September 2017
MortgageCurrentcy.com Rules and Regulation Updates

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Fannie Mae/Freddie in Brief

Fannie Mae Addresses Fraud Scheme for Reverse Occupancy-Dated August 2017

Unfortunately, fraud is still rampant in our industry and sometimes traps even the most unsuspecting originator. In this update read about the latest fraud schemes that you need to be on the lookout for to protect your business. (Fannie Mae Industry Insight into Reverse Occupancy Scheme – Dated August 2017)

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Fannie and Freddie Home Affordable Refinance Program Extended – Various Announcements by Fannie Mae, Freddie Mac and the Federal Housing Finance Agency in August 2017 – AND – Fannie / Freddie / Federal Housing Agency Announce New High LTV Program to Replace HARP in 2018-Effective TBD [HARP MTPs and Outreach Letters Available to Subscribers!]

Fannie and Freddie are extending HARP again under the order of the FHFA. Yet even more intriguing is that they are releasing a higher LTV refinance option next year that will replace the HARP program! Be the first one to see what they are planning by reading this article and, as a bonus, check out the opportunities that still exist under the HARP extension! (Fannie and Freddie Home Affordable Refinance Program Extended – Various Announcements by Fannie Mae, Freddie Mac and the Federal Housing Finance Agency in August 2017 – AND – Fannie / Freddie / Federal Housing Agency Announce New High LTV Program to Replace HARP in 2018-Effective TBD- HARP MTPs and Outreach Letters Available to Subscribers!)

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Fannie Mae and Freddie Mac Multiple Lender Letters, Bulletins, Reminders for Disaster Related Policies – Dated August 25 – August 31, 2017-Effective Immediately

The US is being pummeled this year with weather events that are creating many disaster areas. Fannie and Freddie have issued bulletins to remind industry participants of disaster-related policies. If you do business in any area of the country that is declared a disaster area, this update is important for you to read. (Fannie Mae and Freddie Mac Multiple Lender Letters, Bulletins, Reminders for Disaster-Related Policies – Dated August 25 – August 31, 2017-Effective Immediately)

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Fannie Mae

Fannie Mae FAQ Document for DU Version 10.1 – Dated August 29, 2017

Fannie Mae continues to answer industry questions about the newly released DU Version 10.1. In this month’s FAQs, they address Maximum Allowable DTI, Disputed Tradelines, Self-Employed Borrowers, Non-Traditional Credit and much more. This is a must-read for all subscribers interested in staying up to date with Fannie’s DU System. (Fannie Mae FAQ Document for DU Version 10.1 – Dated August 29, 2017)

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Fannie Mae-DU Version 10.1 Release Notes – Updates PIW for Purchase Loans – Dated August 18, 2017-Effective August 19, 2017 [New Chart - Appraisal Inspection Waiver Chart]

Fannie and Freddie have released updates to their automated valuation requirements. However, there are distinctions between the two that you should be aware of so that you use the correct system for the borrower. Take the time to read through this article so that you are confident that you have done all you can to remove the appraisal cost to your client and the rep and warranty issue from your lender. (Fannie Mae-DU Version 10.1 Release Notes – Updates PIW for Purchase Loans – Dated August 18, 2017-Effective August 19, 2017- NEW Chart/Checklist-Appraisal Inspection Waiver Chart)

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Fannie Mae Selling Guide Announcement SEL-2017-07 – Dated August 29, 2017 - Multiple Topics, Tax Liens, Credit Reports, Reserves, Maine MERS requirements Effective January 1, 2018.

This month’s Fannie Mae selling update is slightly slim on content, but still contains nuggets of information you want to know regarding civil judgements, tax liens, and credit reports requirements that every lender needs to comply with. If you are a subscriber in Maine, pay particular attention to a recent ruling that will require action. (Fannie Mae Selling Guide Announcement SEL-2017-07 – Dated August 29, 2017 - Multiple Topics, Tax Liens, Credit Reports, Reserves, Maine MERS requirements Effective January 1, 2018.)

