The reintroduction of the Securing and Enabling Commerce Using Remote and Electronic (“SECURE”) Notarization Act in the U.S. Senate advances efforts to establish nationwide remote online notarization (“RON”) standards. The SECURE Notarization Act would establish minimum nationwide standards for electronic and remote notarizations while allowing states flexibility to supplement with additional requirements.The mortgage industry supports […]
The Federal Housing Administration (“FHA”) announced recently that it will extend the deadline for COVID-19 related forbearance requests through May 31, 2023. The COVID-19 forbearance option had been set to expire at the end of the COVID-19 National Emergency. FHA announced in Mortgagee Letter 2023-08 that with the COVID-19 National Emergency set to expire early, […]
Fannie Mae announced this month that they will now allow alternatives to the Appraisal Update and/or Completion Report (Form 1004D) to confirm that construction or repairs have been completed. Traditionally, Form 1004D required the involvement of an appraiser to certify that conditions in an appraisal report done prior to construction or repairs have been satisfied. […]
On March 15, 2023, the Federal Housing Finance Agency (FHFA) announced a delay in the implementation of new upfront fees imposed on Fannie Mae and Freddie Mac borrowers with higher debt-to-income ratios. The FHFA originally announced the new upfront fee framework in January 2023 for certain borrowers with a DTI ratio above 40%, which was […]
With the passage of new laws in Massachusetts and Delaware, all but five states, as well as the District of Columbia, now have permanent laws in place permitting remote online notarization (“RON”). To facilitate the continued execution of documents requiring notarization during the COVID-19 pandemic, most states issued temporary orders allowing RON. Many of these […]
On February 14, 2023, the U.S. Department of Veterans Affairs (VA) announced scheduled changes to the VA funding fee rates in VA Circular 26-23-06. The VA funding fee is a one-time upfront cost that is paid by the veteran borrower for ongoing support of the VA home loan benefits program. Certain veterans and beneficiaries are […]
On February 22, 2023, the Federal Housing Administration (FHA) announced a reduction on mortgage insurance premium (MIP) pricing for most Title II forward mortgages. The new MIP amounts to a 30 basis point reduction in the annual premium charged to borrowers who obtain an FHA-insured mortgage. The FHA stated that this reduction “will translate to […]
A rule proposed by the Consumer Financial Protection Bureau (“CFPB”) aims to establish a public registry of terms and conditions used by supervised nonbanks that waive or limit consumer rights in non-negotiable form contracts. The rule would require supervised nonbanks to submit information on terms and conditions in so-called “take it or leave it” form […]
The CFPB’s first lawsuit against a nonbank mortgage lender for redlining has been dismissed byan Illinois federal Court. The Court held that the protections offered to actual loan applicants arenot extended to prospective applicants. Bureau of Consumer Fin. Prot. V. Townstone Fin., Inc.,2023 U.S. Dist. LEXIS 18405, 2023 WL 1766484 (N.D. Ill. Feb. 3, 2023). […]
In late-December 2022, Fannie Mae and Freddie Mac officially announced that SOFR (Secured Overnight Financing Rate) will serve as the replacement index for their legacy LIBOR-based adjustable rate loans. A follow-up announcement was issued by each of the GSE’s on January 25, 2023, providing more clarity on the SOFR transition for legacy single-family ARM loans […]
