UHM Production Bulletin

Transcription

1 TOPICS IMPACTED IN THIS BULLETIN FNMA and FHLMC Products FHA/VA Mortgage Insurance USDA Other Underwriting Guidelines FHA: HUD A As announced in Mortgagee Letter , the updated A (HUD/VA Addendum to the Uniform Residential Mortgage Loan Application) will be effective for all case numbers assigned on or after August 1, Internally, the UHM Compliance Department will be updating FHA disclosure packages to comply with the August 1, 2016 revisions. The current version of the form, which will remain in effect through July 31, 2016, remains available on HUD s Client Information Policy Systems (HUDCLIPS) HUD Forms page. Single Family Housing Policy Handbook Revisions, Training and Tools On July 1, 2016, the Federal Housing Administration (FHA) published updates to its Single Family Housing Policy Handbook (SF Handbook), and launched a number of updated training and information tools for mortgagees and other stakeholders. Collectively, these updates are designed to make it more efficient access, understand, and use the SF Handbook and the policies it contains. The following revisions are being incorporated into the SF Handbook s portable document format (PDF) and online format: Electronic Appraisal Delivery (EAD) portal guidance, published in Mortgagee Letter on March 26, 2015, that became effective for new originations with case numbers assigned on or after June 27, 2016; Student Loan guidance, published in Mortgagee Letter on April 13, 2016, that became effective for case numbers assigned on or after June 30, 2016; Previously published only in the PDF of the SF Handbook on March 14, 2016, the Claims and Disposition sections for Title II forward mortgages are now available in the online format SF Handbook. The effective dates for these sections remain September 30, 2016, as previously announced; and The revised Table of Contents for subsections under Section II: Origination Through Post- Closing/Endorsement (Origination through Endorsement), as announced on March 14, These changes are detailed in the SF Handbook Transmittal. 1

2 Freddie Mac Loan Prospector for Government Loans Based on FHA Info #16-36 covered reviewed in UHM Bulletin U , Freddie Mac announced that Loan Prospector has been updated to align with new requirements recently announced by FHA. Loan Prospector was updated with FHA s TOTAL Mortgage Scorecard (3.7SOAP), so that Mortgage Insurance Premium factors will no longer return on the LP Feedback Certificate. FNMA/FHLMC: Fannie Mae HomeReady 2016 Income Limits Fannie Mae has announced that updated HomeReady income limits, including the change to 100% AMI (or no limit in certain census tracts) were made available on July 18 th, Please review the link provided to utilize eligibility lookup tools. Fannie Mae and Freddie Mac, Refinances of a Restructured Loan The UHM Communication Policy Group has recently removed the restriction that the refinance of a previously restricted loan is not permitted with DU and LP to more closely align with agency guidance. You may view Freddie Mac s notification or may utilize the updated Waiting Periods Guide released in PartnerNet on 7/13/16. Freddie Mac Updating Loan Prospector with 2016 Area Median Income Estimates and Loan Product Advisor Freddie Mac has updated Loan Prospector on June 30, 2016, to reflect the 2016 Area Median Income (AMI) estimates issued by the Federal Housing Finance Agency. As announced in Single-Family Seller/Service Guide Bulletin (Bulletin) , the 2016 AMI estimates apply to Freddie Mac Home Possible mortgages effective for Loan Prospector submissions and resubmissions on or after June 30, Please review the Guide Bulletin for more information about Home Possible mortgages originally assessed as Accept-Eligible that receive an Accept-Ineligible evaluation when resubmitted to Loan Prospector on or after June 30, Reminder: On July 11, 2016, Loan Prospector has evolved into Loan Product Advisor as part of the launch of Freddie Mac Loan Advisor Suite. VA: Credit Report and Automated Underwriting System (AUS) Fee Policy (Circular ) The purpose of this Circular is to clarify credit report invoice requirements, update a form s title, and extend the rescission date of the basic Circular so that stations continue to provide guidance on VA s 2

3 position as it relates to these procedures. USDA: UHM maintains compliance with VA guidelines. USDA Updated Income Limits As per the Rural Development Single Family Housing Guaranteed Program Announcement on June 22, 2016, the 2016 Income Limits for the Single Family Guaranteed Loan Program were published. GUS and the Income Eligibility calculator located in the Eligibility Website have been updated with the new income limits. Upfront Guarantee Fee and Annual Fee Reduction for Fiscal Year 2017 As per the Rural Development Single Family Housing Guaranteed Origination announcement dated April 28th, 2016, advance notice was given of the upfront guarantee fee and annual fee structure that will be effective for the Single Family Housing Guaranteed Loan Program in the fiscal year The fiscal year 2017 begins October 1, 2016 and ends September 30, Upfront Guarantee Fee: 2016 Fiscal Year: 2.75% Current (ends September 30, 2016) 2017 Fiscal Year: 1.00% Effective with Conditional Commitments issued on and after October 1, 2016 Annual Fee: 2016 Fiscal Year:.50% Current (ends September 30, 2016) 2017 Fiscal Year:.35% Effective with Conditional Commitments issued on and after October 1, 2016 These changes are effective with Conditional Commitments issued on or after October 1, Other: Truth in Lending (Regulation Z) Annual Threshold Adjustments The Bureau of Consumer Financial Protection (Bureau) has issued a final rule amending the regulatory text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The Bureau is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises, as applicable, the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). In addition to adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index in effect on June 1, 2016, the Bureau is correcting a calculation error pertaining to the 2016 subsequent violation penalty safe harbor fee. 3 UHM has prepared for this final rule and no further action is needed by impacted Partners.

