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Arlington, TX June 7, 2017
Texas Authorizes Online Notary and Revamps POA
Texas H.B. 1217 provides for new requirements and definitions for online notarization. This permits appearing by interactive two-way audio and video communication, and electronic proof of identity.

In accordance with the Texas Revised Uniform Fiduciary Access to Digital Assets Act, Texas S.B. 1193 provides for a revision to the Statutory Durable Power of Attorney, to include authorities for “Digital assets and content of electronic communication”. A copy of the updated Power of Attorney can be found under the Tools tab on our website.

Arlington, TX June 7, 2017
FNMA Accepts eNotarization
On May 30, 2017, FNMA released SEL 2017-05.This includes the update to accept delivery and servicing on loans with electronic notarization on Security Instruments and Modification Agreements. Though many states expressly permit in-person eNotarization, few states have adopted laws and regulations to permit remote notarization. Currently Virginia, Montana and now Texas have provided for the ability to remote notarize, with use of real-time , two way audio and visual communication.

Arlington, TX January 9, 2017
HUD has released Mortgagee Letter 2017-01 indicating that they will be reducing the annual MIP on all FHA Title II forward mortgages. New annual MIP rates are based specifically on the transaction loan-to-value (LTV), and will no longer use “base loan amount” as a factor. Unlike previous changes centered on FHA Case Number Assignment date, these rates have an effective date established on the Closing and/or Disbursement Date. Rates are applicable based on the later of the signing of the Mortgage/Deed of Trust, or the disbursement of the loan proceeds as entered in FHA Connection, with a trigger date of January 27, 2017.


Arlington, TX August 23, 2016
Fannie Mae and Freddie Mac have released the redesigned Uniform Residential Loan Application (URLA/Form 1003) reflecting the changes required by the update to the Home Mortgage Disclosure Act. Beginning January 1, 2018, lenders may use the updated fillable form that has been provided. With the various attachments that may be applicable for each loan, the application may be as long as 15 pages. A dynamic version of the revised URLA form will be available soon, along with a Spanish translation of the URLA form to assist borrowers in completing the form. The Fannie Mae website for the revised Form 1003 includes several links for technical resources, a URLA Fact Sheet, Instructions, and FAQs. The website may be found at:

Arlington, TX August 2016
Military Lending Act

In July of 2015 the DOD amended its final rule to the Military Lending Act (MLA), in order to provide a broader range of protection to active duty service members and their dependents, for consumer credit transactions. The first round of requirements for these amendments will go into effect October 3, 2016. Though the MLA exemptions include real estate transactions involving a dwelling and the initial construction of a dwelling, PeirsonPatterson, LLP will be providing compliance audits and required disclosures for lot/land only transactions, which do not fall within these exemptions. In order for testing to run as needed, clients will be required to indicate whether or not the consumer is a servicemember on the order form selected. The rule requires a Military Annual Percentage Rate (MAPR) tolerance test (maximum of 36%), which will be instituted on lot/land only transactions, with results displayed on the Compliance Certificate. The new “Statement of Military APR” disclosure will also be provided on all applicable transactions. In addition to the Statement of Military APR, the final rule requires the disclosure of a “clear description of the payment obligation”. As stated by the MLA, this can be satisfied by either the payment schedule (for closed-end), or an account-opening disclosure (for open-end) that complies with Reg. Z disclosure requirements. These are documents already provided in the applicable closing packages, so no additional disclosure will be required. We do not foresee any issues with these implementations, and are happy to do our part to keep our clients in compliance with the newest scope of the MLA rule.


Arlington, TX July 2016
CFPB Releases Updated Webinar Q&A Index

July 27, 2016, the CFPB has released an updated index of FAQ to include the March 1, 2016, and April 12, 2016 webinars.
You can access the link to the index here.

Arlington, TX June 2016
USDA Fees to Decrease Oct 1, 2016

RHS recently released its unnumbered letter dated March 31, 2016, entailing Upfront Guarantee Fees and Annual Fees for USDA loans for fiscal year 2017. Upfront Guarantee fees are noted to be reducing to 1.0% and Annual fees will drop to 0.35%, for all purchase or refinance transactions. These changes will be effective for all Conditional Commitments issued on or after October 1, 2016.


Arlington, TX May 2016
News: RHS Releases “Qualified Mortgage” Definition

May 3, 2016, RHS has officially published their definition of a “Qualified Mortgage” in the Federal Register. Per RHS, this means a transaction which meets USDA guidelines as published and §1026.43(e)(2)(i)- §1026.43(e)(2)(iii)-General QM requirements of regular periodic payments(fixed, ARM or Step), with prohibitions on any toxic feature such as: negative amortization, interest only, or balloon payments, and terms exceeding 30 years. Transactions additionally must meet 1026.43(e)(3) Points and Fees requirements. There will be no debt-to-income(DTI) ratio requirements, other than those set forth per USDA guidelines. This final rule becomes effective June 2, 2016

Arlington, TX May 2016
End in sight? We'll see

On April 28, 2016, Richard Cordray, Director of the Consumer Financial Protection Bureau (Bureau or CFPB), addressed a letter to the mortgage industry announcing that rulemaking for TILA-RESPA Integrated Disclosure (TRID) would reopen in July 2016. Since before the start date of TRID on October 3, 2015, the mortgage and banking industry has repeatedly requested additional clarification and guidance from CFPB. The Bureau, and Richard Cordray himself, has repeatedly declined to offer anything other than the basic facts and interpretations, as well as guidance on the forms. This about-face is rather unexpected.

Lenders can only hope that the CFPB will address the numerous questions the mortgage industry still has almost seven months after TRID implementation. Given the CFPB’s perceived preference for enforcement actions in lieu of guidance, and with their unwillingness to take a public stance on many issues, lenders have been left to make their own interpretations of the rule, usually the most conservative possible view of the regulation. Recent surveys have indicated many smaller banks have left the residential mortgage industry as a result of the new regulations and the lack of guidance offered. The profits on consumer loans have also dropped per the Mortgage Bankers Association. PeirsonPatterson, LLP will continue to keep our clients apprised of this evolving situation.

Arlington, TX April 2016
CFPB Releases QM Eligibility Chart and Small Creditor Fact Sheet

April 26, 2016, the CFPB has released a QM eligibility chart; including recent updates to Small Creditor and Rural or Underserved parameters, to assist with understanding of current origination and asset limit requirements for each QM designation. Additionally, a Small Creditor factsheet was released to breakdown current requirements, after March 31st changes increased the scope of rural or underserved lending eligibility.

Arlington, TX April 2016
VA Clarifies TRID Itemization Requirements

April 11, 2016, the VA released CIRC. 26-16-11. This circular clarifies itemization of allowable and non-allowable fees for TRID documents; including, two Exhibits to assist with understanding on the approach VA is expecting to see on CDs. The circular is particular to the CD, as it is noted that all costs are required to be disclosed to the consumer on the LE. The VA specifically indicates that General Lender Credits are unacceptable to account for payment of non-allowable fees, when non-allowable fees are present in the Borrower-Paid column. Per this circular itemized credits must be provided for any non-allowable fees on the CD, whether Lender or Seller paid.
Also released on April 11, 2016 was CIRC. 26-16-12, which includes the new stacking order for full file loan reviews.

