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WELCOME to the MMLA's e-Learning Center!  

This page is designed to be your one-stop resource for educational needs for the Mortgage Lending Industry!  Why search multiple websites when you can find all newsworthy events here in one place!  Check this page often for latest industry news regarding changes that will affect the way you take and process mortgages.   We will post notices from the various agencies, noteworthy articles, and helpful tools as provided by our members. 

Remember that the MMLA provides its members live seminars, webinars as well as breakfast and luncheon events on relevant subjects from time to time. Check the online calendar listing for information on upcoming events.    


E-Listings/Notices/Announcements
Click on the links below for the latest published notices:

November Updates:

Fannie Mae Selling Guide Announcement SEL-2019-08

Freddie Mac Bulletin 2019-22

Fannie Mae and Freddie Mac Publish Updated Redesigned URLA and Supporting Documents

MBA Updates:



October Update:

Effective with case numbers assigned Tuesday, October 15, 2019, the NEW Condo Section of the FHA Manual 4000.1 will be in effect

 

FREDDIE MAC:  Freddie Mac Single-Family changes:    https://sf.freddiemac.com/content/_assets/resources/pdf/fact-sheet/upcoming_requirement_changes.pdf

Updates include:

  • Income Requirements
  • Employer Assisted Homeownership (EAH) Benefit
  • Purchase Transaction Mortgages
  • Student Loans
  • Monthly Housing and DTI Ratios
  • Condominium Projects

Additional Guide Updates on Recent Borrower Employment Gaps, Automated Collateral Evaluation (ACE) Eligibility, Environmental Hazard Disclosure to Borrower, and Freddie Mac Relief Refinance Mortgages.

USDA:  On September 23, 2019 USDA Rural Development dramatically changed how student loan payments are calculated.  The revised guidance to Section 11.2 of HB-1-3555 pertaining to Student Loans will be permanently incorporated into Chapter 11 of HB-1-3555 in the near future but is effective immediately.   https://content.govdelivery.com/accounts/USDARD/bulletins/26142f4

FHA:  FHA Mortgagee Letter 2019-17 – Home Equity Conversion Mortgage (HECM) Program – Condominium Requirements-Dated September 27, 2019    https://www.hud.gov/sites/dfiles/OCHCO/documents/19-17hsgml.pd

Fannie Mae:  Selling Guide Announcement SEL-2019-08


Week of 8/26/19:

IMPORTANT NOTICE FROM DIFS!!
All licensees have been receiving notices from DIFS regarding perpetual bonds.  Michigan is transitioning to the NMLS requirement that all 
MLO individual bonds and all company ‘blanket’ MLO bonds be perpetual; i.e. they do not have an expiration date.  All licensees need to confirm with their surety bond companies that their MLO bonds do not expire.  If their individual or ‘blanket’ MLO bonds have an expiration date, they will need to be converted to perpetual and the original bond mailed to DIFS.   It is extremely important that this be done as soon as possible.  The MLO’s ability to renew his/her license will be affected if the original perpetual bond is not received by DIFS prior to the Dec. 31st deadline.   Note:  Individual bonds must be signed by the loan originator before mailing to DIFS.  (Bonds not executed will be rejected by DIFS).

Earlier this year he Consumer Financial Protection Bureau (CFPB)  issued an Advance Notice of Proposed Rulemaking (ANPR) seeking information relating to the expiration of the temporary qualified mortgage provision applicable to certain mortgage loans eligible for purchase or guarantee by Fannie Mae and Freddie Mac, in the Bureau’s Ability to Repay/Qualified Mortgage (ATR/QM) Rule also known as the ‘GSE Patch’. The Patch is scheduled to expire no later than January 10, 2021. 

Just recently the CPFB announced that it will allow the so-called “GSE patch” to EXPIRE in January, 2021. This patch permits Government-Sponsored Entities Fannie Mae and Freddie Mac to buy loans even though the borrower’s debt-to-income (“DTI”) ratio exceeds the standard limit of 43%.

The CFPB’s decision revives a long-standing debate about what constitutes a creditworthy loan. By eliminating the patch, the DTI ratio of 43% will become an absolute rule, making any loans with higher DTI’s ineligible for GSE funding.

The CFPB is aware that a large percentage of the GSE’s utilize this patch and has been clear that the patch will not expire until there is a plan in place to soften the impact; i.e. Revising Appendix Q.    MMLA will continue to keep you posted on the important topic!

The CFPB had a big data release on Friday August 30, 2019, hitting their target to release the HMDA national loan-level dataset before the end of the summer. HMDAVision, created by a woman-owned analytics company, is now live with this data. Check out this blog post for more: polygonresearch.com/blog

 

 

DIFS Announces new MIAB board Members   Changes to the current Mortgage Industry Advisory Board (MIAB) were appointed by the Director and announced as follows:

Chairperson - Allison Johnston, CMB
Vice Chair - Audrey Acquisti
Secretary - Terry Heindricks
New member:  Daniel Grzywacz, CMB

Congratulations to all - we are happy to have such great people representing our industry.


