Issue Publish Date

January 10th, 2012December 10th, 2011November 10th, 2011October 10th, 2011September 10th, 2011August 10th, 2011July 10th, 2011June 10th, 2011May 10th, 2011April 10th, 2011March 10th, 2011February 10th, 2011January 10th, 2011December 10th, 2010November 10th, 2010October 10th, 2010September 10th, 2010August 10th, 2010July 10th, 2010June 10th, 2010May 10th, 2010April 10th, 2010March 10th, 2010February 10th, 2010January 10th, 2010December 10th, 2009November 10th, 2009October 10th, 2009September 10th, 2009August 10th, 2009July 10th, 2009June 10th, 2009May 10th, 2009April 10th, 2009March 10th, 2009February 10th, 2009January 10th, 2009December 10th, 2008November 10th, 2008October 10th, 2008September 10th, 2008August 10th, 2008July 10th, 2008June 10th, 2008May 10th, 2008April 10th, 2008March 10th, 2008February 10th, 2008January 10th, 2008

Compliance

Jan 10, 2012 Consumer Finance Protection Bureau Takes Over ECOA/HMDA Oversight and Enforcement The rules are not changing – just the guard. That said, the CFPB has as part of its primary mission to ensure consumers have discrimination-free access to credit and fair lending practices. Recently, Bank of America settled a complaint against Countrywide for alleged discrimination against African-American and Hispanic borrowers who applied for home loans. Bank of America agreed to pay $335 million to resolve the claims – according to the U.S. Justice Department, this is the largest settlement over residential fair lending practices in history. (CFPB BLOG 12/16/2011)

CFPB – Changes to Settlement Costs Booklet No biggie here: Just a ”clerical” thing (a name change) since CFPB has taken over HUD’s “notice and complaint departments” since they are now in charge. Supporting Resources: Copy of Federal Reserve Notice, Page 78968, Settlement Cost Permissible Changes (1)(i)

Nov 10, 2011 Fed Updates Dollar Value Trigger for TIL & HOEPA Disclosures (Effective 1-1-12) Just a heads up that HOEPA restricts credit terms such as balloon payments and requires additional disclosures when total points and fees payable by the consumer exceed certain levels. For 2012, the fees must exceed the GREATER of $611 or 8% of the total loan amount. (Federal Register Vol. 76, No. 188 | 12 CFR Part 226 | Reg Z - Truth in Lending) Supporting Resources: Federal Reserve - TIL & HOEPA Disclosures (Reg Z; Docket No R-1422)

Fannie Mae

Jan 10, 2012 Fannie Clarifies Condo Insurance Requirements – SVC 2011-23 (Effective January 1, 2012) Fannie Mae clarified the requirements servicers must meet in regards to condominium insurance coverage. While this is a servicing announcement, it is our belief that this will make its way to the originators within a short period of time. ()FNMA SVC 2011-23

Fannie Updates Temporary Leave Income; Condo Project Insurance, Multiple Loans to One Borrower – Announcement SEL 2011-12 – December 20, 2012. [Download Mortgage Talking PointsTM flyer, How Your Clients Can Qualify for a Mortgage if on “Temporary Leave” from Job!] A couple of key updates with this change as Fannie really clarified its policy about “temporary leave” from a job. Most underwriters may not be aware of this recent change. The use of assets to supplement temporary income could help keep a deal together. In regard to multiple loans to one borrower, be aware of ownership and how title is held. It impacts your number of units financed in total. Pay attention to properties titled to an entity in which the borrower is personally obligated for repayment. (FNMA SEL 2011-13) Supporting Resources: Mortgage Talking PointsTM flyer How Your Clients Can Qualify for a Mortgage if on Temporary Leave from Job

Fannie Home Affordable FAQ’s DU Relief Ref & Refi Plus - Updated 12-20-11 The last time we checked, there were about 30 FAQ’s, and now we are up to 100 even. The 5 listed are the new and updated ones that affect loan originators and processors. (Fannie Home Affordable Refinance FAQ’s )

Nov 10, 2011 Fannie and the Uniform Appraisal Dataset (UAD) and Uniform Collateral Data Portal (UCDP) – Effective 12-1-11. Minor Underwriting Updates (Effective 10-25-11) [Download Mortgage Talking PointsTM flyer, House Swapping/Trading Homes - What You Need to Know] Long story short, Fannie and Freddie at the direction of the FHFA are now collecting a lot more information in uniform formats. In addition, Fannie clarified DU’s handling of bankruptcy, single premium financed MI and trade equity. This just makes Fannie’s guidance on these subjects crystal clear. (FNMA SEL-2011-11) Supporting Resources: Mortgage Talking Points™ flyer, House Swapping/Trade Equity - What You Need to Know