Arlington, TX March 2016
FNMA Removes 50(a)(6) Lender Restrictions, Revises Project-Related Flood Requirements

In the Fannie Mae Selling Guide update released on March 29, 2016, it was announced that Fannie Mae will no longer require a lender to have special approval to sell and/or service Texas Home Equity 50(a)(6) loans.. All lenders are eligible to sell and/or service Texas Home Equity 50(a)(6) loans as long as the other Texas Home Equity 50(a)(6) requirements in Fannie Mae’s Selling and Servicing Guides are met. Lenders and third-party originating lender planning to sell these loans are still required meet the requirements as an “authorized lender” under the Texas Constitution. This is effective for purchase dates beginning May 1, 2016

Fannie Mae has also removed the restriction regarding power of attorneys on Texas Home Equity 50(a)(6) loans. The requirement will now rely on the lenders’ confirmation the power of attorney is acceptable under state law. It is reminded that Fannie will still not permit POA executions on the Note or security instruments for “cash out” products however. This is effective immediately.

In this release, Fannie Mae also clarified the requirements for project-related flood insurance. A Residential Condominium Building Association Policy (RCBAP) is no longer required to cover machinery and equipment that are not part of the building. The lender is only required to verify a homeowners’ association maintains the required flood policy for the subject unit’s building. For planned unit development (PUD) projects, a specific PUD master policy form is no longer required for the SFHA since it does not exist.

Source: https://www.fanniemae.com/content/announcement/sel1603.pdf

Arlington, TX March 2016
CFPB Updates Rural or Underserved Definition, New Hope for Small Creditor Balloons

Since the January 1, 2016, updates to the Rural or Underserved and Small Creditor qualifications, the CFPB has been diligently working on a more permanent solution for the impending April 1, 2016, sunset for Small Creditor Balloons. In coordination with the CFPB’s forward momentum, the HELP Act has been playing its part, with efforts to expand lending in rural communities and relieve the burden on Small Creditors. The results of these efforts have been monumental. Rural or Underserved parameters, currently includes the requirement for creditors to operate “predominately” in the rural or underserved area; this being generally defined as, “extending more than 50% of its covered transactions” in rural or underserved areas. March 22, 2016, the CFPB issued the Interim Final Rule as executed by Director Richard Cordray on March 21, 2016, with the word “predominately” being stricken from the language. The new rule will require only one single transaction in a Rural or Underserved area during the previous calendar year; or during either of the two preceding calendar years, for applications received prior to April 1st.

This change will serve to merge a large portion of the remaining Small Creditor and Rural and Underserved lending communities. The final rule adopts these changes to the definition of “Rural” or “Underserved” within Section 35(HPML), as cross-referenced by Section 43(QM/ATR), and Section 32(HCM/HOEPA). With changes effective March 31, 2016, those Small Creditors previously shy of the Rural or Underserved mark, may now have hope to continue balloon transaction product lines under the Rural and Underserved Balloon QM, and may also meet escrow exemption requirements under Section 35(HPML). The CFPB has released updated compliance guides for the TILA Higher-Priced Mortgage Loans(HPML) Escrow Rule, Section 32 (HCM/HOEPA), and Ability to Repay/ Qualified Mortgages. They have made additional updates to the Transaction Coverage and Exemption Chart, the Small Creditor Qualified Mortgage Flowchart, and The ATR/QM Comparison Chart.

Arlington, TX March 2016
FHA Updates Late Charge

For all Case Numbers assigned on or after March 14, 2016, the Mortgage may now assess a 4% Late Charge after 15 days, of the overdue payment of Principal and Interest (P&I).

Arlington, TX March 2016
5 Common TRID Errors

  • Title charges missing the “Title – “
  • Failure to disclose all known fees on the LE
  • Owner’s Title Insurance or other optional items in Section H. missing the “(optional)” designation
  • Fee names changing between LE and CD
  • Seller closing costs not included on the borrower’s CD

Arlington, TX March 2016
FHA Mortgage Letter 2016-06

New model form 92900-A HUD/VA Addendum to Uniform Residential Loan Application

Arlington, TX February 2016
Spanish Resources for Lenders All in One Place

Spanish speaking consumers represent one of the largest growing segments of the mortgage market. To help lenders serve this growing market, we've created a centralized webpage that gives lenders easy access to Spanish origination resources -- all in one place.
Easily find Spanish versions of many helpful loan origination documents, including the loan application, loan estimate, verification forms, closing disclosure, mortgage, note and more. Spanish and English versions are offered side-by-side on the page. Bookmark the page today!

Arlington, TX February 2016
FNMA Removes Continuity of Obligation Requirements

February 23, 2016, FNMA released SEL-2016-02, which includes an update to remove their Continuity of Obligation Requirements section in its entirety. FNMA has indicated that the recent landslide of regulatory changes to qualification requirements, and thereby subsequent changes to guidelines, are leading to better lending decisions. Therefore, in a refinance transaction, the requirement that a current consumer must also be on the existing transaction, has been removed. This includes the waiting periods established and LTV restrictions, after a transfer of title has taken place without a purchase agreement. This change is effective immediately. SEL-2016-02 includes various additional topics with updates to: Lender Self-Reporting Obligations, Homestyle Renovations, Relocation Loans, and multiple miscellaneous topics.


Arlington, TX February 2016
Freddie Mac Announces Guide Bulletin 2016-3 (Selling)

LTV/TLTV/HLTV ratio and Indicator Score requirements - March 28, 2016

  • Updates to requirements for loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratios for super conforming Mortgages and 1-unit Investment Property Mortgages
Updates to the minimum required Indicator Scores for Manually Underwritten super conforming Mortgages

Arlington, TX February 2016
News: CFPB Issues Correction To Clarify Prepaid Tolerance

February 10, 2016, on the heels of much controversy surrounding the discrepancy provided within the rule which indicates prepaids are now subject to a tolerance, and contradictory to the regulatory text; the CFPB has issued a correction to rectify this typo. This clarifies that prepaids remain in the “Variance Permitted” category, and are in fact not subject to tolerance, as cited within the regulation itself. Effective February 10, 2016 as published in the Federal Register.

Arlington, TX January 2016
REMINDER: Update to Rural and Underserved and Small Creditor Balloon

The CFPB has updated specific parameters for Rural and Underserved and Small Creditor qualifications, as well as extended the deadline for Small Creditor Balloon QM loans, effective January 1, 2016. Below is a breakdown of new parameters which affect specified requirements under Section 43, Section 35 and Section 32;

Rural and Underserved:

  • “Rural” definition is expanded to include any location which is not specifically designated as urban or commercial.
  • Permanent exception from prohibition on balloon payment features for Section 32 loans

Small Creditor/ Rural and Underserved
  • Creditor and affiliates have fewer than 2000 first lien covered transactions during the previous calendar year,
    • This does not include those held in portfolio by the creditor or its affiliates
  • Together with its affiliates, has less than $2,000,000,000 (billion) in assets during the previous calendar year (adjusted annually per CPI).
    • Creditor must additionally take into account assets of any affiliates who provide first lien covered transactions.
  • Grace period through April 1st of following year to comply.
    • If a previously qualified “Small Creditor” fails to meet the asset or number of covered transaction thresholds as of December 31st, they may collect applications through April 1st of the following year, under “Small Creditor” parameters.
    Maintained higher threshold for Higher Priced Covered Transactions (HPCT).

