Compliance Calendar

Search for current regulatory changes & updates from Fannie, Freddie, FHA, VA, and USDA.

Compliance Calendar for December 2018

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Extension of Relief Refinance Mortgages (Same Server and Open Access) and updated income requirements

Effective: December 1, 2018
Industry: Mortgage Lending
Source: Freddie Mac   Bulletin 2017-17 →
Tags: Income, Underwriting
View Details
  • We are extending the expiration date of the Freddie Mac Relief Refinance Mortgage – Same Servicer and Relief Refinance Mortgage – Open Access offerings.
    • Must now have Application Received Dates on or before December 31, 2018 and Settlement Dates on or before September 30, 2019.
  • We are updating the documentation requirements for alimony, separate maintenance and child support income types to state that evidence of receipt of the total documented amount, rather than the court ordered amount as previously stated, is required.

Forbearance Workout Options - New Consolidated Forbearance Plan

Effective: December 1, 2018
Industry: Mortgage Servicing
Source: Fannie Mae   SVC-2018-04 →
Tag: Loss Mitigation
View Details

In alignment with Freddie Mac and at the direction of the Federal Housing Finance Agency, we are simplifying our forbearance polices by introducing a new consolidated forbearance plan. This update will make it easier for servicers to assist borrowers who are experiencing a short-term hardship and simplify servicing by improving operational efficiency.

We have updated our Guide to streamline our current forbearance plan workout options into a single policy, including forbearance plans related to unemployment, unique hardships, military indulgence, and disaster events, and to simplify our policy on disaster assistance. 

There a multiple guide section updates - please see Announcement for complete details.

Forbearance plan requirements

Effective: December 1, 2018
Industry: Mortgage Servicing
Source: Freddie Mac   Guide Bulletin 2018-9 →
Tag: Loss Mitigation
View Details

Effective December 1, 2018, but Servicers may implement immediately

To support Freddie Mac’s continued commitment to improving our loss mitigation offerings, we are monitoring and assessing the appropriateness of each currently available solution. Based on Servicer and industry stakeholder feedback, and at the direction of the FHFA and in coordination with Fannie Mae, we are consolidating our shortterm, long-term and unemployment forbearance plan offerings into a single streamlined policy. Borrowers impacted by Eligible Disasters continue to be subject to special forbearance plan requirements described in Guide Chapter 8404 and Bulletins 2017-14, 2017-19, 2017-21, 2017-25 and 2017-29.

By streamlining our forbearance plan offerings and requirements and allowing Servicers to approve longer forbearance periods without requiring the Borrower to submit a Borrower Response Package, we expect greater operational efficiencies and improved outcomes for Borrowers who need a temporary recovery period. Under our new requirements, the Servicer may approve forbearance plans that last for up to six months and may offer consecutive forbearance plans of up to 12 total months without requiring a Borrower Response Package.

Because we are consolidating several forbearance plan programs into one set of requirements, we are
restructuring Chapter 9203 and removing references throughout the Guide to short-term, long-term and
unemployment forbearance and replacing them with “forbearance plan,” as applicable.

The restructured forbearance plan offering is described in detail in Guide Sections 9203.12 through 9203.17. The following table provides an overview of the restructured forbearance program. 

Please see Guide Bulletin for complete Forbearance eligibility requirements table. 

Delinquency The Borrower may be current or delinquent in his or her Mortgage, but the
forbearance plan must not result in an overall Mortgage Delinquency that exceeds
360 days (i.e., to be in an active forbearance plan, the Borrower must not have
missed more than 12 contractual monthly Mortgage payments).
Hardship The Borrower must have an eligible hardship as described in Section 9202.2 and
Guide Form 710, Mortgage Assistance Application. The Borrower’s hardship may be
verbally stated. The Servicer must report the hardship reason via EDR in accordance
with Section 9102.7.
Documentation The Servicer is not required to collect a complete Borrower Response Package to
evaluate the Borrower for a forbearance plan or a forbearance plan extension.
However, if the Servicer does not collect a complete Borrower Response Package,
then the Servicer’s evaluation must be based on information provided by the
Borrower resulting from quality right party contact established in accordance with the
requirements in Section 9102.3(b).

