This topic consolidates the heartbeat of today's mortgage banking environment with news stories relevant to the financial compliance industry.
MBA NewsLink - Mike Sorohan
The Federal Housing Finance Agency rescinded the debt-to-income-based loan-level pricing adjustment proposed in January.
Fannie Mae announced updates to the Fannie Servicing Guide, including changes to servicing responsibilities for mortgage loans with resale restrictions or shared equity provisions, automation of the Non-Routine Litigation Form, the New York consolidation, extension, and modification agreement, and the elimination of the MERS® system requirement for eMortgages.
Search our Compliance Calendar for current regulatory changes & updates.
MBA Newslink
This week’s update includes information about MBA requesting the CFPB to proceed with rulemaking to amend the Reg X Loss Mitigation procedures, CFPB proposing Long-Anticipated PACE Financing Rules, Florida Legislature approving MLO remote work, and more.
WRE News--Phil Hall
The New York State Assembly is actively considering a bill to raise the minimum borrower customer age to 62 from 60 to be eligible for a reverse mortgage.
MBA Newslink
The updated SMART Doc® 1.02 Standardization Mapping and Implementation Guide includes guidance for creating consumer home equity first lien eNotes as well as mapping for consumer home equity first liens based on the 3200 Standard Fixed Rate Note form; the enhancements include guidance to increase interoperability and maintain data integrity when using eNotes for consumer home equity transactions, the public comment period runs through July 5.
Mortgage Professional America (MPA) - Fergal McAlinden
The Federal Reserve implemented its third increase of 2023, raising the Fed Funds rate from 5.00% to 5.25%.
"ACES has made my life so much easier from a QC perspective. It's life-changing"
- Kelly Cooper Spencer, QC & Business Intelligence Data Manager at Thrive Mortgage
HousingWire: Ensuring that creativity doesn’t compromise compliance takes serious research and constant QC system updating. We’ve asked Phillip McCall, president and chief operating officer at ACES Quality Management, how lenders can keep up with new and upcoming regulations to maintain loan quality in this very competitive environment.
This weeks update includes information relating to removing proposed LLPA for DTI ratios, CFPB reform legislation, housing challenges, and more.
DS News – Eric C. Peck
The Consumer Financial Protection Bureau (CFPB) has issued an interim final rule amending the agency’s 2021 LIBOR transition rule.
Housingwire--Brooklee Han
The Federal Reserve’s new FedNow, set to launch in July of this year, is meeting concerns from the title insurance industry that the benefit of speed, and being cheaper than wire transfers, may not outweigh the risks of fraud and irrevocable payments.
Automated compliance tests to ensure compliance on more loans in less time
FinCEN announced renewed and expanded GTO's requiring US title insurance companies to verify identities of natural persons behind shell companies that are used to purchase residential real estate non-financed. Expansion includes Litchfield County in Connecticut and Adams, Arapahoe, Clear Creek, Denver, Douglas, Eagle, Elbert, El Paso, Fremont, Jefferson, Mesa, Pitkin, Pueblo, and Summit counties in Colorado. The effective period of the GTOs for purchases in these newly added areas begins on May 24, 2023. The terms of the comprehensive GTO's are effective through October 21st, 2023.
The CFPB posted an advisory opinion reminding debt collectors that it may be a violation of the Fair Debt Collection Practices Act to attempt to foreclose on silent second mortgages, also known as zombie mortgages. Zombie mortgages are second mortgages in which the statute of limitations has expired. This prohibition applies even if the debt collector is not aware that the debt is time-barred.
The CFPB, along with the Board of Governors of the Federal Reserve System (Board), the FDIC, the NCUA, and the OCC, issued a joint statement on April 26th, 2023, reminding supervised institutions with USD LIBOR exposure that panels will end on June 30th, 2023, and reiterated that transition of remaining LIBOR contracts should be completed as soon as practicable.
DS News--Demetria Lester
The Consumer Financial Protection Bureau recently announced a revised version of its Methodology for Determining Average Prime Offer Rates, which details the calculations used to determine average prime offer rates for purposes of federal mortgage rules.
