February 2017
MortgageCurrentcy.com Rules and Regulation Updates

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Universal Topics

Understanding Pricing Gibberish: Where does the Money Come From? (Part One)

Compliance professionals, new originators and even some seasoned originators aren’t quite sure what all of the secondary marketing pricing gibberish means! Part one of this series takes you through the first part of the mortgage money market. Each month our series will take you a little bit deeper into the complex world of mortgage pricing. You will not want to miss this series!


 
Fannie Mae

Fannie Mae SEL-2017-01 – Dated 1/31/17 • Comparables in New Projects or Subdivisions • Property Inspections by Appraiser Trainees • Adjustments to an Appraisal for Sales Concessions: • Selling Guide Update regarding Site Condos – Effective 4-1-17

This is a big update from Fannie on appraisal comps and adjustments. They continue to fine tune their requirements, and this update talks about the use of appraisal comps for new projects or subdivisions, acceptance of appraisals from “Appraiser Trainees” and Sales Concessions adjustments. Important updates that you will not want to miss. (Fannie Mae Selling Guide Announcement SEL-2017-01 – Dated January 31, 2017-Effective Immediately-General Information on Project Standards-Effective on loans delivered on or after April 1, 2017.)


 

Fannie Mae - Updated FAQs and Vendor Lists – Feb. 2017 • DU Validation Service – Frequently Asked Questions • Certainty on Appraised Value FAQs • Fannie Mae Issues List of Approved Report Vendors for Day 1 Certainty

Fannie Mae has updated their FAQ on a number of topics that are important to income, employment and asset validation. A few new questions and answers. A few more that have been “clarified”. Subscribers will also find a list of all approved vendors as of 1/27/17. Read this article to ensure that you are up to date on the latest requirements. (Fannie Mae-DU Validation Service – Frequently Asked Questions – Updated January 24, 2017; Certainty on Appraised Value FAQs – Updated January 31, 2017; and Fannie Mae Issues List of Approved Report Vendors for Day 1 Certainty – Dated January 30, 2017)

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Fannie Mae-DO/DU Release Notes DU Version 10.0 - New Release scheduled for the weekend of February 25, 2017

Fannie Mae DU is making some important updates regarding Income, Employment and Asset Message updates. These will help you in validating income – which is why you should read through this update. (Fannie Mae-Desktop Originator/Desktop Underwriter Release Notes DU Version 10.0 – Dated January 31-2017-New Release scheduled for the weekend of February 25, 2017)

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Fannie Mae-Collateral Underwriter Version 4.1 Release Notes (Effective March 25, 2017)

Fannie Mae continues to update and enhance collateral underwriter to assist lenders by making the appraisal process easier. If you are presently utilizing Day 1 Certainty or even considering the use of this program, you will want to read through these updates. (Fannie Mae-Collateral Underwriter Version 4.1 Release Notes – Dated January 31, 2017-Effective March 25, 2017)

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Freddie Mac

Freddie Mac - Loan Product Advisor Updates - UW Borrowers without Credit Scores; LPA Fees for Borrowers without Credit Scores; Proposed Release Date: April, 2017. Employment/Income Resource Document – Proposed Release Date – July 2017

Borrowers with no credit scores can mean a manual underwrite and reps/warranty issues. Freddie is anticipated to release an update in April of this year that will change this requirement. Great news for first-time homebuyers who have the ability but do not have the credit necessary to generate a credit score. Be sure to read this update for all of the details! (Freddie Mac Announcement – Loan Product Advisor Updates – Dated February 03, 2017)

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FHA

FHA – Suspension of Mortgagee Letter 2017-01 – Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates, Mortgagee Letter 2017-07, January 20, 2017. [Updated Charts/Checklists - Updated 1-20-17 • FHA Simple Refinance Worksheet • FHA Streamline Refinance Worksheet • FHA Rate & Term Refinance Worksheet • FHA Cash-out Refinance Worksheet • FHA MI Historical Premium Chart • FHA Annual Mortgage Insurance Duration Chart ]

What a mess! That’s the best way to describe this news and the impact on your FHA production. The good news is that MortgageCurrentcy™ immediately emailed subscribers. FHA Updated and subsequently re-updated all of the MTPs and Charts that were affected by this change and recall. Please be sure the ones you have are up to date. There were 6 re-updates. Double check to make sure you don’t have the old ones dated 1-20-17. (FHA-Mortgagee Letter 2017-07, Suspension of Mortgagee Letter 2017-01 - Reduction of Federal Housing Administration (FHA) Annual Mortgage Insurance Premium (MIP) Rates, January 20, 2017-UPDATED CHARTS ATTACHED)

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FHA Loan Review System – Implementation and Process Changes – Mortgagee Letter 2017-03. Dated January 11, 2017

FHA is implementing the Loan Review System, which replaces the Underwriter Review Functions and eFindings function in FHA connection. If you are an underwriter or in operations support, you will want to pay close attention to this article and the changes in the attached Mortgagee Letter. (FHA Mortgagee Letter 2017-03, Federal Housing Administration (FHA) Loan Review System – Implementation and Process Changes-Dated January 11, 2017 )

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VA

VA-Circular 26-17-2, Clarification and New Policy for Student Loan Debts and Obligations, January 23, 2017 [Updated Chart-Student Loan Repayment Rules – Effective 1-23-2017]

Student loan debt can get confusing as each investor looks at it a little differently. VA issued their Student Loan Payment Policy in this update and there is some good news for Veteran borrowers. Subscribers: Discard your old “student loan repayment rules” chart and use the new one instead. (VA-Circular 26-17-2, Clarification and New Policy for Student Loan Debts and Obligations, January 23, 2017)

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USDA

USDA Manufactured Housing Unit Financing Pilot-502 Single-Family Housing Direct and Guaranteed-Existing (Effective Immediately) [Mortgage Talking Points™, Quick Guide to USDA Rural Development Loans]

USDA is announcing a pilot program in 8 states to finance existing manufactured homes. Previously, only new manufactured housing units were acceptable. If you work with USDA and lend in any of the listed states, you will definitely want to know how this program works! (USDA 502 Single-Family Housing Direct and Guaranteed-Existing Manufactured Housing Unit Financing Pilot-Dated August 12-2016-(Effective Immediately)- Updated MTP™- Quick Guide to USDA Rural Development Loans)

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