Compliance Calendar

This final rule sets time limits for banking organizations and service providers to make appropriate notifications in the case of “computer-security incidents”.

The CFPB finalized a rule facilitating the transition away from the LIBOR interest rate index for consumer financial products, establishing requirements for how creditors must select replacement indices for existing LIBOR-linked consumer loans after April 1, 2022.

On Dec. 7, 2021, the Bureau issued a final rule to facilitate the LIBOR transition. The Bureau released an Executive Summary and Unofficial Redline to summarize the changes made to Regulation Z by the final rule. The final rule also updated ARM Interest Rate Adjustment Notice sample forms for the LIBOR Transition.

In addition, the Bureau updated the LIBOR Transition Frequently Asked Questions (FAQs) for the final rule.

The Selling Guide has been updated to include changes to the following:

▪ Attorney title opinion letter: allowing for the use of an attorney title opinion letter in lieu of a title insurance policy for certain transactions

▪ High-balance LLPA waiver: aligning the Selling Guide with changes announced in LL-2022-01

▪ Desktop appraisal clarifications: clarifying when a new desktop appraisal is required based on the age of the appraisal and that ANSI® measurement standards do not apply to desktop appraisals

▪ Miscellaneous Updates:

o Removal of ARM plan references

o Document custody forms

o Measuring condos

This update requires servicers to postpone foreclosure-related activities for up to 60 days in certain instances when notified by a mortgage assistance fund program provider participating in the Homeowner Assistance Fund (HAF) program that a borrower has applied for mortgage assistance.

This Lender Letter contains the policies previously published in LL-2020-02 on Dec. 9, 2020, with the changes noted below and in the Change Control Log.

This Guide Bulletin announces:

• Refi Possible℠
  • Removal of the minimum Indicator Score requirement for Freddie Mac Refi Possible Mortgages
  • Clarifications and reminders related to Refi Possible delivery requirements
• Credit underwriting
  • Increased flexibility for an active-duty military Borrower who is unable to occupy the Primary Residence due to military service
  • A flexibility related to financing concessions provided by Freddie Mac as the property seller on Freddie Mac REO properties
• Property eligibility and appraisals
  • A clarification that Detached Condominium Units are not eligible for desktop appraisals
  • Standardization of the use of the term "market area"
  • Updates related to Manufactured Homes
• Condominium and Cooperative Projects
  • Expanded project review requirements for Condominium Projects with Manufactured Homes
  • Updates related to Condominium Hotels and cooperative hotels or similar type of transient housing
• Access notification requirements
  • Updated notification requirements when a user no longer needs access to a Freddie Mac System – April 13, 2022
• Additional Guide updates and reminders
  • Further updates as described in the Additional Guide updates and reminders section of this Bulletin

With the continued rollout of Homeowner Assistance Fund (HFA) programs, Single-Family Seller/Servicer Guide (Guide) Bulletin 2022-8 announces additional temporary guidance for Servicers assisting borrowers who are applying for financial help under the HFA.

Effective immediately, Servicers must suspend all foreclosure actions for up to 60 days if they have received notification that a borrower has applied for HAF assistance and other conditions associated with the timing and execution of foreclosure actions, including foreclosure sales, are met.

On April 6, 2022, Florida enacted House Bill 925 (HB925, or the Florida Bill) facilitating the transition away from LIBOR and sets standards for the replacement of LIBOR in contracts governed by Florida law where there is no fallback provision or insufficient fallback language is provided.

Colorado Senate Bill 22-086, Homestead Exemption And Consumer Debt Protection: Concerning assets exempted from seizure in certain proceedings, and, in connection therewith, expanding the amount and application of the homestead exemption to include personal property that is actually used as a residence, increasing the scope and amount of assets that may be exempted, adding certain new exemptions, recreating and increasing an exemption for money in depository accounts, and removing a requirement that a person must deposit and not commingle funds in order to render child support payments or unemployment benefits exempt from levy to pay a debt.

In this circular, the Department of Veterans Affairs (VA) Loan Guaranty Service (LGY) informs lenders of VA system enhancements and a new optional procedure in which lenders may upload the Uniform Closing Dataset (UCD) and Uniform Loan Application Dataset (ULAD) for loans selected for VA full file loan review (FFLR).

In this Servicing Guide Announcement, Fannie Mae publishes changes to the transfer of ownership policies, credit bureau reporting, and some miscellaneous updates.

In this bulletin, Freddie Mac announces several servicing updates related to Homeowner Assistance Funds (HAF), short sales, reimbursement of attorney fees, signatures on tax returns, taxing authority notification, increased appraisal fees, and additional guide updates.

