Compliance Calendar

These amendments establish flat fees, per instrument, for recording papers required or authorized to be recorded by law; previously mandatory standard fees have been eliminated. 

• For recording papers, the flat fee will be $30 per instrument unless otherwise specified by the provisions.

The following fees have been eliminated:

• $15 for each deed that transfers, conveys or affects property interests
• $25 for each deed of trust or mortgage
• $10 for each release of a deed of trust or mortgage
• $5 for recording an affidavit of annual work or claim maintenance fee
• $1 fee for delivering an instrument by mail
• fees related to indexing
• fees for the first assignment, release, or partial assignment or release of any instrument

The Indiana Department of Financial Institutions published the consumer credit fees schedule effective from July 1, 2019 through June 30, 2020.

Provides for a multitude of miscellaneous modifications to its banking provisions, including:

• Consolidates common provisions spanning several chapters which govern the different types of non-depository lenders that operate within the state
• Changes the exam cycles for loan solicitation companies
• Modifies administrative penalties to bring consistency among all licensees
• Adds provisions authorizing the Department of Financial Regulation to provide advisory opinions and other letters
• Updates references to federal laws and regulations

Comprehensive updates to loan originator licensing requirements that includes 

• application for license; and
• annual renewal of license for mortgage lenders, mortgage brokers, mortgage loan originators and mortgage servicers.

Revised provisions relating to mortgage lending effective July 1, 2019.

• Defining the term "business purpose loan"
• Defining the term "hold himself or herself out to the public as being in the mortgage lending business"
• Prohibiting the misrepresentation of a residential mortgage loan as a business purpose loan

Vermont Senate Bill 154 amends the statutes governing banking, lenders, and other financial institutions relating to licensing requirements for mortgage lenders, mortgage brokers, mortgage loan originators and mortgage servicers.

[The bill is extensive. Please see bill for complete details.]

Georgia House Bill 185 amends Chapter 1 of Title 7 of the O.C.G.A, relating to financial institutions.  Specifically, for the purpose of MLO licensing:

• Provides the scope of activities permitted under a mortgage lender license;
• Provides authority for the department to promulgate certain rules and regulations related to mortgage loan originators; 
• Changes certain provisions related to the inactive status and suspension of mortgage loan originator

On April 15, 2019, the Iowa Governor signed House File 260 (HF 260), amending the maximum interest rate or charges permitted for certain loans under the Iowa Regulated Loan Act and implementing a permissible maximum service charge for certain loans under the Iowa Consumer Credit Code.

First, HF 260 broadens the authority of the Iowa Banking Superintendent to set a maximum rate of interest or charges permitted on certain regulated loans under the Iowa Regulated Loan Act.  In particular, the authority of the Superintendent to set the maximum rate or charges will now extend to loans with the maximum unpaid balance amount of $30,000, instead of $10,000. 

Second, HF 260 amends the Iowa Consumer Credit Code by allowing consumer finance lenders to collect a service charge not to exceed the lesser of ten percent of the amount financed or thirty dollars on interest-bearing consumer credit transactions.  This includes, without limitation, consumer loans, consumer leases, and credit granted pursuant to a seller credit card.  The consumer finance lender, however, may not collect a minimum charge upon prepayment of an interest-bearing consumer credit transaction if the lender has collected a service charge.  

Minnesota House Bill 1840 removes all references to "subprime" from the Minnesota Statutes. 

Indiana House Bill 1136 makes the following changes to the Uniform Consumer Credit Code (UCCC): 

(1) Amends the provisions authorizing specified additional charges for consumer loans to permit a lender to contract for and receive a transaction fee for a revolving loan account that may not exceed the greater of: (A) 2% of the amount of the transaction; or (B) $10. (Current law authorizes the lender to charge a transaction fee in the lesser of these two amounts.) 

(2) Replaces the authorized $5 delinquency charge (subject to indexing by the department of financial institutions) for consumer credit sales and consumer loans with a nonindexed delinquency charge of: 

(A) $5, if installments are due every 14 days or less; 

(B) $25, if installments are due every 15 days or more; or (C) $25, in the case of a single installment due at least 30 days after the sale or loan is made. 

(3) Specifies that a creditor may not charge or collect a delinquency charge on a payment that: 

(A) is paid within 10 days after its scheduled due date; and 

(B) is otherwise a full payment of the payment due for the applicable installment period; if the only delinquency with respect to a consumer credit sale or a consumer loan is attributable to a delinquency charge for an earlier installment. 

(4) Specifies that an initial pleading related to a debt collection action filed by a debt buyer must include certain information. 

(5) Makes a violation a deceptive act. 

(6) Urges the legislative council to assign to an interim study committee, for study during the 2019 interim, the topic of revisions to the UCCC. 

(7) Sets forth issues for consideration by an interim study committee assigned this topic.

Indiana House Bill 1440 reorganizes current provisions regulating loan brokers and moves the reorganized provisions to a new article, including: 

(1) the loan broker regulation account; 

(2) licensure and notice requirements; 

(3) education and examination requirements for licensure; 

(4) requirements for loan broker offices, personnel, and conduct of business; and 

(5) violations and enforcement. 

Makes conforming amendments. Repeals the current law regulating loan brokers.

Indiana House Bill 1447  

• Makes various changes to the statutes concerning: (1) first lien mortgage lenders; (2) persons licensed under the Uniform Consumer Credit Code (UCCC); (3) rental purchase agreements; (4) debt management companies; (5) banks; (6) credit unions; (7) pawnbrokers; and (8) money transmitters. 
• Repeals a provision in the statute concerning rental purchase agreements that specifies that any up-front payment made by the lessee: (1) must be treated as an initial rental payment; (2) is subject to the disclosure requirements under the statute; and (3) may be in a sum larger than a regular rental payment. 
• Prohibits leasing of, and rental purchase agreements involving, live domestic animals. Repeals a provision in the UCCC that provides that civil proceeding advance payment transactions (CPAP transactions) are subject to the UCCC. 
• Strikes all provisions concerning CPAP transactions from the UCCC. 
• Repeals provisions in the UCCC that define certain terms relating to CPAP transactions. 
• Moves language in the UCCC applicable to the licensing of civil proceeding advance payment providers to the existing statute concerning civil proceeding advance payments and makes conforming amendments.

Georgia House Bill 212 is an Act to amend Article 13 of Chapter 1 of Title 7 of the Official Code of Georgia Annotated, relating to licensing of mortgage lenders and mortgage brokers, so as to 

• exempt retailers, retail brokers of manufactured homes or mobile homes, and residential contractors from the requirement to obtain a license as a mortgage loan originator, mortgage broker, or mortgage lender under certain circumstances; 
• to provide for definitions; 
• to provide for related matters; 
• to repeal conflicting laws; and 
• for other purposes.

