Compliance Calendar

Click the link to read the full circular.

• Builder forward commitments

➢ Specificity related to the costs associated with obtaining builder-forward commitments

➢ The creation of a new Investor Feature Identifier for Mortgages originated under builder forward

commitments – September 4, 2024

• Warranty of completion alternatives

➢ Enhanced requirements for verifying the completion of a property

• First-Generation Homebuyer Mortgages

➢ Guide updates related to the previously announced “First-Generation Homebuyer Mortgage” definition

• Flood insurance premium used for qualifying

➢ A new requirement for including the full flood insurance risk premium when calculating the housing expense to-income and debt payment-to-income ratios – September 5, 2024

• Mortgage insurance

➢ The retirement of certain restrictions for custom and lender-paid mortgage insurance

• Community Land Trust Certified Shared Equity Program List

➢ Updated requirements regarding the sale of Community Land Trust Mortgages to Freddie Mac

• Additional Guide updates

➢ Further updates as described in the Additional Guide updates section of this Bulletin

Purpose

Attached is a revision to Chapter 7, Loans Requiring Special Underwriting, Guaranty, and Other Considerations, of the VA Lenders Handbook.

Changes

· Topic 2, Construction/Permanent Loans, has been revised in its entirety.

Additional Copies

Additional copies may be downloaded from the VA Home Loans website

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

 Builder standby commitment fees: adding Special Feature Code 887 for loans delivered using a standby

commitment

 Closing costs definition: updating glossary definition of closing costs to include items related to the real estate

and financing transactions

 HomeReady® housing counseling LLPA credit: expanding timeframes for completion of counseling and eliminating Form

1017

 Retirement of Form 2200: retiring the requirement for a completed Form 2200 at loan delivery

 Miscellaneous update:

o Private transfer fees

View the list of impacted topics.

This Guide Bulletin announces:

• Loan Product Advisor® Mortgage assumptions

➢ New options to underwrite Mortgage assumptions in Loan Product Advisor – August 5, 2024

• Freddie Mac Flex Modification®

➢ Guide updates for Freddie Mac Flex Modifications – December 1, 2024

• Resolve®

➢ Updates to the evaluation of Payment Deferrals and Disaster Payment Deferrals in Resolve – July 29, 2024

➢ New functionality in the Resolve user interface (UI) – July 29, 2024

• Custodial Accounts

➢ New requirements for investing Custodial Account funds – October 1, 2024

➢ Updated Custodial Account documentation requirements

➢ The automation of our Custodial Account review process

• Updates from Bulletin 2024-7

➢ Updates to our Acknowledgment Agreements

➢ A new requirement for reporting changes in Seller/Servicers’ organization or status – October 1, 2024

This Guide Bulletin announces:

• Reconsideration of value (ROV) process

➢ New requirements for handling ROV requests – August 29, 2024

• Attorney opinion of title letters

➢ An expansion of the permitted use of an attorney opinion of title letter

• Credit underwriting

➢ Updates related to:

• Inquiries generated by credit reports

• Reserve requirements for concurrent Mortgage applications

• Acceptable sources of large deposits – September 30, 2024

• Loan Product Advisor® assessment

➢ The removal of the requirement that at least one Borrower on the transaction must have a usable credit

score for Borrower cash flow to be considered in the credit assessment – May 5, 2024

➢ Updated requirements related to the inclusion of trended credit data in credit reports – August 4, 2024

• Additional Guide updates

➢ Further updates as described in the Additional Guide updates section of this Bulletin

Click the link to read the full Mortgagee Letter.

Click the link to read the full circular.

Click the link to read the full updated lender letter.