We have recently received questions about our Washington Loan Brokerage Agreement (Cx19136). This disclosure is provided pursuant to Wash. Rev. Code Ann. § 19.146.040, which states:
Every contract between a mortgage broker, or a loan originator, and a borrower must be in writing and contain the entire agreement of the parties….
As announced earlier, the new clean version of the 4506-C standard forms are available for eSign use in ConformX Production servers. The eSignature Behavior of the 4506-C Clean Version now has several layers and considerations. This PDF was created to help explain the different options:
The core behavior of our eSign functionality is the same behavior as the previous version of the form….
A Social Security number (SSN) is a unique number assigned by the Social Security Administration to aid in identification for several purposes, including authorization to work, aiding in tax collection, determining eligibility for government services, and more. Social Security numbers are intended to be a secure means of identification,…
On May 3, 2022, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Government Sponsored Enterprises [GSEs]) will require lenders to use a new Supplemental Consumer Information Form (SCIF; Form 1103). This form will be required in the loan file for conventional loans sold to the GSEs with application dates on or after March 1,…
There are at least two times in the mortgage documentation process when citizenship is an important factor. One is on a specific section on the 1003 and the other is when deciding if the buyer should be using a W-9 or a W-8BEN….
On July 7, 2021, Fannie Mae and Freddie Mac (the Government-Sponsored Enterprises GSEs) announced they updated their uniform legal instruments (the 2021 instruments). Although the announcement indicated that lenders could use the new instruments immediately,…
Periodically, the CFPB publishes Supervisory Highlights to inform relevant entities of key findings from supervisory oversight. The most recent publication was Spring 2022. The report covered many different areas from auto servicing to debt collection to student loan servicing and many things in between….
We have recently received some questions regarding certain mortgage disclosure forms that have special paper color or delivery requirements. These documents with unique delivery requirements include:
…
Two Recent Statements Regarding the Use of the LIBOR Index
Back in November 2020, the Board of Governors of the Federal Reserve System (FR), Federal Deposit Insurance Corporation (FDIC), and Office of the Comptroller of the Currency (OCC) issued a joint statement on managing the LIBOR Transition. …
By: Tadayoshi Sakota, Corporate Counsel
Since the announcement of the 4506-C, First American Docutech has received many questions about how the form should be filled out. The IRS has published some guidance, but it leaves some questions only partially answered….
Historical Background
Fannie Mae and Freddie Mac are two mortgage companies that we all know very well. These businesses were both created by acts of Congress and are known as GSEs (Government Sponsored Enterprises)….
By: Paulette Price
On June 17, 2021, President Joe Biden signed Senate Bill S.4751 which establishes June 19th as a legal public holiday to be named Juneteenth National Independence Day.
Juneteenth is the first new federal holiday since Martin Luther King Jr….
By: Timothy A. Raty; Sr. Regulatory Compliance Specialist
While rules regarding the rounding of numbers on the Loan Estimate and Closing Disclosure have been promulgated, criticized, and debated ad nauseum, rounding rules are almost never promulgated for other disclosures or calculations which are required by law –…
By: Timothy A. Raty; Sr. Regulatory Compliance Specialist
An issue which has plagued the industry since the original TILA-RESPA Integrated Disclosure rule was finalized (see 78 FR 79730 [2013]) is ambiguity as to which fees should be disclosed on the Loan Estimate (“LE”)….
By: Timothy A. Raty; Sr. Regulatory Compliance Specialist
“The finance charge is the cost of consumer credit as a
dollar amount. It includes any charge payable directly or
indirectly by the consumer and imposed directly or
indirectly by the creditor as an incident to or a condition
of the extension of credit….
By: Timothy A. Raty; Sr. Regulatory Compliance Specialist
On January 13, 2021 the Bureau of Consumer Financial Protection (“CFPB”) published on its website a “Statement Regarding the Provision of Financial Products and Services to Consumers with Limited English Proficiency” (available at: https://www.consumerfinance.gov/about-us/blog/bureau-takes-additional-steps-to-foster-an-inclusive-financial-system/#utm_source=newsletter&utm_medium=email&utm_campaign=FL&utm_content=LEP). …
By: Timothy A. Raty; Sr. Regulatory Compliance Specialist
“A cooperative apartment house is a multi-unit dwelling in which each
resident has an interest in the entity owning the building and an
agreement entitling him to occupy a particular apartment within the
building….
By: Timothy A. Raty, Sr. Regulatory Compliance Specialist
Within the context of mortgage loans, California law promulgates two sections requiring disclosures to be provided to borrowers in certain languages other than English (the European language spoken by most Americans): Cal….
By: Timothy A. Raty, Sr. Regulatory Compliance Specialist
“Doveryai, no proveryai.” (Russian Proverb)
“Trust, but verify.” (Ronald Reagan)
The Economic Growth, Regulatory Reform, and Consumer Protection Act (132 Stat. 1296 [2018];…