• Establishes the maximum rate of interest or charges for those loans with an unpaid principal balance of thirty thousand dollars or less
• The maximum rate of interest or charges which a licensee may charge shall be the greater of the rate permitted by chapter 535 or the rate authorized for supervised financial organizations by chapter 537
• For an interest-bearing consumer credit transaction, a service charge in an amount not to exceed the lesser of ten percent of the amount financed or thirty dollars
•  If the prepayment is in full, the creditor may collect or retain a minimum charge not exceeding five dollars in a transaction which had an amount financed of seventy-five dollars or less, or not exceeding seven dollars and fifty cents in a transaction on which had an amount financed of more than seventy-five dollars, if the minimum charge was contracted for, and the finance charge earned at the time of prepayment is less than the minimum charge contracted for
• If, however, a creditor has collected a service charge in association with an interest-bearing consumer credit transaction pursuant to section 537.2501, subsection 1, paragraph "l", the creditor shall not collect or retain a minimum charge upon prepayment pursuant to this subsection
• This section does not apply to a service charge collected pursuant to section 537.2501, subsection 1, paragraph “I”

In Bulletin 2017-25, we expanded our requirements for Borrowers impacted by an Eligible Disaster who need assistance with insurance proceeds to repair or rebuild their homes. We are now including these requirements in Guide Section 8202.11 to expedite the release of loss settlement funds without limiting it to losses caused by an Eligible Disaster. Additionally, we are clarifying that “Mortgage status at the time of loss” means the Mortgage status as of the date the damage for which the insurance claim is based.

Guide impact: Section 8202.11

Effective July 1, 2019 but Servicers may implement immediately

Authorizes staff of financial institutions to refuse a transaction, delay a transaction, or refuse to disburse transaction funds if the staff member 

(i) has a good faith belief that the transaction may involve the financial exploitation of an aged or incapacitated adult; or 

(ii) files a report or has knowledge that a report has been filed with the responsible local authority that states in good faith that the transaction may involve financial exploitation of an aged or incapacitated adult. 

Unless authorized by a court, the bill allows the continued refusal for up to 30 days after the date the transaction was initially requested. The financial institution and its staff are immune from civil or criminal liability under the bill, absent gross negligence or willful misconduct.

Insurance Loss Proceeds Disbursements

• With Lender Letter LL-2017-09R, we expanded our requirements for the disbursement of insurance loss proceeds for impacted properties located in a Federal Emergency Management Administration (FEMA)-declared disaster areas eligible for Individual Assistance on or after August 25, 2017. 
• We are now incorporating these requirements into Servicing Guide B-5-01, Insured Loss Events and expanding these requirements to include any insured loss event regardless of cause.

Contact Information for Legal Document Execution

• Currently, our Custodian Oversight and Monitoring Operations handles document execution requests and inquiries related to satisfaction and discharges of paid-off mortgage loans and the Limited Power of Attorney (LPOA). 
• To streamline operations, these activities are transitioning to our Single Family Credit Portfolio Management (SF CPM) Division. To reflect this change, we have updated the

  
  

  • Fannie Mae address and titles in the LPOA form,
  • Fannie Mae contact for document execution requests or inquiries, and
  • purpose and contact information for our Custodian Oversight and Monitoring Operations and SF CPM Division. 
• Additionally, we have updated the Fannie Mae address to be used in instruments of record, including assignments of mortgages, foreclosure deeds, real estate owned deeds, and lien releases.

Foreclosure Sale Date Clarifications 

• Servicers are currently required to perform various responsibilities before or after the date of the foreclosure sale, such as submitting the REOgram to us within 24 hours of the foreclosure sale. 
  • Based on servicer feedback and to eliminate confusion, we are clarifying the servicer’s responsibilities when, in applicable jurisdictions, the foreclosure is completed through a process under which title vests in us (or the servicer in appropriate cases) by operation of court order and there is no foreclosure sale. 
  • This could occur, for example, in a foreclosure-by-consent process or a strict foreclosure. In such instances, the servicer must use the date the court’s order is entered on the docket, or the estimated court order docket date when applicable, in place of the foreclosure sale date.
• With this change, we are also simplifying the REOgram submission process for servicers by eliminating the exception for Connecticut when the court orders a Foreclosure by Sale. 
  • This exception required servicers to wait to submit the REOgram until after the court approves the sale and issues the conveyance deed to us. 
  • Servicers must now submit the REOgram within 24 hours of the foreclosure sale for all foreclosures in Connecticut.

• Repeals provisions relating to the issuance of transitional mortgage loan originator licenses and replaces them with provisions granting temporary authority to act as a mortgage loan originator; 
• conforms Virginia's law with requirements in the federal Economic Growth, Regulatory Relief, and Consumer Protection Act; and
• conforms provisions related to the expiration of mortgage loan originator pre-licensure education courses.

South Dakota House Bill 1272 provides for remote notarization. 

• Adds a new section of definition of terms
• Adds a new section to read that "A notarial officer in this state, while located in this state, may perform by means of communication technology a notarial act executed on a document by a person who appears before, but is not in the physical presence of the notarial officer if the notarial officer..."
• Amends section § 18-1-3.1 to address requirements for the notarial seal
• Amends section § 18-1-7 to address restrictions for persons who are  a principal party to the instrument or document
• Amends section § 18-1-11 Class 2 misdemeanor requirements to include allowances for appearance by communication technology
• Amends section § 18-1-12.1 Class 1 misdemeanor requirements to include obtaining a commission from the secretary of state
• Amends section § 18-4-10 to address oath or affirmation requirements

To ensure post-settlement data corrections are accurate, we are updating the Guide to require Servicers to submit the calculation used to determine the variance in the comment section of Form 1205, and to provide any additional documentation to support the requested adjustment. 

Guide impacts: Sections 8303.10, 8303.11, 8303.13, 9206.18, 9208.8, 9210.5 and 9601.3

Fannie Mae assumes responsibility - without regard to the foreclosure sale or Mortgage Release date -  for the payment of HOA and condo association fees and assessments for all acquired properties, effective July 1, 2019.

The servicer is not responsible for these expenses after Fannie Mae acquires the property, unless directed otherwise. This includes reverse mortgage loans.

• Section 1. W.S. 1-18-103(a) is amended to read "On payment of this amount the sale and certificate granted are void and the sheriff or other officer shall issue a certificate of redemption."
• Section 1. W.S. 1-18-103(c) is amended to read "The term "agricultural real estate" means any single parcel of land in excess of eighty (80) acres lying outside the exterior boundaries of any incorporated city, town or recorded subdivision or any property that is used substantially for agricultural purposes, which, if combined with other property in the mortgage that is used substantially for agricultural purposes, equals eighty (80) acres or more in aggregate."
• Section 1. W.S. 1-18-111 is amended to add a new section "(b) Upon the sale of the premises, a purchaser shall have a limited right of entry to ensure the property does not significantly deteriorate during the full redemption period. As used in this subsection, "limited right of entry" means entrance into the premises which is not occupied by a legal inhabitant."

