Compliance Calendar

The Department of Veterans Affairs (VA) is publishing this Circular to advise that starting December 1, 2022, lenders are to include the Uniform Loan Application Dataset (ULAD), and the Uniform Closing Dataset (UCD) when a loan is selected for Full File Loan Reviews (FFLR). VA is also updating the stacking order and list of loan origination documents to be provided by the lender when submitting the file to VA for audit purposes.

VA is updating the FFLR stacking order. Additions include

(1) the purchase agreement associated with a purchase loan;

(2) disclosures associated with implementation of the anti-predatory refinance provisions of 38 U.S.C. § 3709; and

(3) separate uploads of the ULAD and UCD. The new stacking order replaces the one provided in Pamphlet 26-7 (commonly known as the Lenders Handbook). The attached Exhibit A applies to purchase and cash-out refinance loans, and attached Exhibit B applies to Interest Rate Reduction Refinancing Loans (IRRRLs) Lenders should upload the ULAD and UCD, in addition to the loan origination file, into WebLGY correspondence using the document upload function. The UCD and ULAD should be uploaded as separate files, in “.xml” format only, but lenders are to upload the remaining documents as one single PDF upload rather than as multiple files.

In this servicing guide announcement, Fannie Mae has announced updates that include changes to the mortgage insurance termination property valuation, full reinstatement by mortgage assistance funds, and a few miscellaneous updates.

SUBJECT: UPDATE TO CREDIT FEES

Under the direction of the FHFA and in response to their news release announcing an Enterprise aligned pricing framework, Freddie Mac is eliminating upfront fees for certain Borrowers and affordable Mortgage Products, while implementing targeted changes to the upfront fees for most cash-out refinance loans.

CREDIT FEE UPDATES

Credit Fee Caps and Credits for Credit Fees

Changes related to the Credit Fee Caps and the Credits for Credit Fees are effective for Mortgages with Settlement Dates on or after December 1, 2022.

Freddie Mac is:

• Introducing Credit Fee Caps, which apply to the following Mortgages:
  • Mortgages for First-Time Homebuyer(s) (as defined below)
  • Home Possible^® Mortgages
  • Certain Duty to Serve Mortgages (as defined below)
• Combining credits in a new grid, titled “Credits for Credit Fees”, for the following Mortgages:
  • GreenCHOICE^® Mortgages
  • Refi Possible^℠ Mortgages without Appraisal Waiver (ACE), previously referred to as Appraisal Cost Offset

Additionally, Freddie Mac is eliminating the following:

• Super Conforming Credit Fee waiver specific to First-Time Homebuyers, as First-Time Homebuyers with an AMI% less than or equal to 100% will be included in the new Credit Fee Caps grid
• Adjustable Rate Mortgages waiver specific to certain Home Possible Mortgages, as Home Possible Mortgages will be included in the new Credit Fee Caps grid
• Mortgages with Secondary Financing Credit Fee specific to Home Possible Mortgages, as Home Possible Mortgages will be included in the new Credit Fee Caps grid

Cash-Out Refinance Mortgage fee rate updates

Changes related to Cash-Out Refinance Mortgages are effective for Mortgages with Settlement Dates on or after February 1, 2023.

Freddie Mac is:

• Updating Cash-Out Refinance Mortgages Indicator Score / Loan-To-Value fee rates

MORTGAGES ELIGIBLE FOR CREDIT FEE CAP

An eligible Mortgage is a Mortgage where the Borrower resides in the Mortgaged Premises using it as a Primary Residence and meets one or more of the following criteria:

• First-Time Homebuyers with an AMI% of:
  • Less than or equal to 100%, or
  • Less than or equal to 120% in a designated High-Cost Area*

    * High-Cost Area is an area in which 115% of the local median home value exceeds the baseline conforming loan limit, as defined by the FHFA. Freddie Mac will determine whether a Mortgage meets the requirements of the FHFA’s definition of High-Cost Area in Loan Selling Advisor^®.

• Home Possible Mortgages
• Duty to Serve Mortgages for the following products or Mortgaged Premises with an AMI% of less than or equal to 100%:
  • GreenCHOICE Mortgages
  • CHOICERenovation^® Mortgages
  • Community Land Trust Mortgages
  • Income-based resale restrictions
  • Manufactured Homes, including eligible CHOICEHome^® Mortgages
  • Small Financial Institutions of Rural Housing, as defined by the FHFA
  • Rural tracts and High Needs Rural Regions, as defined by the FHFA

For Mortgages sold to Freddie Mac with custom mortgage insurance coverage, the Custom Mortgage Insurance Credit Fees in Price will continue to apply.

DELIVERY REQUIREMENTS FOR CREDIT FEE CAPS

Effective for Settlement Dates on or after December 1, 2022

Mortgages eligible for the Credit Fee Caps, as described above, must be delivered in accordance with the applicable Guide section.

