Compliance Newshub
Disaster News

This bulletin announces the Freddie Mac COVID-19 Payment Deferral and provides details of the solution and key differences from a standard payment deferral.

FDIC has published of a notice of proposed rulemaking that would mitigate the deposit insurance assessment effects of participating in the Paycheck Protection Program (PPP) established by the U.S. Small Business Administration and the Paycheck Protection Program Lending Facility (PPPLF) and Money Market Mutual Fund Liquidity Facility (MMLF).

VA is providing further clarification of the requirements and effective date of the temporary valuation practices guidance during a National Emergency.

In this announcement, FHA provides Interagency COVID-19 Forbearance Fact Sheets for Servicers and Consumers, registration for the FHA Quality Assurance Update Webinar, Q2 2020, and a pre-recorded webinar: FHA's Loss Mitigation Options for Borrowers Affected by the Presidentially -Declared COVID-19 National Emergency.

The FDIC published a series of steps intended to provide regulatory relief to financial institutions and facilitate recovery in areas of South Carolina affected by severe storms, tornadoes and straight-line winds.

Housingwire--Ben Lane

A coalition of Democratic senators has issued survey letters to Bank of America, JPMorgan Chase, Lakeview Loan Servicing, LoanCare, Mr. Cooper, NewRez, PennyMac Financial Services, Quicken Loans, Truist Financial, U.S. Bancorp, and Wells Fargo that includes a list of 13 questions, many with several subsections, concerning their handling of COVID-19 consumer relief provisions and requiring response from these servicers by mid-May.

This week's edition includes COVID-19 Resources for Originators and Underwriters; Special feature codes list updates for COVID-19; and Reimbursement of Fees for Bankruptcy Notices of Forbearance.

Fannie Mae has updated LL-2020-04 to extend the application dates eligible for  temporary appraisal flexibilities to Jun. 30, 2020.

Fannie Mae has updated LL-2020-03 to: extend the application dates for these temporary policies to Jun. 30, 2020; issue reminders regarding unemployment benefits as qualifying income; clarifying eligibility of income for furloughed borrowers; temporarily suspending reps & warranty relief for employment validation through DU validation service; reminders of purchase/securitization requirements; modifying age of documentation requirements; new verification of self-employment requirements; revised market-based assets requirments; power of attorney flexibilities; expansion of remote online notorization; flexibilities for verbal or electronic post-close reverifications;  flexibilities for VVOEs; reminders for continuity of income requirements; extending deadlines for the submission of financial statements and Form 582; reminder of existing policies regarding possession of the original promissory notes related to electronic records; reminder of the acceptance of lender title policies that include "gap coverage"; and reminder of business continuity and resiliency plans. 

This bulletin provides temporary requirements and guidance related to: mortgage purchase eligibility; self-reporting requirements for Mortgages in COVID-19 related forbearance; extension of certain previously announced temporary requirements; furloughs and layoffs; unemployment compensation; automated income assessment with Loan Product Advisor® using tax return data; and announcing additional resources, including Selling FAQs related to COVID-19, which are updated with this Bulletin.

MBA Newslink

MBA reports that loans in forbearance increased to 7.54% of servicers’ portfolio volume as of April 26. 

Fannie Mae announces the temporary suspension of employment validation within the Desktop Underwriter® (DU®) validation service, in response to COVID-19’s unprecedented impact on employment, for all new casefiles created in DU on or after May 4, 2020.