Michael Chan, Vice President of Sales and Marketing, ComplianceEase® visits MBS-ProClose Headquarters
MBS-ProClose Headquarters hosted a very important guest last month. Representing ComplianceEase®, a leading provider of intelligent compliance solutions to the mortgage community, Michael Chan met with MBS Executives to discuss various opportunities to ensure a strongly growing partnership. Currently, MBS-ProClose offers ComplianceAnalyzer®, a signature product of ComplianceEase®, is an industry-leading enterprise-based solution that provides comprehensive yet cost-effective automated compliance auditing to over 200 satisfied institutions in the residential mortgage industry.
Michael Chan and MBS Executives agreed on a series of joint-marketing efforts to educate ProClose Clients on ever-growing compliance requirements and demonstrate ways to best stay on top of compliance updates.
For more information on ComplianceAnalyzer®, please talk to a Client Service Representative at 1800 783 2283 today.
House Financial Services Committee Appoints Subcommittee Members
In January of 2007, the House Financial Services Committee and Senate Committee on Banking, Housing, and Urban Affairs announced their new subcommittee members for the 110th Congress. Mortgage lenders should pay special attention to the actions of the House Financial Institutions and Consumer Credit Subcommittee and the Senate Financial Institutions Subcommittee, because they will likely determine the future of new predatory lending legislation for the upcoming year. Listed below are the new members of both subcommittees.
The MBS-ProClose Compliance Department monitors all predatory lending legislation. As new legislation is introduced, the MBS-ProClose Compliance Department will ensure that your forms comply with the latest regulatory requirements. For more information, please contact compliance@ProClose.com.
Rhode Island Delays Enforcement of Home Loan Protection Act Disclosure Requirements
In January, Rhode Island adopted the Home Loan Protection Act, R.I. Gen. Laws § 34-25.2, et seq., which created more disclosure requirements for lenders. Even though this emergency regulation was effective upon adoption, it initially stated that Department of Business Regulation would not take any enforcement actions related to the new required disclosures until February 1, 2007. The enforcement date was later changed to March 1, 2007. On February 8, 2007, the Department of Business Regulation extended the enforcement date again to April 1, 2007.
The Department of Business Regulation has changed the enforcement date to provide covered parties with additional time to implement the new forms. Therefore, lenders should take this time to become more familiar with the new disclosures and make sure they are prepared to satisfy the new requirements. For further information about the Rhode Island Home Loan Protection Act and the new disclosures, visit the Rhode Island Department of Business Regulation website located at http://www.dbr.ri.gov/documents/rules/banking_securities/Regulation3-revised.pdf.
Fannie Mae and Freddie Mac Short Form Security Instruments
Interested in saving money on recording costs? Fannie Mae and Freddie Mac, in a joint effort, are planning to release Short Form Security Instruments. It will allow Lenders to take advantage of State statutes allowing the recordation of a master mortgage or deed of trust form and short forms that reference the master to document individual loans. After recording the master mortgage or deed of trust form, the Lender would only have to record every subsequent mortgage with the short form security instrument. The Lender would need to record the master mortgage or deed of trust form in each county that they are planning on using the short form security instruments. Fannie Mae and Freddie Mac plan to release these forms in early Spring for the following for 27 states: Florida, Idaho, Kentucky, Maine, Maryland, Nebraska, Nevada, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Utah, Washington, Wisconsin, and Wyoming. They will add additional forms as more states adopt these types of statutes. Using these forms can reduce the cost of recording 16 pages down to the cost of recording only 3!
MBS-ProClose would like to hear back from you! Would you use these Short Form Security Instruments? Do you have any questions or comments about these forms that you would like to share with us? Please e-mail us at compliance@ProClose.com.
Mortgage Insurance tax deductible for 2007
The Tax Relief and Health Care Act 2006 made Mortgage Insurance premiums accrued in 2007 tax deductible for Borrowers (subject to income limitations). If the premium is over $600, Lenders will need to report the amount of mortgage insurance to the borrower in Form 1098. However, if the seller pays the premium the borrower cannot claim it. The IRS is currently working on their revision of that form to include an area to accommodate this new provision. MBS-ProClose will have the updated form available for our users soon after the IRS releases it.
Fannie Mae to discontinue their published LIBOR Indices
On June 28th 2007, Fannie Mae will cease publishing their own London Interbank Offered Rate (LIBOR) index and will no longer accept delivery of any loan tied to that index. MBS-ProClose currently accommodates two of the plans affected, which are Plan 1318 and Plan 1319. In conjunction with this action they are discontinuing their forms 3518 (AA1GI1), 3519 (AA1HI1) 3137 (AA1SG1) and 3136 (AA1AH1). Effective that date MBS-ProClose will be removing the above referenced forms from our library. For more information concerning the replacement Index procedures and language please see the Fannie Mae Announcement 06-21. http://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2006/0621.pdf