• For Mortgages originated in rural areas and by Small Financial Institutions, as defined by the FHFA, Sellers must deliver ULDD Data Point Investor Feature Identifier (IFI) (Sort ID 368) and enter a valid value of “J84”
• For Mortgages located in rural areas and High Needs Rural Regions, as defined by the FHFA, Sellers must deliver ULDD Data Point Investor Feature Identifier (IFI) (Sort ID 368) and enter a valid value of “J85”
• Investor Feature Identifier (IFI) (Sort ID 368) valid value of “J78” is no longer required for super conforming Mortgages that include at least one First-Time Homebuyer, indicating a First-Time Homebuyer AMI% less than or equal to 100%

AMI% as calculated in Loan Selling Advisor will be used in assessing the Credit Fee Caps and Credits. Sellers may use the Home Possible^® Income & Property Eligibility tool and the Refi Possible^℠ Income & Eligibility tool to assist with determination of AMI%.

GUIDE AND SYSTEM UPDATES

Guide Exhibit 19, Credit Fees, has been updated to reflect the changes. Additional Guide provisions, including Exhibit 34, Investor Feature Identifiers, will be updated with a future Guide Bulletin.

Updates to Loan Selling Advisor, including the Guarantor Rate Sheet Results screen, are being made to reflect these changes.

To promote sustainable and equitable access to affordable housing, on Oct. 24, 2022, FHFA announced targeted changes to the GSEs’ pricing by eliminating upfront fees for certain borrowers and affordable mortgage products. FHFA also announced targeted increases to the upfront fees for some cash-out refinance loans.

This Lender Letter provides details on the implementation of the changes FHFA directed us to make to our loan-level price adjustments (LLPAs).

In this bulletin, Freddie Mac announced updates to the ACE+ PDR requirements announced in Guide Bulletin 2022-13 on June 15, 2022.

In this Lender Letter, Fannie Mae provides information related to the Making Home Affordable Supplemental Directive 22-01 issued on November 1, 2022, by the U.S. Department of the Treasury (Treasury) and its impact on Fannie Mae HAMP Modification policies.

In this Lender Letter, Fannie Mae announces temporary guidance on the provisional acceptance of property insurance policies in Florida in
conjunction with the Florida Office of Insurance Regulation’s (FLOIR) establishment of a temporary reinsurance arrangement
through Citizens Property Insurance Corporation (Citizens).

Freddie Mac announces updates to 2023 conforming loan limit values, temporary insurance requirements in Florida, credit underwriting, and Best-Efforts Mortgages in this selling bulletin.

California's commercial financing disclosures become effective December 9, 2022.

On December 13, 2022, the Consumer Financial Protection Bureau issued a technical amendment update to HMDA Regulation C to reflect the closed-end mortgage loan threshold under a recent court decision.

This announcement has impact to multiple areas of the loan.

Helps to provide equitable and sustainable access to housing by expanding manufactured home eligibility, simplifying use of HomeStyle® Energy loans, and updating valuation options for certain deed-restricted properties.

Promotes safe and responsible lending by updating property, flood, and project insurance requirements, and requirements for maintaining seller and servicer approval status.

Simplifies documentation requirements for use of borrower business assets; clarifies certain requirements related to temporary leave income and to grants and borrower contribution requirements, and temporary leave income; and includes several miscellaneous updates.

Fannie Mae has updated LL-2021-12 to provide advanced notice of upcoming changes to their Master Servicing processes and systems to simplify and streamline servicer reporting and will be introduced in a phased approach.

In this bulletin, Freddie Mac announced servicing guide updates for Resolve, Home Affordable Modification Program (HAMP®) termination, user forms, Mortgage Insurance, Short sale and deed-in-lieu relocation assistance, and Escrow shortage for COVID-19 and Disaster Payment Deferrals.

In this Mortgagee Letter Federal Housing Administration (FHA) revises the conflict of interest and dual employment policy to clarify when individuals may perform multiple roles in a single FHA-insured transaction.

In this Mortgagee Letter, Federal Housing Administration (FHA) establishes the COVID-19 HECM Property Charge Repayment Plan.

The Federal Housing Administration (FHA) has extended temporary waivers allowing mortgagees to use alternatives to face-to-face interviews with borrowers in accordance with early default intervention requirements through December 31, 2023.

In this Lender Letter, Fannie Mae announced servicing guide updates to the property, flood, and project insurance, compensatory fees for delinquency status reporting, and allowable foreclosure attorney fees and costs.

This Mortgagee Letter updates FHA’s mandatory flood insurance purchase requirement to allow for acceptance of private flood insurance policies that meet FHA’s requirements in lieu of a National Flood Insurance Program (NFIP) policy.

The provisions of this ML apply to all FHA Single Family Title I and Title II Programs, including Home Equity Conversion Mortgages (HECM).

In the Mortgagee Letter, FHA requires FHA-approved lenders and Mortgagees, and institutions seeking FHA approval, to provide an active Unique Entity Identifier (UEI) as part of their institution data in the Lender Electronic Assessment Portal (LEAP) or application for FHA approval.