Compliance Calendar

On July 8, 2022, Gov. Roy Cooper signed House Bill 776, which revived the emergency remote notarization statute (N.C. Gen. Stat. 10B-25) through June 30, 2023, and concurrently enacted an entirely new and permanent remote notarization law (N.C. Gen. Stat. 10B-134 et seq.).

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

▪ Servicing responsibilities for mortgage loans with resale restrictions or shared equity provisions*: introduces and clarifies

requirements for servicing mortgage loans subject to resale restrictions or shared equity provisions

▪ Automation of the Non-Routine Litigation Form: updates the link to require electronic submission

▪ New York Consolidation, Extension, and Modification Agreement*: provides updated requirements for refinancing an eNote

▪ Elimination of the MERS® system requirement for eMortgages: removes the requirement that sellers/servicers must register the lien on MERS

View the list of impacted topics.

*Policy change not applicable to reverse mortgage loans.

Based on FHFA’s Private Transfer Fee Covenant Regulation 12 CFR Part 1228, Freddie Mac is currently prohibited from purchasing Mortgages from shared equity programs (specifically Community Land Trusts and income-based deed restricted properties) if the sponsoring organization charges a private transfer fee when the homeowner transfers their property to a new, program-eligible buyer. Recognizing that the purchase of these Mortgages is critical to supporting Freddie Mac’s Duty to Serve Plan, the FHFA has issued a waiver allowing for the purchase of these Mortgages with Note Dates on or after July 1, 2023, providing the following requirements are met:

• The Mortgage is a shared equity loan,
• The Mortgage meets the Duty to Serve shared equity loan program criteria identified in 12 CFR 1282.34(d)(4) (other than the Duty to Serve 100 percent of Area Median Income limit), and
• The Mortgage has a Note Date on or after July 1, 2023, but no later than December 31, 2024

With this change, we are updating our Guide requirements for shared equity programs with private transfer fees to allow for the purchase of these Mortgages.

The Servicing Guide has been updated to include changes related to the following miscellaneous updates:
▪ Loan property address changes*
▪ Compliance with requirements and laws
▪ Disaster Response Network™ and Know Your Options™ references
Additionally, we published certain borrower-facing documents in relation to LL-2023-04.*

*Policy change not applicable to reverse mortgage loans

The policy in this Lender Letter replaces in its entirety Fannie Mae’s payment deferral requirements as reflected in Servicing Guide D2-3.2-05, Payment Deferral.

This Guide Bulletin announces an expansion of the Freddie Mac Payment Deferral that will, along with other updates, increase eligibility to include Borrowers who are between 60- and 180-days delinquent. Form templates and additional updates will be provided in a future bulletin.

In this lender letter, Fannie Mae revised the requirements for purchasing shared equity loans about the Private Transfer Fee Covenant Regulation (12 CFR Part 1228).

The Selling Guide has been updated to include the required use of Condo Project Manager.

Fannie Mae is requiring lenders to use Condo Project Manager (CPM) for all condo projects being reviewed under the Full Review Process. All Fannie Mae seller/servicers have access to CPM. Correspondent originators who are not approved seller/servicers will have access by May 1, 2023. These third-party originators will receive separate communication on how to access CPM through Technology Manager. As a reminder, certain projects will remain exempt from the required use of CPM including projects that qualify for a waiver of the project review per the policies in the Selling Guide, projects where the Limited Review process is used, manufactured home condo projects, and co-op projects. Lenders are required to deliver the CPM ID number at delivery for projects where CPM was used, including projects with a Fannie Mae Approval.

The Commissioner of the Vermont Department of Financial Regulation's suspension of the disclosure requirements of Regulation B-98-2 for High Rate Mortgage Loans expires July 1, 2023

Colorado Senate Bill 190 enacts the Colorado Privacy Act effective July 1, 2023.

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

▪ Review requirements for condo and co-op project eligibility: updates project standards policies for properties in need of critical repairs and special assessments

▪ Eligibility requirements for limited cash-out refinance transactions: requires at least one borrower to be a current owner of the subject property

▪ Sale of loans aged six months or less: incorporates eligibility requirements for the sale of loans aged six months or less

This Mortgagee Letter relates to mortgagees who fail to make a required payment to a borrower and updates the FHA's investigation requirements in these situations.

Fannie Mae Servicing Guide Announcement (SVC-2023-04)

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

▪ Requirements for partial release of security*: updates the requirements for evaluating a request for the release, or partial release, of property securing a mortgage loan

▪ Updates to the Request for Approval of Servicing or Subservicing Transfer: updates Request for Approval of Servicing or Subservicing Transfer (Form 629) with a new data element

▪ Miscellaneous updates:

o Automated Clearing House banking instructions

o Insured loss events*

*Policy change not applicable to reverse mortgage loans.

NOTICE

INSERT RD HB-1-3555 (WSAL) HANDBOOK.

SFH GUARANTEED LOAN PROGRAM TECHNICAL HANDBOOK.

Appendix 5 is completely revised to update the Income Limits for the Section 502 Guaranteed Loan Program.

The effective date of these income limits is July 13, 2023.

REMOVE Appendix 5.

INSERT Appendix 5 revised 07-13-23

The purpose of this Circular is to update servicers of VA-guaranteed loans on how to assist borrowers following the termination of the National Emergency Concerning the Novel Coronavirus Disease 2019 (COVID-19) Pandemic, specifically, updates regarding VA’s COVID-19 Home Retention Waterfall and VA’s temporary home retention options, loan deferment, and COVID-19 Refund Modification.

The Single-Family Housing Guaranteed Loan Program (SFHGLP) is updating its guidance for loan servicers concerning the Default Status Reason Codes for Electronic Status Reporting (ESR). This will better align the SFHGLP with our stakeholders and the mortgage industry.

A quick reference sheet with updated Guidance for Usage is available on USDA LINC Training and Resource Library.

The Electronic Status and Default Status Reporting (ESR) User Guide has been expanded to include the new Default Status Reason Code Guidance for Usage.

These codes apply only to ESR and are not intended to advise loan servicers on how they should report loan statuses to the credit reporting agencies. For reporting to the credit bureaus, loan servicers should confer with their compliance team.

Questions regarding program policy and this announcement may be directed to the National Office Division at sfhglpServicing@usda.gov or (202) 720-1452. Thank you for your support of the Single-Family Housing Guaranteed Loan Program.

The purpose of this Circular is to announce changes to the VA’s procedural requirements regarding the VA Fee Appraiser’s responsibility to gain interior access for liquidation appraisal assignments when the subject property is occupied.

This VA circular advises stakeholders that VA Form 26-8736, Application for Authority to Close Loans on the Automatic Basis – Non-Supervised Lenders, was revised and to introduce a new form, VA 26-8736c, Request for Agent Recognition.