Small Creditor Balloon QM
  • Previous deadline of closings on or before January 10, 2016 has been extended to include applications on or before April 1, 2016.
  • Temporary exception from prohibition on balloon payment features for Section 32 loans
  • Maintained higher threshold for Higher Priced Covered Transactions (HPCT).

Arlington, TX January 2016
VA Publishes FAQ to QM Interim Final Rule

January 20, 2016, VA published an FAQ to its Interim Final Rule established for VA specific Qualified Mortgage Loans. This includes the particular requirements specific to IRRRLs which classify them as rebuttable presumption of compliance vs. safe harbor. Additionally, the date on which recoupment and seasoning requirements begin, and accurate calculation of fees for these loan types.


Arlington, TX December 2015
CFPB Bureau launches rural and underserved areas tool

The Consumer Financial Protection Bureau has released a new online tool to help creditors determine which properties are located in a rural or underserved area. Under Regulation Z, section 1026.35(b)(2)(iv)(C)(2) added by the final rule that was published on October 2, 2015, a creditor may rely on this tool to provide a safe harbor determination that a property is located in a rural or underserved area. The tool can be used to manually check up to ten addresses at a time. It can also be used to upload and check a CSV-formatted file of addresses.

Arlington, TX December 2015
Fannie Mae Updated Selling Guide


  • Loans with Age-Related Resale Restrictions
  • Manufactured Housing and RD-Guaranteed Section 502 Mortgage Loans
  • Lender Quality Control Updates
  • Pledge of Servicing
  • Custody of eMortgages
  • Early Delinquency Counseling
  • Posting of Buyup/Buydown Grids

Arlington, TX December 2015
CFPB Releases Small Entity Compliance Guide for HMDA

December 2, 2015 the CFPB has released a Small Entity Compliance Guide for Home Mortgage Disclosure Act (HMDA) Regulation C. Additionally, a data table for transactions “Not Applicable” effective January, 2018 was released, to assist with understanding of requirements of HMDA reporting.

Arlington, TX November 2015
FNMA does not change max loan limits for 2016
Fannie Mae has issued Lender Letter LL-2015-07 to confirm the general and high-cost area loan limits announced by the Federal Housing Finance Agency (FHFA). The maximum loan limits remain unchanged for 2016. The high-cost area county limits will increase for 39 counties in six states (CA, CO, MA, NH, TN, and WA) due to increases in local home values. A list of the 39 counties with increasing limits, effective for loans delivered to Fannie Mae on or after Jan. 1, 2016, is provided in the Loan Limit Lookup Table. Detailed information and updated resources are available on the Loan Limits web page.

Arlington, TX November 2015
FNMA: November 3 Selling News: Announcement SEL-2015-12

Selling Guide Announcement SEL-2015-12

Arlington, TX October 2015
VA Circular 26-15-24 New stacking order

The purpose of this Circular is to announce Department of Veterans Affairs (VA) new closing disclosure statement requirements, and the new mandatory stacking order for files selected for VA full file loan review of all loan applications taken on, or after, October 3, 2015.
VA Circular 26-15-24

Arlington, TX October 2015
FNMA Servicing Guide Update SVC 2015-13

Several updates including changes to modification of Texas (a)(60)

Arlington, TX August 2015
Reminder!! USDA Guarantee Fee Increases October 1, 2015

With TRID implementation around the corner, don’t forget that USDA will be increasing their upfront Guarantee Fee for their 2016 fiscal year. Fees will be climbing from 2% to 2.75%, for all Conditional Commitments issued October 1, 2015 forward. Annual fees will not be affected at this time. The USDA originally released this information in an unnumbered letter(UL) dated June 16, 2015, which is set to expire June 30, 2016.

USDA June 16th

Arlington, TX August 2015
CFPB Revises TRID Compliance Guide to Reflect Updates

August 6, 2015, the CFPB has updated their Small Entity Compliance Guide and all assistive materials to line up with recent changes; including, the revised implementation date of October 3, 2015, and clarification on material changes requiring additional 3 day waiting periods for the Closing Disclosure.


Arlington, TX July 2015
Interagency Consumer Compliance Examination Procedures for Truth in Lending Act (Regulation Z) and Real Estate Settlement Procedures Act (Regulation X) Mortgage Rules

The FDIC has released revised interagency examination procedures for the new Truth in Lending Act (TILA) - Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure Rule (TRID Rule), as well as amendments to other provisions of TILA Regulation Z and RESPA Regulation X. The Consumer Financial Protection Bureau (CFPB) issued a proposal for a TRID Rule effective date of October 3, 2015. The examination procedures should be helpful to financial institutions seeking to better understand the areas on which the FDIC will focus as part of the examination process.

Complete Financial Institution Letter:


Arlington, TX June 2015
Homeowner Flood Insurance Affordability Act and Biggert-Waters Flood Insurance Reform Act
On June 22, the Agencies announced a joint final rule that implements certain provisions of the both the Homeowner Flood Insurance Affordability Act and Biggert-Waters Flood Insurance Reform Act

It is effective October 1, 2015.


  • Requires institutions to provide borrowers of residential loans outstanding as of January 1, 2016, the option to escrow flood insurance premiums and fees.
  • New and revised sample notice forms and clauses concerning the escrow requirement and the option.
  • An exemption from the requirement to purchase flood insurance for a structure that is a part of a residential property if that structure is detached from the primary residence and does not also serve as a residence. One significant clarification: To be eligible for the exemption, the detached structure must be used for “consumer” purposes and cannot be used for commercial or agricultural purposes.
  • Clarified that regulated lending institutions have the authority to charge a borrower for the cost of force-placed flood insurance coverage beginning on the date on which the borrower's coverage lapses or becomes insufficient.
  • Stipulates the circumstances under which a lender must terminate force-placed flood insurance coverage and refund payments to a borrower.

From Bankers Compliance Consulting Blog

Arlington, TX May 2015
CFPB Issues Updated Mortgage Origination Examination Manual

The Bureau of Consumer Financial Protection (CFPB) released its updated Mortgage Origination Examination Manual. This manual is a guide that CFPB examiners will utilize for compliance with the TILA-RESPA Integrated Disclosure rule that is effective on October 3, 2015. The link to the examination manual is provided below.