Week of 8/19/19:

Federal Issues/Developments Highlights

Week of 8/12/19:

FHA announced today that they are revising their policy for condominiums for all case numbers assigned beginning Oct. 15th.  The policies have not been published as of yet.   We will post as soon as they are available.


Week of 8/5/19:

GSEs Announce Changes to the Uniform Residential Loan Application

FHA cracks down on cash-out refinancing

From the MBA:

Week of 7/29/19:

FHA lowering maximum LTV for cash-out refinances:  The Federal Housing Administration (FHA) will lower its maximum loan-to-value (LTV) requirements for cash-out refinance transactions from 85 percent to 80 percent, effective for loans with case numbers assigned on or after Sept. 1. Separately, Ginnie Mae will address the associated with the rapid serial refinancing knowns as ‘loan churning’ by revising the pooling eligibility requirements applicable to all VA-guaranteed refinance loans and establishing new pooling criteria for certain cash-out refinances with LTV greater than 90 percent. Ginnie Mae’s policy becomes effective with mortgage-backed securities guaranteed on or after Nov. 1.

Mortgagee Letter 2019-11  https://www.hud.gov/sites/dfiles/OCHCO/documents/19-11ml.pdf

The first Fed Rate Cut in 11 years   View source article:  https://nationalmortgageprofessional.com/news/71876/announces-rate


HUD SUSPENDS DOWN PAYMENT ASSISTANCE RULE ‘UNTIL FURTHER NOTICE’ IN RESPONSE TO A LAWSUIT FILED ON BEHALF OF A UTAH-BASED NATIVE AMERICAN TRIBE.       

Federal Updates:

Week of 7/15:

Freddie Mac Announces New Edits and comparison Options for Cash Contracts  https://sf.freddiemac.com/articles/news/new-edits-and-cash-enhancements-in-loan-selling-advisor

Fannie Mae Selling and Servicing News  https://view.exacttarget.com/?qs=0c616e681d50debd66fa85110b10582e5a192165a90027452e04c7a02487011de230e248847773101d182d4a807afa8f8e68d61b27d0d15f1e70fb059cdd953b90f2ddc1551f0bf4bfc6a3d4fca6d60d898e9efd0169787c

Median Home Price Climbs to All-time High  Average single-family residence sold for $266,000 in Q2

https://www.housingwire.com/articles/49576-median-home-price-climbs-to-all-time-high?utm_campaign=Newsletter%20-%20HousingWire%20Daily&utm_source=hs_email&utm_medium=email&utm_content=74766209&_hsenc=p2ANqtz-9e6N3ptoPWJH6-WxT6DaYL2IQWaavWCjWMbh-mlp_9vn3XlMAB13rnqHhyZ9B1x9ncZtioHP7z68lR1Fo-fJ3iSP9q7w&_hsmi=74766209

CFPB Recommends Financial Institutions Report Suspected Financial Exploitation of Older Adults  https://files.consumerfinance.gov/f/documents/cfpb_suspected-elder-financial-exploitation-financial-institutions_report.pdf

Amazon’s Impending Invasion of Banking https://www.forbes.com/sites/ronshevlin/2019/07/08/amazon-invasion/#21f57abc7921

Stearns Lending Declares Chapter 11 Bankruptcy  https://www.housingwire.com/articles/49511-stearns-lending-declares-chapter-11-bankruptcy

Fannie Mae and Freddie Mac Issue Relief Policies for Victims of Tropical Storm Barry

https://www.housingwire.com/articles/49546-fannie-mae-and-freddie-mac-issue-relief-policies-for-victims-of-tropical-storm-barry


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.  


JUNE RECAP:

MBA:

6/6/2019 – Disclosure Template for ARM borrowers in preparation for LIBOR sunset:

  • Click MBA’s disclosure template from the link below
  • Next, under Overview – to the right – click Read More to view the disclosure template

https://www.mba.org/2019-press-releases/june/mba-releases-lender-disclosure-template-for-adjustable-rate-mortgage-borrowers-in-preparation-for-libor-sunset

6/20/2019 – MBA’s clarification with VA on IRRRL’s 36-month fee recoupment requirement:

"It has come to our attention that there is some confusion in the industry regarding the fee recoupment requirements for VA IRRRLs. Questions have arisen as to when the 36-month fee recoupment requirement is applied to VA IRRRLs, and whether an increase in the principal balance of the loan or the monthly payment (e.g., because of a reduced term) impacts this requirement.

"In response to some of the inquiries we have received, we reached out to VA Loan Guaranty Service staff for clarification. Below, we are sharing the input that we were provided by VA Loan Guaranty Service staff. In their view, the 36-month recoupment requirement must be met for all VA IRRRLs. 

