Compliance Updates: September 2024 In Review

 

Our team of experts at Docutech continually review requirements for document changes and publish real-time updates. To help keep you in the know, the monthly Docutech Compliance Recap brings you the most recent compliance updates. 

Here’s our latest recap: 

Document Updates

  • We have added the loan product choice disclosure to our prepayment disclosure documents for Wisconsin. Read more.
  • Several state disclosures contain optional coding that allows the user to print a Disclosed By Company Label (FI 46034) in place of the standard “Lender” label, and Disclosed By Company Name (FI 106104) in place of the standard Lender Name and Extension (FI 15360). This flexibility allows clients to customize this information near the top of the form. The optional “Disclosed By Company” functionality has been added to these various state disclosures. Read more.
  • Pursuant to our monthly audit of federal agency forms, we have updated Cx47 “Warranty of Completion of Construction – HUD-92544.” Since the VA has not yet posted an updated version of VA form 26-1859, only the FHA version of Cx47 has been updated at this time. Read more.
  • Fannie Mae Requirements of Document Custodians Guide section 8.3 Consolidated Mortgages states that “All persons signing the Consolidated Note must sign the CEMA as well.” We have determined that Cx1583 NY Consolidation, Extension and Modification Agreement and Cx23134 NY HELOC Consolidation, Extension and Modification Agreement need to include signature lines for anyone who signs the Consolidated Note. As a result, we have added cosigner functionality to these documents. Read more.
  • As part of Docutech’s efforts to enhance all documents for eSign capability, certain documents are now available with a generic option for eSign. Read more.
  • We are adding a System Default setting “Enable DI check for Edge Case MI Determination in New York” which will enable a DI Check that will determine whether mortgage insurance is needed based on the purchase (sales) price for co-op purchase loans. We are setting this System Default to “Yes” by default, which will trigger the DI Check to let Lenders know if they don’t need to have mortgage insurance premiums on their NY co-op purchase loans. Read more.
  • After our monthly review we have updated both Cx3970 Subterranean Termite Soil Treatment Builder’s Certificate (HUD-NPMA-99A) and Cx3969 New Construction Subterranean Termite Soil Treatment Record (HUD-NPMA-99B). Both forms have updated the public reporting burden statement at the top of the page and updated the warning at the bottom of the page. Read more.
  • According to Maryland Property Tax §13-203(b)(1) if an individual is considered a “first-time Maryland home buyer” certain tax exemptions may apply for the rate of transfer tax. To qualify for the exemption each grantee or an agent of the grantee must provide a statement under oath, which statement under oath is provided for in Cx3539 Maryland First Time Home Buyer Affidavit. We have made adjustments to who will be signing to document to ensure that all appropriate individuals will be signing. Now, borrowers, NPE’s, and Trusts will have signature lines. Read more.
  • In an effort to more easily identify Fannie Mae (Federal National Mortgage Association “FNMA”) forms located in Docutech’s document library, various Docutech document description names have been updated to include the FNMA form number followed by “FNMA” and the actual FNMA document name. Read more.
  • As stated in Fannie Mae Selling Guide Announcement SEL-2024-03, the following SOFR ARM Notes and Riders have been updated and are available for immediate use, but these SOFR ARM Notes and Riders must be used for any loans with note dates on or after November 1, 2024. Read more.
  • Margin sizes increased for Oklahoma recorded documents. As such, various documents have been updated accordingly. Read more.
  • Pursuant to MD. State Government Code § 18-213 for remotely located notarial acts we have updated Maryland Tax Property Affidavit (Cx15803) to include the following language: “This notarial act involved a remotely located individual and the use of communication technology.” The designation will apply when the field “Security Instrument Notary Type of Presence” (FI 137249) equals ‘IPEN’ or electronic notarization” is sent in the data file. Read more.
  • All post-2021 first lien closed end standard security instruments in ConformX share the same logic in the notary acknowledgment area. This notary acknowledgment coding prints different text and content on the security instrument based on Property State (FI 1714) and Security Instrument Notary Type of Presence (FI 137249). The standard HELOC and second lien closed end security instruments have been modified to utilize this same updated technology. This update will allow for consistency between the standard sets of forms, as well as provide the latest Remote Online Notarization (RON) and In-Person Electronic Notarization (IPEN) support. Read more.
  • We have recently updated our Cx801 Tax Information Authorization Form, which is a duplicate of the IRS Form 8821. This document is only used upon request and is applicable to a limited number of clients. The update to the Tax Information Authorization form (Cx801) now allows for eSign functionality on a global scale. With the new default coding, areas without fields can be filled in during eSigning, including the Signature/Date area. Read more.

Global Mapping Changes

  • The global standard value field mappings on Requesting eNote Indicator (FI 120375) and Note Registry Operator (FI 38974) have now been modified to better support the use of eNote in Maine. Read more.

For full details related to document and mortgage compliance updates, sign up for real-time compliance updates at info.docutech.com/subscribe-compliance.

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.