HUD has just issued FHA ML 2017-01 (available at: https://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee), which announces reductions to annual mortgage insurance premium (MIP) rates, as well as the removal of base loan amounts as a criteria for determining which MIP rates apply….
The Home Loan Toolkit, required for TRID loans, is provided by the CFPB. Lenders doing non-TRID loans still need to supply Settlement Costs booklets, which are available from HUD. Consequently, references to the Toolkit or Settlement Costs booklets should cite availability from the appropriate agency….
Ohio law stipulates the following in regards to prepayment penalties:
“(1) Except as provided in division (C)(2) of this section, residential mortgage obligations may be prepaid or refinanced without penalty at any time after five years from the execution date of the mortgage….
All Fannie Mae ARM notes and riders in ConformX created for Texas Home Equity Section 50(a)(6) mortgages contain due-on-sale clauses. For instance, the following text is from the Fannie Mae LIBOR ARM Note, Uniform Instrument Form 3528.44 (Cx6177):
“If all or any part of the Property or any Interest in the Property is sold or transferred (or if Borrower is not a natural person and a beneficial interest in Borrower is sold or transferred) without Lender’s prior written consent,…
Docutech has made minor adjustments to the Loan Terms, AP, and AIR Tables that will only impact the Loan Estimate and Closing Disclosure when the loan payment and/or the interest rate can adjust every month. The changes are as follows:
Loan Terms Table
The guidance for the Loan Terms section on the CD is derived in part from 37(a)(10)-3,…
After conducting an audit of our IRS forms, it has come to our attention that the IRS published an updated version of form W-8BEN Certification of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals). The updated form contains changes to revision dates as well as various text edits that include the following:
…
Following a review of documents with print configurations based on California License Type, we have widened the associated logic to now include the documents listed below should the California License Type not be included, or received as “Not Selected”:
All other print conditions for these documents remain unchanged….
The CFPB announced that the expanded Home Mortgage Disclosure Act information concerning ethnicity and race of applicants can be collected starting January 1, 2017 without violating Regulation B, even though the data is not required until January 1, 2018 (81 FR 66930)….
An increase to the annual premium for Section 184 Indian Housing loans was announced by HUD in 81 FR 75836 (2016). The annual rate for Case Number Assignment Dates on or after December 1, 2016 will increase to 0.25% (up from 0.15%)….
Currently two flood insurance escrow data integrity warnings are in place, per our previous announcement. They both fire when the annual flood insurance amount is entered, but flood insurance escrow is being waived.
One triggers for loans made on or after 10/01/2015:
“Flood Insurance Escrow is being waived….
One of the long term projects Docutech has undertaken is a review of all our Second Lien Security Instruments and Notes. Fannie Mae no longer promulgates model forms for conventional second lien security instruments, but the FNMA instructions on second lien mortgages advises lenders that “Fannie Mae expects the second mortgage security instruments to be similar to first mortgage security instruments with respect to fairness to the borrower and the lender.”…
Fannie Mae and Freddie Mac have revised the Rhode Island (Form 3040) and Massachusetts (Form 3022) Security Instruments. The Rhode Island and Massachusetts Mortgages were updated to reflect recent changes in state law regarding homestead estates.
The Rhode Island change is based on the 2016 update to General Laws § 9-26-4.1(c), …
The issuance of Iowa Payment Reduction Fee disclosure (our Cx1906) is required by ICA § 353.8(5), which states in part:
“Prior to accepting an application for a loan which includes a payment reduction fee, the lender shall provide the potential borrower with a written disclosure describing in plain language the specific terms which the loan would have both with the payment reduction fee and without it….
Due to client feedback, Docutech will be making changes to our “Important Notice to Homebuyers” (Cx40) for Section 184 Loans. HUD Form 50124 (Section 184 Homebuyer Notice Form) is essentially the same as HUD form 92900-B (our Important Notice to Homebuyers,…
Pursuant to our yearly audit of state-specific disclosures, Docutech has made changes to the following documents that print when field 36021 “Use Texas Plain Language” is set to “Yes”:
These changes to the documents enhance their clarity,…
Pursuant to our yearly audit of state-specific disclosures, Docutech will be making the following changes:
TX Important Notice to Home Loan Borrowers (Cx3591)
The websites and phone numbers for counseling agencies are out of date and will be updated to the correct websites and phone numbers….
Pursuant to our yearly audit of state-specific disclosures, Docutech will be making the following changes:
Borrower’s Certification & Authorization (Cx13)
We added language that specifies the timeframe during which the authorization is valid.
Tennessee Lock-In Agreement (Cx14675) and Tennessee Loan Commitment (Cx15810)
We made some small,…
Kentucky Statute § 304.12-150 stipulates that when insurance is required in connection with a debt or loan on the property, the lender or creditor shall inform the borrower of his or her right of free choice in the selection of the agent and insurer through or by which insurance is to be placed. …
Florida Statute § 494.0023 requires that, in a mortgage transaction, if a licensee has a conflicting interest, the licensee shall at a minimum, provide the nature of the relationship, ownership, or financial interest between the provider of products or services,…
Pursuant to our yearly audit of state-specific disclosures, Docutech will be making the following changes:
NV Employee Disclosure (Cx3839)
One of the legal citations listed on the form is no longer required. We will be removing the reference to Nev….