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Freddie Mac

Freddie Mac Bulletin 2017-13 – Dated August 23, 2017 - Automated Collateral Evaluation (ACE) Effective September 1, 2017 [New Chart - Appraisal Inspection Waiver Chart]

Fannie and Freddie have been battling it out to get your business. Not to be outdone, Freddie has issued an important announcement regarding their Automated Collateral Evaluation (ACE) program that should assist you in closing more loans faster and without fear of rep and warranty issues. Find out how you can make the loan process smoother and less expensive for your clients by reading this important update. (Freddie Mac Bulletin 2017-13 – Dated August 23, 2017 - Automated Collateral Evaluation (ACE) Effective September 1, 2017- NEW Chart/Checklist-Appraisal Inspection Waiver Chart)

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FHA

FHA Mortgagee Letter 2017-12, Home Equity Conversion Mortgage (HECM) Program: Mortgage Insurance Premium Rate and Principal Limit Factors, Dated - August 29, 2017 [Updated Chart - FHA MIP Premium Chart - Effective October 2, 2017] AND [Updated Chart - FHA Historical MI Premium Chart]

Those of you that work in the HECM space need to pay attention to this update. Important changes to the program and the reasons behind these changes have been communicated by HUD in their latest announcement. Make sure that you download the updated charts and replace the old ones! (FHA Mortgagee Letter 2017-12, Home Equity Conversion Mortgage (HECM) Program: Mortgage Insurance Premium Rate and Principal Limit Factors, Dated - August 29, 2017-Effective October 2-2017-Updated Charts-FHA MIP Premium Chart AND FHA MI Historical Premium Chart.)

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FHA Mortgagee Letter 2017-13, Extension of Temporary Approval Provisions for the Federal Housing Administration (FHA) Condominium Project Approval Process, Dated August 30, 2017 - Effective Immediately [Updated Chart - Condo Approval Comparison Chart]

FHA has decided to extend the extension of the temporary condo approval process that officially expired in August of 2017. This is a great opportunity to secure more business until these temporary provisions are removed. Be sure to read the article to learn about when HUD is anticipating changing these rules, and removing the temporary condo approval process. (FHA Mortgagee Letter 2017-13, Extension of Temporary Approval Provisions for the Federal Housing Administration (FHA) Condominium Project Approval Process, Dated August 30, 2017-Effective Immediately- Updated Condo Approval Comparison Chart-Chart/Checklist!)

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VA

VA Circular 26-17-23 Hurricane Harvey Relief-Dated August 29-2017

VA lenders should be aware of Relief Policies when disaster strikes. Our VA expert has put together some general guidelines about how to handle clients in process or clients who have closed but need assistance. We have also attached VA’s latest circular on Hurricane Harvey, but these relief efforts apply to all designated disaster areas./p> (VA Circular 26-17-23 Hurricane Harvey Relief-Dated August 29-2017)

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USDA

USDA-Manufactured Housing Pilots Under Section 502-SFH-Direct and Guaranteed-Dated July 21-2017

Those of you that offer USDA products or are considering offering these products need to read through this important update about the expansion of a pilot program. This update is specifically referring to Manufactured Homes, and announces 5 more states being added to the pilot, bringing the total to 13. Perhaps this creates an opportunity for you in your state. (USDA-Manufactured Housing Pilots Under Section 502-SFH-Direct and Guaranteed-Dated July 21-2017)

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USDA - SINGLE FAMILY HOUSING GUARANTEED LOAN PROGRAM: HB-1-3555 REVISIONS (Effective Date July 7, 2017)

USDA is issuing updated requirements for a Power of Attorney because some lenders were misinterpreting the intent of the language. If you are working with the USDA program, you will want to read what has changed to prevent any issues with your guaranty requirements, and to ensure that you give your borrowers the correct information. (USDA - SINGLE FAMILY HOUSING GUARANTEED LOAN PROGRAM: HB-1-3555 REVISIONS Effective Date-July 7, 2017)

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