Compliance

Compliance News: FNMA and FHLMC Expected to Adopt SOFR as ARM Index

On July 11, 2019 both FNMA and FHLMC announced that they “expect” to make an ARM product based on the Secured Overnight Financing Rate (SOFR), which is becoming the preferred standard for replacing the LIBOR when it is retired towards the end of 2021 (a high-level overview of LIBOR’s retirement can be found on our website here: https://compliance.docutech.com/2018/12/12/phasing-out-london-interbank-offered-rate-libor-and-cost-of-funds-index-cofi/)….

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Document Updates: Postponement of IRS Form 4506-T Update

The June 2019 IRS Form 4506-T update announced here, including the removal of Line 5a regarding mailing the tax transcript to third parties, has been postponed, pending further clarification from the IRS.

Although the IRS has stopped third-party mailings as part of a series of steps to safeguard taxpayer data,…

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Document Updates: IRS Form 4506-T (Cx3095 and others)

As previously announced, the IRS has updated their Form 4506-T to “better protect taxpayer data” (see https://www.irs.gov/forms-pubs/about-form-4506-t). We will be updating our standard copy of the form (Cx3095) to match these latest revisions.

We are still monitoring the IRS’ website for when they publish a revised version of the standard Form 4506….

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Document Update: Combine Supplemental Property Insurance with Hazard on FLUTS (Cx13513 & Cx15849)

As previously announced, if a value is sent to the new field “Borrower 1 Proposed Supplemental Property Insurance” (field 131691), which prints in the “Proposed Monthly Payment for the Property” section of the redesigned 1008 and redesigned 1003,…

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The Interrelations of Laws and Rules Affecting Mortgage Insurance

By: Timothy A. Raty; Sr. Regulatory Compliance Specialist

“mortgage insurance (1876) . . . 2. An agreement to provide money to
the lender if the mortgagor defaults on the mortgage payments. – Also
termed private mortgage insurance (PMI).” (INSURANCE,…

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New Document: Upon Request – DC Security Affidavit (Cx23221)

According to DC Code § 47-813, a Class 1 property is established if the property is comprised of improved residential real property, is occupied by the owner, contains not more than 5 dwelling units, and is used exclusively for non-transient residential dwelling purposes….

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Document Updates: Notice to Homeowner – Assumption of FHA Mortgages (Cx1566)

Cx1566, which is a duplicate of the “Notice to Homeowner: Release of Personal Liability for Assumptions” form published by the Department of Housing and Urban Development on their website (https://www.hud.gov/program_offices/housing/sfh/model_documents), is provided pursuant to the provisions of 24 C.F.R….

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Document Updates: MN Lower Investment Grade Disclosure (Cx18227)

As previously announced, references to “subprime” loans in various sections of Minnesota’s statutes will be removed. Among these are Minn. Stat. Ann. §§ 58.13(1)(a)(18) and 58.137(2)(c).

Cx18227 is provided as an “upon request” document for Ibid.…

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Document Updates: Certain UCC-1 and UCC-3 Forms

We provide the following generic copies of the UCC-1 and UCC-3 forms, which are configured to print for loans secured by shares and a lease in a cooperative unit (“cooperative loan”):

• UCC Financing Statement (Cx7700)
• UCC-3 Financing Statement (Cx22755)
• UCC-3 Financing Statement from MERS (Cx22778)
• FL UCC Financing Statement (Cx16930)
• FL UCC-3 Financing Statement (Cx22756)
• FL UCC-3 Financing Statement from MERS (Cx22779)
• NY UCC Financing Statement (Cx19882)
• NY UCC-3 Financing Statement Amendment (Cx22780)
• NY UCC-3 Financing Statement Amendment from MERS (Cx22781)

After a review of these documents,…

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Document Updates: NJ Initial Tax Authorization Notice (Cx1507)

Cx1507 is provided pursuant to the provisions of N.J. Stat. Ann. §§ 17:16F-17, 54:5-64(c), & 54:5-104.48 and N.J. Admin. Code §§ 5:33-4.3 & 5:33-4.4 and it is a duplicate of “Form ME1 – Initial Tax Authorization Notice” published on the New Jersey Department of Community Affairs website (https://www.state.nj.us/dca/divisions/dlgs/programs/tax_collector.html)….

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