• Change in definitions

• Changes in the list of approval notorial acts

• Changes in consular notorial act requirements

• Addition of requirement of electronic notorial acts

• Techinical changes to notorial responsibilities

In previous Bulletins, we announced the Investor Reporting Change Initiative (“Initiative”) will convert our Single Family investor reporting requirements to be closer to an industry standard and update our remittance cycles. Through the Initiative, Servicers will be encouraged, but not required, to report daily and Freddie Mac will draft principal and interest as well as payoff proceeds, via Automated Clearing House (ACH) transactions, directly from a Servicer’s designated Custodial Account.

With the implementation of the Initiative in May 2019, we will rename one of the existing metrics in the “Investor Reporting” section of the Servicer Success Scorecard and add a new metric. These changes will become effective on July 1, 2019 with the results and impacts reflected on the Servicer’s July 2019 scorecard, which will be published at the end of August 2019.

The “Investor Reporting” section of the Servicer Success scorecard will be suppressed on the June 2019 and July 2019 scorecards, which reflect the Servicer’s May 2019 and June 2019 performance, respectively.

Refer to Sections 3501.2 and 8301.3 and the Servicing Success Program web page for additional information about the Servicer Success Scorecard. “Loan Level Reporting Compliance” metric Although we believe the introduction of daily reporting will streamline investor reporting and increase operational efficiencies, we must have full reporting prior to drafting principal and interest due to Freddie Mac each month. To this end, we are introducing the “Loan Level Reporting Compliance” metric to the Servicer Success Scorecard. This pass/fail metric will measure the number of loans not reported as of the last loan level reporting on the P&I Determination Date divided by the number of total loans serviced. Any loans with outstanding edits will be excluded. The Servicer will receive a PASS or FAIL on this metric based on the following: • Rank group 1 (≥100,000 loans serviced): less than 1% not reported, then PASS; equal to or greater than 1% not reported, then FAIL • Rank group 2 (20,000-99,999 loans serviced): less than 2% not reported, then PASS; equal to or greater than 2% not reported, then FAIL • Rank group 3 (10,000-19,999 loans serviced): less than 3% not reported, then PASS; equal to or greater than 3% not reported, then FAIL • Rank group 4 (≤10,000 loans serviced): less than 4% not reported, then PASS; equal to or greater than 4% not reported, then FAIL “Cash Deficiency” metric Beginning in June 2019, Freddie Mac will draft monthly principal and interest payments and payoff proceeds directly from the Servicer’s designated Custodial Account on the P&I Draft Date or Payoff Draft Date. In recognition of the transition from Servicers remitting funds to Freddie Mac drafting, we are renaming the “Cash Shortage” metric as “Cash Deficiency.” Servicers should be mindful that notwithstanding the Cash Shortage metric on the Servicer Success Scorecard, they are still subject to the Draft Delay compensatory fee described in Section 8303.42 when they fail to have sufficient funds available for Freddie Mac to draft on the P&I Draft Date or the Payoff Draft Date.

The pass/fail rules for the renamed metric are not changing. The pass/fail metric will measure the worst failed draft event in the current month as follows:

• If an attempted draft fails due to insufficient funds for more than two consecutive Business Days AND the draft amount is > $2,500, then FAIL • If an attempted draft fails due to insufficient funds for more than two consecutive Business Days AND the draft amount is ≤ $2,500, then PASS • If an attempted draft fails due to insufficient funds for less than two consecutive Business Days, regardless of the draft amount, then PASS This table summarizes the Investor Reporting metrics that will be included in the Servicer Success Scorecard after the Initiative is implemented: 

Additional resources Prior to implementation of the Initiative, the Freddie Mac Servicing Success Program Reference Guide will be updated to reflect these changes as well as other minor changes to other Investor Reporting Metrics due to the Initiative. Daily processing and settlement of mortgage modifications Effective May 1, 2019 When the Initiative is implemented, Freddie Mac will process and settle mortgage modifications daily, except on the first Business Day of each month. We are updating the Guide to reflect this exception. However, Servicers will still have the ability to report daily, including on the first Business Day of the month. Guide impact: Section 9206.18

Regulated lending institutions that are able to and would like to comply with the final rule prior to July 1, 2019, may do so.

Laws impacted

• 12 CFR Part 22 Flood insurance, Mortgages, National banks, Reporting and record keeping requirements, Savings associations
• 12 CFR Part 208 Accounting, Agriculture, Banks, banking, Confidential business information, Crime, Currency, Federal Reserve System, Flood insurance, Mortgages, Reporting and record keeping requirements, Securities
• 12 CFR Part 339 Flood insurance, Reporting and record keeping requirements, Savings associations
• 12 CFR Part 614 Agriculture, Banks, banking, Flood insurance, Foreign trade, Reporting and record keeping requirements, Rural areas
• 12 CFR Part 760 Credit unions, Mortgages, Flood insurance, Reporting and Record keeping requirements

Compliance aid for mandatory acceptance

A supervised institution may determine that a policy meets the definition of private flood insurance, without further review of the policy, if the following statement is included within the policy or as an endorsement to the policy: “This policy meets the definition of private flood insurance contained in 42 U.S.C. 4012a(b)(7) and the corresponding regulation.”

• Provides for the online notarization of documents or instruments by a notary public who has been appointed as an online notary public by the Secretary of State.
• Section 66-22-10 has been amended to include an electronic signature as defined in Section 8-16-302 in the definition of “original signature.” 
• Amended Section 66-22-10 allows a principal to appear before an online notary public to make an acknowledgment using an interactive two-way audio and video communication system that meets the requirements for online notarization under the Online Notary Public Act pursuant to Title 8, Chapter 16, Part 3. 
• The online notary taking the acknowledgement must state in the acknowledgement whether the principal personally appeared by way of an interactive two-way audio and video system. 
• An acknowledgement taken by means of a two-way audio video system must amend the acknowledgement form to read “personally appeared before me by audio-video communication” or “personally appeared by audio-video communication” or “before me appear by audio-video communication” rather than “personally appeared before me” or “personally appeared” or “before me appear” in order for the acknowledgement to be compliant. The Secretary of State is charged with the promulgation of rules necessary to implement and facilitate online notarizations.
• An online notary public may perform notarial acts under these provisions without regard to the physical location of the principal so long as the notary is physically in the state of Tennessee.
• When performing an online notarization, the online notary shall verify the identity of the person creating an electronic signature either by the notary’s personal knowledge of the person or by remote presentation by the principal of a government issued identification.
• Amended Section 8-16-112 states that an electronic signature or a digitized image of a wet signature of the online notary satisfies the existing requirement of a notary public’s signature in ink or by hand and seal. Further, the requirement of an official seal or stamp is satisfied by an electronically transmitted document so long as the document reproduces the required elements of the seal.

