Search for current regulatory changes & updates from Fannie, Freddie, FHA, VA, and USDA.
Subscribe NowEffective: | December 1, 2019 |
Industry: | Mortgage Servicing |
Source: | Fannie Mae SVC-2019-06 → |
Tags: | Bankruptcy, Foreclosure, Fees |
Updated Servicing Guide Exhibits
▪ Allowable Foreclosure Attorney Fees
▪ Allowable Bankruptcy Attorney Fees
Effective Date
The allowable fee updates are effective as follows:
▪ The new allowable foreclosure fees apply to all matters referred to counsel for initiation of foreclosure proceedings, regardless of referral date, if the matter is still active as of September 11, 2019. Servicers are encouraged to implement the new fees for the impacted states immediately, but must do so no later than December 1, 2019.
▪ The new allowable bankruptcy fees apply to all legal services performed on or after December 1, 2019.
Effective: | December 1, 2019 |
Industry: | Mortgage Servicing |
Source: | Fannie Mae SVC-2019-06 → |
Tags: | Investor Reporting, Bankruptcy |
Currently, servicers must notify us when they learn after the foreclosure sale date that a borrower has filed for bankruptcy. In response to servicers’ feedback and to resolve confusion, we have created the Bankruptcy Notification Template to clarify the information that servicers must provide to us in connection with bankruptcy filings identified after the foreclosure sale date.
Updated Servicing Guide Topics
▪ E-2.3-07, Responding to Bankruptcies Identified After Foreclosure Sale
▪ F-4-01, References to Fannie Mae’s Website
Effective Date
Servicers are encouraged to use the template immediately, but must do so by December 1, 2019.
Effective: | December 1, 2019 |
Industry: | Mortgage Lending |
Source: | Freddie Mac Bulletin 2019-16 → |
Tags: | Underwriting, Closing |
Originally announced in Bulletin 2019-09
Revised in Bulletin 2019-20
Guide impact: Section 5601.3
Effective: | December 1, 2019 |
Industry: | Mortgage Lending |
Source: | Utah Utah Admin. Code 162-2c-204 → |
Tags: | Utah, Licensing |
R162-2c-204. License Renewal Reinstatement and Reapplication
Effective: | December 2, 2019 |
Industry: | Consumer Lending |
Source: | Other NCUA Final Rule → |
Tags: | Consumer, Banking |
Effective: | December 4, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-09 → |
Effective: | December 4, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-09 → |
Effective: | December 4, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-09 → |
Tag: | Certification, Endorsement, and Delivery |
Effective: | December 4, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-09 → |
Tags: | Property - Appraisal, Closing |
Effective: | December 4, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-09 → |
Tags: | Underwriting, Property - Appraisal |
Effective Date
This information is available for immediate use. We will add titling information for additional states throughout 2020.
Effective: | December 4, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-09 → |
Tags: | Underwriting, Assets |
Effective: | December 4, 2019 |
Industry: | Mortgage Lending |
Source: | Freddie Mac Freddie Mac Selling Bulletin 2019-25 → |
Tags: | Underwriting, Credit - Liabilities, Income |
Rental Income
Verification of employment
Revising our requirements to allow Sellers to use a Leave and Earnings Statement (LES) dated no more than 120 days prior to the Note Date to verify the Borrower's employment as part of the 10-day pre-closing verification (10-day PCV).
Credit Reports
Updating requirements to specify that when a borrower has frozen credit, no more than one national credit repository can have frozen credit information.
eMORTGAGES
To provide a one-stop shop for custodial needs with the benefits of the automated certification process to Seller/Servicers, we are providing our automated certification logic to third-party eNote custodians and building system-to-system integrations with them.
Interested third-party custodians should contact the Freddie Mac eMortgage team at eMortgage_Team@freddiemac.com to discuss the approval requirements and process.
Sellers approved to participate in Cash-Released XChange may now deliver eMortgages through that program if their Purchase Documents include the eMortgage negotiated term of business.
Adding language to the Guide requiring that, if a signed consent form is required under the Act, a signed copy must be maintained in the Mortgage file.
The CreditSmart® - Steps to Homeownership tutorial, focused on consumer education and financial literacy will be relaunched with the name CreditSmart® Homebuyer U effective December 31, 2019.
