In Program Bulletin #2019-03, California Housing Finance Agency (CalHFA) announced a universal promissory note and universal deed of trust will be used effective for all loan reservations on or after March 1, 2019. CalHFA will continue to purchase subordinate loans that have correct older document versions until July 1,…
Our generic “Buydown Agreement” (Cx25) is provided to fulfill various GSE and Federal agency requirements, including those promulgated under FNMA 2019 Single-Family Handbook B2-1.3-05.
Ibid. requires that “when the lender funds the buydown, the buydown agreement must require that the funds in the buydown account be transferred to the new servicer if the mortgage is included as part of a subsequent transfer of servicing.”
We are continuing the expansion of our support for loans secured by a borrower’s ownership shares and lease in a cooperative unit (“cooperative loans”) by rolling-out support for HELOC cooperative loans for cooperative units located in California.
Similar to what we have done for HELOCs in New York,…
Kansas Loan Broker Disclosure (Cx4248) is required to be disclosed pursuant to Kan. Stat. Ann. § 50-1006(a) & (b) by a loan broker registered under Article 10 (Loan Brokers), Chapter 50 (Unfair Trade and Consumer Protection) of the Statutes of Kansas….
N.J. Admin. Code § 3:1-16.8 requires the following:
“Before accepting any trust funds, each lender shall disclose in writing to the party or parties depositing such funds the purpose for which the fund is established, the amount of the trust fund,…
As discussed in our previous announcement on the topic, the VA have posted new regulations applicable to all non-IRRRL refinance loans beginning on February 15, 2019. As part of the changes implemented, we created a new Data Integrity Warning regarding net tangible benefits that triggers when all of the following are true:
- Loan Type = VA
- Loan Purpose = CashOutOther OR NoCashOutOther
- Application Date On or After 02/15/2019 = Yes
- Document Package Type = Initial Disclosure or Closing
- VA Interest Rate Reduction Refinancing Loan (IRRRL) (does not equal) Yes
- Enable VA Refinance Data Integrity Check (does not equal) No
- All of the following:
- Net Tangible Benefit – Mortgage Insurance Rate Significantly Reduced (does not equal) Yes
- Net Tangible Benefit – Remove Mortgage Insurance by Lowering LTV (does not equal) Yes
- Net Tangible Benefit – Eliminate Mortgage Insurance or Monthly Guarantee Insurance (does not equal) Yes
- Net Tangible Benefit – Shorten Loan Term (does not equal) Yes
- Net Tangible Benefit – Lower Interest Rate (does not equal) Yes
- Net Tangible Benefit – Lower Monthly Payment (does not equal) Yes
- Net Tangible Benefit – Increase in Monthly Residual Income (does not equal) Yes
- Net Tangible Benefit – Cashout Benefit – Home Improvement (does not equal) Yes
- Is CLTV/LTV Greater Than 90% (does not equal) No
- Net Tangible Benefit – Convert from ARM to Fixed Rate (does not equal) Yes
This logic for this Warning checks to see whether any of the net tangible benefit fields are set to Yes….
Due to increased demand, we have expanded the enumerations for our field “Broker Is Doing Business As” (Field 50908). Previously, the business types supported were:
- Limited Liability Company
We have expanded these enumerations to also include the following business types:
- Corporation Sole
- Government Entity
- Joint Venture
- Limited Partnership
- Non-Profit Corporation
While not all of these types will be needed by all clients,…
We are expanding the scope of our support for loans secured by a borrower’s ownership shares and lease in a cooperative unit (“cooperative loans”) to include home equity lines of credit (“HELOCs”) when the cooperative unit is located in New York….
205 ILCS 635/5-8 prohibits a licensee from making, providing, or arranging a mortgage loan with a prepayment penalty unless the licensee first offers a loan without a prepayment penalty, the offer is in writing, and the borrower initials the offer to indicate that the they have declined….
We have modified the language and format of our standard California Request for Fair Lending Information, Cx18014, to more closely mirror the requirements of Cal. Code Regs. tit. 21, § 7114.1. The changes include the removal of the Ethnicity section,…
Document Updates: Payoffs Addendum on the Closing Disclosure (Cx18566) and Spanish Closing Disclosure (Cx18991)
Under 12 CFR § 1026.38(j)(1)(v) and 12 CFR Pt. 1026, Supp. I, Paragraph 38(j)(1)(v) – 2, “payoff[s] of other secured or unsecured debt” must be disclosed in the area subsequent to Line K.03 (“Closing Costs Paid at Closing (J)”) of the CD,…
We have modified our standard multi-state Security Instrument Riders for use with Home Equity Line of Credit packages. The specific documents (and their associated Cx IDs) are as follows:
- Second Home Rider – HELOC (Cx20384)
- Condominium Rider –
As previously announced, the VA have posted new regulations applicable to all VA refinance loans other than an interest-rate reduction refinance loan (“IRRRL”). The VA is informally classifying these refinance loans as:
- “Type I Cash-Outs”,
ORS 1345.05(A)(4) requires the Ohio Attorney General to publish a disclosure that describes acts and practices in connection with residential mortgages that are unfair, deceptive, or unconscionable and to make such disclosure available on its website. Subsection (G) of the same section requires lenders to make this disclosure available to consumers that are applying for a mortgage loan….
Md. Code Ann., Tax-Prop. § 12-108(g) exempts from a recordation tax certain refinance security instruments “to the extent that it secures the refinancing of an amount not greater than the unpaid principal amount secured by an existing [instrument] at the time of refinancing ….
Product Updates: New Support for Cooperatives in Alaska, Illinois, Indiana, Massachusetts, Michigan, Minnesota, New Jersey, and Pennsylvania
As a part of our efforts (see here and here) to expand the scope of our support for loans secured by a borrower’s ownership shares and lease in a cooperative unit (“cooperative loans”), we are pleased to announced that we will be rolling out support for these types of loans in Alaska,…
New Documents: CA Spanish Loan Modification – Fixed (Cx22818) and CA Spanish Loan Modification – ARM (Cx22819)
As previously announced, the California Department of Business Oversight (“DBO”) published new disclosure forms (in Spanish) to be used once CA SB 1201 (2018) became law, which it did on September 11, 2018 with a practical effective date of January 1,…
Through our Manufactured Home Limited Power of Attorney (Cx6874), a borrower appoints an entity (usually the lender) as the borrower’s “attorney-in-fact” in connection with a manufactured home, giving the “attorney-in-fact” limited powers over the titling of the manufactured home (e.g.…
Global Mapping Updates: Fields “Loan Amount Less Than or Equal to Reg Z Threshold Amount” (81938) and “Higher-Risk HPML” (67269) for 2019
As previously announced both here and here, the Consumer Financial Protection Bureau (“CFPB”) has updated a couple of the dollar amounts specified in various parts of Federal Regulation Z (12 CFR Pt. 1026), which amounts are required to be adjusted annually for inflation….