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.November 2009
AGENCY ANNOUNCEMENTS |
Fannie Mae Announcement 09-30 (October 19, 2009)
Fannie Mae implemented the Payment Reduction Plan ("PRP") and retired the HomeSaver Forbearance Program effective October 31, 2009.
LPS has the PRP form available for client use.
Fannie Mae Announcement 09-31 and Freddie Mac Bulletin 2009-26 (November 2, 2009)
Fannie Mae will post new standard Home Affordable Modification Program ("HAMP") documents. These documents may be
used as soon as they become available but must be used no later than March 1, 2010. The new documents are:
- Making Home Affordable Program Request for Modification and Affidavit ("RMA") (Form 194). This document will replace the Hardship Affidavit (Form 1021), SIGTARP Fraud Notice, and portions of the Trial Period Plan (Form 3156).
- Home Affordable Modification Program Stated Income Trial Period Plan Notice (Form 195) and Home Affordable Modification Program Verified Income Trial Period Plan Notice (Form 196). These notices will be used for the streamlined documentation process and are not to be used if the servicer is using the HAMP Trial Period Plan (Form 3156).
LPS will have these forms available no later than March 1, 2010.
Fannie Mae Announcement 09-34 (November 12, 2009)
The 2010 general loan limits, including high-cost limits, remain unchanged from 2009. Modified loans that exceed the current loan limits will not be purchased by Fannie Mae.
Freddie Mac Bulletin 2009-24 (October 9, 2009)
All refinance mortgages, except for Relief Refinance Mortgages, must meet one of the following general requirements:
- At least one borrower on the refinance mortgage must have been a borrower on the mortgage being refinanced; or
- At least one borrower on the refinance mortgage must have held title to and resided in the property as his/her primary residence for at least 12 months and the file contains documented evidence that the borrower, either:
- Has made timely mortgage payments, including secondary finance payments, for the past twelve months; or
- Is related to a borrower on the mortgage being refinanced; or
- At least one borrower on the refinance mortgage inherited or was legally awarded the mortgaged property by a court in the case of divorce, separation or dissolution of a domestic partnership.
These requirements are independent of those permitted under HAMP.
Non-Freddie Mac-owned streamlined refinance mortgages with settlement dates on or after February 1, 2010, will no longer be purchased.
HUD Mortgagee Letter 2009-43 (October 20, 2009)
The guidelines for the Hope for Homeowners program ("H4H") have changed for endorsements issued on or before September 30, 2011. Changes to H4H include but are not limited to:
- Borrowers are ineligible if their net worth exceeds $1,000,000.00 (excluding assets in Qualified Retirement Plan accounts).
- Borrowers must not have defaulted on their existing mortgage or any substantial debt (debt over $100,000.00) in the last 5 years.
- The appraisal validity period follows standard FHA guidance (currently the validity period is 180 days; after January 1, 2010, 120 days).
- The upfront mortgage insurance premium fell from 3% to 2% and the annual premium fell from 1.5% to .75%.
- The maximum loan-to-value excludes the upfront mortgage insurance premium.
- The new Exit Premium note and mortgage replace the previous shared equity and shared appreciation notes and mortgages.
- The Shared Appreciation feature has been eliminated.
HUD Mortgagee Letter 2009-46B (November 6, 2009)
Two condominium approval processes for Federal Housing Administration loans now exist: the HUD Review and Approval Process and the Direct Endorsement Lender Review and Approval Process. This mortgagee letter replaces Mortgagee Letter 2009-19.
HUD Mortgagee Letter 2009-46A (November 6, 2009)
Mortgagee Letter 2009-46B extended the Spot Loan Approval process for condominiums until February 1, 2010.
HUD Mortgagee Letter 2009-47 (November 6, 2009)
Effective October 2, 2009, the HECM Counselor Roster became available for lenders to obtain a list of approved counseling agencies. The counseling list provided to borrowers may only contain the names of approved counseling agencies. Also, testing standards for individuals to qualify as HECM counselors have been established.
Veterans Affairs Circular 26-09-17 (October 1, 2009)
Current Veteran Affairs ("VA") loans may be evaluated for a loan modification only if the veteran is in imminent danger of default. Otherwise, the loan must be considered for a refinance loan program, such as the VA Interest Rate Reduction Refinancing Loan.
