Compliance Updates: April 2025 In Review
Apr 7, 2020
March was a tumultuous month for all of us, as everyone across industries and even continents attempted to establish a new normal amid the COVID-19 outbreak.
While there may be additional rules related to helping lenders address the economic challenges of the pandemic, for now, the updates published in March were primarily updates that had already been in the works. However, FNMA released an updated version of Lender Letter 2020-03 to provide clarification and special rules for the handling of mortgage loans amid the pandemic. This update published March 31, and we are working to determine any impact to our document library. We will keep you updated as the situation progresses.
Along those same lines, our compliance team is hard at work monitoring any developments at the federal and state level to provide you with the information and tools necessary to continue operations.
Remember that you can receive compliance-related updates as we publish them by subscribing to our compliance blog.
State and Investor Compliance News
GSEs: The GSEs announced that they will not purchase an ARM with an application date on or after October 1, 2020, which uses LIBOR as its index. To raise awareness of this fact, we have created a new, global data integrity check warning that will automatically trigger under certain conditions. Learn More.
FNMA. FNMA revised certain Fannie Mae-only notes and riders to reinsert the definition of “Maximum Rate” in Section 4(D). The revised documents are available to use now, but must be used starting June 1, 2020. Learn More.
We have completed incorporating the “fallback” language into our standard, conventional ARM notes and ARM riders. For a full list of documents, click here.
On March 31, 2020, FNMA released an updated version of Lender Letter 2020-03, providing clarification and special rules for the handling of certain mortgage loans due to the coronavirus pandemic. We are currently reviewing this letter to determine any impact to our document library and/or systems and evaluating any necessary changes and will report back. Learn More.
Wisconsin. WI AB 293 (2019) which practically repeals and replaces Chapter 137 of Wisconsin’s Statutes (as well as Wis. Stat. Ann. § 706.07) with a new Chapter 140, which promulgates the requirements for notarial certificates. These amendments take effect on May 1, 2020. We are reviewing this law to see how it may affect documents and will continue to provide updates. Learn More.
Idaho. On March 11, 2020 Gov. Brad Little (R) signed into law ID HB 401 (2020), which amends several sections of Idaho’s Code governing mortgage companies – most notably repealing Chapter 28, Title 26. We are currently reviewing these changes and will provide updates as needed. 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.