Fannie HomePath.com Financing Options. [Download Mortgage Talking PointsTM flyer, Fannie HomePath & HomePath Renovation Programs: Incentives to Buy REO properties - As of November, 2011] We recommend that you sign up to receive notices of new foreclosures in your area. Go to HomePath.com , click on the “property alerts” tool bar, and when you get a notice from Fannie, let your key real estate agents know about the new listings. And, you may want to hold sales meetings, using the Mortgage Talking Points article included. Supporting Resources: Mortgage Talking PointsTM flyer Fannie HomePath and HomePath Renovation Programs - Incentives to Buy REO Properties (as of November 2011)

Fannie Home Affordable Refinance Program (Second Time Around): Hype over HARP – SEL 2011-12 (Effective 12-1-11) There was a lot of HYPE over HARP II. Eligible loans: Sold (not closed) to Fannie by 6-1-2009. Long story short, there are some welcome improvements as part of this process but nothing to make me want to go dance in the streets. Two big points about sums this thing up, no LTV limit, great for those of you in states that have seen massive property depreciation. And the lowering of LLPA caps for primary residences is a good thing. WATCH out for the “Refinance Solicitation Policy”. Fannie is VERY specific as to what you can and cannot say to consumers! Read Freddie’s version because there are differences. (Fannie Mae SEL 2011-12)

Fannie Mae/Freddie in Brief

Jan 10, 2012 Increase in Guarantee Fees (Effective April 1, 2012). Freddie 2011-26 and Fannie 2011-14. Tax Cut Continuation Act of 2011. FHFA is directing Fannie and Freddie to increase their guarantee fee by 10bps to pay for reduced payroll taxes. While you may think 10bps is no big deal, the truth is that 10bps is much more likely to result in a 20bps adjustment when the market is done with it. Read why!

Fannie/Freddie Delay Implementation of Uniform Loan Delivery Dataset to July 23, 1012 While this does not affect loan originators and what you do day in and day out, the implementation of ULDD is Fannie and Freddie’s way of processing massive amounts of information—in a standard and uniform way. This is a huge programming project and my guess is that it will be delayed again. Supporting Resources: Copy of Fannie Email Notice: ULDD Implementation Date Changes (Dated Dec. 14, 2011)

Dec 10, 2011 Freddie & Fannie Leave Conventional Loan Limits Essentially Unchanged for 2012 – Fannie LL-2011-08 & Freddie 11-22-11 Press Release. (Effective 1-1-12) [Download Mortgage Talking PointsTM flyer, Conventional Loan Limits for 2012] and [Chart/Checklists, Conventional Loan Limits for 2012 (Full County & High-Cost Area] As expected Freddie and Fannie left loan limits for the most part unchanged. Fairfield County, CT is the only exception this year. Mortgage Talking Points™, Conventional Loan Limits for 2012, for your real estate agents. ()FNMA LL-2011-08, FHLMC Nov 22 Press Release Supporting Resources: Fannie Mae & Freddie Mac Maximum Loan Limits for Mortgages Acquired in Calendar Year 2012 and Originated after 9/30/2011 or Prior to 7/1/2007 Conforming Loan Limits 2012 - High Cost Areas Mortgage Talking PointsTM flyer Conventional Loan Limits for 2012

HARP II – How PMI Companies Save the Day for Loan Originators! If there is one thing that I think most of us have overlooked in the midst of all of the HARP II hype, it is what has been happening with all of the PMI companies and their enhancements to their HARP guidelines. Now, with these changes those clients are fair game – and guess what? Since the big boys never got it together, most of these people will do flips when they find out you can help them now. So will you!

