Compliance Calendar

The UPD will be required for use in completing PDRs effective April 1, 2024.

Click the link to read the full circular.

The Federal Deposit Insurance Corporation (FDIC) finalized a rule to amend part 328 of its regulations to modernize the rules governing use of the official FDIC sign and insured depository institutions’ (IDIs’) advertising statements to reflect how depositors do business with IDIs today, including through digital and mobile channels. The final rule also clarifies the FDIC’s regulations regarding misrepresentations of deposit insurance coverage, which apply to any person, including IDIs and non–bank entities. The final rule addresses specific scenarios where consumers may be misled as to whether they are conducting business with an IDI and whether their funds are protected by federal deposit insurance. The final rule extends the certainty and confidence the FDIC official sign has consistently provided since the 1930s at traditional IDI branch teller windows to the evolving digital banking channels through which depositors increasingly handle their banking needs today.

Statement of Applicability: This Financial Institution Letter applies to all FDIC–insured depository institutions.

The amendments made by the final rule will take effect on April 1, 2024 with an extended compliance date of January 1, 2025.

The Single Family Housing Guaranteed Loan Program (SFHGLP) will be implementing a change in the Guaranteed Underwriting System (GUS) to remove required data entry in the Immigration/Naturalization Check Information section of the Additional Data screen for non-U.S. Citizen applicants. The anticipated implementation date for these changes is April 1, 2024.

Upon implementation, it will be the approved lender’s responsibility to document the applicants’ legal residency, rather than utilizing the Systematic Alien Verification for Entitlements (SAVE) system through GUS. Applicants are required to have a valid social security number and evidence of continued residency and income. The approved lender remains responsible for collecting all necessary documents needed to validate eligibility. By submitting the request for a Conditional Commitment to the Agency, the lender represents and warrants that the applicant is legally present in the United States and meets the eligibility requirements of the SFHGLP.

To incorporate this change, revisions to technical Handbook 1-3555, Chapter 8, Applicant Characteristics have been drafted, with the changes expected to be implemented on April 1, 2024. The following are highlights of the upcoming Handbook revisions:

Chapter 8 – Applicant Characteristics

• Removed all references to the Systematic Alien Verification for Entitlements (SAVE) program.

• Clarified that approved lenders will be responsible to obtain and review a non-U.S. Citizen’s identification number and documentation to determine the applicant’s eligibility for the SFHGLP.

Copies of the upcoming revisions are available for review on the Loan Origination page of the USDA LINC Training and Resource Library, under the sub-heading “New”.

Click below to read the full notice.

1. Purpose. The purpose of this Circular is to extend the rescission date of Circular 26-21-08, Expanded Home Loan Eligibility Based on Certain National Guard Service.

2. Therefore, Circular 26-21-08 is changed as follows:

Page 2, paragraph 7: Delete “This Circular is rescinded April 1, 2024”, and replace with “This Circular is valid until rescinded”.

3. Rescission. This Circular is valid until rescinded.

On Monday, April 1, 2024, the Guaranteed Underwriting System (GUS) will retire its current integration with the Systematic Alien Verification for Entitlements (SAVE) system. Lenders will no longer be prompted to enter data into the “Immigration/Naturalization Check” section of the GUS Additional Data page for non-U.S. citizen applicants. Existing/historical data completed in this section, prior to the implementation, will remain available in read-only format.

The GUS Underwriting Findings Report will trigger a new message following a successful preliminary/final underwriting submission (that includes a non-U.S. citizen applicant), which reads:

“70013 – Immigration Status: Borrower [Doe, John] is not a US citizen. Documentation verifying the borrower has acceptable immigration status, as described in Chapter 8, Section 8.2F of HB-1-3555, must be maintained in the lender’s permanent loan file.”

Applicants are required to have a valid social security number and evidence of continued residency and income. The approved lender remains responsible for collecting all necessary documents needed to validate eligibility. By submitting the request for a Conditional Commitment to the Agency, the lender represents and warrants that the applicant is legally present in the United States and meets the eligibility requirements of the Single-Family Housing Guaranteed Loan Program.

The corresponding revisions to Chapter 8 of HB-1-3555 can be viewed on the Loan Origination page of the USDA LINC Training and Resource Library under the subheading “New”. These revisions will become effective with the GUS changes on April 1, 2024.

Thank you for supporting the Single-Family Housing Guaranteed Loan Program!

Freddie Mac Guide Bulletin 2023-19, issued on October 4, 2023, updates rental income requirements for mortgages with settlement dates on or after April 1, 2024. However, the changes may be implemented immediately.

This Guide Bulletin announces:

• Manufactured Homes
➢ Updated requirements related to Manufactured Home certification
• PDR Completion Report Data Set
➢ Updates to the PDR Completion Report Data Set – July 2, 2024
• Investor Feature Identifier (IFI) “J44”
➢ Updates to Guide Exhibit 34, Investor Feature Identifiers, to align with the applicability of IFI “J44” –
September 4, 2024

Click the link to read the full circular.

Click the link to read the full FHA Info Letter.