Arlington, TX May 2015
Department of Veterans Affairs HUD-1 Itemization Requirements

PURPOSE: This Circular clarifies and announces the Department of Veterans Affairs’ (VA) requirements regarding the Department of Housing and Urban Development (HUD)-1 documentation and itemization requirements, effective for all loans closed on or after May 1, 2015. Impacts your GFE and/or HUD-1

Arlington, TX April 2015
Announcement SEL-2015-04: Changes in Loan-Level Price Adjustments

This Announcement communicates that at the direction of the Federal Housing Finance Agency, certain loan-level price adjustments (LLPAs) are being changed. In addition, the Adverse Market Delivery Charge is being discontinued. These pricing changes will be applied to whole loans purchased on or after Sep. 1, 2015, or loans delivered into MBS pools with issue dates on or after Sep. 1 (including DU Refi Plus™ and Refi Plus™ loans). The details of the pricing adjustments are available in the Loan-Level Price Adjustment (LLPA) Matrix and the Refi Plus™ Loan-Level Price Adjustment (LLPA) Matrix both of which are posted on Fannie Mae's website.

Arlington, TX April 2015
CFPB Releases Further Interpretation for Homeownership Counseling

April 16, 2015, the CFPB has released an update to the 2013 HOEPA rule, providing additional interpretation and guidance on Homeownership Counseling requirements. This includes information on acceptability on lists for overseas consumers, those without a current zip code, and additional information on creditor conflict of interest situations.


Arlington, TX April 2015
OCC Releases Updated RESPA Comptrollers Handbook

April 14, 2015, the OCC has released an updated RESPA Comptrollers Handbook. This includes applicable updates and changes effective with the absorption of Regulation X by the CFPB, and replaces the previous booklet version released in October of 2011.


Arlington, TX March 2015
FNMA Updates Derogatory Credit Policies

March 31, 2015, FNMA released SEL-2105-03, and LL-2015-03, which includes updates to derogatory credit policies, disputed credit trade line handling, principal residence designation allowance for parents of disabled adults, and numerous additional updates effective immediately.


Arlington, TX March 2015
CFPB Replaces Settlement Cost Booklet

March 31, 2015, the CFPB has released the “Your Home Loan Toolkit” booklet. This will replace the current RESPA Settlement Cost Booklet when the TILA-RESPA Integrated Disclosure changes take effect October 3, 2015.


Arlington, TX March 2015
CFPB Releases Updated TRID and LO Compliance Guides

March 19, 2015, the CFPB has released an updated Small Entity Compliance Guide for the TILA-RESPA Integrated Disclosure (TRID) Rule. Amendments finalized February 19, 2015, including; rate lock, redisclosure requirements, and new construction verbiage, have been added along with various other cross-references and further clarification. Additionally, the CFPB has updated the pertinent sections of the Loan Originator Rule Small Entity Compliance Guide, which were affected by the February amendments.

CFPB TILA-RESPA Integrated Disclosure Rule
CFPB TILA-RESPA Integrated Disclosure Small Entity Compliance Guide

Arlington, TX March 2015
Fannie Mae Provides LLPA Matrices Update 3/17/15

This Notice provides a reminder of the policy disregarding the borrower(s) without credit scores in the determination of the "representative credit score" and also to update the pricing guidelines in the Loan-Level Price Adjustment (LLPA) Matrix and Adverse Market Delivery Charge (AMDC) Information and the Refi PlusTM Mortgages Only Loan-Level Price Adjustment (LLPA) Matrix and Adverse Market Delivery Charge (AMDC) Information matrices. Only the section titled "Pricing Guidelines for LLPAs and AMDC" were updated on both matrices - no other changes were made.

Arlington, TX March 2015
New web address for VA funding Fee Payment

Effective March 15, 2015, the new VA FFPS web address will be www.ffps.vba.va.gov The previous web address (www.va.pay.gov will automatically redirect users to the new web address until September 15, 2015. After September 15, 2015, users must use the correct web address to access VA FFPS. All user names and passwords will remain unchanged, and the system will look and operate the same as it did before. Users with system issues must contact the VA Veterans Information Portal helpdesk for assistance at vip.vbaco@va.gov.

Arlington, TX March 2015
RHS/USDA Proposes Additional Refinance Option

March 5, 2015, RHS moved to make their pilot program “streamlined-assist” a permanent option. Comparable to an FHA streamlined refinance, consumers must meet income and 12 month mortgage history requirements, but will have no debt-to-income(DTI), appraisal or loan-to-value(LTV) requirements. This option will not only be available to Section 502 direct consumers as previous streamlined products, but will be open to all existing guaranteed loan borrowers. Comment period ends May 4, 2015.


Arlington, TX January 2015
FHA Case Number Cancellation Authority Instructions Update

This Single Family Housing News is to update and clarify to stakeholders on the Federal Housing Administration’s (FHA’s) temporary case number cancellation authority instructions that were issued to support Mortgagee Letter 2015-01, Reduction of FHA Annual MIP Rates and Temporary Case Cancellation Authority that was reissued on January 13, 2015.


Arlington, TX January 2015
FHA Reduces Single Family Annual Mortgage Insurance Premium (MIP) Rates for Most Title II Forward Mortgages

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2015-01, Reduction of FHA Annual MIP Rates and Temporary Case Cancellation Authority. This Mortgagee Letter implements the 50 basis point (0.50%) reduction in FHA’s annual Mortgage Insurance Premium (annual MIP) rates for most Single Family Title II forward mortgages announced by the President of the United States on January 8, 2015. This rate reduction furthers the Administration’s and FHA’s ongoing goal to prudently expand access to mortgage credit for individuals and families across a range of incomes.

The annual MIP rate reduction is effective for FHA Case Numbers assigned on and after January 26, 2015 for most Title II forward mortgages with amortization terms greater than 15 years. Today’s Mortgagee Letter includes a table which shows the current and new annual MIP rates by amortization term, base loan amount, and loan-to-value ratio. The rate reductions have also been incorporated into FHA’s Mortgage Insurance Premiums table for forward mortgages. This updated Mortgage Insurance Premiums table will be integrated into FHA’s Single Family Housing Policy Handbook (HUD Handbook 4000.1) at the next available update.

Arlington, TX December 2014>
CFPB Issues REG Z Asset-Size Exemption Thresholds for HPML Escrow Accounts During 2015

The exemption threshold is adjusted to increase to $2.060 billion from $2.028 billion. The adjustment to the escrows exemption asset-size threshold will also increase a similar threshold for small-creditor portfolio and balloon-payment qualified mortgages. Balloon-payment qualified mortgages that satisfy all applicable criteria, including being made by creditors that do not exceed the asset-size threshold, are also exempt from the prohibition on balloon payments for high-cost mortgages. This rule is effective January 1, 2015.

Arlington, TX December 2014
CFPB Issues HMDA Asset-Size Thresholds for 2015

The exemption threshold is adjusted to $44 million from $43 million. This rule is effective January 1, 2015. It can be found in the Federal Register:

Arlington, TX December 2014
FHA Provides Maximum Loan Limits

This Mortgagee Letter:

  • provides notice of FHA's single family housing loan limits for Title II Forward Mortgages and Home Equity Conversion Mortgages (HECMs); and

  • provides loan limit instructions for streamline refinance transactions without an appraisal.