Reporting Third-Party Foreclosure Sale Redemptions

Effective: December 1, 2018
Industry: Mortgage Servicing
Source: Freddie Mac   Freddie Mac Servicing Bulletin 2018-14 →
Tag: Foreclosure
View Details

As result of the automation of settlement for third-party foreclosure sale transactions via Workout Prospector®, we are removing the requirement that Servicers report a third-party foreclosure sale redemption transaction via 

Guide Form 105. The Servicer will no longer be required to report these transactions to Freddie Mac and the following mailboxes will be retired: • NPL_Third_Party_Sales@freddiemac.com • NPL_File_Management@freddiemac.com Guide impacts: Section 9301.42 and Directory 5

New Mexico and Hawaii Allowable Foreclosure Attorney Fees

Effective: December 1, 2018
Industry: Mortgage Servicing
Source: Fannie Mae   Servicing Guide Announcement SVC-2018-06 →
Tags: Foreclosure, New Mexico, Hawaii
View Details

We are updating the Allowable Foreclosure Attorney Fees Exhibit to reflect a change to the maximum allowable foreclosure attorney fees for mortgage loans secured by properties in New Mexico and Hawaii.

Effective Date
These new fees apply to all matters referred to counsel for initiation of foreclosure proceedings, regardless of referral date, as long as the matter is still active as of September 18, 2018. Servicers are encouraged to implement the new fees for the impacted files as soon as possible, but must do so no later than December 1, 2018. Servicers may exercise reasonable discretion in determining how to implement the fees, including working as needed with the law firm or an applicable invoicing technology provider.

Freddie Mac Servicing Bulletin 2018-22

Effective: December 1, 2018
Industry: Mortgage Servicing
Source: Freddie Mac   Properties Impacted by Disasters →
Tag: Disaster
View Details

Disaster-related forbearance plans

In a continuing effort to create operational efficiencies and to provide a more flexible evaluation process for Borrowers and Servicers, we are clarifying certain disaster-related forbearance plan requirements. Except as otherwise provided in the table below, Borrowers impacted by Eligible Disasters continue to be subject to all other special forbearance plan requirements in Guide Chapter 8404 and Bulletins 2017-14, 2017-19, 2017- 21, 2017-25 and 2017-29. 

The following table provides the disaster-related forbearance plan requirement changes:

Disaster-related forbearance plan requirements

Mortgage eligibility
Current Guide language Revised Guide language

The Mortgage may be secured by the following property types: 

▪ Primary Residence, 

▪ Second home, or 

▪ Investment Property The property may be vacant or condemned, but not abandoned.

C
Servicers have discretion to place a Borrower who is or becomes 31 or more days delinquent in a forbearance plan in accordance with the requirements in Sections 9203.12 through 9203.17. Servicers should determine whether to provide forbearance and the length of such forbearance by assessing: ▪ The extent of the property damage based on property inspections, and/or ▪ The financial impact to the Borrower as a result of the Eligible DisasterServicers have discretion to place a Borrower who is or becomes 31 or more days delinquent in a forbearance plan for up to 90 days in accordance with the requirements in Sections 9203.12 through 9203.17, and Sections 8404.4 and 8404.6. Servicers should consider the following factors in its evaluation decision when determining whether to provide forbearance, if it has relevant information regarding: ▪ The Borrower’s financial circumstances, and/or
The short-term forbearance plan may not exceed 90 days without either achieving quality right party contact or receiving approval from Freddie Mac.▪ The extent of the property damages caused by the Eligible Disaster

Circumstances where QRPC has been achieved

Servicer may offer up to six months of forbearance without obtaining a complete BRP, but must attempt to obtain a complete BRP if forbearance exceeds six months in length. However, if the Borrower is unable to provide financial documentation, the Servicer may offer the Borrower successive forbearance plans (not to exceed 12 months in aggregate) without obtaining a complete BRP.The Servicer is not required to obtain a complete BRP, and may offer:
▪ Forbearance for a period of one to six months, and, if necessary
▪ One or more successive forbearance plan periods of one to six months The forbearance plan may not be extended beyond a date that would cause the Delinquency to exceed a cumulative total of 12 months of the Borrower’s contractual monthly Mortgage payment, including taxes and insurance (if the Servicer is collecting Escrow for those expenses) without prior approval from Freddie Mac.  

