November Compliance Recap

As election season comes to a close, we saw the regulatory landscape and compliance landscape prepare for shifts and updates. Many states modified laws, which then required additional document changes on the First American Docutech front. These changes are automatically incorporated into ConformX, to ensure that your documents are in compliance with state, federal and investor requirements.

Follow our compliance blog to remain up to date on regulatory changes within the industry.

Delaware Purchase Money Mortgages: John Carney, Governor of Delaware, recently signed a law declaring that there is a rebuttable presumption that a mortgage is a “purchase money mortgage” if the document explicitly states that it is for the purchase of the subject property. This went into effect September 28, 2020. Learn more here.

Pennsylvania Adjusts Base Figure Amount: The Pennsylvania Department of Banking and Securities announced that they will adjust the base figure from $260,404 to $263,975. This figure is defined in 41 P.S § 101 and is a factor in determining what types of loans certain mortgage lending rules apply to. This change will take effect January 1, 2021. Learn more here.

Revised FHA Single Family Handbook: The Federal Housing Administration revised their Single-Family Handbook to: (i) remove a restriction against an attorney-in-fact for military personnel signing both the initial and final copies of the loan application; and (ii) explicitly requiring the Mortgagee to obtain a signed acknowledgment from the borrower regarding their being cognizant of hazards involved with the subject property being located in certain airport zones. This went into effect November 18, 2020. Learn more here.

Document Updates:

  • Updated Indiana Mortgage Witness/Proof Section: In July of 2020, Indiana signed Senate Bill 340 requiring both an acknowledgement and proof. Lake County specifically requires these to be on a separate page. Due to that, First American Docutech created a new page to ensure the proof prints on a separate page. This went into effect November 7, 2020. Learn more here.
  • Updated VA Compliance Inspection Report: In First American Docutech’s monthly audit of Federal Agency forms, they noticed minor adjustments to the VA Compliance Inspection Report. Adjustments have been made to ensure that this form matches the latest version of the model form. This went into effect November 7, 2020. Learn more here.
  • Updated 4506 IRS Form: The IRS published an updated Request for Copy of Tax Return form with a variety of adjustments. First American Docutech has modified their form to accommodate those changes. This went into effect November 7, 2020. Learn more here.
  • New Field Added to Massachusetts Mortgage Requirements: Feedback from multiple Massachusetts counties showcased that they expect the notary to identify which type of identification was used when identifying the signer. First American Docutech’s form originally didn’t require those utilizing the real property notary block to have to identify those factors. This new field has been added to forms Cx328, Cx486, Cx1332 and Cx19379. This went into effect November 10, 2020. Learn more here.
  • Adjustments Made to Delaware Security Instruments: To accommodate changes made in Delaware’s recently amended Del. Code Ann. tit. 25 (see above), First American Docutech has incorporated the purchase money caption promulgated under “Instructions for FNMA Form 3008” to its standard security instruments. This went into effect November 17, 2020. Learn more here.
  • Redesigned Uniform Residential Loan Application: As a result of testing that was done during the FNMA/FHLMC Limited Production Period, First American Docutech has adjusted their Cx20667 according to the results. These adjustments went into effect November 19, 2020. Learn more here.
  • Changes to MA Counseling Disclosure: In order to accommodate the timing requirements for the disclosure, First American Docutech has removed the generic need to print in the Initial Disclosure package. This went into effect November 19, 2020. Learn more here.
  • Adjustment Made to SC Borrower Complaints: In accordance with both State law the South Carolina Department of Affairs, First American Docutech has adjusted the label for License Type from “Broker” to “Broker/Originator” on this form. This went into effect November 21, 2020. Learn more here.
  • Additions Made to Tennessee Lock-In Agreement: After a review of Tenn. Comp. R. & Regs. 0180-17-.04, First American Docutech has added additional statements above the signatures to more accurately meet compliance standards. This went into effect November 25, 2020. Learn more here.
  • Adjustment to Fields on SFH Loan Guarantee Form: Based partly on informal guidance, the “USDA/RD Guarantee Fee” field on this form will be substituted with the “N: PMI, MIP Funding Fee Financed/LLI” field. This went into effect December 2, 2020. Learn more here.

You can always find all the details related to every compliance change and commentary from our industry-leading compliance team on our compliance blog. Subscribe today to stay up to date. 

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