made for single-closing construction-to-permanent transactions.

MBS trade confirmation process update

As part of this update, we are clarifying that lenders are responsible for notifying our Operations team of any discrepancies in the terms of their trades by the close of trading on the next trading day, and that lenders will be responsible for any associated fees if they fail to identify any discrepancies within the notification window.

NOTE : The electronic trading platform is an option that is available that increases efficiency for customers when executing trades. To learn more, see Selling Guide C3-7-01, Establishing an MBS Trading Account.

Effective: Lenders may take advantage of these changes immediately but must adhere to the new process by Aug. 1, 2021.

Miscellaneous update

B2-2-03, Multiple Financed Properties for the Same Borrower: updated to align with changes announced previously in LL- 2021-08. The topic now reflects that loans secured by second homes and investment properties must be underwritten in DU.

Uniform instruments

We have updated all of our uniform legal instruments – security instruments, notes, riders and addenda, and special-purpose documents – used for loans delivered to us. In collaboration with Freddie Mac, we conducted a comprehensive review of the instruments and made improvements to enhance their clarity and usability. This update includes both Fannie Mae/Freddie Mac uniform instruments and Fannie Mae-specific instruments. These new instruments can be found at https://singlefamily.fanniemae.com/fannie-mae-legal-documents. The new instruments have a Jul. 2021 footer date.

Effective: Lenders may begin using these updated forms immediately but will be required to use them for loans with note dates on or after Jan. 1, 2023. The updated Jul. 2021 uniform instruments cannot be used in combination with any earlier versions. For example, a security instrument with a Jul. 2021 footer must be used with a note that also has a Jul. 2021 footer.

Special Feature Codes

We have updated the name and description of SFC 107 to remove references to New Jersey and clarified its use as it pertains to specific exception permitted in the Guide or negotiated provisions.

Illinois Senate Bill 255 amends the Mortgage Foreclosure Article of the Code of Civil Procedure to provide that the order confirming the sale of property may approve the mortgagee's fees and costs (i) arising between the entry of the judgment of foreclosure and the confirmation hearing, and (ii) incurred on or after the date of execution of an affidavit stating the amount due and prior to the judgment but not included in the judgment, those costs and fees to be allowable to the same extent as provided in the note and mortgage; effective July 9, 2021.

Fannie Mae announced improvements to provide additional transparency in the delivery process and a self-service model to handle exceptions in real-time as they occur.

Freddie Mac has published FAQs to address common inquiries and to provide further understanding related to the qualified mortgages (QM) and the amended PSPA updates.

Mortgage assistance fund program providers

We have updated the Servicing Guide related to interacting with Housing Finance Agencies (HFAs) and Hardest Hit Fund (HHF) programs to

▪ remove prescriptive policy specific to HHF programs, and

▪ broaden the applicability of the policy to apply to the handling of funds provided on behalf of a borrower from a state or

local government mortgage assistance fund program, such as those administered by an HFA or other designee.

Effective: This policy change is effective immediately.

Notarization standards
The Selling and Servicing Guides did not previously contain requirements for notarization standards though we published temporary guidance as a result of the COVID-19 pandemic in Lender Letter LL-2020-03, Impact of COVID-19 on Originations.

However, we have always required sellers/servicers to comply with all laws, under which notarization would normally fall. With the increase in audio-visual aided notarizations, both for remote online and remote inline notarization (RIN), we have taken the opportunity to establish broad notarization requirements, including the following:

▪ Notarization must be in accordance with and in compliance with laws and regulations of the state.
▪ When not required by law (but required by our policies), notarization must be recognized as valid by the law of the state where the property is located or where the notary is registered and acting under notarial authority of that jurisdiction.
▪ Notarizations are acceptable when conducted outside of the U.S. if it complies with the laws of the jurisdiction in which it is performed or contains an apostille certification.

Additionally, we have added requirements that are specific to RIN as a subset of these general standards.