Transitioning from a forbearance plan

At the end of the forbearance period, the Servicer must reassess the Borrower's circumstances based on updated property inspections and Borrower financial information, if required by the relief or workout options, to determine if forbearance should continue to be extended, whether the Borrower is eligible for another relief or workout option, or whether the Servicer should initiate or resume collection or foreclosure proceedings.At the end of the forbearance period, the Servicer must reassess the Borrower’s circumstances to determine whether the Borrower’s hardship has been resolved. The determination may be based on information from the Borrower as a result of QRPC and/or an updated property inspection assessment of the extent of property damage. If the hardship has been resolved and the Borrower is ready to transition to a permanent solution, the Servicer must evaluate the Borrower for the most appropriate workout option to cure the Delinquency in accordance with the requirements in Section 8404.6. If the hardship has not been resolved, then the Servicer must evaluate the Borrower’s eligibility for extended forbearance.

Guide impacts: Sections 8404.4 and 8404.6 


Fannie Mae Selling Guide Updates

Effective: December 4, 2018
Industry: Mortgage Lending
Source: Fannie Mae   SEL-2018-09 →
Tags: Underwriting, Income, Insurance, Property - Appraisal
View Details

Calculating Self-employment Income 

  • Lenders may receive enforcement relief when using a Fannie Mae-approved vendor tool immediately, including the newly approved LoanBeam’s FNMA SEI 1084 workbook
  • If lenders use it to calculate income and enter the monthly income amount in Desktop Underwriter® (DU®), we will provide representation and warranty enforcement relief on the accuracy of the calculation of the amount of self-employment income

The Guide has been updated to reflect the use of approved vendor tools and the criteria that will result in enforcement relief. The list of Approved Vendor Tools is available on Fannie Mae’s website. In addition, the Special Feature Codeslist has been updated to include SFC 777. 

Commission Income and Unreimbursed Business Expenses DU Version 10.3 

  • We are removing the different treatment of commission income based on the percentage of employment income. 
  • Going forward all commission income will be treated the same, and individual tax returns (or tax transcripts) will no longer be required. 
  • We are updating our policy regarding commission income and unreimbursed business expenses due to recent changes made by the IRS that are effective with the reporting of 2018 federal income taxes.

[Please see guide announcement for complete details]

DU Version 10.3 

  • The Selling Guide has been updated to reflect the changes that were announced in the DU/Desktop Originator® Version 10.3 Release Notes

On-Frame Modular and Modular Construction Small Business Administration Loans 

  • On-frame modular homes that comply with local building codes, attached to a permanent foundation, and are built using the same materials as comparable stick-built homes are now an eligible property type. These homes will follow the same eligibility and underwriting criteria as stick-built homes. 
  • We are also clarifying that multi-unit buildings such as attached condos and townhomes may be built using modular construction techniques that comply with local building codes. 
  • No additional delivery data points are required as a result of these changes.

Small Business Administration Loans (May implement immediately; must implement by March 2019)

  • We are clarifying that all Small Business Administration (SBA) loans secured by the subject property must be treated as subordinate financing and included in the calculation of the CLTV and HCLTV ratios. 
  • The monthly payment of the subordinate lien must also be included in the borrower’s DTI ratio calculation unless the lender can satisfy the requirements in Business Debt in Borrower’s Name in B3-6-05, Monthly Debt Obligations.

Kroll Rating Agency Flood Insurance

  • Policies related to property insurance carrier requirements for sellers and servicers have been consolidated into the Selling Guide. 
  • The following changes were made to our property insurance carrier ratings requirements: added Kroll Bond Rating Agency as an acceptable rating agency, and removed the more restrictive rating requirements for co-op projects; the general carrier rating requirements now apply.

Flood Insurance (May implement immediately; must implement by March 1, 2019)

  • In our continued efforts to simplify and consolidate policies shared by the Selling and Servicing Guides, duplicative policies related to flood insurance coverage requirements have been consolidated from the Servicing Guide B-3, Flood Insurance Requirements, into the Selling Guide, B7-3-07, Flood Insurance Coverage Requirements. 
  • In addition, several clarifications have been made.