HOME POSSIBLE MORTGAGES

Limitation on the number of financed residential properties owned

Effective for Mortgages with Settlement Dates on and after July 3, 2019

At the instruction of the FHFA, we are revising our requirements for Home Possible Mortgages to state that the occupying Borrower(s) must not have an ownership interest in more than two financed residential properties, including the subject property, as of the Note Date, or for Construction Conversion and Renovation Mortgages, the Effective Date of Permanent Financing.

Loan Product Advisor® feedback messages will be updated by July 3, 2019 to reflect these changes.

Guide impact: Section 4501.7

Borrower income

In response to Seller questions regarding the use of rental income from an investment property to qualify a Borrower for a Home Possible Mortgage, we are adding language stating that the requirements of Topics 5300 and 5400, including eligible income types, apply to Home Possible Mortgages. In the event any requirements of Topics 5300 or 5400 conflict with the requirements in Section 4501.9 the requirements of Section 4501.9 apply.

Guide impact: Section 4501.9

Texas Equity Section 50(a)(6) Mortgages

We are updating Section 4501.3 to specify that Texas Equity Section 50(a)(6) Mortgages originated in accordance with Section 4301.7, may be Home Possible Mortgages. We are also updating Section 4501.10 to add a specific reference to Texas Equity Section 50(a)(6) Mortgage loan-to-value (LTV) and total LTV (TLTV) ratio requirements in Section 4301.7(d) and, for consistency, a reference to the location of LTV and TLTV ratio requirements for Home Possible Mortgages with RHS Leveraged Seconds.

Guide impacts: Sections 4501.3 and 4501.10

ASSETS AS A BASIS FOR REPAYMENT OF OBLIGATIONS

Effective for Mortgages with Settlement Dates on and after July 3, 2019, but Sellers may implement immediately

We received feedback from Sellers that the calculation for establishing the debt payment-to-income ratio for assets as a basis for repayment of obligations is too limiting. After additional research into how assets are typically used during retirement, we are revising the calculation. The calculation will now require the Seller to divide the net eligible assets by 240 (instead of 360, as was previously required) to determine the amount used to establish the debt payment-to-income ratio. The new calculation remains aligned with our intent that only assets that are reasonably expected to be used to repay the Mortgage are used for qualifying the Borrower.

Guide impact: Section 5307.1

• We have updated A3-2-01, Compliance with Laws with additional clarifications for compliance with Department of Treasury Office of Foreign Assets Control (OFAC) Regulations regarding servicing loans. 
• Must establish and maintain an effective OFAC compliance program
• May not deliver to Fannie Mae any loan in which the borrower, key principal, or principal is a “specially designated national and blocked person” on the list (SDN List) maintained by OFAC 
• Must periodically screen the loans that it services for Fannie Mae against OFAC’s SDN List

See A3-2-01 for complete requirements

• We currently require lenders to have all borrowers sign an IRS Form 4506-T, Request for Transcript of Tax Return, at or before closing. 
• With this update, we are removing the requirement for a signed IRS Form 4506-T for any borrower whose income is not being used to qualify for the loan.

• A relocation loan is now defined as an owner-occupied purchase money loan, originated pursuant to an established employee relocation program, administered by the employer (or its agent), where the employer relocates employees as part of its normal course of business.
• This update provides consistency for lenders when determining whether a relocation loan is subject to the de minimis pooling requirements for TBA-eligible UMBS securities.

• B3-2-02: DU Validation Service: Minor update to the description of retirement income validated by the DU validation service to align with updates that will be made with the DU Version 10.3 July Update.

• B4-1.1-06, Uniform Appraisal Dataset (UAD) and the Uniform Collateral Data Portal (UCDP), B4-1.2-01, Appraisal Report Forms and Exhibits: We removed references to certain outdated appraisal forms (Forms 1075, 2055, and 2095) as they are no longer options provided by DU. These forms are still available on Fannie Mae’s website, but have been removed from policy to avoid confusion.

• B4-2.1-01, General Information on Project Standards: Minor edit to align with existing policy (in another topic) that the streamlined project eligibility review service (PERS) method is used for established condo or PUD projects with manufactured homes that are subject to a community land trust, deed restriction, leasehold estate, or shared equity arrangement.

• B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties and B2-1.2-03, Cash-Out Refinance Transactions: Clarifies energy-related improvements are permitted on a cash-out refinance but are not considered HomeStyle® Energy loans, as all standard cash-out refinance requirements apply. We also updated the Eligibility Matrix to reflect this clarification

Alimony or maintenance payments

Effective July 6, 2019; however, Sellers may implement immediately

Currently, the Guide states that alimony or maintenance payments with more than 10 months of payments remaining must be included as a debt when calculating the monthly debt payment-to-income ratio.

In response to Seller requests, we reviewed this requirement and are revising it to reflect that alimony or maintenance payments with more than 10 months of payments remaining must be deducted from the Borrower's gross monthly income. The reduced monthly income amount should be used to qualify the Borrower. Child support will continue to be treated as a debt when calculating the monthly debt payment-to-income ratio.

When entering an alimony obligation in Loan Product Advisor, select "Alimony/Child Support" under "Income Type" and enter it as a negative number. If the Borrower also receives alimony or child support income, add those amounts together and then subtract the alimony obligation. Enter the result in the income amount field.

Guide impacts: Sections 5301.1 and 5401.2

• Examination Hourly Fees - For the period of July 1, 2019 through June 30, 2020, hourly fees charged on consumer loan company examination will be temporarily waived. Still required are the payment of travel expenses in connection with examinations.
• Annual Assessments on Residential Mortgage Loans - Also temporarily waived for the calendar year are Annual Assessments on the following categories of loans: 1) residential mortgage loans in portfolio on December 1, 2018; 2) residential mortgage loans brokered in 2019; and 3) residential mortgage loans purchased in 2019. Residential mortgage loans made during the 2019 calendar year will still be assessed.
• Mortgage Loan Originator Renewal Fees - Mortgage Loan Originator Renewal Fees for the 2020 calendar years have been temporarily reduced from $155 to $75.

• The requirement that a mortgage loan must be aged a minimum of 24 months from loan origination or from the completion of a repayment plan to qualify for escrow waiver has been removed

Effective Date: This policy change is effective immediately; however, servicers are authorized to implement this change at their discretion and at a time of their choosing.

