Compliance Updates: April 2025 In Review
Sep 5, 2019
August saw several changes handed down by various government agencies and investors, along with new state-mandated document changes. The details are here in our monthly compliance update blog post. For updates as they are published, subscribe to our compliance blog.
Two big items in August. The first was a communication sent by the Veterans Administration that cleared up some confusion around certain agency loan products. Well, the administration hoped it would clear it up.
Thanks to our compliance team, we bring you an in-depth article on Veterans Administration Circular 26-19-22, explaining what it does and what it doesn’t do. According to the VA, its circular “consolidate[s] and clarif[ies]” how the Economic Growth, Regulatory Relief, and Consumer Protection Act affects VA Interest-Rate Reduction Refinance Loans. It’s not as simple as it sounds. Get all the details in this month’s article.
The other big news had to do with the upcoming Uniform Residential Loan Application, which the nation’s largest secondary market investors have been working on for some time. In August, Fannie Mae and Freddie Mac announced that the mandatory start date of February 1, 2020, is postponed to a date to be determined later. As part of the delay, there are also changes to the forms and data fields, which are outlined below.
State and Investor Compliance News
Here is a look at what happened in August.
Fannie Mae.FNMA announced in August that it had “updated the summary document for the Multistate Fixed-Rate Note 3200.” This now permits lenders to include additional information in Section 6(A) of that form. We are planning to incorporate this change and details of any modifications we make will be announced on our website. Learn more.
Fannie Mae & Freddie Mac.In early August, FNMA and FHLMC jointly announced that they will be removing the “Language Preference” and “Homeownership Education and Housing Counseling” questions from the new URLA and including them in a new “voluntary consumer information form” which is under development. They will also be revising other parts of the URLA. Learn more.
USDA.The USDA Office of Rural Development announced in August that it had revised form RD 3555-21. The Agency eliminated the fields for the interest rate, lock and floating dates. An advance copy of the form has been posted to the USDA LINC Training and Resource Library under Loan Origination – Document and Resources. We are currently reviewing this change to determine any impact to our document library and/or systems and evaluating any necessary changes. Learn more.
Veterans Administration.In accordance with VA Circ. 26-19-22, providing preliminary guidance concerning the correlation between Interest Rate Reduction Refinance Loans (“IRRRL”) and the “Economic Growth, Regulatory Reform, and Consumer Protection Act” (See article referenced above), we will offer several Data Integrity checks as a courtesy to our clients, to assist them with providing accurate data which complies with the required changes. These Data Integrity check modifications are available on Stage servers for testing and are now in effect on Production servers. Learn more.
Document Changes
The document library also saw a few revisions in August. They’ve been summarized below with links to the full descriptions of the updates.
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The preceding 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.