[Please see guide announcement for complete details]

Miscellaneous Updates

  • B2-3-01, General Property Eligibility
  • B5-5.3-02, Loans with Resale Restrictions: Loan and Borrower Eligibility
  • E-1-03, List of Contacts

[Please see guide announcement for complete details]

Freddie Mac Selling Guide Bulletin 2018-24

Effective: December 5, 2018
Industry: Mortgage Lending
Source: Freddie Mac   10-DAY PRE-CLOSING VERIFICATION REQUIREMENTS FOR UNION MEMBERS →
Tag: Income
View Details

Previously, we allowed Sellers to obtain the 10-day pre-closing verification (10-day PCV) from the union instead of from the employer for any Borrower who was a union member and was in between employers at the time of loan closing.

We are specifying that the Seller may obtain the 10-day PCV from the union for a Borrower who is in between employers at the time of loan closing or is employed at the time of loan closing. This provides additional flexibility in recognition of the fact that in some instances it may be easier to reach the union than the Borrower's employer for the verification.

The applicable Loan Product Advisor® feedback message has been updated to align with this change.

Guide impact: Section 5303.2

Freddie Mac Selling Guide Bulletin 2018-24

Effective: December 5, 2018
Industry: Mortgage Lending
Source: Freddie Mac   ADDITIONAL GUIDE UPDATES AND REMINDERS →
Tags: Underwriting, Certification, Endorsement, and Delivery, Loan Documents
View Details

Exhibit 19

We are updating Exhibit 19 to reflect that Freddie Mac Enhanced Relief Refinance® Mortgages with Settlement Dates on or after January 1, 2019 are excluded from the CS/LTV ("A-Minus Fees") – Non-Loan Product Advisor Mortgages Credit Fee in Price and are subject to the Indicator Score/Loan-to-Value for Mortgages other than Relief Refinance Mortgages Credit Fee in Price.

Guide impact: Exhibit 19

Form 1077, Uniform Underwriting and Transmittal Summary

Effective for Mortgages with Application Received Dates on or after June 5, 2019, but Seller/Servicers may begin using the revised form immediately

Freddie Mac and Fannie Mae have completed a joint review of the Uniform Underwriting and Transmittal Summary (Form 1077/1008). As a result, we are making updates to the form, including:

  • Removing the contact signature field
  • Removing outdated information
  • Adding a Project Classification Code of "Exempt from Review" for Mortgages delivered to Freddie Mac

Guide impacts: Section 5701.12 and Form 1077

Form 1077 alternative announced in Bulletin 2018-12

Effective immediately, we are updating the Guide to align with Bulletin 2018-12, which announced an alternative equivalent form is permitted in the Mortgage file in lieu of Form 1077.

Guide impacts: Sections 4602.13 and 5701.12

Freddie Mac Access Manager reminder

In Bulletin 2018-8 we updated the Guide in preparation for the availability of Freddie Mac Access Manager. This automated and delegated administration tool allows authorized Seller/Servicers and certain Related Third Parties to create, manage and provision their user registration and access to Systems (as defined in Section 2401.1). Key benefits of Access Manager include:

  • Grant fast access to Freddie Mac tools
  • Control access by putting provisioning power in the Seller/Servicer's hands
  • Submit information electronically, which saves time
  • Eliminate most manual forms
  • Reduce processing time
  • Get on-demand reporting, which improves transparency of real-time data
  • Lower risk with ability to occasionally recertify Seller/Servicer's user base to facilitate approved usage and role assignments

As announced in our December 3, 2018 Single-Family News Center article, Access Manager is available to authorized Seller/Servicers using certain Freddie Mac Systems listed on our Access Manager web page.

For more information, including how to register and become authorized to use Access Manager, please visit the Access Manager web page at http://www.freddiemac.com/sing....

Exhibits 4 and 5

Exhibit 4, Single Family Uniform Instruments, is being updated to include revised version dates for the Maine MERS® Mortgage Assignment and Louisiana Mortgage, as well as other technical corrections. Exhibit 5 Authorized Changes to Notes, Riders, Security Instruments and the Uniform Residential Loan Application, is being updated to delete the authorized change to the Maine MERS Mortgage Assignment (Form 3749).

