September and October Compliance Roundup

October was a significant month for compliance as the new TRID 2.0 standards went into effect. We have written a great deal about that rule on this blog, so this update will focus primarily on state and investor requirement changes we saw in September and October.

However, everyone should take a moment to read senior regulatory compliance specialist Timothy A. Raty’s excellent article, “Rounding Lender Credits on the Loan Estimate,” which provides a detailed explanation and example of rounding lender credits on the Loan Estimate.

As we see more news and guidance updates to TRID 2.0 in the coming months, we will explore those details on our blog.

All of the following updates were originally announced on our compliance blog. Subscribe to learn about all of the industry’s compliance news before anyone else.

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State and Investor Compliance News

A few minor modifications and updates were provided by federal agencies and investors over the past two months. The changes are outlined below, and more details can be found on our compliance blog by following the links.

Fannie Mae: FNMA recently updated its model construction loan forms and summary pages to remove renovation loan references. We are currently reviewing how this may impact our own documents, and any changes we make will be announced on our compliance blog. More.

Maine: In addition, the definition of mortgage in the MERS® Mortgage Assignment (Maine) Form 3749 as well as its instructions have been modified. More.

Federal Housing Finance Agency: The FHFA released a new webpage entitled “Mortgage Translations” containing the Language Translation Disclosure. With this new document, speakers of Chinese, Korean, Spanish, Tagalog, and Vietnamese can now receive the same helpful information English speakers do in their native language. More.

Document Changes

The document library saw a variety of of new forms and revisions these past few months. They’ve been summarized below with links to the full descriptions of the updates.

  • Enabling of “Joint Credit” signature lines modified on 1003 Uniform Residential Loan Application (Cx4193, Cx17663). More.
  • All Maine Security Instruments and Loan Modification Agreements have been updated. More.
  • Field 29952 underwent a name change to avoid confusion; it is now “Loan is a Simultaneous Second/Subordinate Lien.” More.
  • South Carolina’s Attorney and Insurance Preference Disclosure (Cx3848) will now be configured to be “ink sign only.” More.
  • Revisions made to Vermont’s Mortgage Loan Commitment Agreement Long Form (Cx4671); Short Form created (Cx22596). More.
  • Major updates made to California, Connecticut, and Washington PMI Disclosures (Cx999, Cx1029, Cx18541). More.
  • MD Addendum for Montgomery property (Cx4039) now has signature lines. More.
  • A closing field has been added to Minnesota Lock-in Agreement (Cx18228). More.
  • Some modifications have been made to MA Certification and Indemnification Agreement (Cx1024). More.
  • Copies of IRS Forms Cx3095 and Cx23 have been modified to match the latest updates to their corresponding IRS Forms 4506-T. More.
  • Select minor modifications have been made to VA form 26-8923. More.
  • An additional notary signature line has been added to LA Security Instruments (Cx327, Cx485, Cx1356, Cx19376). More.
  • The definition of “mortgage” has been modified in ME Assignment of Mortgage (Cx1529) to match FNMA’s revised Form 3749. More.
  • The new Language Translation Disclosure now has the option of being printed in Notice to Borrowers about Language (Cx22719). More.
  • A variety of now unnecessary Data Integrity Checks have been removed from ConformX. More.

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