UHM Production Bulletin

Transcription

1 TOPICS IMPACTED IN THIS BULLETIN FNMA and FHLMC Products FHA/VA Mortgage Insurance USDA Other Underwriting Guidelines FHA FHA Extension of Temporary Condominium Project Approval Provisions, Mortgagee Letter On 8/30/17, FHA Info #17-37 announced the publication of Mortgagee Letter , Extension of Temporary Approval Provisions for the FHA Condominium Approval Process. The Mortgagee Letter extends FHA s temporary condominium project approval policy provisions until FHA completes both permanent policy rulemaking and the future Condominium Project Approval section of the Single Family Housing Policy Handbook The current temporary provisions expired 8/31/17. FNMA/FHLMC: Fannie Mae SEL , Employment Offers or Contracts On 7/25/17 Fannie Mae published SEL which included changes to Fannie Mae guidelines for Employment Offers or Contracts, providing a new option for Borrowers who had not yet begun employment at the time of a loan closing. Please review the program guide but follow UHM Projected Income Guidance. Exceptions to this guidance will require a senior level approval. Fannie Mae Purchase Transactions, Property Inspection Waivers (PIW) On 8/18/17 Fannie Mae announced that with an 8/19/17 release, certain purchase transactions will be eligible for consideration to receive a property inspection waiver (PIW). Purchase transactions with the following characteristics are not eligible for a PIW: Properties located in a disaster impacted area Investment properties Two-to-Four unit properties Construction and construction-to-permanent loans Loans with an estimate of value in excess of $1,000, Freddie Mac Guide Bulletin In Freddie Mac Guide Bulletin , published 8/23/17, Freddie Mac announced that the automated collateral evaluation (ACE) will be available for certain purchase transactions starting 9/1/17. 1

2 Freddie Mac also announced several updates to the list of loan transactions ineligible for ACE, including: Non-Arm s Length transactions Purchase of REO properties Texas Equity Section 50(a)(6) Loans with an estimate of value in excess of $1,000, Properties in a disaster area Transactions for which the Lender is aware of adverse property conditions identified in the sales contract, property inspection or disclosure from the Borrower that warrant an appraisal being obtained. Freddie Mac Guide Bulletin On 9/14/17, Freddie Mac released Guide Bulletin which announced several changes to include: Credit underwriting: Changes to Freddie Mac's requirements for Mortgages when assets are used as a basis for repayment of obligations (formerly referred to as "assets as a basis for Mortgage qualification")r Requirements for restricted stock (RS) and restricted stock unit (RSU) income types Updates to Freddie Mac's asset eligibility requirements Super conforming 5-year ARMs: Super conforming 5-year ARMs are eligible for purchase Appraisal requirements: Updates to specify that unlicensed, trainee (or similar classification) appraisers may perform the appraisal and sign the appraisal report Revisions to appraisal requirements for super conforming Mortgages Removal of the requirement that copies of multiple listing service (MLS) photographs may only be used for comparable sales if original photographs are not available Owner-occupancy requirements for New Condominium Projects: Changing the owner occupancy requirement from at least 70% of the total units in the project to at least 50% of the total units in the project Condominium insurance: Updates to requirements for Condominium Unit insurance Please review the bulletin for full details; these changes are effective immediately. 2