Guide impacts: Exhibits 4 and 5

Desktop Underwriter/Desktop Originator Release Notes DU Version 10.3

Effective: December 8, 2018
Industry: Mortgage Lending
Source: Fannie Mae   Release Notes DU Version 10.3 →
Tags: Underwriting, Property - Appraisal
View Details

During the weekend of Dec. 8, 2018, Fannie Mae will implement Desktop Underwriter® (DU®) Version 10.3, which will include the changes described below. The changes in this release will apply to new loan casefiles submitted to DU on or after the weekend of Dec. 8, 2018. Loan casefiles created in DU Version 10.2 and resubmitted after the weekend of Dec. 8 will continue to be underwritten through DU Version 10.2. The changes in this release include the following: 

  • DU Risk Assessment Update 
  • Appraisal Waiver Changes 
  • Retirement of DU Version 10.1 
  • Updates to Align with the Selling Guide

Please see release notes for complete details.

DU Version 10.3

Effective: December 8, 2018
Industry: Mortgage Lending
Source: Fannie Mae   DU Version 10.3 Release Notes →
Tags: Underwriting, Property - Appraisal
View Details

During the weekend of Dec. 8, 2018, Fannie Mae will implement Desktop Underwriter® (DU®) Version 10.3.

The changes in this release include the following: 

  • DU Risk Assessment Update
  • Appraisal Waiver Changes 
  • Retirement of DU Version 10.1
  • Updates to Align with the Selling Guide

Appraisal Waiver Policy for Disasters

Effective: December 8, 2018
Industry: Mortgage Lending
Source: Fannie Mae   SEL-2018-09 →
Tag: Property - Appraisal
View Details

Appraisal Waiver Policy for Disasters 

  • With this update, we are adding the flexibility that lenders are now permitted to exercise appraisal waiver offers on loans in process at the time of a disaster. 
  • In order to use this flexibility, lenders must meet the same property eligibility requirements currently in place for loans already closed but not yet delivered when a disaster strikes.
  • DU will be updated the weekend of December 8, 2018 

Freddie Mac Selling Bulletin 2018-23

Effective: December 9, 2018
Industry: Mortgage Lending
Source: Freddie Mac   Automated Income and Asset Assessment with Loan Product Advisor →
Tags: Underwriting, Income, Assets
View Details

We are introducing automated income assessment with Loan Product Advisor® and automated asset assessment with Loan Product Advisor. These new capabilities are designed to streamline the loan origination process, reduce origination costs and provide Sellers with the opportunity for relief from enforcement of certain representations and warranties related to the Borrower’s employed income and/or assets. In addition, based on the results of Loan Product Advisor’s assessment, certain existing documentation and Seller quality control program requirements may not apply.

EFFECTIVE DATE 

The automated income assessment with Loan Product Advisor and automated asset assessment with Loan Product Advisor capabilities are effective for Loan Product Advisor submissions and resubmissions on and after December 9, 2018. 

PARTICIPATION DETAILS AND REQUIREMENTS 

To take advantage of these optional capabilities, the Seller must obtain a verification report of the Borrower’s income or asset information, as applicable, from one of the third-party service providers designated by Freddie Mac. Based on information submitted, Loan Product Advisor will retrieve the verification report, assess for representation and warranty relief eligibility and return the results of the assessment in the Feedback Certificate. Refer to new Guide Chapter 5901 for requirements on automated income assessment with Loan Product Advisor and new Chapter 5902 for requirements on automated asset assessment with Loan Product Advisor. To learn more about these new capabilities, register for our Automated Income Assessment with Loan Product Advisor and Automated Asset Assessment with Loan Product Advisor webinars. Additional resources will also be available at the Freddie Mac Learning Center and on FreddieMac.com. Guide impacts: Chapters 5901, 5902, Guide Sections 1301.11, 3402.5, 3402.8, 5302.3, 5302.5 and 5501.3

Freddie Mac Selling Guide Bulletin 2018-24

Effective: December 12, 2018
Industry: Mortgage Lending
Source: Freddie Mac   MASTER INSURANCE POLICY FOR UNAFFILIATED PROJECTS →
Tag: Insurance
View Details

Currently, a Mortgage is not eligible for sale to Freddie Mac if the Mortgage is secured by a Condominium Unit in a Condominium Project or by a unit in a Planned Unit Development (PUD) with a master or blanket insurance policy that combines insurance coverage for multiple unaffiliated Condominium Projects or PUDs.

