June saw a number of changes handed down by various government agencies, investors and one state government, some of which may result in changes to our system or document library. The details are here in our monthly compliance update blog post. To stay up to the minute, you can always find compliance information on our compliance blog.
The big news this month was that Fannie Mae and Freddie Mac have postponed the voluntary use date for the redesigned Uniform Residential Loan Application. Previously, lenders were given the option to begin using the new form on July 1, 2019. A new timeline has not yet been determined.
This month, we were also proud to bring you two great feature articles posted to the blog by Timothy A. Raty, Senior Regulatory Compliance Specialist. In the first, which you can find here, Raty clarifies certain calculating cash to close clauses. In the second, Raty explores the interrelation of laws and rules affecting mortgage insurance. You can find that article here.
State and Investor Compliance News
We saw a few important changes this month. Here’s a look at what happened in June.
Florida. In early June, Florida Governor Ron DeSantis approved a bill that modifies the formats of the “short forms” of notarial acknowledgements promulgaged under the state’s code as it goes into effect in January, 2020. We are reviewing this change to determine any impact to our document library and/or systems and evaluating any necessary changes. Learn more.
USDA. A new USDA Technology Fee has been announced by the Office of Rural Development and will be assessed and collected starting January 1, 2020. When the fee is passed on to consumers, it must be disclosed. We are currently reviewing this change to determine whether document changes are required. Learn more.
IRS. This month, the IRS announced that it would no longer provide tax transcripts to third parties. We are reviewing this change to determine if the forms used by lenders to request these documents will be changed. Learn more.
The document library also saw a number of revisions in June. They’ve been summarized below with links to the full descriptions of the updates.
- In response to changes in the redesigned 1008 and 1003, we combined supplemental property insurance with hazard on the FHA Loan Underwriting and Transmittal Summary. Learn more.
- We created a model form for ROD-21, an affidavit for a Class 1 property used according to DC Code Section 47-813. Learn more.
- Document Cx1566, a duplicate of HUD’s “Notice to Homeowner: Release of Personal Liability for Assumptions” form was updated to include required verbiage. Learn more.
- Minnesota’s disclosure relating to borrower notification that they qualify for a higher investment grade loan has been modified to remove the word “subprime” in accordance with statutory changes. Learn more.
- We enhanced certain UCC-1 and UCC-3 forms, which are configured to print for loans secured by shares and a lease in a cooperative unit. Learn more.
- New Jersey’s initial tax authorization notice (Cx1507) has been updated with new language. Learn more.
- Despite the fact that the voluntary implementation date has been postponed, the new documents required for URLA and UUTS are now complete and available from within ConformX. Learn more.
- Changes were made to documents for Oklahoma and Indiana to reflect changes in the maximum late fee that can be assessed under their version of the Uniform Consumer Credit Code. Learn more.
- The request for “Single Family Housing Loan Guarantee” form (Cx18893) has been modified to allow for better form functionality and to more closely follow the form instructions. Learn more.
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