Compliance Calendar

This announcement update transitions the ordering process for liquidation-related property valuations to Servicing Management Default Underwriter™ (SMDU), which now consolidates all servicer valuation orders into a single platform, as well as other additional miscellaneous clarifications and updates.

The Servicing Guide has been updated to include changes to the following:

▪ Liquidation-related property valuations*: transitions the process for ordering liquidation-related property valuations to Servicing Management Default Underwriter™ (SMDU) and consolidates all servicer valuation orders into a single platform

▪ Miscellaneous updates*:

o incorporates the clarifications related to performing an escrow analysis in connection with a payment deferral or Fannie Mae Flex Modification as previously communicated,

o updates the web-based application that allows for processing servicer expense reimbursement claims, and

o clarifies the definition of a group home

Effective: Servicers are encouraged to implement this policy change beginning June 20, 2022, but must do so by Sep. 1, 2022. For any property valuation orders the servicer requests through VMS prior to Sep. 1, 2022 and that are not yet completed as of that date, the servicer must continue to manage the order in VMS until the results are available in SMDU.

This update adds requirements for compliance with State Address Confidentiality programs, revises the required version of title insurance forms, and clarifies how to calculate the LTV ratio for manufactured housing subdivisions as well as describes updates to the list of approved mortgage insurers and approved mortgage insurance forms.

The Selling Guide has been updated to include changes to the following:

▪ Compliance with Address Confidentiality Programs: adding additional requirements for sellers/servicers to comply with state laws

▪ ALTA® forms update: revising the required versions of title insurance forms

▪ Calculating the LTV ratio for manufactured home subdivisions: clarifying how to calculate the LTV ratio for a loan secured by an existing manufactured home on a purchase transaction In addition, an update to the following is described in this Announcement:

▪ List of approved mortgage insurers and approved mortgage insurance forms: incorporates changes to these third-party companies and related forms

The Servicing Guide has been updated to include changes to the following:

▪ Address Confidentiality Program*: provides requirements when a borrower is enrolled in a state Address Confidentiality Program

▪ Miscellaneous updates*:

o incorporates the Stop Delinquency Advance and the Guaranty Fee Relief processes as previously communicated into the Servicing Guide, and

o clarifies the contact to obtain prior approval for any suspension of a foreclosure action beyond 60 days to facilitate the processing of assistance from a mortgage assistance fund program provider

The Federal Housing Administration (FHA) announced new flexibility for lenders when qualifying borrowers who experienced previous employment gaps or loss of income due to COVID-19 Related Economic Events.

he Selling Guide has been updated to include changes to the following:

▪ Personal gifts: expanding the list of acceptable gift donors

▪ Extension of the use of Condo Project Manager™

▪ Miscellaneous updates:

o Remote online notarization

o Desktop Underwriter® red flags

o Pooling clarification

This Guide Bulletin announces updates to the following:

• Gift funds and gift letter requirements
  • Added flexibilities for gift funds and gift letter requirements
• Additional Guide Updates
  • Further updates as described in the Additional Guide Updates section of this Bulletin including RON, a Community Land Trust delivery option, uniform instruments and standard and custom mortgage insurance minimum coverage clarification.

VA issued a VALERI Servicer Newsflash to address the following: New Reason for Default (RFD); Electronic Default Notice (ENE); the Fiscal Year 2022 End-of-Year Closeout; ServiceNow and Technician Contact Information.

This VA Circular was issued to inform the lending industry of updates to the WebLGY Request Single Property Appraisal user interface (UI) consistent with recent revisions to VA Form 26-1805.

VA will collect information on revised VA Form 26-1805, Request for Determination of Reasonable Value, for all new appraisal requests via the WebLGY Request Single Property Appraisal UI screen.

See the circular for instruction on the revised data fields.

This VA Circular change 1, extends the rescission date to align with the end of the National Emergency Concerning the Novel Coronavirus Disease 2019 (COVID-19)

Pandemic, including conforming changes to VA’s expectation as to the completion of forbearance periods.

FHA has published the latest version of the Single Family Housing Policy Handbook 4000.1 that includes enhancements and revisions to existing guidance as well as various technical edits effective on or after September 26, 2022.

Freddie Mac and Fannie Mae (the GSEs) are implementing a two-year transition to convert certain edits in their Uniform Closing Dataset (UCD) collection solutions from “warning” to “critical/fatal.” The transition will begin in May 2021 and is designed to enhance data quality and consistency for single-family loans purchased by the GSEs.

Phase 4 Closing Disclosure Sections:

• Transaction Information
• Contacts
• Cash to Close (Calculations)
• Summaries of Transaction (Calculations)