• As of January 28, 2019, we changed our process for servicers to self-report and submit voluntary repurchase requests using Loan Quality Connect™ instead of submitting an email request. 
• Servicers that have submitted email requests since that time have been redirected to Loan Quality Connect. 
• We have updated F-4-03, List of Contacts to reflect the current process and to eliminate confusion.

• All Borrower(s) whose income and assets are used as part of the underwriting process are not required to sign Form 4506-T at application provided that the form is signed no later than the Note Date
• The applicable Loan Product Advisor feedback messages have been updated to reflect these changes

• We are updating the delivery requirements and notes in Chapter 6302 to align with updates in the ULDD Addendum

Updates include: 

• Down Payment Amount (Sort ID 172), Down Payment Source Type/Down Payment Source Type Other Description (Sort IDs 173/174) and Down Payment Type/ Down Payment Type Other Description (Sort IDs 175/176) (effective May 20, 2019) 
• Closing Cost Contribution Amount (Sort ID 151), Closing Cost Funds Type/Closing Cost Funds Type Other Description (Sort IDs 152/153), Closing Cost Source Type/Closing Cost Source Type Other Description (Sort IDs 154/155) (effective May 20, 2019)
• Property Structure Built Year (Sort ID 67) (effective July 1, 2019)
• Taxpayer Identifier Type/Taxpayer Identifier Value (Sort IDs 641.5/641.6)
• New valid values for Credit Score Provider Name (Sort ID 591.1) (effective July 1, 2019)
• Mapping of LPA asset type enumerations to current valid values for Down Payment Source Type (Sort ID 173) and Down Payment Type (Sort ID 175) (effective July 1, 2019)
• Mapping of LPA asset type enumerations to current valid values for Closing Cost Funds Type (Sort ID 152) and Closing Cost Source Type (Sort ID 154) (effective July 1, 2019)
• Notes update for Property Valuation Method Type (Sort ID 89) (effective July 1, 2019)
• Mapping of URLA and ULAD Data Points to Loan Foreclosure Or Judgment Indicator (Sort ID 599) (effective July 1, 2019)

Loan Selling Advisor has been updated to reflect these changes in alignment with their effective dates. Sellers should review the ULDD Addendum in its entirety to determine impacts to their systems or processes and for applicable effective dates. Visit the Technical Resources section of Freddie Mac’s ULDD web page to view the ULDD Addendum and other resources.

• We are clarifying that asset accounts held in the name of a Living Trust are considered to be owned by the Borrower when the Borrower is the Settlor of the Living Trust.
• Such assets are considered Borrower personal funds and are also eligible to be used in conjunction with assets as a basis for repayment of obligations

• Guide has been updated to specify that when written explanations or statements are required from the Borrower, acceptable formats include signed letters or e-mails directly from the Borrower

• Guide Forms 1035, 1035DC, and 1035WF are revised to update the contact information for Freddie Mac, correct certain errors, and make the language more consistent among the forms
• The updated forms are for use when a new Tri-Party Agreement is appropriate.

• Updated definition of a relocation Mortgage to state that a relocation Mortgage is an owner-occupied purchase money Mortgage, originated pursuant to an established employee relocation program, administered by the employer (or its agent), where the employer relocates employees as part of its normal course of business

• Any remaining requirements for purchase and Servicing of participation mortgages have been removed from the Guide

Deed-in-lieu of foreclosure inspection requirements

Currently, Guide Section 9209.5 requires that Servicers perform a final inspection on the Mortgaged Premises subject to a deed-in-lieu of foreclosure ("DIL") no more than two Business Days following receipt of the executed DIL documents to ensure that the property is vacant, undamaged and in broom-swept condition. If the final inspection reveals that there is damage to the Mortgaged Premises caused by the Borrower, or the Mortgaged Premises was not left in broom-swept condition, we instructed the Servicer to reduce any Borrower relocation assistance by the amount of the estimated cost of remediating the issue.

To complement the changes to Servicer requirements for REO properties announced in Bulletin 2019-6, we also are removing the requirement that Servicers perform a final interior inspection of the Mortgaged Premises.

Additionally, Servicers must pay the full amount of the relocation assistance to eligible Borrowers within 30 days, unless otherwise instructed by Freddie Mac.

Effective for all Freddie Mac Mortgages with a foreclosure sale held, or a deed-in-lieu of foreclosure executed, on or after July 15, 2019 and all active REO properties as of July 15, 2019.

• Once the foreclosure sale is held/or a deed-in-lieu of foreclosure (DIL) is executed, the Servicer must notify Freddie Mac of the foreclosure sale results/DIL completion via the Freddie Mac Service Loans application, no later than the Business Day immediately following the date of the foreclosure sale or the date the executed DIL is received.

Unless the Servicer is notified otherwise, once the Servicer has completed this reporting, the Servicer will no longer have the responsibility for the following REO activities, regardless of any confirmation or redemption periods:

• Securing, maintaining, inspecting and winterizing the property
• Paying property taxes, special assessments and HOA or PUD dues incurred, leasehold estate and Cooperative Unit fees and assessments
• Paying utility bills incurred on an REO property, post-foreclosure sale
• Marketing, rehabilitating and selling the REO
• Monitoring for the PCC or the sale pending status after the foreclosure sale.

Servicers remain responsible for the following activities: 

• Filing and concluding FHA, RHS and VA claims, if applicable 
• Referring all inquiries and offers regarding purchase of the REO to Freddie Mac at 800-972-7555 within one Business Day of the inquiry or offer 
• Fulfilling all requests made by Freddie Mac, including attorney selection. If the Servicer requires the assistance of an attorney in fulfilling any of the obligations set forth by Freddie Mac, the Servicer must use an attorney who meets the criteria in Guide Section 9501.3.
• If the result of a foreclosure sale reported to Freddie Mac needs to be corrected or removed, Servicers should refer to Section 9301.39, to ensure that the title vests to the appropriate party in the event a rollback has been processed and/or the foreclosure sale has been rescinded. 

Changes will apply to new loan casefiles submitted to DU the weekend of July 20, 2019.  

• We will be updating the DU eligibility assessment to better align the mix of business delivered to Fannie Mae with the composition of business in the overall market. 
• As a result, certain new loan casefiles submitted to DU on or after July 20, 2019 will receive an Ineligible recommendation when multiple high-risk factors are present.

The changes in this release will apply to DU Version 10.3 loan casefiles submitted or resubmitted on or after the weekend of July 20, 2019.

The changes in this release include the following:

•   DU Validation Service Enhancements

•   HomeReady® Updates

•   Support of the Redesigned Uniform Residential Loan Application (Form 1003) *This item has been deferred and will no longer be included in the update

•   Asset Message Update *This item has been deferred and will no longer be included in the update

•   Accounts impacted by a Natural Disaster

•   Rural Housing Loan Message

•   Updates to Align with the Selling Guide

June 5, 2019: These release notes have been updated to include changes announced in Lender Letter 2019-06, which specified an update related to HomeReady income limits, and a DU eligibility assessment update. Refer to the “HomeReady Updates” section and “DU Eligibility Assessment” sections below, as well as the Lender Letter for additional details.