This Guide Bulletin announces:

• Freddie Mac action plans

➢ The renaming of “action plans” to “performance monitoring plans”

• Home Affordable Modification Program (HAMP)

➢ Updated Guide Exhibit 93, Evaluation Notices, to remove the instructional language related to HAMP

• Third-party foreclosure sale reporting

➢ A reminder of our current reporting and reimbursement procedures related to third-party foreclosure sales

1. Purpose. The Department of Veterans Affairs (VA) remains steadfast in its commitment to assist borrowers retain their homes and avoid foreclosure. The purpose of this Circular is to offer an expanded loan modification option to assist borrowers in reaching an affordable payment in the current environment of rising interest rates.

2. Effective Date. This Circular is effective immediately.

3. 40-Year Loan Modification Option. A loan modification is a written agreement by and between the servicer and all obligors on the loan, which permanently changes one or more of the terms of a loan and may include re-amortization of the balance due. Through this Circular, VA provides advance consent1 to loan modifications that extend the loan repayment term up to 480 months from the due date of the first payment required under the modification, provided that the proposed modification allows the borrower to reach an affordable monthly payment and meets the conditions listed in 38 C.F.R. § 36.4315(a)(1) through (a)(8) and (a)(10) through (a)(14). VA’s advance consent means that a servicer does not need to submit a proposed modification to VA for prior approval if the conditions of this Circular are met.

4. Questions. Any questions regarding this Circular should be submitted via ServiceNow at https://www.benefits.va.gov/HO....

5. Rescission. This Circular is valid until rescinded.

Click the link to read the full HUD announcement.

Click the link to read the full circular.

Today, the Federal Housing Administration (FHA) announced the publication of consolidated Home Equity Conversion Mortgage (HECM) sections of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). Through this update, Handbook 4000.1 now contains policies for the entire FHA Single Family Housing Program, including comprehensive and authoritative policies for the HECM program.

The new HECM sections consolidate existing program guidance currently found in over 100 Mortgagee Letters, various handbooks, the HECM Financial Assessment and Property Charge Guide, and various other policy materials. The sections contain revisions to policy for clarity, consistency, and to conform to the published Handbook 4000.1 organizational structure.

The new sections of the Single Family Handbook are:

Section III.B, covering FHA policy for the servicing of HECMs.

Today, the Federal Housing Administration (FHA) announced the publication of consolidated Home Equity Conversion Mortgage (HECM) sections of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). Through this update, Handbook 4000.1 now contains policies for the entire FHA Single Family Housing Program, including comprehensive and authoritative policies for the HECM program.

The new HECM sections consolidate existing program guidance currently found in over 100 mortgage letters, various handbooks, the HECM Financial Assessment and Property Charge Guide, and various other policy materials. The sections contain revisions to policy for clarity, consistency and to conform to the published Handbook 4000.1 organizational structure.

The new sections of the Single Family Handbook are:

• Section II.B, covering FHA policy for the origination through post-closing and endorsement of HECMs.

Purpose - This Mortgagee Letter (ML) updates the acceptable funding sources for satisfying the monetary investment for HECM in Purchase transactions.

Effective Date - The provisions of this ML are effective for all HECM case numbers assigned on or after April 29, 2024.

All policy updates will be incorporated into a forthcoming update of the HUD Handbook 4000.1, FHA Single Family Housing Policy Handbook (Handbook 4000.1).

Affected Programs - The provisions of this ML apply to the Title II HECM program

Summary of Changes -

This ML:
• adds Premium Pricing as an Unacceptable Monetary Investment Funding Source (II.B.8.a.xii(C)(2)(b)(ii));
• removes Premium Pricing as an acceptable funding source that can be used towards the Borrower’s Monetary Investment (II.B.8.a.xii(C)(3));
• revises and renumbers the section and subsection citations for Interested Party Contributions (II.B.8.a.xii(C)(3));
• removes Discount Points from the definition of and standard for Interested Party Contributions (II.B.8.a.xii(C)(3)(a));
• updates the Standard for Interested Party Contributions to remove Interested Party payments for permanent and temporary interest rate buydowns and excludes Mortgagees and Third-Party Originators (TPOs) from making Interested Party Contributions (II.B.8.a.xii(C)(3)(b));
• removes Premium Pricing as an Exception to Interested Party Contributions and adds an Exception for certain fees paid by a Mortgagee for services performed by a sponsored Third-Party Originator (TPO) (II.B.8.a.xii(C)(3)(b));
• updates the requirements for documenting Interested Party Contributions (II.B.8.a.xii(C)(3)(c));
• revises Discount Points section to make Discount points and interest rate buydowns prohibited Closing Costs and Fees (II.B.8.a.xiii(D)(3)); and
• renumbers and makes a technical edit to change text from Interested Party credits to Interested Party Contributions (II.B.8.a.xiii(D)(4)).

The model HECM Fixed and Adjustable Rate Mortgage Payment Plans and model Exhibit II - Schedule of Closing Costs have been modified to align with the provisions of this ML.