3 HARP Extended Through 12/31/18 On 8/17/17 the Federal Housing Finance Agency (FHFA) announced the extension of HARP through 12/31/18 including the Fannie Mae DU Refi Plus program and Freddie Mac Relief Refinance Open Access program. UHM has adopted this change. VA: VA Appraisal Fees, District of Columbia, Kentucky, Maryland, Virginia and West Virginia VA announced increased appraisal fees in multiple regions of the country effective 8/31/17. USDA: USDA Reminder, Lender Responsibility Prior To Loan Closing In The Event of Natural Disasters In response to Hurricanes Harvey and Irma, USDA published a bulletin to remind Lenders of their responsibility to conduct due diligence to ensure that potential damage to a security property or changes to Borrower eligibility such as a loss or reduction of income has not occurred. Under 7CFR3555, section (i)(2) and HB , section 16.2, Lenders must: Certify the loan closed in accordance with the conditional commitment, and Certify that no major changes have taken place since the issuance of a commitment, except any changes specifically approved by the agency. USDA Fiscal Year 2018 On 8/7/17, USDA noted that funding associated with USDA s Single Family Housing Loan Program (SFHGLP) for Fiscal Year 2018 have not been announced by the agency s national office in Washington, DC, as the Agriculture Appropriations Bill for FY 2018 has not yet been approved by Congress and signed by the President. Lenders will be notified if program funding will be impacted for FY 2018 once the budget process has been completed. Funding remains available through the end of the fiscal year (10/1/17), the last day of USDA s fiscal year is 9/29/17. In the event of a lapse of funding at the end of the fiscal year, UHM will continue to originate and close USDA loans with a conditional commitment. Other: West Virginia Storms, Landslides and Flooding DR-4331 individual assistance has been made available to the State of West Virginia to supplement state and local recovery efforts in the area affected by severe storms beginning on 7/28/17 with a disaster declaration on 8/18/17. 3

4 COUNTIES: Harrison, Marion, Marshall, Wetzel For all properties with appraisals dated prior to 7/28/17, an appraisal re-inspection will be required. A re-inspection fee of $ is to be disclosed to the Borrower for the cost of the report. In reaction to West Virginia storms, please refer to the UHM Disaster Policy in the Lending Guide for product specific appraisal requirements. Texas Hurricane Harvey DR-4332 individual assistance has been made available to the State of Texas to supplement state and local recovery efforts in the area affected by Hurricane Harvey beginning on 8/23/17 with a disaster declaration on 8/25/17 and an effective end date of 9/15/17. COUNTIES: Aransas, Austin, Bastrop, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Tyler, Victoria, Walker, Waller, Wharton For the purpose of Hurricane Harvey only, we have modified our disaster procedures as follows for Conventional, VA & USDA, only: Timing of re-inspections: UHM will begin checking property conditions immediately. Completion of re-inspection: UHM will permit TX UHM personnel to complete the reinspection. UHM will not require the re-inspection to be completed by an Appraiser. Scope of re-inspection: A re-inspection is only required if the property is in a FEMA declared disaster area. Cost of re-inspection: There is no cost associated with the Lender re-inspection. If the reinspection is completed by an Appraiser, the cost will be the responsibility of the Borrower. Form of re-inspection: UHM has created a standard form (Disaster Incident Certification Form) to be used in completing the Lender re-inspection. Photos as required. The form is available in the Disaster Notice section in PartnerNet. Borrower Certification/Hold Harmless: UHM has created a standard form (Disaster Incident Borrower Certification Form) to be signed by all Borrowers prior to or at closing. This form must be 4

5 signed by all Borrowers with a property located in either a FEMA declared disaster area or a county on the TX Governor s disaster list. The form is available in the Disaster Notice section in PartnerNet. Confirming receipt of the re-inspection form: Underwriting will add a PTD condition to all FEMA counties. The Underwriter will review and clear the re-inspection form. For the purpose of Harvey only, we have modified our disaster procedures as follows for FHA, only: A FHA approved Appraiser must complete an interior/exterior inspection of the property. Inspect the Property to determine damage exists. The Appraiser is required to provide on-site inspection with interior/exterior photographs. A re-inspection fee of $ is to be disclosed to the Borrower for the cost of the report. In reaction to the Texas hurricane, please refer to the UHM Disaster Policy in the Lending Guide for product specific appraisal requirements to include re-inspections of properties with appraisals dated prior to 8/23/17. Florida Hurricane Irma DR-4337 individual assistance has been made available to the State of Florida to supplement state and local recovery efforts in the area affected by Hurricane Irma beginning on 9/4/17 with the disaster declaration beginning 9/10/17. COUNTIES: Alachua, Baker, Bradford, Brevard, Broward, Charlotte, Citrus, Clay, Collier, Columbia, DeSoto, Duval, Flagler, Gilchrist, Glades, Hardee, Hendry, Hernando, Highlands, Hillsborough, Indian River, Lake, Lee, Levy, Manatee, Marion, Martin, Miami-Dade, Monroe, Nassau, Okeechobee, Orange, Osceola, Palm Beach, Pasco, Pinellas, Polk, Putnam, Sarasota, Seminole, St. Johns, St. Lucie, Sumter, Suwannee, Union, Volusia, Dixie, Lafayette 5 For the purpose of Irma only in FEMA designated counties, UHM has modified our disaster procedures as follows for Conventional, VA & USDA, only for appraisals completed on, or before : Timing of re-inspections: UHM will begin checking property condition effective prior to the end of the disaster declaration. Completion of re-inspection: UHM will permit FL UHM personnel to complete re-inspections or re-inspection completed by an Appraiser. Scope of re-inspection: A re-inspection is only required if the property is in a FEMA declared disaster area. Cost of re-inspection: There is no cost associated with the Lender re-inspection. If the reinspection is completed by an Appraiser, the cost will be covered by the Borrower.