[See release notes for complete details]

Imminent Default Evaluation 

• SMDU will return the following two new messages when the Hardship Reason Code (DD 150) is 31 (Unknown Uniform Borrower Assistance Form not required to be collected) in the Imminent Default Evaluation. 
• The imminent default eligibility is not being impacted. 
• The new messages will be returned when the imminent default evaluation already fails, however these messages will provide a specific denial reason. 
• FLEX Modification: Imminent Default Initial Eligibility Criteria not met; Hardship reason provided is not in accordance with Mortgage Assistance Application. (Message 6568) 
• Liquidations: Liquidation Imminent Default Initial Eligibility Criteria not met; Hardship reason provided is not in accordance with Mortgage Assistance Application. (Message 6570) 

Repayment Plan 

• SMDU is creating a new Name/Value pair, which will enable a servicer to provide the current monthly escrow payment amount. When a value is provided in this data field, SMDU will use it in the repayment plan evaluation to help determine the current contractual payment amount, independent of the escrow analysis that was provided for the loan for modification evaluation. 

Prior Workout Type Code

• SMDU will no longer consider the Prior Workout Type Code (DD 461) value of “Other Modification” (OMOD) as a condition to trigger the following message when evaluating a loan for an Extend Modification for Disaster Relief (EMOD). 
• The Prior Workout Type Code for an EMOD must be provided to return this message. Ineligible for Extend Modification Disaster; Servicer warrants that the loan has been evaluated for Extend Modification Disaster and is Ineligible or was not accepted by the borrower. (Message 6548)

Next ARM Reset Date

• SMDU will return the following message only when the Next ARM Reset Date (DD 54) is in the future. This change allows a Cap and Extend Modification (CMOD) to be returned as “Unable to Evaluate” message when this value is NULL, rather than returning this Fail message. 
• Ineligible for [Workout Display Type Code]; the pre-modified mortgage loan must be a fixed rate mortgage. (Message 5665) 

Loan Original Maturity Date

• SMDU will return the following as a failure message when the Loan Original Maturity Date (DD 361) is in the future instead of as an “Unable to Evaluate” message. 
• Ineligible for evaluation in SMDU; Loan Original Maturity Date must be a future date in order for loan to be evaluated in SMDU. If this is not accurate, please correct and resubmit for evaluation. Loans that have matured cannot be evaluated in SMDU. (Message 5359)

Case Management Miscellaneous Updates 

• In preparation for closing a loan modification case, SMDU will allow an update to a case using data from an associated eligible SMDU Final Structuring call. In support of this update, a field called “Use SMDU Final Data for Case Update Indicator” was created. 

SMDU UI Training

• We have created 8 new interactive training modules to help servicers learn how to use the SMDU UI to evaluate loans for a loan modification, evaluate for borrower eligibility for a short sale and Mortgage Release™, as well as perform case management activities. 

• Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests In, and Relationships With, Hedge Funds and Private Equity Funds 

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

Chapter 9 has been revised to reflect updates to VA systems, facilitate expeditious processing of VA-guaranteed loans and incorporate all appropriate Circulars. Key changes include:

Chapter 9, Topic 2 states that the Escape Clause must be contained in the sales contract for all VA-guaranteed loans.

Chapter 9, Topic 3 describes the requirements under which a beneficial interest in a revocable Family Living Trust will be acceptable to VA.

Chapter 9, Topic 3 requires that an individual taking title to a property must sign either the mortgage note or a mortgage deed of trust.

Chapter 9, Topic 8 includes a certification that lenders must provide after verifying the Veteran’s status.

Chapter 9, Topic 8 confirms that digital signatures are acceptable in accordance with the Electronic Signatures in Global and National Commerce Act, commonly referred to as the E-sign Act.

Chapter 9, Topic 10 raises the estimated cost of postponed improvements which may be completed without funds being escrowed from $500 to $2,500.

USDA has published the 2019  Income Limits for the Single Family Housing Guaranteed Loan Program; the Guaranteed Underwriting System (GUS) and the Income Eligibility calculator on the Eligibility website have been updated to use the new income limits.

See GRH Limit Map for complete details.

This guidance is effective for case numbers assigned on or after April 18, 2019, and will be incorporated into a forthcoming update of the HUD Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1).

This guidance applies to transactions where a person or entity is providing any portion of a Borrower’s MRI.

Source Requirements for the Borrower’s Minimum Required Investment

II.A.4.d.ii (TOTAL) and II.A.5.c.ii (Manual). 

• Definitions
• Standard

Minimum Required Investment (MRI) refers to the Borrower’s contribution in cash or its equivalent required by Section 203(b)(9)(A) of the National Housing Act, which represents at least 3.5 percent of the Adjusted Value of the Property.

The Mortgagee must ensure that the Borrower’s MRI is from a permissible source and meets the following requirements.

The Mortgagee must ensure that the source of funds for the Borrower’s MRI to be provided fully complies with the Source Requirements for the Borrower’s Minimum Required Investment.

The Mortgagee must ensure that no portion of the Borrower’s MRI is provided by:

(1) the seller of the Property;

(2) any other person or Entity who financially benefits from the transaction (directly or indirectly); or

(3) anyone who is or will be reimbursed, directly or indirectly, by any party included in (1) or (2) above.

While additional funds to close may be provided by one of these sources if permitted under the relevant Sources of Funds (II.A.4.d.iii (TOTAL) and II.A.5.c.iii (Manual)) requirements, none of the Borrower’s MRI may come from these sources.

(1) Special Requirements for Family Members 

A Family Member may provide the Borrower’s MRI in accordance with Section 203(b)(9)(B) of the National Housing Act.

(2) Special Requirements for Government Entities

In accordance with the Prohibited Sources of Minimum Cash Investment Under the National Housing Act – Interpretive Rule, HUD does not interpret Section 203(b)(9)(C) of the National Housing Act to prohibit Governmental Entities, when acting in their governmental capacity, from providing the Borrower’s MRI where the Mortgage is being originated as part of a Governmental Entity homeownership program.

(C) Required Documentation

Where any portion of the Borrower’s MRI is provided by a person or entity other than the Borrower, the Mortgagee must also obtain documentation to support the permissible nature of the source of those funds.

The Mortgagee must document that all portions of the Borrower’s MRI come from an acceptable Source of Funds (II.A.4.d.iii (TOTAL) and II.A.5.c.iii (Manual)) in accordance with both the source requirements for the specific type of funds used, and the specific documentation requirements under the additional Source Requirements for the Borrower’s MRI set forth in this section.