The loan limits in this Mortgagee Letter are effective for case numbers assigned on or after January 1, 2015 through December 31, 2015.

Arlington, TX December 2014
FNMA and FHLMC Increase Max LTVs

Monday December 8, 2014, Both Fannie Mae and Freddie Mac have increased maximum loan-to-value (LTV) to first time home buyers and existing customers. FNMA announced the changes to My Community Mortgage products, standard purchase, and rate term/ limited cash-out products; increasing the max LTV to 97%. By increasing LTVs FHFA is hoping to stimulate the housing market for those borrowers whom face financial challenges with down payments and closing costs. Loans are noted to be fixed rate, on one unit primary residences and underwritten through DU. Additionally, FNMA will now allow gift funds to be used as reserves in coordination with additional qualification requirements, putting them in direct competition with current FHA programs. Changes will take effect December 13, 2014.

Arlington, TX November 2014
FNMA Lender Letter LL-2014-08

The Federal Housing Finance Agency (FHFA) has issued the maximum loan limits that will apply to conventional loans to be acquired by Fannie Mae in 2015. The first mortgage loan limits are defined in terms of general loan limits and high-cost area loan limits. The maximum loan limits for 2015 remain unchanged from 2014; however, a number of high-cost area county limits have increased.

Arlington, TX November 2014
VA Announces Credit Report and AUS Fee Policy

Circular 26-14-36: Announces the Department of Veterans Affairs' (VA) new policy regarding credit report and Automated Underwriting System (AUS) charges to Veterans. This policy is effective, November 13, 2014.

Arlington, TX November 2014
CFPB Updates Compliance Guides

November 10, 2014, the CFPB has updated two Small Entity Compliance Guides. This includes Ability-to-Repay and Qualified Mortgage Rule, and the TILA/RESPA Mortgage Servicing Final Rules, incorporating November 3, 2014 final changes.
http://files.consumerfinance.gov/f/201411_cfpb_atr-qm_small-entity-compliance-guide.pdf http://files.consumerfinance.gov/f/201411_cfpb_small-entity-compliance-guide_tila-respa.pdf

Arlington, TX November 2014 HUD exempts non-profits from QRM same as CPRM
HUD exempts non-profits from QRM same as CPRM….Rejects CFPB announcement concerning how to cure overcharges.

Arlington, TX October 2014
CFPB Releases 2015 Rural and Underserved List

October 27, 2014, the CFPB has release the updated 2015 list for Rural or Underserved counties. This provides useful verification for those who meet specified criteria on regulatory requirements and exemptions under sections of TILA; including, 1026.43(ATR/QM) and 1026.35 (HPML).

Arlington, TX October 2014
Final Amendment to Reg Z for Small Servicers and Points and Fees Cure

The CFPB has released the finalized amendments to 2013 Mortgage Rules under Regulation Z (TILA). Specifically, pertaining to an additional definition of “Small Servicer” to assist non-profits. This includes new expanded exemptions to ability-to-repay requirements and qualifying quantities to allow non-profits a broader lending base. Further, the CFPB has finalized 1026.43(e)(iii) with new “cure” parameters for Points & Fees violations under section 1026.43(e)(i) and 1026.43(e)(ii), including; a 210 day window for creditors to cure inadvertent violations, and removal of the defined “good faith” determination, provided the mortgage loan meets the additional parameters as set forth in each designated Qualified Mortgage type (1026.43 (e)-(f)). This amendment comes with the hope of expansion of lending ability, and reduction in buffers on Points & Fees; which in most cases have been set well below actual legal limit range of 3%-8%. Exceptions to this ability to cure include; institution of any legal action by the consumer; receipt of written notice from the consumer on violation of points and fees requirements; or consumer 60 day delinquency on legal obligation. Cure will be permitted within parameters for loans consummated on or before the sunset date of January 10, 2021. Amendments will become effective on the date of publish in the Federal Register.

Arlington, TX October 2014
Freddie Mac Announces Guide Bulletin 2014-18 (Selling)

Revisions to Freddie Mac's Mortgage eligibility and credit underwriting requirements

  • Update the Home Possible* Mortgages offering
  • Update eligibility requirements and provide guidance applicable to Higher-Priced Covered Transactions and Higher-Priced Mortgage Loans
  • Update certain property and appraisal requirements


Arlington, TX October 2014
CFPB Releases Proposed Revisions to TILA-RESPA Integrated Disclosure Rule

October 10, 2014, The CFPB has release proposed revisions to the Integrated Disclosure Rule. These revisions include; the allowance of revised Loan Estimate to be issued by the next business day when rate is locked, amendments to the Cash to Close section language, and the addition of permitted verbiage on the Loan Estimate for construction loans, similar to that of the current 60 day GFE disclosure.

Arlington, TX October 2014
CIRC. 26-14-26: “Any Qualified Veteran” as the Borrower on VA Appraisals (10/01/14)

Fee Appraiser Requirement. Fee appraisers should insert “Any Qualified Veteran” in the borrower field on the appraisal report for all VA case assignments instead of the veterans name. Historically, lenders have indicated that having the correct borrower’s name on the appraisal report was necessary to sell the loan on the secondary market. VA has conferred with major purchasers of VA-guaranteed home loans on the secondary market. These major purchasers have reported that they are only concerned with the name on the guaranty and the mortgage note. Thus, this matter should only affect a small number of cases. VA also has conferred with the Appraisal Foundation regarding Uniform Standards of Professional Appraisal Practice (USPAP) requirements. They concurred that VA would not violate USPAP by replacing the Veteran’s name with “Any Qualified Veteran.”

Arlington, TX October 2014
CIRC. 26-14-28: VA Announces Reduction in Validity Period on NOVs for Proposed Construction

VA will utilize 6-month validity periods for all proposed construction cases. If a Veteran is under contract during a validity period, processing may continue until that transaction is either completed or terminated. On a case-by-case basis, VA may extend validity periods when requests for such actions are reviewed and found to be appropriate under prevailing conditions. Effective immediately, personnel who are authorized to issue a VA NOV will ensure that the validity period is for a period not to exceed 6 months. Currently, WebLGY defaults to a 6-month validity period.

Arlington, TX October 2014
FNMA makes important changes to Selling Guide

This Announcement describes updates to the following:
Automated Asset Verification
Rental Income Treatment
Employment-Related Assets
Texas 50(a)(6) Title Insurance
Affordable Lending for Native American and Rural Housing
List of Approved Mortgage Insurance Forms
Miscellaneous Selling Guide Updates
FNMA Announcement

Arlington, TX October 2014
Reminder! USDA Annual Fee Increasing October 1st

USDA will be increasing their annual fee from .4% to .5% on October 1st 2014 for both purchase and refinance transactions. In order to maintain the .4% annual fee, loans must have received a GUS Final Submission and be issued a conditional commitment by close of business September 30, 2014.
USDA News Release

Arlington, TX October 2014
VA Extends Credit Policy Updates

VA has released Circular 26-12-6 , Ch 1. Which extends rescission date from October 1, 2014 to October 1, 2016. Included in 26-12-6 is the update to employment and income verification requirements.