Effective: | December 4, 2019 |
Industry: | Mortgage Servicing |
Source: | Freddie Mac Freddie Mac Bulletin 2019-25 → |
Tags: | Servicing, Servicing Transfers |
Addition of Secured Party and Secured Party Delegatee fields
On November 18, 2019, MERS® introduced two additional MERS eRegistry authorized rights holder fields titled “Secured Party” and “Secured Party Delegatee” (as defined in Section 1402.2) for eNotes. The Secured Party field is meant for the use of any stakeholder (such as a Warehouse Lender) that has a security interest in an eMortgage but does not want to be named in the Controller field. The Secured Party Delegatee field allows a Secured Party to authorize another participant to take certain actions on its behalf with respect to any eNote.
Section 1402.16 has been updated to reflect operational process changes as a result of these MERS enhancements.
As announced on October 21, 2019, Sellers approved to participate in Cash-Released XChange may now deliver eMortgages through that program if their Purchase Documents include the eMortgage negotiated term of business.
We are updating the Guide to reflect the eligibility of eMortgages and to add specific document custody requirements for these Mortgages. For deliveries and Transfers of Servicing of eMortgages sold through Cash-Released XChange, Seller/Servicers must use Freddie Mac as the eNote custodian; for all other Mortgages, Sellers selling through Cash-Released XChange and Servicers participating in that process must use The Bank of New York Mellon Trust Company, N.A. (BNYM) as the Document Custodian.
Post-Fund Data Correction Tool
On December 9, 2019, Freddie Mac is launching the Servicing Gateway, an all-in-one portal that will provide access to nearly all Freddie Mac Servicing Tools. One of the tools available in Servicing Gateway will be the Post-Fund Data Correction tool, a web-based application that allows a Seller/Servicer to electronically submit data correction requests related to Mortgage data submitted by a Seller into Loan Selling Advisor®.
Effective: | December 7, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-09 → |
Tag: | Underwriting |
Effective Date
These changes will apply to loan casefiles submitted or resubmitted to DU on or after the weekend of December 7, 2019. For manually underwritten loan applications, the clarifications apply immediately.
Effective: | December 7, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-08 → |
Tags: | Underwriting, Income |
Effective Date
The updated requirements will apply to all loan casefiles submitted to DU on or after the weekend of December 7, 2019, and for manually underwritten loans with application dates on or after December 7, 2019.
Effective: | December 7, 2019 |
Industry: | Mortgage Lending |
Source: | Fannie Mae SEL-2019-08 → |
Tags: | Underwriting, Closing |
Effective Date
The updated requirements will apply to new loan casefiles submitted to Desktop Underwriter® (DU®) on or after the weekend of December 7, 2019. For manually underwritten HomeReady loans, the updates are required for new loan applications dated on or after December 7, 2019.
Requirement
At least one borrower must complete homebuyer education for the following transactions:
Beginning October 23, 2019, Fannie Mae will waive the fee for the Framework Homeownership, LLC (Framework®) course for lenders, removing the cost burden for borrowers.
Effective: | December 9, 2019 |
Industry: | Mortgage Servicing |
Source: | Freddie Mac Bulletin 2019-21 → |
Tag: | Servicing |
In response to Servicer feedback, we are extending the implementation of Servicing Gateway and the mandatory adoption of the Servicing Data Corrections tool from November 25, 2019 to December 9, 2019. This delay will allow Servicers to process their November 2019 end of month loan level reporting without interruption. The Guide updates announced in Bulletin 2019-19 with effective dates of November 25, 2019 will now become effective on December 9, 2019. Servicers still may continue to adopt the Servicing Data Corrections tool prior to the mandatory effective date if they are operationally ready to do so.
Effective: | December 9, 2019 |
Industry: | Mortgage Lending, Mortgage Servicing |
Source: | Freddie Mac Alert → |
Tags: | Certification, Endorsement, and Delivery, Secondary |
Beginning December 9, 2019, you’ll be able to:
In addition, we have made non-substantive minor formatting changes to Form 996E -Warehouse Provider Release and Transfer. The Single-Family Seller/Servicer Guide (Guide) will be updated with the sample Form 996E in a future Bulletin.
Effective: | December 16, 2019 |
Industry: | Mortgage Lending |
Source: | FHA FHA Mortgagee Letter 2019-18 → |
Tags: | Underwriting, Property - Appraisal |
The Limited 203(k) section of SF Handbook 4000.1 is amended to increase the current maximum total rehabilitation costs from $35,000 to $50,000 for the first 15,000 mortgages endorsed each calendar year in QOZs only.
Effective: | December 28, 2019 |
Industry: | Consumer Lending, Mortgage Lending, Mortgage Servicing |
Source: | Other H.R.3151 - Taxpayer First Act → |
Tags: | Application, Closing |
See MISMO article for complete details.