Effective: . Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions was updated Jun. 2, 2021 along with the addition of a new topic A2-4.1-04, Notarization Standards. Sellers/servicers must follow these requirements for all mortgage loans that use RIN on or after Aug. 1, 2021.

The VA provides clarification to the processes relating to the remittance of the statutory funding fee.

Fannie Mae announces a Desktop Underwriter/Desktop Originator Release DU Version 11.0 July Update during the weekend of July 17, 2021, which includes updates to support Lender Letter LL-2021-11.

Fannie Mae announces that effective July 19, 2021, Fannie Mae will retire Automated Property Service™ (APS) and obtaining a property’s Automated Valuation Model (AVM) estimated value and confidence score for loan modifications and Mortgage Releases™ would be transitioned to SMDU.

Fannie Mae has updated the Servicing Guide to require Servicers to use the Servicing Management Default Underwriter™
User Interface to order and retrieve the results of a property’s AVM estimated value and confidence score for loan modifications and Mortgage Release™.

Effective: Servicers are encouraged to implement this policy change starting on Jun. 21, 2021, but must do so by Jul. 19, 2021

FHA has published a new update to the Single Family Housing Policy Handbook 4000.1. The updates include enhancements and revisions to existing guidance as well as various other technical edits. In most cases, however, this newly added language augments and enhances existing policy.

Highlights of updates to Handbook 4000.1 include:

• Section I — Doing Business with FHA
  • Clarifies lender approval policies and that a mortgagee must fully comply with all eligibility requirements to be approved by FHA to originate, underwrite, close, endorse for insurance, service, purchase, hold, or sell FHA Title I or Title II mortgages at the time of approval, and continue to meet those requirements at all times.
  • Updates the case binder submission requirements for the Test Case Phase of Title II Direct Endorsement (DE) Authority by clarifying that a mortgagee must submit all Test Case files using the FHA Catalyst: Case Binder Module; and relocating test case requirements previously located in Handbook 4000.1 Section II.A.7.d.vii. to Section I.A.5.a.iii(A)(3)(a) of the Handbook.

• Section II — Origination through Post-Closing/Endorsement
  • Eliminates the need for a partial waiver of current hazard, liability, and flood insurance coverage requirements for certain types of condominium projects that do not qualify as a Site Condominium.
  • Updates protocols for Transfer of Control from the developer or builder to the unit owners to align with market practices and state and local requirements.
  • Incorporates policy guidance on student loan payment calculations from ML 2021-13 as well as providing an exception for student loans in forbearance due to COVID-19.

• Section III — Servicing and Loss Mitigation
  • Revises disclosure and submission guidance for Voluntary Termination of Mortgage Insurance.
  • Updates guidance to require requests for exceeding Property Preservation allowances be submitted at least five days prior to conveyance of the property.
  • Incorporates policy guidance on the COVID-19 Advanced Loan Modification and COVID-19. Forbearance policies from ML 2021-15
  • Updates the effective date of Section III - Servicing and Loss Mitigation, Appendix 4.0, and Appendix 5.0, as HUD extended the implementation date for this guidance in ML 2021-14.

• Section IV — Claims and Disposition
  • Clarifies alternative claim review documentation that HUD will accept as proof of tax payment from a tax monitoring service.

• Section V — Quality Control, Oversight and Compliance
  • Clarifies the required documentation for a mortgagee’s quality control program by stating all applicable documents must be dated to demonstrate compliance with retention and reporting time frames.
  • Incorporates policies requiring mortgagees not approved for eCaseBinder (eCB) submission through FHA Connection must use the FHA Catalyst: Case Binder Module to submit both Single Family forward and reverse (Home Equity Conversion Mortgage) case binders that were requested through the Loan Review System (LRS) for post-endorsement technical review.
  • Incorporates policy guidance on the number of Early Payment Defaults that require an appraisal field review and clarify property and appraisal Quality Control review requirements to align with Property Acceptability Criteria and Appraiser and Property Requirements for Title II Forward and Reverse Mortgages.