In response to Seller/Servicer feedback, we are expanding our insurance requirements to accept a master or blanket insurance policy that combines insurance coverage for multiple unaffiliated Condominium Projects and PUDs. Each covered project must have a dedicated policy limit and a specific dedicated deductible that meets certain requirements. Also, the policy must clearly state that each association is a named insured. Additional requirements must be met, including that the insurance policy complies with all requirements of the Guide and other Purchase Documents applicable to master or blanket insurance policies covering affiliated PUDs or Condominium Projects.

Guide impact: Section 8202.2

Allowable Bankruptcy Attorney Fee Clarification

Effective: December 12, 2018
Industry: Mortgage Servicing
Source: Fannie Mae   SVC-2018-09 →
Tag: Bankruptcy
View Details

The Allowable Bankruptcy Attorney Fees Exhibit has been amended to clarify that the maximum allowable fee for the Proof of Claim Form 410A Loan Payment History includes both the preparation of the form by the law firm and the review of the form prepared by the servicer.

Servicing Guide Updates

Effective: December 12, 2018
Industry: Mortgage Servicing
Source: Freddie Mac   Guide Bulletin 2018-26 →
Tags: Insurance, Assumptions, Loss Mitigation, Property Preservation
View Details

Mortgage Servicing Contract Rights

  • Updates to the Guide to provide detail on the requirements for obtaining financing using Freddie Mac mortgage Servicing Contract Rights as collateral (“Conveyance”)
  • We are also updating the Guide to include requirements for collateral securing a Conveyance

[Please see guide bulletin for complete requirements]

Revised requirements for unaffiliated projects with a master insurance policy 

  • We are expanding our insurance requirements to accept a master or blanket insurance policy that combines insurance coverage for multiple unaffiliated Condominium Projects and PUDs. 
  • Each covered project must have a dedicated policy limit and a specific dedicated deductible that meets certain requirements. 
  • Additionally, the policy must clearly state that each association is a named insured. 
  • Other requirements also must be met, including that the insurance policy complies with all requirements of the Guide and other Purchase Documents applicable to master or blanket insurance policies covering affiliated PUDs and Condominium Projects.

Revisions to Guide Form 1077, Uniform Underwriting and Transmittal Summary

  • We have revised the form, including the removal of the contact signature field and outdated information
  • When using Form 1077 to determine the eligibility for assumptions with a release of liability, Transfers of Ownership, as applicable, and workout Mortgage assumptions, Servicers must use the revised form to document the creditworthiness of the transferee

Freddie Mac Access Manager reminder

  • As announced in our December 3, 2018 Single-Family News Center article, Access Manager is available to
    authorized Seller/Servicers using certain Freddie Mac Systems listed on our Access Manager web page

Additional Guide Updates

  1. Form 1205, Post-Settlement Correction Requests - updated definitions and modifications tabs to reflect current operational requirements and delete items that are no longer applicable
  2. Property preservation - We are allowing Servicers to maintain and execute winterization and yard maintenance without the restriction of the seasonal time frames
  3. Servicer execution of documents - We are updating Sections 9301.9 and 9301.12 to reflect the changes announced in Bulletin 2018-22 that increase Servicer authority to execute documents when Mortgages are assigned to Freddie Mac

RHS Updates to Handbook 1-3555 Chapter 9

Effective: December 15, 2018
Industry: Mortgage Lending
Source: USDA   RHS - PN 516 Updates to Handbook 1-3555 →
Tags: Underwriting, Income
View Details

Announces updates to HB-1-3555 Chapter 9: Chapter 9 was streamlined to provide a more efficient format with greater clarification for all income types. The guide will be updated.

See update for all changes.

