Compliance Calendar

Freddie Mac announced updates to its pricing framework in this bulletin, including new Credit Fees and updated fee rates and assessment criteria for certain Single-Family Mortgages, with settlement dates on or after May 1, 2023.

In this lender letter, Fannie Mae announced future changes to loan-level price adjustments (LLPAs) and an overall redesign of the LLPA matrix for all wholesale loans purchased on or after May 1, 2023.

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

▪ Medical collections: aligning Guide policy for the treatment of medical collections with the risk assessment performed by Desktop Underwriter®

▪ Compliance with Office of Foreign Assets Control regulations: adding reporting requirements for penalties and enforcement actions

▪ Use of earned real estate commission: allowing the use of a borrower’s earned real estate commission for down payment and closing costs

▪ Miscellaneous updates:

o HERA and the Minority and Women Inclusion Rule

o DU® minimum reserve requirements

Fannie Mae has published Frequently asked questions (FAQs) for Community Second loans which are subordinate financing that originated under an affordable housing program.

Fannie Mae has published Frequently asked questions (FAQs) for Community Land Trust to provide answers to common questions.

Utah HB94 makes several changes to the requirements for reverse mortgages and is effective May 3, 2023.

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

▪ Subordinate financing: clarifying eligibility requirements for subordinate liens
▪ Alternatives for tax filing documentation: allowing alternative documentation for IRS Form 4868 as evidence the borrower has filed an extension for the prior year’s tax returns

In addition, we updated the Guide to Delivering eMortgages to Fannie Mae to eliminate the requirement that lenders must register the lien on the Mortgage Electronic Registration System when delivering an eMortgage to us. There is no change to the requirement that sellers must use the MERS® eRegistry when delivering eMortgages to us. This update has no impact to the Selling Guide.

This Guide Bulletin announces:

• Closed Mortgages and Settlement Date requirements

Guide updates related to Mortgages sold through the flow channel

The Federal Housing Administration (FHA) announced that the 40-year Standalone Loan Modification had been incorporated into FHA’s COVID-19 Loss Mitigation policies in HUD Handbook 4000.1, effective no later than May 8, 2023.

SUBJECT: DEBT-TO-INCOME RATIO > 40% CREDIT FEE

In response to the FHFA press release on May 10, 2023, this Guide Bulletin announces the rescission of the Debt-to-Income (DTI) Ratio-based fees for certain Mortgages with Borrowers with DTI ratios above 40 percent, originally announced in Bulletin 2023-1 and intended to be effective for Mortgages with Settlement Dates on or after August 1, 2023.

All other Credit Fee changes announced in Bulletin 2023-1 remain unchanged.

Guide and system updates

Guide Exhibit 19, Credit Fees, has been updated to reflect this change. Additional Guide provisions will be updated with a future Bulletin. Updates to Loan Selling Advisor^®, including the Guarantor Rate Sheet Results screen, were made to reflect these changes.

At the direction of FHFA and in alignment with Freddie Mac, we are rescinding the DTI ratio loan-level price adjustment (LLPA) attribute that was scheduled to apply to loans purchased on and after Aug. 1, 2023.

Earlier this year, we announced a new LLPA framework that included an additional LLPA attribute related to the debt-to-income (DTI) ratio. This attribute was originally scheduled to apply to loans purchased beginning May 1, 2023. We then announced a delay in the implementation of this LLPA until Aug. 1, 2023.

This Lender Letter supersedes LL-2023-01 with regard to the DTI ratio LLPA. All other LLPA changes announced in LL-2023-01 became effective May 1.

This Mortgagee Letter clarifies loss mitigation options for non-borrowers who acquired title through an exempted transfer and updates the option as noted in Mortgagee Letter (ML) 2023-03.

1. Purpose. The purpose of this Circular is to extend the rescission date of Circular 26-21-07, Change 2.
2. Therefore, Section 2.a. of Circular 26-21-07 is changed to read as follows:
3. Page 1, paragraph 2: Delete “July 1, 2023” and replace with “December 31, 2023.”
4. Rescission: This Circular is rescinded December 31, 2023.

The Department of Veteran's Affairs has issued guidance regarding the COVID-19 Forbearance Timeframe for borrowers in light of the April 10, 2023, end date of the COVID-19 Presidentially Declared National Emergency. The guidance alerts servicers that COVID-related forbearances should be allowed if the borrower makes the request on or before May 31, 2023.