Compliance Updates: April 2025 In Review
Mar 12, 2020
February brought the first major regulatory changes with Fannie Mae and Freddie Mac rolling out new the ARM regulations alluded to late last year. The GSEs announced plans for the gradual elimination (and replacement) of their ARM programs, which use LIBOR as the index for setting the adjustable interest rate. We have been working quickly to update documents but expect to see more changes and will alert you as more information becomes available.
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State and Investor Compliance News
Fannie Mae. FNMA announced the publication of revised ARM notes and riders which include fallback language recommended by the Alternative Reference Rates Committee (ARRC). FNMA encourages lenders to adopt this language immediately, with a mandatory usage date of June 1, 2020 for loans closed on or after that date. Learn more.
Freddie Mac. Due to lack of demand and an increase in associated operational costs, FHLMC is retiring the eligibility for sale of mortgages originated with a biweekly payment schedule. They are subsequently removing the Biweekly Note and Rider used to document biweekly Mortgages from the Uniform Instruments web page. Learn more.
Document Changes
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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.