Compliance Calendar

The UPD will be available for use in completing PDRs effective December 1, 2023, but will not be required for use until April 1, 2024.

The circular announces that the Lender’s Staff Appraisal Reviewer (SAR) Application, VA Form 26-0785; Servicer Staff Appraisal Reviewer (SAR) Application, VA Form 26-0829; and the $100 application fee should no longer be submitted to the Administrative and Loan Accounting Center (ALAC) physical address for fee payment processing and are to be submitted to VA electronically.

New functionality supporting Accessory Dwelling Unit processing in FHA Connection will be available for use beginning Friday, November 17, 2023, and must be used for transactions on properties with ADUs by December 4, 2023.

SUBJECT: SELLING UPDATES

This Guide Bulletin announces:

• 2024 conforming loan limit values
  • New conforming loan limit values for 2024 – January 1, 2024
• Employed income documentation and verification requirements
  • A 10-day pre-closing verification (PCV) update
• Cash-out refinance Mortgages
  • A requirement that all Borrowers must occupy the property when the Mortgage is secured by a Primary Residence – March 6, 2024
• Condominium Projects
  • The addition of a new Project Assessment Request finding status, Not Eligible, to Condo Project Advisor^® – February 26, 2024
  • Project Certified Submission (PCS), an enhancement to Condo Project Advisor – December 8, 2023
  • The reorganization of certain content in Guide Chapter 5701 – December 8, 2023
  • Updates to the license terms for Condo Project Advisor
• GreenCHOICE Mortgages^®
  • Expanded eligibility for the types of improvements that may be financed with a GreenCHOICE Mortgage
  • The removal of certain requirements for a “no cash-out” refinance GreenCHOICE Mortgage that is also a Home Possible^® or HomeOne^® Mortgage
• Appraisals – market condition adjustments
  • Examples of acceptable data sources that may be used when determining and in support of adjustments for changes in market conditions over time
• Shared equity homeownership programs
  • Updates to our requirements for Mortgages secured by properties subject to resale restrictions
  • Updates to our ground lease review and recordation requirements for Community Land Trust Mortgages
• Additional Guide updates
  • Further updates as described in the Additional Guide updates section of this Bulletin

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

• Income Calculator: allows optional use of Income Calculator to determine the monthly qualifying income for self-employed borrowers
• Verification of employment alternatives: permit lenders to use alternative options to meet verbal verification of employment requirements
• Restricted stock units and restricted stock: adds requirements to consider this form of compensation as eligible income
• Using nontaxable income to adjust the borrower’s gross income: allows the lender to gross-up certain nontaxable income without providing additional documentation
• Certified Shared Equity Program List: incorporates a list of programs into policy to assist lenders with their review of shared equity providers and transactions
• Financial reporting requirements: requires large non-depository sellers/servicers to report the Mortgage Banker’s Financial Report Short Form (Form 1002A) monthly
• Sale of eMortgages to Fannie Mae: incorporates The Guide to Delivering eMortgages to Fannie Mae into the Selling Guide and clarifies the use of special purpose legal documents
• Requirements for use of attorney title opinion letters: permit lenders to obtain either a lender’s title insurance policy or, in limited circumstances, an attorney title opinion letter
• Miscellaneous updates:
  • Remote online notarization
  • Number of borrowers in Desktop Underwriter® (DU®
    

This Guide Bulletin announces:

• Delinquency reporting and COVID-19 hardships
  • A reminder for reporting new delinquencies related to COVID-19
• LIBOR replacement index
  • An update to the Refinitiv public replacement index name for single-family ARMs
• Servicing Mortgages secured by properties subject to resale restrictions
  • An update to the requirements for Servicing Mortgages secured by properties subject to resale restrictions
• Forbearance late notice and payment reminders
  • Additional guidance on Servicer discretion in relation to late notices/payment reminder letters
• Additional Guide updates
  • Further updates as described in the Additional Guide updates section of this Bulletin

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

• Financial reporting requirements*: advises large non-depository sellers/servicers of updates to the frequency of financial reporting requirements
• Miscellaneous updates:
  • Retirement of SURFTM
  • Required net yield*
  • Title transfers involving LLCs*
    
  • Adverse Action Notice
  • Special Lender Approval Form

• Purpose. The Department of Veterans Affairs (VA) is publishing this Circular to remind holders and servicers of their obligation to process assumptions and to outline for holders and servicers how the VA will address failure to comply with assumption requirements.

• Effective Date. This Circular is effective immediately.

Purpose - This Mortgagee Letter (ML) updates and streamlines policy for the HECM program to improve the long-term performance of the program.

Section Of ML and Effective Date:

Occupancy Certification (III.B.1.p) - Effective Immediately

Optional Assignment (III.B.1.r) - Effective Immediately

Permissible Loss Mitigation Options Available for HECMs in Due and Payable Status (III.B.2.c.ii(D)) - Effective Immediately

Defaults for Unpaid Property Charges – Standard (III.B.2.c.ii) - Effective Immediately