"To give a little more detail, we were told that this requirement is in place regardless of whether the principal balance on the loan increases, decreases, or remains flat. With respect to monthly payments, we were told that IRRRLs must result in lower regular monthly payments so as to allow the borrower to recoup costs/fees within 36 months. If there is an increase in monthly payment, recoupment of any costs/fees cannot be satisfied. 

"While an earlier VA circular (26-18-1) did provide an exemption from fee recoupment in certain situations (such as term reduction), we were told that the more recent VA circular (26-18-13) is the binding constraint in this case. We understand that VA is in the process of consolidating its IRRRL guidance, which we hope will provide further clarity for the industry shortly."

FHA:  6/11/2019:   DACA RECIPIENTS ARE NOT ELIGIBLE FOR FHA LOANS; see Legislative – H.R. 3154 - below for more information

https://www.housingwire.com/ext/resources/files/Editorial/Documents/Aguilar-DACA-FHA-Final-Response-Letter-2.pdf?fbclid=IwAR2LhhFSrtqYpV8oWI7RLRCyath_JVVpxf22BoUSj9qhpm7APyw1AZfQejE

UNIFORM MORTGAGE DATA PROGRAM:  6/12/19: Optional use for the redesigned URLA  will not begin on 7/1/19.  A new effective date will be provided later.

It is expected that a redesign of the new URLA is taking place to include a new preferred language question.  MMLA recommendation: You are encouraged to work with your technology vendors to make use of the Fannie or Freddie testing environments beginning in July.  https://www.fanniemae.com/content/news/urla-announcement-june-2019.pdf

FREDDIE MAC:  6/19/2019 – Bulletin 2019-14 – CHOICERevovation Mortgage    https://guide.freddiemac.com/app/guide/bulletin/2019-14

6/20/2019 – Bulletin 2019-15 – Home Possible Borrower Income Limits   https://guide.freddiemac.com/app/guide/bulletin/2019-15


RHS:  
6/21/2019: Finalized Rule for Single Family Housing Direct and Guaranteed Loan Programs:

The Rural Housing Service (RHS or Agency) published a proposal rule on August 31, 2018 to amend its regulations for the direct and guaranteed single family housing loan and grant programs.  Through the actions, RHS finalizes the rule as a final based upon public comments, but with a revision to the definition of rural area to cite the statute which defines rural area and with a technical corrections to the suspension or debarment requirement.

https://www.federalregister.gov/documents/2019/06/21/2019-12988/single-family-housing-direct-and-guaranteed-loan-programs

PRESIDENTIAL EXECUTIVE ORDER:  6/25/2019: President Trump signed an Executive Order establishing the “White House Council on Eliminating Regulatory Barriers to Affordable Housing”. The new Council is being tasked identifying the federal, state, local and tribal policies that contribute to increasing the costs of affordable housing development and recommending policies that would streamline the regulatory burdens that would speed the development of affordable housing construction. The Council has a January 2021 deadline in reporting its findings.


Week of 6/17:

Surety Bonds - Michigan - Company and MLO
 All Michigan financials institutions regulated by DIFS should have received an email this week regarding a change to their existing surety bonds. Everyone should contact their surety bond company to determine if their existing bond(s) are perpetual (they automatically renew). If they aren't perpetual (no matter what the current expiration date is), form FIS-2135 or FIS-2137 must be completed by your surety company, executed by you and MAILED to DIFS before 12/31/19. MLO Form: 
https://lnkd.in/gpNZvxc Company Bond: https://lnkd.in/gdGcW4y

  Fannie Mae Servicing Announcment

CFPB To Hold First Symposium On June 25 via webcast.

 On January 1, 2020 the USDA Single Family Housing Guaranteed Loan Program will begin to assess and collect a fee (aka technology fee) from lenders on each closed loan that was submitted via the Guaranteed Underwriting System (GUS). Specifically, any file submitted via GUS that is issued Form RD 3555-18E, “Conditional Commitment for Single Family Housing Loan Guarantee,” on or after January 1, 2020, will require lenders to remit a one-time $25 technology fee with their loan closing package (i.e. the same time a lender currently remits the upfront guarantee fee).  The collection of the fee will enable the Agency to fund future information technology enhancements needed to improve program delivery and reduce burden to the public. Questions regarding this announcement may be directed to SFHGLP in the Rural Housing National Office at 202-720-1452.

Notice to Implement a Guarantee Systems User Fee for Lender Use of the Single Family Housing Section 502 Guaranteed Loan Program Automated Systems was published in the Federal Register on July 13, 2018.

3555-1 Chapter16_Final Advanced Copy 6-2019 includes direction on the disclosure and collection of the technology fee along with a new section on frequently asked questions for loan closings.


Week of 6/3/19:


Disclaimer:  Please note that resouces posted on this page is provided for informational use only and should not be considers legal advice.  We encourage you to consult with your company's professionals for their advice.

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