While short on compliance news, the first quarter of 2022 was packed with several important document updates. Our experts are always reviewing compliance requirements for document changes, and as you will see below, have found plenty from the beginning of the year. Make sure you also take note of the Recent Article and Global Mapping updates located towards the bottom for the most thorough roundup.
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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).
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. Docutech®, a First American Company, 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 Docutech recently modified our standard New Jersey forms to utilize the general stature notary language. Learn more.
- Docutech has made changes to the Washington security instruments to allow for the removal of “Prepared By” section by setting Field 61562 “Print Prepared By on Last Page of Recordable Docs” to No. Learn more.
- In December 2021 the models for VA forms for Interest Rate Reduction Refinancing Loan Workout and Request for Determination of Reasonable Value (Real Estate) were both updated by the VA. Learn more.
- Docutech has decided to support Freddie Mac’s version of the Community Land Trust Ground Lease Rider. Learn more.
- Regarding New Jersey’s Administrative Code, we are removing the “not” in a statement on our NJ Commitment Letter to clear up some potential confusion. Learn more.
- Docutech has modified the HUD Addendum to Uniform Residential Loan Application Form 92900-A. Learn more.
- We have modified Cx1380 HELOC Mortgage – MN to remove a signature line that we placed under the drafted by block at the top of this document. Learn more.
- In response to the changes to the Fannie Mae Homestyle Renovation Loan Agreement Form 3731 Docutech has made the necessary updates to form Cx222295. Learn more.
- Docutech has created a “NY Alternative Payment Schedule Notice” to meet requirements set by the NY SB S1566A. Learn more.
- Pursuant to our monthly audit of federal agency forms, we have updated several USDA-RD forms. Learn more.
- We have modified the cover letter of the Social Security Number Verification to include a consent to eSign in order to comply with the eCBSV user agreement instructions. Learn more.
- We have removed the words “INSTRUCTIONS ON REVERSE” on document Cx2657. Learn more.
- In order to allow flexibility, we have created new field 154630 “Print Change in Marital Status Information on Security Instrument” and added it to our standard LA HELOC Mortgage (Cx1356) for clients who wish to suppress the marital status declaration by sending the new field as “Yes”. Learn more.
- We have added Cx2114 to the adverse action package for the state of California based on the requirements of California Civil Code Section 1785.20.2. 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.
Global Mapping Update:
- The global mapping outlined in our previous announcement that sets Print Balloon Payment Disclosure to “Yes” has been updated. 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.
The above information 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.