Chapter 9:

References to “qualifying” income are revised to “eligibility” income as applicable for annual income.
Paragraph 9.4, all subsections A through E are removed. This guidance was added to Attachment 9-A.
Paragraph 9.5, All subsections A through E are removed. This guidance was added to Attachment 9-A.
Paragraph 9.7, “Documenting Repayment Income” is removed.
Paragraph 9.8, “Agency Review of Repayment Income” is renumbered to Paragraph 9.9.
Paragraph 9.9, “Overview for Repayment Income” is renumbered to Paragraph 9.7.
Paragraph 9.10, “Stable and Dependable Income” is renumbered to Paragraph 9.8.
All subsections A through D are removed and has been add to Attachment 9-A.
Paragraph 9.12, “Documenting Repayment Income” is removed. This guidance was added to Attachment 9-A.
Paragraph 9.13, “Optional Documentation of Income” is renumbered to Paragraph
9.10.
A new matrix, Attachment 9-A, provides an encompassing resource for income, adjusted annual income deductions, and assets. The matrix includes guidance for the treatment of income and assets specifically for annual and repayment income consideration.
Attachment 9-A has been renumbered to Attachment 9-B “Income and Documentation Worksheet.” 

Attachment 9-B has been renumbered to Attachment 9-C “Case Study: Income Calculation Worksheet.”
Attachment 9-C has been renumbered to Attachment 90-D “Annual Income, Excluded Sources” and Attachment 9-D “Julian Calendar” has been removed.
REMOVE INSERT
Chapter 9 dated 03-09-16: Chapter 9 dated 03-09-16: Pages 9-1 thru 9-52, Pages 9-1 thru 9-10, Attachments 9-A, 9-B, 9-C, Attachments 9-A, 9-B, 9-C,
9-D and 9-F. 9-D and 9-F revised 09-19-18.

Pennsylvania Fast-Track Foreclosure Process for Vacant Properties

Effective: December 19, 2018
Industry: Mortgage Servicing
Source: Pennsylvania   Alert →
Tags: Pennsylvania, Foreclosure
View Details

The Vacant and Abandoned Real Estate Foreclosure Act (the “Act”) provides for an accelerated foreclosure for vacant properties.

Once a foreclosure lawsuit is commenced the creditor can choose one of two methods to certify that a property is vacant either through a municipal code officer or through the court system.

Municipal Code Officer Method

  • A municipal code officer will inspect the mortgaged property and draft a report certifying that the property is vacant and abandoned. The creditor is responsible for compensating the code officer for the work performed. 
  • The report must then be sent to the owner of the property and/or the obligor under the mortgage with a notice that the owner must request a hearing to refute the vacancy determination, and if they fail to do the finding will become final.

Judicial Method

  • Requires that the creditor file an affidavit which can be provided by a code enforcement officer, the creditor or any competent adult with knowledge of the condition of the property (including a property inspector or agent) with photographs showing the condition of the property to evidence the alleged abandonment of the property. 
  • This Affidavit and a Rule to Show Cause is then served on the property owner or obligor, who then must respond with a statement under oath certifying that the property is not vacant and abandoned. 
  • In the event a property owner or obligor responds, a hearing will be set and a judge will make the final determination.

Once the property is certified as vacant and abandoned, the foreclosure process becomes streamlined and the typical obstacles that a creditor may encounter in moving to a sheriff’s sale are eliminated. The property is not subject to mediation, conciliation, diversion, or any other local program to encourage resolution of owner-occupied residential foreclosures. Eliminating the need for service by the Sheriff all subsequent documents may be served by first class mail to an address specified by the owner, or if no address is specified by first class mail and posting on the property. Most notably, once the property is certified as vacant the sheriff must schedule the property for a sheriff’s sale within 60 days of the filing of the writ of execution and the creditor’s payment of the acceleration fee. Finally, the Act also allows a creditor to exercise a limited right to possession while the foreclosure is pending to maintain the yard and exterior of the property and to remedy any potential health or safety hazards.

Super Conforming Mortgages

Effective: December 19, 2018
Industry: Mortgage Lending
Source:   Freddie Mac Selling Bulletin 2018-15 →
Tag: Underwriting
View Details

Effective for Mortgages with Settlement Dates on and after December 19, 2018 

Loan Product Advisor is being updated to assess super conforming Mortgages with original loan amounts greater than $1,000,000. As a result, we will no longer require that these Mortgages be manually underwritten. All super conforming Mortgages, regardless of original loan amount, must be submitted through Loan Product Advisor. Loan Product Advisor and Loan Selling Advisor® will be updated by December 19, 2018 to reflect this change.

Guide impacts: Sections 4603.3, 4603.4 and Guide Exhibit 25