2022 started off with several important compliance and document updates. Our experts have compiled and summarized them for you below.
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- The Ohio Department of Commerce has announced an increase in coverage amount for residential mortgage to be subject to or exempt from a prepayment penalty under Ohio Rev. Code § 1343.011(C). In order to be exempt, the loan must be in an amount of less than $98,619.
We have updated our Prepayment Penalty Matrix accordingly and it is now available on our website.
- The IRS has updated the instructions and the contact information found at the top of tax form 4506 Request for Copy of Tax Return. Learn more.
- We are making changes to our FNMA Form 1003 (Cx20667) to align with updated guidance indicating how self-employment income should be reported on the URLA. Learn more.
- On Jan. 6, 2022, the Department of Veteran Affairs published Circular 26-22-02 regarding the updating of VA Form 26-0592, Counseling Checklist for Military Homebuyers (Cx3521). Specifically, the checklist now explains how Veterans with a pre-discharge claim pending can pursue exemption from the VA funding fee. Learn more.
- New functionality to trigger additional copies of IRS Form 4506-C was announced last month. The fields that trigger new Request 2, Request 3, or Request 4 copies per borrower have been updated. These new per borrower “Print” fields trigger additional 4506-T copies to print, not the “Form Name” fields as previously listed in this area. Learn more.
- According to the instructions for the SSA-89, the form is required to be completed for each “reason for authoring consent.” The form has several choices that an SSN holder may select. In the context of a mortgage loan, the most obvious one is the “To apply for a mortgage” choice. However, since there are more choices that are available, multiple SSA-89’s may need to be completed if selected by the SSN holder. First American Docutech has added language to the coversheet of our SSA-89 (Cx5579) to explain this potential requirement for a manual process. Learn more.
- New Hampshire Senate Bill 134 enacts the Revised Uniform Law on Notarial Acts, including provisions for notarizations on electronic records and for remotely located individuals which took effect Feb. 6, 2022. Learn more.
- The state of New Jersey recently adopted amendments to the Model Rule on Notarial Acts which includes new short-form notarial language in addition to the existing notary language provided under the real property code. Due to the provision, First American Docutech recently modified our standard New Jersey forms to utilize the general stature notary language. Learn more.
- In October 2021, six federal financial regulatory agencies issued another joint statement on managing the LIBOR transition (in effect as of December 31, 2021) to provide “…clarification regarding new LIBOR contracts, considerations when assessing appropriateness of alternative reference rates, and expectations for fallback language.” Learn more.
- We have recently received some questions regarding certain mortgage disclosures forms that have special paper color or delivery requirements. Each of the forms has or will soon have an instructional cover sheet to remind lenders of these requirements. Learn more.
For full details related to document and mortgage compliance updates, visit our website here. Fill out the form at the bottom of the page to subscribe and receive updates as they are published.