Governmental Entity Funds

The Mortgagee must document that the Borrower’s MRI was provided by the Governmental Entity, as either a gift or through Secondary Financing, in a manner consistent with the National Housing Act and the additional provisions of this section. The Mortgagee must document that the Governmental Entity incurred prior to or at closing an enforceable legal liability or obligation to fund the Borrower’s MRI in its governmental capacity. It is not sufficient to document that the Governmental Entity has agreed to reimburse the Mortgagee for the use of funds legally belonging to the Mortgagee to fund the Borrower’s MRI.

The Mortgagee must obtain:

• for federal, state or local government agencies, a copy of documentation from a jurisdiction in which the Property is located, which granted governmental authority to the entity; 
• a legal opinion signed and dated within two years of closing of the transaction by attorneys for the Governmental Entity stating: 
• the attorney has reviewed the Governmental Entity’s downpayment assistance program; and 
• either
• the Governmental Entity is considered within the jurisdiction in which the Property is located  to be either a federal, state (as defined in Section 201(d) of the  National Housing Act (12 U.S.C.  §1707(d)), or local  government or agency or instrumentality thereof, as  provided in Section 528  of the National Housing Act  (12 U.S.C §1735f-6), and 24 CFR 203.32(b) and  further clarified in  the SF Handbook.;  
• the Governmental Entity is a federally recognized  Indian Tribe operating on tribal land in  which the  Property is located or to enrolled members of the tribe;  or 
• the Governmental Entity is a Federal Home Loan  Bank;          
• evidence that the downpayment assistance is being provided by the  Governmental Entity by  collecting either:  
• a letter from the Governmental Entity, signed by an authorized  government official, establishing  that the funds provided towards the Borrower’s MRI were provided in the  Governmental Entity’s governmental capacity in the  jurisdiction in which the Property is located  consistent with its  downpayment assistance program and that the provision of  such funds is not  contingent upon any future transfer of the  insured Mortgage to a specific entity, and a canceled  check, evidence of wire transfer or other draw request showing that prior to or at the time of  closing the Governmental Entity had authorized a draw of the funds provided towards the Borrower’s  MRI from the Governmental Entity’s account; or 
• a letter from the Governmental Entity, signed by an authorized official, establishing that the  funds provided towards the Borrower’s MRI were funds legally belonging to the Governmental Entity  and were provided in the Governmental   Entity’s governmental capacity in the jurisdiction in which the  Property is located or for the  federally recognized Indian   Tribe’s enrolled member, consistent with its downpayment  assistance program, at or before  closing. The letter must make clear that the provision of the downpayment assistance is not contingent upon any future transfer of the insured Mortgage. Where such a letter from the  Governmental Entity is submitted, the precise language of the letter may vary, but must demonstrate that the funds provided for the Borrower’s MRI legally belonged to the  Governmental Entity at or before closing, by stating: 
• the Governmental Entity has, at or before closing, incurred a legally enforceable liability as  a result of its agreement to provide the funds towards the Borrower’s MRI; 
• the Governmental Entity has, at or before closing, incurred a legally enforceable obligation  to provide the funds towards the Borrower’s MRI; or 
• the Governmental Entity has, at or before closing, authorized a draw on its account to provide  the funds towards the Borrower’s MRI.

The Mortgagee must either document the actual transfer of funds in satisfaction of the obligation or liability by the Governmental Entity prior to the submission of the Mortgage for insurance or obtain documentation of the satisfaction of the obligation or liability by the Governmental Entity after submission and maintain such documentation in the Mortgagee’s files.

The failure of the Mortgagee to demonstrate the downpayment assistance  provider has transferred the funds, the failure of the Governmental Entity to  satisfy the obligation or liability, or any demand for reimbursement or  indemnification for such funds by the Governmental Entity may call into  question whether FHA requirements have been met and result in a determination that the funds were, in fact, provided by a prohibited source.

• Enacts the North Carolina Servicemembers Civil Relief Act
• Expands federal SCRA benefits to members of the North Carolina National Guard serving on State active duty and to members of the National Guard of other states serving on state active duty who reside in North Carolina
• A dependent of a servicemember engaged in military service has the same rights and protections provided to a servicemember
• The servicemember must provide a written or electronic copy of the military order no later than 30 days after the military service terminates
• The court may stay the action or court proceeding on its own motion and shall stay the action or proceeding on application by the servicemember, or by a person acting on behalf of the servicemember, unless the court finds that the ability of the servicemember to litigate is not materially affected by his or her military service;  applies during the servicemember's military service and within 60 days after the military service terminates

Home Possible area median income limits - Loan Product Advisor and the Home Possible Income & Property Eligibility tool will be updated on July 28, 2019. For Manually Underwritten Mortgages, the updated Borrower income limits will be effective for Mortgages with Application Received Dates on and after July 28, 2019.

• the Borrower’s qualifying income, converted to an annual basis, must not exceed 80% of the AMI for the location of the Mortgaged Premises
• 2019 AMI limits
• Rental income from a 1-unit Primary Residence must be provided by a person who is not obligated on the Mortgage and does not have an ownership interest in the Mortgaged Premises and is not the Borrower’s spouse or domestic partner

Chapter 13 provides updated information for lenders’ Staff Appraisal Reviewers (SARs) who are reviewing appraisal reports and issuing NOVs. Key changes include:

Chapter 13, Topic 4 describes the use of electronic scoring of appraisal reports.

Chapter 13, Topic 8 explains that lender requirements which exceed VA requirements must not be placed on the NOV.

Chapter 13, Appendix A is an updated NOV. Infrequently used conditions were removed during this update.

• The Borrower’s qualifying income, converted to an annual basis, must not exceed 80% of the AMI for the location of the Mortgaged Premises. 
• This change will apply to all Home Possible Mortgages, including those secured by properties in low-income census tracts.
• Loan Product Advisor® and the Home Possible Income & Property Eligibility tool will be updated on July 28, 2019, to reflect the updated Borrower income limits (80% of the AMI), as well as the 2019 AMI limits.
• For Manually Underwritten Mortgages, the updated Borrower income limits and the 2019 AMI limits will be effective for Mortgages with Application Received Dates on and after July 28, 2019.

New Jersey Assembly Bill 4999 requires filing of certain creditor contact information with residential mortgage foreclosure complaint and lis pendens.