Arlington, TX September 2014
Reminder: USDA Updated Eligible Areas, October 1st

USDA has updated their list of rural eligible areas effective October 1st 2014. Multiple counties previously considered, will now be ineligible under new parameters. The USDA website can be used to distinguish these properties under the Future Eligible Area search. All application materials must be fully submitted for funding consideration on properties located within ineligible areas as of October 1, 2014, to maintain eligibility.

Arlington, TX September 2014
CFPB Updates the Integrated Disclosure Compliance Guide

September 8, 2014 The CFPB has released an updated version of their Compliance Guide for the Integrated Disclosure rule effective October 3, 2015. This includes clarification on timing requirements, and additional resource assistance.

Arlington, TX, August 2014
FHA changes ARM look back period to 45 days

Federal Register /Vol. 79, No. 165 /Tuesday, August 26, 2014 /Rules and Regulations 50839
FHA insured ARMs originated on or after January 10, 2015, must comply with the
new notification requirements of the 2013 TILA Servicing Rule and have 45 days look back instead of the current 30 days.

Arlington, TX, August 2014
FHA makes big change in prepayment interest charges

203.558 Handling prepayments.
(a) Handling prepayments for FHA insured mortgages closed on or after January 21, 2015. With respect to FHA insured mortgages closed on or after January 21, 2015, notwithstanding the terms of the mortgage, the mortgagee shall accept a prepayment at any time and in any amount. The mortgagee shall not require 30 days’ advance notice of prepayment, even if the mortgage instrument purports to require such notice. Monthly interest on the debt must be calculated on the actual unpaid principal balance of the loan as of the date the prepayment is received, and not as of the next installment due date
Federal Register August 26, 2014 page 50838

Arlington, TX, August 2014
Fannie Mae Releases HOEPA Worksheet
August 25, 2014, FNMA has released Lender Letter 2014-14. In effort to assist in Quality Control measures FNMA has prepared a Home Ownership and Equity Protection Act (HOEPA) Worksheet. This form can be optionally used by lenders for providing required information when a loan is selected for an anti-predatory lending and HOEPA compliance review.

Arlington, TX, July 2014
ML 2014-13: Voluntary Termination of FHA Mortgage Insurance (07/03/14) Processing Voluntary Terminations in FHA Connection

Voluntary terminations for single-family forward mortgages must be requested via FHA Connection. Mortgagees are no longer to use Electronic Data Interchange (EDI), Business-to-Government (B2G), and bulk processes for voluntary terminations. When completing the Insurance Termination (HUD Form 27050-A) actions in FHA Connection, mortgagees must certify that all borrowers on the mortgage have signed the Borrower’s Consent to Voluntary Termination of FHA Mortgage Insurance. The voluntary termination will not be processed unless the mortgagee provides this certification.

Arlington, TX, June 2014
Freddie Mac announces the Private Mortgage Insurance Master Policy Updates

This Single-Family Seller/Servicer Guide Bulletin announces the effective date and requirements for the new private mortgage insurance master policies announced in a Federal Housing Finance Agency press release on December 2, 2013.

Arlington, TX, May 2014
Fannie Mae Releases Updates to Definitions and Policies

On May 27, 2014, FNMA released Selling Guide Announcement SEL-2014-06; which includes updates to multiple definitions and policies including delayed financing, continuity of obligation, large deposits and other assets. Additionally, FMNA provides clarification on use of POAs for interactive closings, and the allowance of unemployment benefits to be included in income.

Arlington, TX, May 2014
VA Adopts QM/ATR Regulations

The Department of Veteran Affairs (VA), by way of interim final ruling, has adopted 2014 QM/ATR regulations. It is noted that current additional standard guidelines will not change, nor will the way loans are originated be altered. Effective May 9, 2014 with comment period through June 9, 2014

Arlington, TX, May 2014
FHA Releases Proposed Update to SF ARM Guidelines

On May 8, 2014, FHA proposed an update to the current 30 day allowable look-back period. In keeping with revisions to TILA, it is proposed that the look-back period be increased to 45 days. Additionally, it is proposed that FHA follow suit with TILA servicing notification timeframes. Click here for the full news release.

Arlington, TX, May 2014
CIRC. 26-14-13: Policy Clarification on Unallowable Fees (05/07/14)

The purpose of this Circular is to clarify the Department of Veterans Affairs (VA) policy on the treatment of unallowable fees when lenders charge a loan origination fee that is less than one percent of the loan amount on purchase and cash-out transactions, and less than one percent of the payoff amount on interest rate reduction refinance loans (IRRRLs)...Click here for the full news release.

Arlington, TX, May 2014
VA Announces New Requirements for Appraisal Processing in WebLGY

Purpose. The purpose of this Circular is to announce that effective June 1, 2014, all Department of Veterans Affairs (VA) appraisals will be processed in WebLGY under the VA Appraisal Management System (AMS). Therefore, beginning June 1, 2014, all VA appraisals must be uploaded in WebLGY in Mortgage Industry Standards Maintenance Organization (MISMO) compliant XML 2.6 GSE file format as VA will no longer accept appraisals uploaded in WebLGY in PDF format. Prior to June 1, 2014, VA appraisals must continue to be uploaded in WebLGY in PDF file format.

Arlington, TX, May 2014

Recently, our firm reviewed signature lines and borrower names on Notes and Security Instruments where the borrower is a trust. For secondary market loans, we have always conformed signature lines to the requirements of the FNMA Selling Guide, and will continue to do so. We have decided, however, to make a few minor changes that will more closely conform our trust documents to the requirements of a majority of secondary market investors. There are many different investor interpretations for trust documentation, but these changes will bring our documents in line with the requirements of the greatest number of investors while still fully complying with applicable legal and FNMA Selling Guide requirements.

I. Borrower Names on Page 1 of the Security Instrument

We previously reflected the borrower’s name on page 1 of the security instrument as “XXXXX, individually and as trustee of the XXXXX trust.” Going forward, we will reflect the borrower on page 1 of the security instrument as each individual trust settlor whose income and/or assets were used to qualify for the loan. Rather than showing [trust settlor], individually and as trustee of the XXXX trust”, we will now simply show the name of the applicable trust settlor without additional verbiage.

Example of how borrower’s name will be reflected on Page 1 of the Security Instrument:


(B) “Borrower” is John Doe. Borrower is the grantor under this Security Instrument.

Reflecting the borrower this way on Page 1 of the DOT is consistent with the following FNMA Selling Guide requirement:

B2-2-05, Inter Vivos Revocable Trusts (01/17/2013)

Underwriting Considerations

The mortgage must be underwritten as if the individual establishing the trust (or at least one of the individuals, if there are two or more) were the borrower (or a co-borrower, if there are additional individuals whose income or assets will be used to qualify for the mortgage).

While remaining consistent with applicable FNMA Selling Guide requirements, reflecting the borrowers on a trust loan in this manner on Page 1 of the DOT will also conform to the greatest number of investor requirements.