HARP II Fannie/Freddie Lender Conference Call Details – Learning the ropes as the program slowly unfolds! [Download Chart/Checklist, Timeline of Changes for Freddie Mac Relief Refinance Mortgages] In listening to Fannie Mae’s Conference Call, it was clear that there is still a lot of misunderstanding on the program and how it can be used. Freddie has created a chart with a TIMELINE for their Relief Refi Mortgages. Read this month’s article on Mortgage Insurance and HARP. There are some dollars waiting to be made by reading it. Supporting Resources: Timeline of Changes for Freddie Mac Relief Refinance MortgagesSM

Nov 10, 2011 Freddie, Fannie and the Uniform Loan Delivery Dataset (ULDD) (Effective December 1, 2011). Fannie LL 2011-06 & Freddie Bulletin 2011-14. Like you I am thinking, who cares about Uniform Delivery Dataset Requirements? This really does not impact what you do day in and day out. Or does it? The truth is someone has to gather the information for the loan file, that someone is usually the LO and his processor, so guess what, it does impact you. (FNMA LL-2011-06, FHLMC Bulletin 2011-14)

FHA

Jan 10, 2012 FHA Extends the Anti-Flipping Waiver Through 2012 – HUD Press Release 11-292 [Download Mortgage Talking PointsTM flyer, Investors Wanted: FHA Extends Flipping Waiver Until 12-31-12] While no one was worried that FHA wouldn’t extend this anti-flipping waiver, they barely squeaked it in on December 28, 2012. To refresh your memory, we have attached the original waiver that spells out the parameters of when you ARE allowed to do an FHA prior to 90 days of ownership under the waiver. (HUD No 11-292 Press Release - December 28, 1012 ) Supporting Resources: FHA Anti-Flipping Waiver Extension Press Release 2010 FHA Anti-Flipping Waiver Mortgage Talking Points™ flyer, Investors Wanted - FHA Flipping Waiver Extended to 12/31/11

DU for Government Release Notes – FHA and VA Updates- February 18, 2012 [Chart/Checklists, FHA and VA Loan Limits for 2012] Fannie Mae has announced that they will update DU for Government Loans to reflect the new 2012 FHA and VA loan limits, BUT not until the weekend of February 18, 2012. Manually check every VA and FHA loan file for loan limit compliance. DO NOT accept DU findings as valid until you have done this. (Fannie Mae – DU For Government Release Notes February 2012 Release – Dated 12-20-11) Supporting Resources: FHA Loan Limit Areas Between Floor & Ceiling FHA Loan Limit Areas at Ceiling and Above 2012 VA County Loan Limits

FHA - FAQs on Uniform Appraisal Dataset Updates This FAQ clarifies a few things and I think you’ll especially find the section about ‘adjusting comparable sales’ helpful. Underwriters, this article will primarily be helpful to you as you review appraisals and need insight to instructions given to FHA appraisers. Supporting Resources: FAQs for FHA ML2011-30

FHA Notice Regarding Case Number Cancellation Because loan limits are tied to case number issuance dates, HUD will allow a lender to cancel a case number and order a new one (provided the property and borrower remain the same) so that the borrower can use the higher loan limits. If you have anybody in your pipeline that got caught in the loan limit snafu but would love to bring in less down payment on their deal, go get them a new case number. (Email Notice. Jerrold H Mayer, HUD = Notice Regarding Case Number Cancellations, dated 12-21-11) Supporting Resources: HUD Email Notice on Case Number Cancellation HUD HOC Contact info for Case Number Cancellation and/or Assistance

Dec 10, 2011 FHA Maximum Loan Limits – through December 31, 2012. ML 2011-39. [Download Mortgage Talking PointsTM flyer, FHA Maximum Loan Limits - November 18, 2011 to December 21, 2012] and [Charts/Checklists, FHA Loan Limit Areas - at Ceiling and Above / AND / Between Floor and Ceiling] Go to the links we’ve provided and print out your own list for just the states/counties you are originating in. Use the attached Mortgage Talking Points to fill in the six local county loan limits in your area and distribute to your Realtors. This is as current as it’s going to get. ()FHA Maximum Loan Limits, Mortgagee Letter 2011-39, December 2, 2011 Supporting Resources: FHA Loan Limit Areas Between Floor & Ceiling FHA Loan Limit Areas at Ceiling and Above FHA ML Letter 2011-39 - FHA Maximum Loan Limits 10-1-2011 through 12-31-2012 HUD Email from 12-6-2011: Notice on FHA Mortgage Limits, FY 2012 Mortgage Talking PointsTM flyer FHA Maximum Loan Limits - November 18, 2011 to December 21, 2012

Condominium Reviewer Registry on FHA Connection FHA now requires that all lender staff responsible for reviewing condominium approval packages must be registered in FHA Connection as a condominium reviewer by December 5, 2011. (HUD Email November 19, 2011) Supporting Resources: DU for Government Release Notes 11-19-2011

