Compliance Calendar

In this bulletin, Freddie Mac announced updates to their pricing framework, which introduced new Credit Fees, including Debt-to-Income Ratio > 40% Credit Fees, updated fee rates and assessment criteria, effective for certain Single-Family Mortgages with Settlement Dates on or after May 1, 2023.

This Guide Bulletin announces:

• Credit underwriting
  • Updates addressing payment of past-due federal taxes under an installment agreement – August 1, 2023
  • An allowance for the exclusion of waived real estate taxes from the calculation of the Borrower’s housing expense ratio
• Unplanned buydowns
  • The retirement of an exemption that allowed the cost of unplanned buydowns to be excluded from the calculation of financing concessions – August 1, 2023

The purpose of this Dear Lender Letter (DLL) is to update the Section 184 program Eligible Lending Areas and provide 2023 Maximum Loan Limits for these newly approved Section 184 Eligible Lending Areas

Fannie Mae has updated the Selling Guide to include changes to; appraiser and property data collector independence requirements and miscellaneous updates that include military addresses for credit reports, requirements for special servicer approval via Servicing Marketplace™, and triparty wiring instruction agreements.

Freddie Mac has updated its Selling Guide to include updates to; credit underwriting, Loan Product Advisor® asset, and income modeler, appraisals, and property data collection, and additional guide updates that include credit fee caps, claims event, and Freddie Mac’s claims glossary definitions and much more.

On August 9, 2023, Federal Housing Administration (FHA) announced updates to the Single Family Housing Policy Handbook 4000.1.

On August 10, 2023, Federal Housing Administration (FHA) announced new functionality in the FHA Connection (FHAC) system, enabling lenders to process their case cancellations and reinstatements through the Case Cancel/Reinstate Screen and through the Business to Government (B2G) connection in the future.

The Federal Housing Administration (FHA) has published a reminder to mortgagees about its guidance for originating and/or servicing FHA-insured forward mortgages and Home Equity Conversion Mortgages (HECM) in locations in the U.S. and its territories where the President has declared a major disaster area.

In this bulletin, the USDA outlines relief measures that holders and/or loan servicers of USDA Single Family Housing Guaranteed Loan Program (SFHGLP) mortgages should implement to assist USDA Rural Development (RD) borrowers affected by the Maui Wildfires.

This announcement outlines relief measures that holders and/or loan servicers of USDA Single Family Housing Guaranteed Loan Program (SFHGLP) mortgages should implement to assist USDA Rural Development (RD) borrowers affected by the Maui Wildfires. Homeowners impacted may be eligible for temporary relief. Due to the magnitude and impact of this disaster, servicers must immediately implement the following for borrowers in the designated area.

1. IMMEDIATE MORATORIUM/FORECLOSURE SUSPENSION: An immediate moratorium should be put in place for borrowers whose properties or place of employment is directly impacted by the Maui Wildfires. The servicer must suspend all foreclosure actions for borrowers in the affected area. This applies to both the initiation of new foreclosures, as well as foreclosures already in process. This moratorium shall expire no earlier than 180 days after the date of the President Declaration unless extended by the USDA.
2. FORBEARANCE: USDA encourages SFHGLP loan servicers to evaluate forbearance options for borrowers in distress as a result of the Maui Wildfires. Borrowers impacted may be placed on a forbearance of up to 12 months to provide payment relief from their mortgage obligation during this time. Precise and consistent communication with borrowers should help determine whether their difficulties are directly or indirectly related to the wildfire, or whether the issue stems from other sources which must be addressed. Guidance relating to this topic can be found in Chapter 18 of the program Handbook.
3. REPORTING: Servicers are reminded that they must report the appropriate default status codes associated with the actions taking place. These instructions apply only to USDA Electronic Status Reporting requirements and do not apply to credit bureau reporting. Servicers should confer with their legal team for requirements pertaining to credit bureau reporting. The default status codes are located on the USDA LINC Training and Resource Library.
4. DOCUMENTATION: Servicers should fully document their decisions when loss mitigation servicing actions are implemented. The documentation should substantiate their loss mitigation decision and should follow the Agency’s outline in “Assistance in Natural Disasters”, located in Chapter 18 of the program Handbook.

In this circular, the VA expresses concerns about VA mortgage loan borrowers affected by the Hawaii Wildfires and reminds mortgage servicers and borrowers alike to review VA’s Guidance on Natural Disasters to ensure Veterans receive the assistance they need.

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

 Manufactured homes – temporary interest rate buydowns: allowing temporary interest rate buydowns for mortgages secured by manufactured homes

 Qualifying rate for 7- and 10-year ARMs: allowing 7- and 10-year ARM borrowers to be qualified using only the note rate

 Acceptable uses for limited cash-out refinance transactions: adding clarifying details for amounts that may be included with the payoff of existing loans

 Miscellaneous updates:

o Requirements for credit reports

o Updated Cash Remittance System forms

Fannie Mae and published frequently asked questions about delivering Manufactured Housing Loans to Fannie Mae for both standard single- and multi-width MH and MH Advantage underwriting.

For applications dated on or after August 28, 2023, the Fannie Mae/Freddie Mac Form 1103, Supplemental Consumer Information Form (SCIF), will be required to collect and report certain information from Borrowers.

Fannie Mae announced changes to its Master Servicing processes and systems effective August 30, 2023.