4 Ohio Loan Officers, Mortgage Loan Origination Disclosure The Mortgage Loan Origination Disclosure Addendum ( Addendum ) has been edited and updated as of June 24, 2016 for transactions made under the OMBA. Under the OMBA, the Addendum is required to list language specified in Ohio Revised Code ( ORC ) (D)(2); however, the Good Faith Estimate ( GFE ) is no longer applicable due to changes made to Regulation Z (Truth In Lending) 12 C.F.R. Part Therefore, a footnote has been added to the Addendum to account for the GFE being replaced by the Loan Estimate as part of the changes made to Regulation Z. The Addendum is still required to be provided to borrowers per ORC (D) and has been updated in the Encompass loan origination system. Texas Severe Storms and Flooding On April 25, 2016, The Federal Emergency Management Agency (FEMA) announced that federal disaster aid with individual assistance has been made available to the State of Texas to supplement state and local recovery efforts in the area affected by severe storms and flooding. Federal funding is also available to state and eligible local governments, certain private nonprofit organizations, individuals and business owners on a cost-sharing basis for emergency work and the repair or replacement of facilities in the following counties: 4

5 In reaction to Texas storms, please refer to the UHM Disaster Policy in the Lending Guide for product specific appraisal requirements. West Virginia Severe Storms and Flooding On July 1, 2016, The Federal Emergency Management Agency (FEMA) announced that federal disaster aid with 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 and flooding. Federal funding is also available to state and eligible local governments, certain private nonprofit organizations, individuals and business owners on a cost-sharing basis for emergency work and the repair or replacement of facilities in the following counties: In reaction to West Virginia storms, please refer to the UHM Disaster Policy in the Lending Guide for product specific appraisal requirements. Mortgage Insurance: United Guaranty Encompass Changes United Guaranty has provided an update to include changes related to mortgage insurance when utilizing the Encompass loan origination system: You can now select whether or not to import fees. If you select Do Not Import Fees, fees will not be imported. If fees have been previously imported, they will be retained in Encompass. The GSE MI coverage percentages are now set by default based on the LTV of your loan. You can change the percentage if you wish. The View Results/Check Status button on the MI Order screen will always be active. The Third Party Originator Type field has been updated with new options to select. 5

6 Essent Guaranty Announces EssentIQ Essent Guaranty has announced a new interactive tool to help Loan Officers navigate the next generation of Homebuyers. The site helps evaluate a Borrower s qualification by validating information from the down payment, credit score, savings and other qualifying parameters. National MI Sponsoring Self-Employed Borrower and Tax Analysis Webinar National MI is pleased to invite you to our Self-Employed Borrower and Tax Analysis webinar session. This special presentation is brought to you by MI University, with a commitment to delivering high quality educational content to our customers. This 2-hour session is designed for originators, processors and underwriters, or anyone who wants to know the most important facts about calculating income from a tax return. Upon completion of this program you will be able to: Identify and calculate income for self-employed borrowers Understand how and when to factor in employee business expenses Reconcile Form 1084 and other tax return worksheets Topic: Self-Employed Borrower Date: Thursday, August 18, 2016 Time: 10:00-12:00 PDT/11:00 1:00 MDT /1:00-3:00 EDT Webinar Registration: Recent Releases: Communications Policy Group Updates: Michigan Site Condos and Limited Review Condos, 6/23/16 Appraisal EAD Notifications, 6/29/16 Waiting Periods for Significant Derogatory Credit Events (Fannie Mae and Freddie Mac Changes), 7/13/16 Compliance Corner: Updated Disclosure Requirements (Retail, vloan and Wholesale), 7/19/16 Underwriting Corner: Fannie Mae Selling Guide, 6/30/16 Freddie Mac Selling Guide, 6/30/ HUD Handbook including updates, 6/30/16 USDA 3555 Handbook, 6/30/16 Rural Development Criteria, 6/30/16 UHM Manufactured Home Guidance, 6/30/16 Freddie Mac Manufactured Home Guidance, 6/30/16 6

7 Forthcoming Releases: Reminder: 1. Updated Fair Housing Policies and Procedures 2. Updated ECOA Policies and Procedures All scenarios cannot be addressed, please continually review any and all internal and external updates. 7