On January 20, 2016, the Department of Veterans Affairs released Circular 26-16-03, Exhibit A, found here. FAQ #9 on Exhibit A asked, “Are pre-paid expenses, such as real estate taxes and home owners’ insurance counted in total closing costs for the 36-month recoupment period?”…
Our MA Loan Origination and Compensation Agreement is given per Mass. Regs. Code tit. 209, §§ 42.12A(5) & 42.16. Due to client feedback, we will be changing two date fields on Cx5112. The date field in the sentence,…
Although we have made significant efforts to determine Loan Purpose on the Loan Estimate and Closing Disclosure using existing data (see our announcements on the subject here and here), there are still a few exceptional cases where the current data does not translate well into a Purpose for the LE and CD….
The following changes have been made in ConformX to support Home Possible Mortgages:
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Loan Purpose
Purchase
The CFPB has provided guidance that the word “acquisition” determines whether a transaction should be considered a “Purchase” or not:
“The Bureau believes that the general understanding of a “purchase” loan is one where the consumer does not already hold an interest in the property….
Montana’s Department of Administration recently amended ARM 2.59.1710(1)(c), RECORDS TO BE MAINTAINED BY MORTGAGE BROKERS, and ARM 2.59.1724(7)(q), RECORDS TO BE MAINTAINED BY MORTGAGE LENDERS, to require mortgage lenders and mortgage brokers to maintain “copies of the loan estimate and closing disclosures required by the Truth in Lending Act – Real Estate Settlement Practices Act (TILA-RESPA) Integrated Disclosure (TRID) rule,…
Iowa Code Ann. § 535.8(1)(b) reads, in part:
“Loan” means a loan of money which is wholly or in part to be used for the purpose of purchasing real property which is a single-family or two-family dwelling occupied or to be occupied by the borrower…”
Upon further review of our Iowa Payment Reduction Fee Disclosure (Cx1906),…
To further clarify the logic of defining Purpose for the Loan Estimate and Closing Disclosure pursuant to 12 CFR § 1026.37(a)(9), we are again supplementing our previous announcement pertaining to the circumstances under which a loan is considered a “Refinance”….
Fannie Mae announced the requirement to have the Borrower’s Authorization for Counseling form signed at closing has been removed from the Selling Guide for their new HomeReady loans, and Exhibit E-2-01 Borrower’s Authorization for Counseling has been deleted from the guide….
FNMA will be retiring MyCommunityMortgages (MCM) by the end of June 2016. MCM is being replaced with the new HomeReady Mortgage program. The following changes will be made in ConformX to support HomeReady Mortgages:
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Cx4694 is modeled after page 2 of the Fee Agreement Sample located on the Mortgage Broker Forms portion of the website for the South Carolina Department of Consumer Affairs.
To more closely resemble the model form,…
Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes for Indiana:
IN Commitment Agreement (Cx18838)
Ind. Code Ann. § 26-2-9-4(b)
“(b) A debtor may assert a claim or defense under [the previous subsection] only if the credit agreement at issue:
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W. Va. Code Ann. § 46A-2-105(2) requires the following:
“With respect to a consumer credit sale or consumer loan whenever any scheduled payment is at least twice as large as the smallest of all earlier scheduled payments other than any down payment,…
Cx23 and Cx3095 are our standard copies of the 4506 and 4506-T forms provided by the IRS. These documents are provided to fulfill the requirements of 26 U.S.C.A § 6103(c) and 26 C.F.R. § 601.702(d)(1).
Upon further review of these documents,…
Cx15312 is a duplicate of the Model B-3/H-3 Form provided by the Federal Trade Commission, Federal Reserve Board, and Consumer Financial Protection Bureau pursuant to the provisions of 15 USCA § 1681m(h) and 12 CFR §§ 222.74(d)(1), 1022.74(d)(1), and 16 CFR §640.5(d)(1)….
After a recent audit of the Fannie Mae Vermont Security Instrument Instructions, it was observed that Instruction No. 10 states: “Lenders MUST have the notary sign the blank that appears to the left of the second Borrower signature line on Page 16.”
Even though the notary witness requirement was removed from Vt….
Pursuant to our yearly audit of state-specific disclosures, we will be making the following changes:
Cx12531 – Tangible Net Benefit Worksheet:
For the Ohio version of this document, a “Required Insurance” field has been added with corresponding checkboxes for “Mortgage Insurance”,…
Cx3328 is provided pursuant to Mo. Ann. Stat. § 443.867, which requires a residential mortgage loan broker (including all retail mortgage lenders) to provide a loan brokerage disclosure statement and fee agreement with each borrower. Ibid. 443.867(2) specifically requires that:
“The mortgage loan brokerage disclosure statement and fee agreement shall disclose the amount and sources of the residential mortgage loan broker’s fees and all other compensation related to obtaining a residential mortgage loan on behalf of the borrower.”
In light of this obligation,…
San Francisco Bus. & Tax Regulations § 1102.1 requires that:
“Every document pertaining to real property that is submitted for recordation needs to show on the face of the document the Assessor’s current parcel number, or numbers, and the commonly-know situs and/ or street name and number of the real property described therein.”
Accordingly,…
To further clarify the logic of defining Purpose for the Loan Estimate and Closing Disclosure pursuant to 12 CFR § 1026.37(a)(9), we are supplementing our previous announcement on the matter with more specifics pertaining to the circumstances under which a loan is considered a “Refinance”….
