HUD/FHA’s Origination Through Post-Closing Handbook (4000.1) consolidates & supersedes numerous Mortgagee Letters, Notices, etc. that have been issued in past years and provides users with one, updated & consolidated document containing the current FHA underwriting policies. Lenders beware – this Handbook also enacts many changes to current FHA policies & procedures. Many of these changes will make it more difficult…
As a Turtle would say, “You bet your sweet …” it can! (Ancient and Honorable Order of Turtles) CFPB started a pilot program with several lenders about a year ago to explore the possibilities of a totally electronic closing. Not closing that uses static images of paper documents that are signed electronically but rather a process that is totally electronic;…
There still seems to be some confusion, under the new TRID rules, over when a lender should issue a revised Closing Disclosure and what changes trigger a new “3 business day wait” before a loan may be consummated. Under the new rules, the consumer must receive the Closing Disclosure at least 3 business prior to loan consummation. To be safe,…
Answer: Fannie Mae recently announced several underwriting policy & procedural changes in their Selling Guide Announcement SEL-2015-07, dated June 30, 2015. One noteworthy change involves the topic of using vested stocks, bonds and mutual funds (including retirement accounts) when they are used for meeting a borrower’s minimum investment requirement, closing costs and reserves. Previously, a standard reduction in value was…
While many breweries offer their seasonal beers, the CFPB chooses to issue its seasonal report of the general results of audits performed. They recently issued their Summer version of their Supervisory Highlights providing information on audits performed between January and April of 2015. The effect is quite different; CFPB’s report is sobering, while the beer on the other hand…you get…
Last year, Fannie and Freddie announced some relief to lenders under their Reps and Warrants. Under this announcement, lenders could receive relief from responsibility for indemnification and repurchases via two methods; Acceptable Payments History: Borrower making payments for 36 consecutive months with no more than one 30 day delinquent; or Quality Control Reviews: a satisfactory review by the agency that…
