Today, the FHA Commissioner issued a Special Edition announcement that, in pertinent part, temporarily extends FHA-approval of currently approved loan correspondents for the purpose of permitting existing loans in the loan correspondents’ pipelines to close in their names, with conditions. According to the announcement, this temporary extension applies only to loans for which, as of December 31, 2010.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
New Interagency Appraisal and Evaluation Guidelines
In the December 10, 2010 Federal Register (75 FR 77450) the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the National Credit Union Administration (NCUA) (the Agencies) jointly issued new Interagency Appraisal and Evaluation Guidelines (Guidelines) for federally regulated financial institutions. These new Guidelines supersede the 1994 Interagency Appraisal and Evaluation Guidelines.
SAR Reporting and Anti-money Laundering Proposed Rules For Non-Bank Residential Mortgage Lenders and Originators
In the December 9, 2010 Federal Register (75 FR 76677) the Financial Crimes Enforcement Network (FinCEN), a bureau of the Department of Treasury, issued proposed rules in a notice of proposed rule making (NPRM) that proposes to make non-bank residential mortgage lenders and originators (e.g., independent mortgage loan companies and mortgage brokers) subject to the anti-money laundering (AML) and suspicious activities reporting (SAR) requirements of the federal Bank Secrecy Act.
FHA Notice of 2011 Maximum Loan Limits
In the December 8, 2010 issue of the Federal Register (75 FR 76482), HUD published the following Notice regarding FHA single-family maximum loan limits for 2011: “This notice announces that FHA has posted on its Web site the single-family maximum loan limits for 2011. The loan limit limits can be found at http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/.
HUD Publishes Guidance for Interpretive Rule on Home Warranty Company Payments to Real Estate Brokers and Agents
In the December 1, 2010 issue of the Federal Register, HUD provided guidance by answering certain questions raised in the public comments HUD received since publishing its Interpretative Rule in the June 25, 2010 issue of the Federal Register regarding the propriety under Section 8 of RESPA of compensation paid by a home warranty company (HWC) to a real estate broker or agent in connection with the sale of a homeowner warranty to a homebuyer or seller in a transaction involving a federally related mortgage loan. The Interpretative Rule was the subject of our memorandum of the same date published on our Website www.bmandg.com.
Warehouse Lending RESPA Guidance – What is HUD Up to Now?
In the November 24, 2010, issue of the Federal Register (75 F.R. 71724), the Department of Housing and Urban Development (HUD) published Notice that it is considering issuing RESPA guidance regarding warehouse lending and other financing mechanisms used to fund federally related mortgage loans. HUD states that it is seeking information on the current state of warehouse lending and how that method of funding currently operates within residential real estate mortgage transactions and wants input from the mortgage lending industry and others. To accomplish this, the Notice poses ten questions, some of which contain follow-up questions. Those persons interesting in responding to the Notice, however, are not limited to answering these questions and may provide any relevant information regarding warehouse lending and other mechanisms currently used to fund federally related mortgage loans.
NMLS Annual License Renewal Process Starts November 1, 2010
The Texas Department of Savings and Mortgage Lending and the Office of Consumer Credit Commissioner require company and individual licensees to renew their respective licenses through NMLS by no later than December 31, 2010. In view of this requirement, we redacted for brevity the following NMLS Streamline Annual Renewal Web page, which provides all the information you will need for the renewal process: http://mortgage.nationwidelicensingsystem.org/SLR/COMMON/RENEWALS/Pages/default.aspx.
Federal Reserve Board Interim Rule Revises Payment Schedule Disclosures
In the September 24, 2010, issue of the Federal Register (75 F.R. 58470), the Board of Governors of the Federal Reserve System (FRB) published an interim rule (the Interim Rule) amending the payment schedule disclosure requirements in §226.18 of Regulation Z for closed-end mortgage loans for which a creditor receives applications on and after January 30, 2011. The Interim Rule revises the introductory text of §226.18(g), adds new §§226.18(s) and (t), revises and adds interpretive comments to Supplement I – Official Staff Interpretations, and adds new closed-end model clauses H-4(E) through H-4(K) to Appendix H-Closed-End Model Forms and Clauses. The Interim Rule implements those disclosure provisions of the Mortgage Disclosure Improvement Act of 2008 (Public Law 110-289, §§2501-2503) that amended Section 128 of the Truth in Lending Act (TILA), in pertinent part, by adding subsection 128(b)(2)(C) requiring disclosure of payment examples for loans whose interest rate or payments can change and a “no-guarantee-to-refinance” statement.
New Appraiser Independence Requirements Replace HVCC – Fannie Mae Announcement SEL-2010-14
On October 15, 2010, Fannie Mae issued the above Announcement notifying its Sellers that appraisals conducted in connection with single-family mortgage loans (other than government insured or guaranteed loans) delivered to Fannie Mae, with application dates on or after October 15, 2010, must conform to the new Appraiser Independence Requirements (AIRs). In addition, the Announcement states that all conventional, single-family mortgage loans with application dates on or after May 1, 2009 must continue to comply with the Home Valuation Code of Conduct (HVCC) until November 1, 2010. This means that for the next two weeks the AIRs and the HVCC will overlap and on November 1, 2010, HVCC will no longer apply to loans with application dates on or after November 1, 2010.
NMLS Credit Report Authorization Beginning November 1, 2010
The Texas Department of Savings and Mortgage Lending requires all licensees to authorize a credit report through NMLS by no later than December 31, 2010. (The Department also encourages licensees to authorize a credit report through NMLS prior to renewing their license for 2011.) In view of this requirement, we reprinted below the credit report notice (redacted for brevity) from the following NMLS web address: http://mortgage.nationwidelicensingsystem.org/profreq/credit/Pages/default.aspx.