The net stable funding ratio, or NSFR, final rule will require large banks to maintain a minimum level of stable funding, relative to each institution’s assets, derivatives, and commitments. As a result, the NSFR rule will support the ability of banks to lend to households and businesses in both normal and adverse economic conditions by reducing liquidity risk and enhancing financial stability.

The NSFR’s requirements are tailored to the risks of large banks with the most stringent requirements applying to the largest and most complex firms and less stringent requirements applying to firms with less risk. The NSFR complements the agencies’ liquidity coverage ratio rule, which focuses on short-term liquidity risks.

The final rule is generally similar to the proposal from May 2016 and includes several changes based on further analysis and public input on the proposal. In particular, the calibration is now tailored to be consistent with the Economic Growth, Regulatory Reform, and Consumer Protection Act, and matches the tailored calibration of the LCR. Additionally, the funding requirements for certain assets were modified to better reflect their risks and support the stability of certain funding markets.

The final rule is effective on July 1, 2021. Holding companies and any covered nonbank companies regulated by the Federal Reserve will be required to publicly disclose their NSFR levels semiannually beginning in 2023.

FHA Mortgagee Letter 2021-18 establishes the COVID-19 Recovery Loss Mitigation Options (COVID19 Recovery Options), which may be implemented immediately but must be implemented no later than 90 days from the date of publication.

USDA announces advanced updates to Handbook HB-1-3555, Chapter 18 Section 5, which has been expanded to included COVID-19 Special Relief Alternatives , including an option that targets a 20% reduction in the borrower’s monthly principal and interest payments by offering a combination of interest rate reduction, term extension, and mortgage recovery advance that is immediately available and will remain in effect until December 31, 2022.

Fannie Mae released the Frequently asked Question for the Property 360™, their new in-house web-based platform, including the expense reimbursement process.

Washington Senate Bill 5077 provides authority to licensed companies to allow licensed mortgage loan originators to work from their residences without the company licensing the residence as a branch office of the company effective July 24, 2021.

This mortgagee letter is to clarify the eligibility of FHA insured financing for DACA recipients, while amending the documentation requirements for citizens of the Freely Associated States and H-1B nonimmigrants.

This ML clarifies and continues existing eligibility requirements for NonPermanent Residents granted deferred action pursuant to DACA policy previously addressed in the January 19, 2021 waiver.

This ML eliminates the requirement to obtain an EAD for Non-Permanent Residents who are citizens of the FAS and certain individuals maintaining lawful H-1B nonimmigrant status who have demonstrated stable employment.

The Residency Requirements section of Handbook 4000.1 is being updated to incorporate these requirements and for further clarity.

VA has implemented final rule, COVID - VAPCP, a temporary program assisting veterans in returning to making normal loan payments after forbearance due to financial hardship directly or indirectly due to COVID - 19.

VA Circular 26-21-13 provides VA’s waterfall of home retention options for helping borrowers affected financially by the COVID-19 pandemic and announces the COVID-19 Refund Modification, a type of loan modification specific to those borrowers needing payment reductions when exiting COVID-19 forbearance effective July 27, 2021.

This article addresses a recently released set of FAQs for appraisal waiver offers issued through Desktop Underwriter® (DU®) using Fannie Mae’s database of more than 50 million appraisal reports in combination with proprietary analytics from Collateral Underwriter® (CU®) to determine the minimum level of property valuation required for loans delivered to Fannie Mae.

Freddie Mac and Fannie Mae (the GSEs) are implementing a two-year transition to convert certain edits in their Uniform Closing Dataset (UCD) collection solutions from “warning” to “critical/fatal.” The transition will begin in May 2021 and is designed to enhance data quality and consistency for single-family loans purchased by the GSEs.

Phase 1 Closing Disclosure Sections:

• Closing Information
• Loan Information
• Loan Disclosures
• Escrow Account
• Loan Calculations
• GSE Specific
• GSE Regulation Z
• Payoffs and Payments