FHA Approved Lender Requirements – Q & A Conference Call On October 25 FHA held an Industry Call Webinar in regard to lender approval requirements. HUD has published additional information on the subject in the form of an FAQ which you can download at the end of this article. I’ll bet that the majority of FHA lenders need to tweak something within their organization to create true alignment. (FHA Industry Conference Call FAQs, October 25, 2011) Supporting Resources: October 25, 2011 Industry Call FAQs

Nov 10, 2011 HUD REO’s and $100 Down Paying Making a Comeback [Download Mortgage Talking PointsTM flyer, HUD Real Estate Owned (REO) - $100 Down Sales Incentive Program] The popular $100 down-payment sales incentive that HUD offers on REO properties is an elusive creature. Nine months ago it was offered in very few states but seems to be making a comeback. HUD finally put a state list together and links to states who are participating are included in the article. Supporting Resources: Mortgage Talking PointsTM flyer HUD Real Estate Owned (REO) - $100 Down Sales Incentive Program

FHA Handbooks Website Links Have Temporarily Changed – October 28, 2011 What a pain for those of us who use the online electronic versions of the handbooks regularly! We have not been able to access these handbooks and HUD isn’t making any promises on when they will be available again. They have provided new links for 4155.1; 4155.2 and 7610.1.

DU for Government Release Notes – VA Approvals About to Get Tougher – FHA Message Updates – FHA & VA Loan Limit Changes (Effective December 17, 2011) The big update here is that the risk assessment is going to get tougher on VA loans submitted under the updated version. So on Friday December 16 you could have an Approve/Eligible that switches to a Refer/Eligible on Monday December 19 when you adjust something in the loan and rerun it through DU. Check every VA loan with a credit score under 680 and try to get it buttoned up before the new version hits. Just sayin’…. Supporting Resources: DU December 2011 Release Notes

Freddie Mac

Jan 10, 2012 Freddie Updates Land Contract Payoff; Homes Purchased with Cash-Refinance Policies and Appraisal requirements. Bulletin 2011-25 (Effective Dec 16, 2011) [Download Chart/Checklist, Freddie Mac – Land Contract Rules: Refinance or Purchase?] Freddie is once again playing catch up with Fannie Mae. The biggie in this Bulletin is the clarification on land contract payoffs which helps to make things more clear as to whether to treat it as a refi or a purchase. Do you have any borrowers who can benefit from the cash-out refinance policy change? You may have passed on some deals previously that you can now get done. Supporting Resources: Freddie Mac - Land Contract Rules - Refinance or Purchase?

Freddie Changes a Couple of HARP Refinance Policies; HVE Disclosure, RMIC Same Servicer – Bulletin 2012-1 (Effective January 5, 2012) In an attempt to help more borrowers become eligible under the enhanced HARP guidelines, Freddie Mac is making it easier for more people to qualify using the Relief Refinance mortgage program. Right now, this applies to “Same Servicer” only! ()FHLMC 2012-01 Supporting Resources: HVE Exhibit 32- Terms Relating to Use of Data Generated by Home Value Explorer­®

Dec 10, 2011 Freddie Mac Updates Buying Incentives for REO’s (Effective 11-15-11 to 1-31-12). [Download Mortgage Talking PointsTM flyer, Smart Buy Incentives to Buy Freddie Mac Foreclosed Homes] New Winter Sales Incentives. We suggest that you sign up to receive notices from Freddie when a home goes on the market in your area. That way you can post the new listing on Facebook, or even let your clients/prospects know when a new listing hits the market! Supporting Resources: Mortgage Talking PointsTM flyer Smart Buy Incentives to Buy Freddie Mac Foreclosed Homes

Nov 10, 2011 Freddie Mac HomeSteps® Smart Buy REO Properties. [Download Mortgage Talking PointsTM flyer, Freddie Mac HomeSteps® Smart Buy Incentives to Buy Foreclosed Homes] In some parts of the country, REO’s are a significant portion of homes sold. Let your agents know about the incentives available. Oh, and you can sign up to receive notices whenever a new foreclosure is posted so you can let your agents and database know. Supporting Resources: Mortgage Talking PointsTM flyer Smart Buy Incentives to Buy Freddie Mac Foreclosed Homes

Freddie – Home Affordable Refinance Program: What’s the Big Deal? Bulletin 2011-22 (Effective December 1, 2011) Freddie’s HARP guidelines contain some subtle differences (vs. Fannie). Lowered LLPA’s for Owner Occupied but not NOO. Freddie does NOT want you to solicit clients to refinance Freddie-owned loans. Be careful with loans under 80% LTV with subordinate financing. Freddie, unlike Fannie decided to put a 105% TLTV/HCLTV cap on these loans. THIS CHANGE WILL KILL LOANS THAT ARE CURRENTLY ELIGIBLE! Read Fannie HARP Article to compare! (Freddie Mac Bulletin 2011-22)