LOAN PRODUCT ADVISOR AIM UPDATES

Automated income assessment with Loan Product Advisor using account data

We have introduced automated income assessment with Loan Product Advisor using account data, which is part of AIM. This offering is focused on Loan Product Advisor’s assessment of income amounts deposited into the Borrower’s depository accounts as automated clearing house (ACH) deposits (“direct deposit income”). It is designed to automate the income calculation process, help reduce origination costs and provide Sellers with relief from enforcement of certain representations and warranties related to the Borrower's income. We have added new Guide Chapter 5904, which includes requirements for this expansion of AIM.

To take advantage of this offering, the Seller must obtain a verification report of the Borrower’s depository information, which is either produced by one of Freddie Mac’s designated third-party service providers or produced by Freddie Mac using the financial institution’s data transmitted to Loan Product Advisor through an application programming interface (API). Based on the information submitted from the service provider or financial institution, Loan Product Advisor retrieves the data, assesses it for representation and warranty relief eligibility and returns the results of the assessment on the Feedback Certificate.

For each Mortgage originated using automated income assessment with Loan Product Advisor using account data, Sellers must deliver Investor Feature Identifier “H85”. Refer to Chapter 5904 for requirements for automated income assessment with Loan Product Advisor using account data. To learn more about our other automated assessment offerings, see the following chapters:

• Chapter 5901 for requirements regarding automated income assessment with Loan Product Advisor using employer data
• Chapter 5902 for requirements regarding automated asset assessment with Loan Product Advisor using account data
• Chapter 5903 for requirements regarding automated income assessment with Loan Product Advisor using tax return data

We encourage Sellers to access our AIM training resources (opens in new window) to learn more about AIM for Loan Product Advisor using account data (direct deposits).

Loan Product Advisor has been updated to incorporate the changes related to AIM, including feedback message updates (PDF 5mb opens in new window).

Guide impacts: Chapter 5904 (new), Sections 1301.11, 3402.5, 3402.7, 5302.3, 5302.5, 6302.10 and Exhibit 34

Automated income assessment with Loan Product Advisor using tax return data

Effective for Loan Product Advisor submissions and resubmissions on and after April 15, 2022

Tax transcripts

We are enhancing automated income assessment with Loan Product Advisor using tax return data (i.e., AIM for self-employed) to allow Sellers to request a tax transcript from the Internal Revenue Service (IRS) through a third-party service provider designated by Freddie Mac. If a tax transcript is provided by the IRS through the third-party service provider, Loan Product Advisor will compare the data from the Borrower’s tax return(s) to the data on the tax transcript. If the data matches, relief from enforcement of representations and warranties related to the accuracy and integrity of the eligible income on the tax return data is available.

This capability will help streamline the loan origination process and provide Sellers with more flexibility and may help reduce origination costs and potential fraud.

Currently, LoanBeam is the only service provider supporting this enhancement. We will notify Sellers when other service providers will be able to operationalize this enhancement.

For additional information, access the AIM for Self-Employed web page (opens in new window), which will continue to be updated with additional resources as they become available.

We encourage Sellers to access our AIM Training resources (opens in new window) to learn more about this enhancement.

Guide impacts: Sections 3402.7, 5903.1, 5903.3, 5903.5 and 5903.6

Tax extensions

We are enhancing the AIM for self-employed offering by accommodating tax extension filings (i.e., IRS Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return) for the 2021 tax year. With this enhancement, the assessment will perform an analysis to determine continued income stability by comparing the estimated tax liability for the 2021 tax year to prior year(s) tax liability for consistency. If consistency is confirmed, the automatic income assessment will continue using the older tax return(s) to assess income. The results of the assessment will be displayed on the Feedback Certificate, including income representation and warranty relief eligibility.

This automated improvement will eliminate the requirement for the Seller to determine continued income stability when an IRS Form 4868 is present for the 2021 tax year and when the older tax return(s) is used for the income calculation for eligible income that appears on the Income Calculation Report. This capability will help streamline the loan origination process and may reduce origination costs.

Currently, LoanBeam is the only service provider supporting this enhancement. We will notify Sellers when other service providers will be able to operationalize this enhancement.

For additional information, access the AIM for Self-Employed web page (opens in new window), which will continue to be updated with additional resources as they become available.

Guide impact: Section 5903.6

Feedback messages

Loan Product Advisor has been updated to incorporate the changes described above related to AIM, including feedback message updates (PDF 5mb opens in new window).

The Federal Housing Administration (FHA) announced they have added to FHA’s COVID-19 Recovery Loss Mitigation Options, a loan modification with a 40-year term used together with a partial claim.

This Lender Letter describes the RefiNow option originally published on May 5, 2021 and updated as described below.

April 6, 2022

 Removed the minimum representative credit score requirement of 620.

Effective: This update will apply to manually underwritten loans and DU Version 11.0 loan casefiles submitted or resubmitted on or after the weekend of April 23, 2022.

New York judgment rate on consumer debt to a natural person reduced from 9% to 2%