II. Signature Blocks on Note

The FNMA Selling Guide requires that each trustee and each settlor who is a credit applicant must sign the Promissory Note on a trust loan. Our Note signature blocks have met, and will continue to meet, this requirement. In order to conform the signature lines on the Note to the name appearing on the Security Instrument, as required by many investors, we are also adding an additional signature line for the name of each individual settlor who is also a credit applicant.

Example of signature blocks on the Note:


Signature                                                   Date
John Doe


Signature                                                   Date

Jane Doe


John Doe, individually and as Trustee of The John Doe and Jane Doe
Revocable Living Trust under trust instrument dated January 15, 2012


Jane Doe, individually and as Trustee of The John Doe and Jane Doe
Revocable Living Trust under trust instrument dated January 15, 2012

These signature blocks are consistent with the following FNMA Selling Guide requirement:

E-2-06, Signature Requirements for Mortgages to Inter Vivos Revocable Trusts (01/17/2013)

Form of Signature Required on Mortgage Note for an Institutional Trustee and for an Individual Trustee Who Is Not Both a Settlor and a Credit Applicant

Each institutional trustee of the inter vivos revocable trust and each individual trustee of the inter vivos revocable trust who is not both a settlor and a credit applicant must sign the promissory note (and any necessary addendum), using a signature block substantially similar to the following, inserted in the Borrower’s Signature lines:

_______________________________________, as Trustee of the _________ [Complete Legal Name of Trust] Trust under trust instrument dated ___________________, __________.

Form of Signature Required on Mortgage Note for an Individual Trustee Who Is Both a Settlor and a Credit Applicant

Each individual trustee of the inter vivos revocable trust who is both a settlor and a credit applicant must sign the promissory note (and any necessary addendum), using a signature block substantially similar to the following, inserted in the Borrower’s Signature lines:

_________________________________________, individually and as Trustee of the _________ [Complete Legal Name of Trust] Trust under trust instrument dated _____________, __________.

While remaining consistent with applicable FNMA Selling Guide requirements, reflecting the signature lines on the Note for a trust loan in this manner also conform to the greatest number of investor requirements.

III. Signature Blocks on Deed of Trust

The FNMA Selling Guide requires that each trustee must also sign the Security Instrument. Each settlor who is a credit applicant must also acknowledge the Security Instrument via a specific signature line. Our Security Instrument signature blocks have met, and will continue to meet, these requirements. In order to more closely conform the Security Instrument signature blocks to those on the Note, as required by many investors, we are also adding an additional signature line for each individual settlor who is a credit applicant (thereby reflecting them appropriately as both the settlor and the borrower per FNMA underwriting requirements).

Example of signature blocks on the Security Instrument:


Signature                                                   Date
John Doe


Signature                                                   Date

Jane Doe


John Doe, individually and as Trustee of The John Doe and Jane Doe
Revocable Living Trust under trust instrument dated January 15, 2012


Jane Doe, individually and as Trustee of The John Doe and Jane Doe
Revocable Living Trust under trust instrument dated January 15, 2012

BY SIGNING BELOW, the undersigned, Settlor(s) of The John Doe and Jane Doe Revocable Living Trust under trust instrument dated January 15, 2012, acknowledges all of the terms and covenants contained in this Security Instrument and any rider(s) thereto and agrees to be bound thereby.

John Doe, Trust Settlor

Jane Doe, Trust Settlor

These signature blocks are consistent with the following FNMA Selling Guide requirement:

E-2-06, Signature Requirements for Mortgages to Inter Vivos Revocable Trusts (01/17/2013)

Form of Signature Required on Security Instrument for All Trustees

Each trustee of the inter vivos revocable trust must sign the security instrument (and any necessary rider), using a signature block substantially similar to the following, inserted in the Borrower’s Signature lines:

_______________________________________, as Trustee of the _________ [Complete Legal Name of Trust] Trust under trust instrument dated ___________________, __________.

Form of Settlor/Credit Applicant’s Signature Acknowledgment Required on Security Instrument

The following must be added to the security instrument (and any necessary rider) following the Borrower’s Signature lines (and then must be signed by each settlor of the inter vivos revocable trust who is a credit applicant):

BY SIGNING BELOW, the undersigned, Settlor(s) of the_______________________ [Complete Legal Name of Trust] Trust under trust instrument dated _________, ______________, acknowledges all of the terms and covenants contained in this Security Instrument and any rider(s) thereto and agrees to be bound thereby. _________________________________ (Seal) Trust Settlor.

While remaining consistent with applicable FNMA Selling Guide requirements, reflecting the signature lines on the Security Instrument for a trust loan in this manner also conform to the greatest number of investor requirements.

IV. Portfolio Trust Loans

Since FNMA Selling Guide requirements do not apply to portfolio loans that will not be sold in the secondary market, a lender making a portfolio trust loan has considerably more flexibility in underwriting and documenting trust loans. For portfolio loans, we will continue to accommodate lender preferences regarding allowable trust to be used as borrower, signature lines, and use of trust riders. As long as we do not feel a request could impact the legal compliance of the loan, we will continue to treat portfolio loans in a flexible manner.

V. Review of Trust Certifications

We previously required a copy of the full trust and all amendments when performing a trust review. The laws of many jurisdictions, however, permit or require a third-party dealing with a trustee to rely on an abstract or certification of trust rather than the entire trust document. As a result, we have received requests to review trust certifications in those states where they are permitted or required.

Review of a trust certification is permissible under FHLMC Selling Guidelines as long as state law permits or requires the use of a certification. The FNMA Selling Guide is silent on this issue.

From Freddie Mac Selling Guide:

6. Seller Review - The Seller must review:

  • Either (a) the trust agreement for the Living Trust or, (b) an abstract, certification or other summary of the trust agreement if and to the extent the laws of the applicable jurisdiction require or permit a third-party dealing with a trustee to rely on such abstract, certification or other summary. Based on such review, the Seller must determine that:

    • The Settlor (or each Settlor, if there is more than one) has retained the power to revoke or amend the trust
    • There is specific authorization for the trustee(s) to borrow money and to purchase, construct, or encumber realty as more fully described in Section 22.10(a)2 above
    • There is no unusual risk or impairment of lenders' rights (such as distributions required to be made in specified amounts from other than net income)
    • The beneficiary need not grant written consent for the trust to borrow money or, if such consent is required, it has been granted in writing for purposes of the Mortgage
    • If the trust agreement requires more than one trustee to borrow money or to purchase, construct or encumber realty, that the requisite number of trustees have signed the loan documents

We have reviewed all applicable state laws on this issue and concluded that a trust certification may be relied upon in all states except the following:

Colorado, Connecticut, Hawaii, Illinois, Kentucky, Louisiana, Maryland, Mississippi, New Jersey, New York, Oklahoma, and Rhode Island.

For these 12 states we continue to recommend a review the full trust in order to comply with Fannie/Freddie requirements, unless the trustee can point to legal authority indicating a trust certification is sufficient.

For all other states, we will accept either a full trust or a trust certification for review going forward.

