Compliance News
In First American's Compliance News Archive you will find easy access to our library of GSE announcements, court findings, legislative changes, specific changes to state requirements, governmental guidance on issues that directly affect the mortgage document industry and more.January 2008
California: Nontraditional, Adjustable Rate and Mortgage Loan Products (Effective January 1, 2008)
The California Corporations Commissioner adopted changes in the regulations which affect licensees operating under the California Finance Lenders Law and the California Residential Mortgage Lending Act. Every finance company must, within three business days after receiving a completed application for a nontraditional loan or an adjustable rate loan or before the borrower becomes obligated on the note, whichever is earlier, deliver to the borrower either the model form Comparison of Sample Mortgage Features: Typical Mortgage Transaction, issued by the Department of Corporations or the model form Comparison of Single Mortgage Features issued by the Department of Real Estate. A finance company may use its own form provided the form meets the required criteria.
The Comparison of Single Mortgage Features issued by the Department of Real Estate - Mortgage Lending is currently in production as part of the Mortgage Loan Disclosure Statement/Good Faith Estimate.
LPS is in the process of implementing the required information and will have it available to its clients shortly.
The Comparison of Single Mortgage Features issued by the Department of Real Estate - Mortgage Lending is currently in production as part of the Mortgage Loan Disclosure Statement/Good Faith Estimate.
LPS is in the process of implementing the required information and will have it available to its clients shortly.
Colorado: Division of Real Estate Position Statement MB 1.3 - Licensing Required (Effective January 7, 2008)
Persons who directly supervise individuals that negotiate, originate or offer or attempt to negotiate or originate for a borrower, and for a commission, a residential mortgage loan to be consummated and funded by a mortgage lender must be licensed. Individuals who perform purely administrative or clerical tasks do not fall within the definitions of brokering a mortgage or mortgage broker, and therefore are not required to be licensed.
Maine: LD 2125 (Effective January 1, 2008)
A creditor may not extend a subprime mortgage loan to a borrower unless a reasonable creditor would believe at the time the loan was made that the borrower will be able to make the scheduled payments associated with the loan. The determination of a borrower's reasonable ability to repay a subprime mortgage loan must be documented or otherwise evidenced in writing and must include various criteria delineated in the bill. The bill also established criteria for evaluating the borrower's reasonable ability to repay the subprime mortgage loan.
Massachusetts: House Bill 4385 (Effective December 28, 2007)
The Massachusetts Division of Banks (the "Division") joined the Nationwide Mortgage Licensing System ("NMLS") and beginning January 2, 2008, license applications and amendments to licensing information for the Division must be submitted through NMLS.
New Hampshire: House Bill 437 (effective January 1, 2008)
Parties who enter into a civil union are entitled to the same rights and subject to the same obligations and responsibilities that are accorded to married couples under New Hampshire law.
North Carolina: Senate Bill 313 (Effective April 1, 2008)
If a settlement agent receives information from the lender or has actual knowledge that a mortgage broker or other person acted as a mortgage broker in the origination of the loan, the settlement agent must place the name of the mortgage broker or person who acted as a mortgage broker in the origination of the loan on the first page of the deed of trust. Additionally, the lender must include the name of the mortgage broker or other person, if any, who acted as a mortgage broker in the loan origination in the closing instructions.
LPS is in the process of implementing the required information and will have it available to its clients by April 1, 2008.
LPS is in the process of implementing the required information and will have it available to its clients by April 1, 2008.
Oklahoma: Department of Consumer Credit (Effective January 1, 2008)
The points and fees threshold to determine if a residential mortgage transaction is a "Section 10 Mortgage" under Oklahoma law is increased to $561.00 for 2008.
Pennsylvania: House Bill 296 (Effective February 16, 2008)
The maximum allowed charge for bad checks has been increased from $20 to $50.