This month, several investors released notices regarding the ending date for conventional Jumbo-conforming loans under the Economic Stimulus Act (ESA). Notes for these loans must be executed prior to December 31, 2008. Many investors are replacing these programs with the New Fannie Mae High Balance and Freddie Mac Super Conforming programs.

CitiMortgage
November 11, 2008, CitiMortgage announced the discontinuation of the last of their non-agency programs. ARM programs were previously eliminated. Loans must be locked by November 14, 2008 and purchased no later than December 22, 2008. Non-Agency ARM products had to be purchased by December 15, 2008.

Countrywide
In a pleasant turn of events, Countrywide updated and released all of their ARM disclosures November 20, 2008. The new disclosure versions include the example values in the background of the forms. MBS-ProClose released the forms to all clients December 16th, 2008. One brand new ARM disclosure 2FE6172US was created with 2-2-6 caps for 3/1 and 5/1 Conforming Fixed Period LIBOR ARMs (similar to the 5-2-5 cap structure that is still active).

Countrywide also officially removed the 5/6 and 7/6 ARMs from their seller guide. These programs were discontinued back in October and have been removed from our ProClose Platinum program listings.

Flagstar introduced their new Fannie Mae High Balance program (Doc. #5346) and the Freddie Mac Super Conforming program (Doc. #5347). The forms and programs are being added to ProClose. Please let your client support representative know if you have an upcoming loan under these products. Programs include Fixed, Fixed Interest Only, LIBOR ARMs, and LIBOR ARMs with Interest-Only options.

GMAC Bank
GMAC Bank has discontinued any interest-only programs with interest-only periods of less than 10 years. All loans need to be locked by December 5, 2008 and must fund on or before February 1, 2009. Product codes are:  E47, D31, E49, T56, T57, T60 and T61. GMAC also reminded correspondents that January 14, 2009 is the last day they will purchase conventional Jumbo-conforming (Stimulus) loans under the ESA (notes must be executed by December 31, 2008).  Program codes under their Stimulus products are:  U14, U15, U17, U18, U19, U20 and U21. FHASecure programs were also discontinued (Product codes T69, T70, T71 and T72). FHASecure loans must be closed and executed by December 31, 2008 and purchased on or before January 31, 2009.

On December 5, 2008, GMAC Bank announced revisions to their ARM disclosures. In compliance with the Statement on Subprime Mortgage Lending and the Interagency Guidance on Non-traditional Mortgage Products, GMAC specified that the disclosures should be delivered at or prior to Application, at rate lock and at closing. The needed disclosures are already in your formsets and are currently being updated to include the new revisions.

Taylor, Bean & Whitaker
Announced November 17, 2008, Taylor, Bean & Whitaker has eliminated their 40-year option under their conventional products. Loans had to be closed by November 21, 2008.

• The new, standardized GFE and revised HUD-1 will not be required until January 1, 2010.
• Loan originators will be required to provide borrowers their Good Faith Estimate three days after the loan originator's receipt of all necessary information. To facilitate shopping, loan originators could not require verification of GFE information (tax returns etc.) until after the applicant makes the decision to proceed.
• HUD will require mortgage lenders and brokers to provide borrowers with an easy-to-read standard Good Faith Estimate (GFE) that clearly answers the main questions they have when applying for a mortgage including:
  • What is the term of the loan?
  • Is the interest rate fixed or can it change?
  • Is there a pre-payment penalty should the borrower choose to refinance at a later date?
  • Is there a balloon payment?
  • What are total closing costs?
• HUD withdrew a proposed requirement for closing agents to read and provide a 'closing script' to borrowers. Instead the HUD-1 Settlement Statement will have a new page which allows borrowers to easily compare their final closing costs and loan terms with those listed on the GFE.
• HUD's new GFE has been reduced from four to three pages, which includes an instructional page to help borrowers better understand their loan offer. The GFE will also consolidate closing costs into major categories to prevent junk fees and to display total estimated settlement charges prominently on the first page so the consumer can easily compare loan offers. HUD will specify the closing costs that can and cannot change at settlement. If a fee changes, HUD will limit the amount it can change.
• To make it easier for Borrowers to compare their GFE estimated costs and their HUD-1 actual costs, each designated line on the HUD-1 will include a reference to the relevant line on the GFE.
• HUD will require lender payments to mortgage brokers (often known as Yield Spread Premiums) to be disclosed in a more meaningful way. These payments are directly dependent on the interest rates agreed to by the borrowers. To ensure HUD's new requirement will not create a consumer bias against brokers, HUD did thorough consumer testing and found the new Good Faith Estimate helped borrowers to select the lowest cost loan nine-out-of-10 times, regardless of whether the loan was originated by a lender or a broker.

HUD will allow lenders and settlement service providers to correct potential violations of RESPA's new disclosure and tolerance requirements. Lenders and settlement service providers will now have 30 days from the date of closing to correct errors or violations and repay borrowers any overcharges.

Fannie Mae and Freddie Mac Taglines
The presentation requirement of taglines being on every page of Fannie Mae/Freddie Mac joint and Freddie Mac uniform instruments has been extended to May 1, 2009. MBS-ProClose has always had the taglines on every page, so ProClose users can rest assured that their documents are already in compliance and meet this requirement. 

Kentucky Requires New Form
The Kentucky Department of Financial Institutions published a new notice entitled the "Kentucky Homeownership Protection Center Notification to New Homeowners," as stipulated in House Bill 552. The notice informs homeowners of the availability of services provided by the Kentucky Homeownership Protection Center and must be provided at the time of closing. Beginning January 1, 2009, the notice must be given to all new homeowners; however, the Department encourages lenders to distribute the notice prior to such date. The form is set to print in your ProClose closing packages for all Kentucky closings and has a form ID of KYXAA1.

What does error 2023 attribute "TilDisclosureDate" has a bad value:" does not satisfy "date" type and error 2023 Value does not appear to be a valid date value" mean when trying to run a ComplianceEase report?

Answer
One or more dates are missing and are required when running a CE report.  These dates are the TIL Disclosure Date and GFE Disclosure Date, which appear in ProClose on the Loan Detail tab, under ComplianceEase info.