Accordingly, we have updated our trust review checklist to accommodate client requests for trust certification reviews. Our standard trust review checklist will now reflect the following updates:

1. The checklist now reflects whether PeirsonPatterson, LLP’s review is of the entire trust documentation or of a certification of the trust in lieu of a full trust.

2. If PeirsonPatterson reviewed only a certification of the trust, a statement that the Firm’s review is limited solely to the face of the documents provided for review and that PeirsonPatterson makes no comment on any aspect of the trust that may be reflected in trust or other documentation that was not submitted for review.

We believe the minor changes we are making to our loan documents and review process for trust loans will make our already compliant process even stronger, while also being more accommodating to our clients. Thank you for your business!

Arlington, TX, April 2014
CFPB has released a Guide to Completing TILA-RESPA Integrated Disclosure Forms
-  On April 17, 2004, CFPB has releasted a Guide to Completing TILA-RESPA Integrated Disclosure Forms, a companion to the Small Entity Compliance Guide we released recently. The guide provides instructions for completing the Loan Estimate and Closing Disclosure and also highlights common situations that may arise when completing the forms. It may also be helpful to settlement service providers, software providers, and other firms that serve as business partners to creditors.

Arlington, TX, April 2014:
FNMA Updates DU Government Loans Release Notes
-  On April 15, 2014, Fannie Mae has provided DU Release Notes for Government loans. This update includes variations and changes to the Credit Risk Assessment on VA loan casefiles; thereby, FNMA notes that customers may see an increase in approvals. This changes will be put in place the weekend of May 17, 2014, and will affect all VA loans created on or after October 19, 2013 and submitted or resubmitted on or after May 17, 2014.

Arlington, TX, April, 2014:
FNMA has released Selling Guide Announcement SEL-2014-03
-  On April 15, 2014 Fannie Mae released Announcement SEL-2014-13,. This announcement includes updates to the Selling Guide including; Property Eligibility and Appraisal Requirements, QM clarifications, and the incorporation of MERS Rider for specific Geographic Areas. Further it provides information on the retirement of additional ARM plans, an update to the Standard ARM Matrix and the new web based PDF Selling Guide:

ARLINGTON, TX, April, 2014:
CFPB Releases TILA-RESPA Integrated Disclosure Compliance Guide
-  On March 31, 2014 the CFPB released a Small Entity Compliance Guide for the new TILA-RESPA Integrated Disclosure Rule, to assist in determining compliance obligations for creditors, and understanding for settlement service providers, and investors. The CFPB additionally has plans to release a companion guide, detailing how to complete the new disclosure forms in the weeks to come.

ARLINGTON, TX, April, 2014:
Freddie Mac Releases Guidance on Rural Appraisals
-  FHLMC has released Bulletin 2014-5 to provide guidance regarding appraisals in the rural market area. This includes information on appraiser selection, property eligibility with unique properties, and selection of comparable sales and analysis.

ARLINGTON, TX, January, 2014:
Wells Fargo Approval
-  Wells Fargo Funding has announced the approval of PPDocs’s version of the Wells Fargo Fee Details Form. Wells has confirmed that the form include the data needed to complete their pre-purchase points and fees review and may be submitted. A number of other investors are also adopting the Fee Details Form. Sellers to Wells Fargo may begin using the form immediately.

ARLINGTON, TX, January, 2014:
Bureau Updates Consumer Booklets
-  The Consumer Financial Protection Bureau has published in today's Federal Register a notice of availability of three revised consumer publications, including a consumer information brochure and two booklets required under the Real Estate Settlement Procedures Act (RESPA), Regulation X, the Truth in Lending Act (TILA), and Regulation Z. The CFPB is making technical and conforming changes to each of the three publications in conjunction with the January 2014 effective dates for many provisions of the Bureau's rulemakings that regulate practices in mortgage origination and servicing. Those who provide these publications may use earlier versions until existing supplies are exhausted. However, when reprinting these publications, the most recent version should be used.

  • What You Should Know About Home Equity Lines of Credit(HELOC Brochure)
  • Consumer Handbook on Adjustable-Rate Mortgages(CHARM Booklet)
  • Shopping for Your Home Loan, Settlement Cost Booklet

ARLINGTON, TX, November, 2013:
PPDocs Training Sessions: Ordering Docs for 2014 Changes
-  As a continual effort to keep our clients informed on system changes, we are offering a comprehensive training session on how to order documents within the PPDocs system come January. Please keep in mind this is not meant to educate you on the changes themselves rather how to adjust for those changes in regards to data entry. This next training will commence Wednesday, December 18, 2013 at 10:30 am (CST) – please register at support@ppdocs.com.

The training will be conducted via WebEx, an online meeting center where we will conference via phone as well as sharing our desktop so each of you may see the steps involved. Because of the number of people participating in this training session we are asking you to mute your phone and direct all questions to cfpb@ppdocs.com – your questions will be answered in an inclusive email to all participants within 48 hours.

The final training will be held on December 18, 2013 at 10:30am (CST).

ARLINGTON, TX, November, 2013:
Upcoming Fee Changes for 2014
- Game changing Dodd-Frank "Ability to Repay" (ATR) regulations go into effect, January 10, 2014. These broad sweeping changes will expand the risk for everyone in the mortgage industry. To prepare for these upcoming changes, we have committed and will continue to commit substantial resources to our staffing and to the training and education thereof. These, along with other factors, have had a significant financial impact on the firm and have substantially increased our cost of doing business in recent years. Therefore, effective January 1st, 2014, we will be increasing our fee by $25 for most of our loan document preparation. This marks the first time the firm has instituted a fee adjustment in its history. An updated fee matrix is available online under “my account” page.

Our team has been hard at work over the past few months to prepare for what’s ahead. We have created a QM analyzer along with a Compliance Certificate for you to test current and future loans against the new rules. With it, you can easily test your secondary market loans as well as the portfolio loans that you keep in house. Whether you are a small creditor, serve a rural and underserved area, or simply want to test for a General QM, Temporary QM or an ATR Standard, we can help. Our compliance and legal teams, as well as our staff, will be at your fingertips to answer any questions and to offer guidance. Most importantly, our support staff will be available to walk you through the ordering process and answer any questions you may have along the way. As always, our staff is available to you and dedicated to your continued success in the mortgage business. In addition, each month we host webinars that detail the changes to our site and how to test your loans against the new rules. If you haven’t had time to sit in on one, we’ve made some of our most recent webinars available here.

We wanted to inform you of our fee adjustment early so that you can begin properly disclosing our fee on the GFE for transactions anticipated to close after the first of the year. Although the fee increase is very minimal and paid for by the borrower, we wanted to give you plenty of notice. Please note that our fee is excluded from the QM points and fees test. We appreciate your business and look forward to working with you as always.

WASHINGTON, D.C., November, 2013:
CFPB Releases Online Database of Housing Counselors
- The Bureau of Consumer Financial Protection released an online tool to help consumers find local housing counseling agencies near them in order to answer consumer questions and address concerns. The online database can be found at the following link: http://www.consumerfinance.gov/find-a-housing-counselor/

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