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Compliance NewsAs everyone knows, massive financial reform is here. For the lending industry, the bill signed by President Obama July 21, 2010, includes several new consumer protections for those looking to obtain a mortgage. The following is a quick synopsis. HUD posted a new version of the RESPA Rule FAQ April 2, 2010. New and updated topics include preapprovals, worksheets, Block 1 of the GFE and credits, among others. All updates are shown in bold. C.F.R. Section 226.35 (see (b)(3)), which applies only to first lien higher-priced loans, will soon require an escrow account be established for property taxes and premiums for mortgage-related insurance mandated by the lender or creditor, such as hazard, liability and credit insurance. This webinar will provide an overview of the new RESPA rules, the new GFE and HUD-1 and include a detailed training on completing the new HUD-1 within ProClose. A half an hour Q&A session to answer specific questions regarding both the RESPA rule and implementation changes in ProClose will close out the session. Feel free to send questions to Jbaeder@proclose.com prior to the webinar date. The new GFE and HUD-1, as required by RESPA changes effective January 1, 2010, are ready in ProClose. Several components to your software system require an upgrade to receive the screen changes, new fields, forms and calculations. We are offering all clients the option to receive the upgrade anytime as of today. Being RESPA READY isn't just about understanding the new GFE and HUD-1, it's being able to enter the proper loan data into the right fields in your software for a clean and compliant loan origination and closing. While everyone in the mortgage industry knows the new GFE and HUD forms are effective January 1, 2010; the inclusion in the RESPA rule of a new requirement for a New Home "Construction" Disclosure as listed in the Federal Register 24 CFR § 3500.7(f)(6) may be missed: Major changes to the Home Ownership and Equity Protection Act (HOEPA) go into effect October 1, 2009. These changes affect appraisals, HOEPA loans, servicing, and advertising and create a new category of loans called Higher Priced Mortgage Loans (HPMLs), a category that will occupy the space between prime loans and HOEPA loans. The mortgage world is likely to transform dramatically next year as a result of major Truth-in-Lending Act changes proposed by the Federal Reserve. Nevada is requiring the Mortgage Broker's Name and NV license number on the Security Instrument, Note, 1003 and HUD-1. The legislation, Assembly Bill 151, was signed AND effective May 29, 2009. Prior to October 1, brokers have up to 30 days to cure any failure to comply with this requirement. On July 29, 2009, the Nevada Division of Mortgage Lending (the Division) answered the request of licensees by releasing guidance on the bill regarding the location of the broker identification. The federal Mortgage Disclosure Improvement Act (MDIA) went into effect July 30, 2009, affecting all residential mortgage loan applications taken on or after that date. Although the MDIA covers a lot of ground, the area of greatest concern to our clients seems to be the timing of the initial and final TIL disclosures. Mortgage Banking Systems, Inc. (MBS), a leading mortgage closing software and technology company, is solving an industry-wide problem for lenders with the release of its most recent innovation to ProClose: Dynamic Signature Technology (DST). Until now, signature lines on mortgage closing documents have been fixed or static. The limitations were painful when signature requirements exceeded the space available, as in a Trust or Power of Attorney. The Mortgage Disclosure Improvement Act (MDIA) has taken effect, changing the way borrowers get their TIL disclosures and forcing brokers to work more-closely with lenders to get a TIL disclosure in the borrower's hands shortly after application. Technology providers help build a better industry by augmenting their systems with functionality to help modernize state mortgage regulation The Federal Reserve Board on Thursday proposed significant changes to Regulation Z (Truth in Lending) intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit (HELOCs). The following is a breakdown of early disclosure requirements under the Mortgage Disclosure Improvement Act and specific changes made to ProClose to accommodate MDIA, applicable to all loan applications beginning July 30, 2009. In support of the American Recovery and Reinvestment Act of 2009, offering homebuyers a tax credit up to $8,000 for purchasing a new home, FHA announced the authorization of the First Time Homebuyer Tax Credit Program. The Home Valuation Code of Conduct (HVCC or the Code) was created to enhance and protect the independence and integrity of the home appraisal process. Mortgage Banking Systems, Inc., a leading provider of mortgage closing document services and technology, has added ComplianceAnalyzer from ComplianceEase to its ProClose Platinum closing product. Final rules under the Real Estate Settlement Procedures Act (RESPA) issued. The Maryland Commissioner of Financial Regulation finalized regulations. Maryland Regulation 09.03.10 becomes effective today, Monday, November 3, 2008. President Bush signed S. 3023, the Veterans' Benefits Improvement Act of 2008 Regulators to Set the Standard for the Future of Examinations Through Greater Efficiency and Reduced Time and Costs for Financial Institutions The Department of Veterans Affairs released the following announcement. The government's historic bailout of Fannie Mae and Freddie Mac, announced on Sunday, September 7th, has placed Fannie and Freddie into a conservatorship. The MBS-Compliance Team attended the FHA Special LIVE Online Conference offered by CampusMBA on Wednesday August 6, 2008. On Sunday, July 13th, the Federal Reserve and the Treasury announced that they had taken steps to provide support to Fannie Mae and Freddie Mac. The Board of Governors of the Federal Reserve System passed legislation allowing the Federal Reserve Bank to lend money to the Government Sponsored Agencies (GSEs). FHA has announced that effective with new FHA case number assignments on or after July 14, 2008, FHA will implement risk-based premiums on one- to four-unit single-family mortgages. The premium matrix published in Mortgagee Letter 08-16 replaces the premium matrix previously published in Mortgagee Letter 00-38, which identifies the current mortgage insurance premiums for FHA's single-family programs. In a speech at the National Press Club on June 9th, FHA Commissioner Brian Montgomery announced that HUD would be re-opening the public comment period on a proposed ban of seller-assisted down payments for FHA loans. On May 8th, the U.S. House of Representatives passed a housing package, in a vote of 266-154. On March 31, 2008, Alphonso Jackson announced that he would be stepping down as the U.S. Housing and Urban Development Secretary The U.S. Department of Housing and Development (HUD) issued a proposal on March 14, 2008 to change the Real Estate Settlement Procedures Act (RESPA), which includes regulations for a new Good Faith Estimate (GFE). Government's Stimulus Package Raises GSE, FHA Loan Limits. The HUDClips website has moved to http:/www.hud.gov/offices/adm/hudclips. HUDClips provide HUD Clients with free access on the web to official HUD documentation, including policies, procedures, announcements, notices and handbooks, as well as other official materials. House Financial Services Committee Chairman Barney Frank proposed a plan on March 13, 2008 to give the Federal Housing Administration (FHA) $150-$300 billion over each of the next two years to provide guarantees to help refinance at-risk mortgages. |
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