• Shall include the full name and contact information of the in-State representative or agent, and any other person or entity retained by the creditor or a representative of the creditor
• Must now notify the municipal clerk and the mayor or other chief executive officer of the municipality in which the property is located that a summons and complaint in an action to foreclose on a mortgage has been filed against the subject property within 10 days of serving the summons and complaint
• The notice shall contain the full name, address, and telephone number for the representative of the creditor who is responsible for receiving complaints of property maintenance and code violations and the full name and contact information for any person or entity retained by the creditor or a representative of the creditor to be responsible for any care, maintenance, security or upkeep of the property
• In the event the creditor that has served a summons and complaint in an action to foreclose on a residential property is located out-of-State, the notice shall also contain the full name, address, and telephone number of an in-State representative or agent who shall be responsible for the care, maintenance, security, and upkeep of the exterior of the property if it becomes vacant and abandoned
• The notice shall also include the street address, lot and block number of the property, and the full name, address, and telephone number of an individual located within the State who is authorized to accept service on behalf of the creditor
• If there is any change in the name, address, or telephone number for a representative, agent, or individual authorized to accept service on behalf of a creditor required to be provided in a notice pursuant to this paragraph following the filing of the summons and complaint, the creditor shall provide a notice to the applicable municipal clerk containing the updated name, address, or telephone number within 10 days of the change in that information

Updates are extensive. Please see final rule for complete details.  

80-11-1-.01 Disclosure Requirements

• (2)(a) Within three business days of receipt of the application but no later than seven business days before settlement or closing of the loan, a Loan Estimate, as required by federal law, including but not limited to 12 CFR § 1026.19 and 12 CFR § 1026.37; 
• (2)(b) No later than three business days before settlement or closing of the loan, a Closing Disclosure, as required by federal law, including but not limited to 12 CFR § 1026.19 and 12 CFR § 1026.38; 
• (2)(c) Prior to the acceptance of a fee, including, but not limited to, an application fee, credit report fee, property appraisal fee, and all other third-party fees, the amount of the fee; 
• (2)(d) Prior to the acceptance of a fee, whether all or any part of the fee or charge is refundable prior to settlement of the mortgage loan, and the terms and conditions for obtaining a refund if all or any part of the fee or charge is refundable; 
• (2)(e) Prior to the acceptance of any fees, the specific services which will be provided or performed for the application fee; and
• (2)(f) In cases where the fees are being accepted by a mortgage lender or mortgage broker that such lender or broker cannot guarantee approval of the loan application or acceptance into a particular loan program.
• (3) Mortgage lenders or mortgage brokers shall provide applicants for a home equity
  line of credit, a residential mortgage loan not secured by real property, such as a mobile home, or a residential mortgage loan related to a reverse mortgage, all disclosures required by federal law instead of the specific disclosures set forth in paragraph (2)(a) and (b).
• (6) The disclosures required in paragraphs (2), (3), and (9) of this Rule shall be
  acknowledged in writing by the applicant and a copy of the acknowledgment maintained by the mortgage lender or mortgage broker required to make the disclosure, and a copy of the acknowledgment shall be given to the applicant.
• (7) To the extent required by federal law including, but not limited to 12 CFR §
  1026.20, a mortgage lender shall provide the borrower an Escrow Closing Notice no later than three business days before the borrower's escrow account is cancelled.
• (8) In the event that the residential mortgage loan is transferred, the transferee mortgage lender shall provide the borrower with a Mortgage Transfer Disclosure on or before the thirtieth calendar day following the date of the transfer, to the extent required by federal law including, but not limited to, 12 CFR § 1026.39.
• (9) Foreclosure Disclosure. 
  • (a) Every mortgage lender, and every mortgage broker who closes mortgage loans in the broker's own name with funds provided by others and which loans are assigned within 24 hours of the funding of the loan to the mortgage lender providing the funding of such loans (i.e. table funding), shall disclose in writing to each applicant for a mortgage loan that failure to meet every condition of the mortgage loan may result in the loss of the applicant's property through foreclosure. The disclosure shall be made at or before the time of settlement.
  • The disclosure shall include the following language in at least ten-point bold-faced type:
    "O.C.G.A. § 7-1-1014(3) requires that we inform you that if you fail to meet any condition or term of the documents that you sign in connection with obtaining a mortgage loan you may lose the property that serves as collateral for the mortgage loan through foreclosure." 
  • (b) The applicant shall be required to sign the disclosure and the lender or broker, as
    applicable, shall keep a copy of the signed disclosure.

New Jersey Senate Bill 3464 revises certain procedures for real estate foreclosure sales and alters adjournment of sale process, as follows:

• The sheriff shall conduct a sale within 150 days of the sheriff's receipt of any writ of execution issued by the court in any foreclosure proceeding
• Upon the foreclosing plaintiff making such application to the office, the office shall issue the appropriate order appointing a Special Master to hold the foreclosure sale. The office may issue the order to appoint a Special Master to hold foreclosure sales for one or more properties within a vicinage.
• "the plaintiff's attorney shall prepare and submit to the sheriff's office" a deed "for the sheriff's execution and the deed shall be delivered to the sheriff within 10 days of the date of the sale".
• Notwithstanding any other law or court rule to the contrary, a sheriff or other officer selling real estate by virtue of an execution may make five adjournments of the sale, two at the request of the lender, two at the request of the debtor, and one if both the lender and debtor agree to an adjournment, and no more, to any time, not exceeding 30 calendar days for each adjournment.  However, a court of competent jurisdiction may, for cause, order further adjournments.

• "Mortgage servicer” is defined as “any person, wherever located, who, for the person or on behalf of the holder of a residential mortgage loan, receives payments of principal and interest in connection with a residential mortgage loan, records the payments on the person’s books and records and performs the other administrative functions as may be necessary to properly carry out the mortgage holder’s obligations under the mortgage agreement including, when applicable, the receipt of funds from the mortgagor to be held in escrow for payment of real estate taxes and insurance premiums and the distribution of the funds to the taxing authority and insurance company; and includes a person who makes payments to borrowers pursuant to the terms of a home equity conversion mortgage or reverse mortgage.
• Requires mortgage servicers must obtain a license from the Commissioner of Banking and Insurance.  Licenses must be obtained for the main office and each branch where business is conducted, unless one of the exemptions listed in the bill applies.  
• Both mortgage servicers and persons exempt from licensure are required to maintain adequate records of each residential mortgage loan transaction, and are required to produce the records upon request of the commissioner.
• Upon assigning the servicing rights on a residential mortgage loan, the servicer must make certain disclosures to the mortgagor.  
• A mortgage servicer must also maintain a schedule of fees charged to mortgagors.
• Mortgage servicers must file certain information annually with the Commissioner regarding the mortgages that it services in the state. 
• Mortgage servicers must file with the Commissioner a surety bond, fidelity bond, and evidence of coverage that meets certain standards set forth in the bill.
• The Commissioner has the authority to conduct investigations and examinations of mortgage servicers and may suspend, revoke, or refuse to renew a mortgage servicer license for certain reasons set out in the bill.