Freddie Updates Guidance on Qualifying Income – Bulletin 2011-21 (Effective 11-4-11) I almost fell off my chair when I read this! And it’s good news when verifying retirement, long-term disability, Social Security and child support income. Alimony, Child Support and Separate Maintenance has been reduced to six months and for all others, you only need to verify two months of receipt. If you had any deals that you have turned down because of the history of receipt of income, these changes may bring them back to life. (Freddie Mac Bulletin 2011-21)

USDA

Dec 10, 2011 USDA Rural Development increases in the Guarantee Fee for Refinance Transactions. (Effective 12-7-11) I'm sure this was a big surprise to everyone; however I understand that with this increase it will allow the agency to make available over $1.1 billion in refinance commitment authority to eligible homeowners.

Nov 10, 2011 USDA Sneaks In “Authorized User Accounts” Underwriting Rule to GUS If you haven’t noticed, GUS has added an underwriting rule regarding “Authorized User Accounts,” and we wanted to tell you about it because you can’t find it in the guides.

VA

Jan 10, 2012 VA Loan Limits for 2012 [Download Chart/Checklist, VA County Loan Limits (Effective Jan 1, 2012)] No Circular. No “official” announcements. Just “boom.” They quietly post a document (that you have to dig to find) to say, “Here are our loan limits for 2012.” The really crappy thing going on here is that some of the county limits dropped and DU for Government Loans won’t be updated until the weekend of February 18, 2012. This gives us lots of fabulous opportunities to close unsalable AND uninsurable VA loans. Supporting Resources: 2012 VA County Loan Limits

VA Appraisals – No More Wiggle Room – Cir 26-11-21 – Policy Changes Affecting Value Adjustments and Photographs – 12-15-11 VA is now saying that the appraiser is the best authority on the value of the home and the SAR (Staff Appraiser Reviewer) no longer has the option to issue the NOV 5% higher or lower than the appraised value, as they have been allowed in the past. I’m confused because issuing a NOV no longer makes any sense. Why not just give the Veteran a copy of the appraisal and call it good? Interior pictures are now required too. (Circular 26-11-21, Policy Changes Affecting Value Adjustments And Photographs, December 15, 2011) Supporting Resources: VA Circular 26-11-21 - Policy Changes Affecting Value Adjustments and Photographs

Dec 10, 2011 Final VA Funding Fee Changes. The Madness Has Stopped – VA Cir 26-11-19 (Effective November 21, 2011) [Download Chart/Checklist - VA Funding Fee Chart (as of 11-22-11)] I propose we take a moment to breathe deeply and savor this moment. It’s finally over. We finally have fees that are effective through September 30, 2016. The fee structure has changed 4 times in 54 days. How’s that for government efficiency? (VA Circular 26-11-19: Funding Fee Update as of November 22, 2011) Supporting Resources: VA Funding Fee Chart (11-22-2011) VA Circular 26-11-19 - Funding Fee Update

Nov 10, 2011 VA Extends Homebuyer Assistance Program Until 1-1-13 – Cir 26-08-14. [Download Mortgage Talking PointsTM flyer, Homebuyer Assistance Programs for VA Loans] It is VA’s practice to issue Circulars and include an automatic rescission on those directives. This forces them to go back and revisit the Circular, and either allow the policy to expire or extend the rescission date to keep the policy in place. So this one remains the same. (See previous article - VA Accepts Homebuyer Assistance Program; HAP, DAP, HPA. What's Allowable for Veterans? (Circular 26-08-14, Change 2, October 28, 2011, VA Acceptance of Homebuyer Assistance Programs) Supporting Resources: Mortgage Talking PointsTM flyer Homebuyer Assistance Programs for VA Loans? VA Circular 26-08-14 - VA Acceptance of Homebuyer Assistance Programs VA Circular 26-08-14 (Change 2) - VA Acceptance of Homebuyer Assistance Programs

VA “Warns” Us about the Future VA Funding Fee Changes - Cir 26-11-17 VA released this Circular with no actual changes announced. It predicts that the VA Funding Fee reductions scheduled to take place on November 18, 2011 will be withdrawn through upcoming legislation (surprise, surprise) and the changes listed in the Funding Fee Table will NOT go into effect. Supporting Resources: VA Circular 26-11-17 - Future Funding Fee Changes