6 Form of re-inspection: UHM has created a standard form (Disaster Incident Certification Form - FL) to be used in completing the lender re-inspection. Photos as required. The form has been distributed. Borrower Certification/Hold Harmless: UHM has created a standard form (Disaster Incident Borrower Certification Form - FL) to be signed by all Borrowers prior to or at closing. This form must be signed by all Borrowers with a property located in a FEMA declared disaster. The form has been distributed. Confirming receipt of the re-inspection form: Underwriting add a PTD condition to all FEMA counties. The underwriter will review and clear the re-inspection form. For the purpose of Irma only in FEMA designated counties, UHM has modified disaster procedures as follows for FHA, only for appraisals completed on, or before : Timing of re-inspections: UHM will begin checking property condition effective , prior to the expiration declaration for the disaster. An FHA approved Appraiser must complete an interior/exterior inspection of the property. Inspect the Property to determine damage exists. Provide on-site inspection with interior/exterior photographs. Borrower Certification/Hold Harmless: UHM has created a standard form (Disaster Incident Borrower Certification Form - FL) to be signed by all Borrowers prior to or at closing. This form must be signed by all Borrowers with a property located in a FEMA declared disaster. The form has been distributed. A re-inspection fee of $ is to be disclosed to the Borrower for the cost of the report. In reaction to the Florida hurricane, please refer to the UHM Disaster Policy in the Lending Guide for product specific appraisal requirements. Georgia Hurricane Irma DR-4338 individual assistance has been made available to the State of Georgia to supplement state and local recovery efforts in the area affected by Hurricane Irma beginning on 9/7/17 with the disaster declaration beginning 9/15/17. COUNTIES: Camden, Chatham, Glynn, Liberty, McIntosh For all properties with appraisals dated prior to 9/7/17, an appraisal re-inspection will be required. A re-inspection fee of $ is to be disclosed to the Borrower for the cost of the report. 6 In reaction to the Georgia hurricane, please refer to the UHM Disaster Policy in the Lending Guide for

7 product specific appraisal requirements. Ohio Good Funds Law Changes Ohio's "Good Funds" statute has again been modified and such changes will become effective for all escrows/closings conducted on or after 9/29/17. The changes are as follows: Personal, business or cashier's checks (other than those drawn on a Real Estate Broker's Trust Account); money orders; and/or, cash totaling $10,000 in aggregate, are considered "good funds" (up from $1,000). Any electronically transferred funds are considered "good funds" (now includes internal transfers between accounts held by the same bank). Remaining unchanged is the exempt status granted to checks drawn on a Real Estate Broker's Trust Account. However, under ORC Sections and , funds deposited in such accounts in connection with a purchase agreement are intended to be limited to earnest money funds. As such, it is not a recommended practice to accept significant payments drawn on such accounts as an avoidance of the rules specified above. Mortgage Insurance: Recent Releases: Forthcoming Releases: Reminder: No updates at this time. Communications Policy Group Updates: Retail Lending Guide Updates, Sections (Gifts and Grants) and Section (Standard Closing Documentation), 8/30/17 Compliance Corner: UHM Origination Disclosure Requirements, 9/1/17 UHM Power of Attorney Policy Update, 9/6/17 1. TBD All scenarios cannot be addressed, please continually review any and all internal and external updates. 7