Compliance Updates: April 2024 In Review

Our team of experts at Docutech continually review requirements for document changes and publish real-time updates. To help keep you in the know, the monthly Docutech Compliance Recap brings you the most recent compliance updates. 

Here’s our latest recap: 

Document Updates

• Docutech has created a revised set of FHA security instruments and notes that are based on the 2021 (effective 2023) GSE forms. In response to feedback from our clients, we have adjusted the previously announced timeline for the rollout of these new forms. The new documents are configured to print based on field 152151 “Use New FNMA/FHLMC Legal Documents (07/2021)”. Clients should review any mappings they have related to this field prior to utilizing the new forms. Read more.

Global Mapping Changes

• If the ConformX fields used to populate the “Year or period requested” sections of IRS Forms 4506-C “IVES Request for Transcript of Tax Return” and 4506 “Request for Copy of Tax Return” are not set, the first two loan level dates default to the last day of the previous two calendar years. These two date fields are currently defaulted to 12/31/2022 and 12/31/2021. Since the federal income tax return filing deadline of April 15, 2024, has arrived: “Requested Tax Return 1 End Date” (field 30389) has been updated to default to 12/31/2023 and “Requested Tax Return 2 End Date” (field 30390) has been updated to default to 12/31/2022. Read more.

Late Fee Updates

• There are two statutes that authorize lenders in Kentucky; a general licensing statute for mortgage loan brokers and mortgage loan companies (found in Ky. Rev. Stat. § 286.8-010 et seq.), and the consumer loan company statute (Ky. Rev. Stat. § 286.4-410 et seq.). The scope of the general licensing statute allows lenders to provide loans for any loan amount, whereas the consumer loan company statute can only be applied to loans of $15,000 or less [KRS 286.4-410(1)(b)]. In order to provide lenders the option to use either license type for loan amounts under $15,000, we have created field 187639 “Kentucky License Type” that can be mapped to trigger the general licensing late fee limitation of 5%. Read more.

For full details related to document and mortgage compliance updates, sign up for real-time Compliance updates at info.docutech.com/subscribe-compliance.

The above information is for informational purposes only and is not and may not be construed as legal advice. No third-party entity may rely upon anything contained herein when making legal and/or other determinations regarding its practices, and such third party should consult with an attorney prior to embarking upon any specific course of action.