1. Introduction For more than 30 years, federal law required lenders to provide two different disclosure forms to consumers applying for a mortgage. The law also generally required two different forms at or shortly before closing on the loan. Two different federal agencies developed these forms separately, under two federal statutes: the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act of 1974 (RESPA). The information on these forms was overlapping, and the language inconsistent. Consumers often found the forms confusing, and lenders and settlement agents found the forms burdensome to provide and explain. The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) directed the Consumer Financial Protection Bureau (Bureau) to integrate the mortgage loan disclosures under TILA and RESPA Sections 4 and 5. Section 1032(f) of the Dodd-Frank Act mandated that the Bureau propose for public comment rules and model disclosures that integrate the TILA and RESPA disclosures by July 21, 2012. The Bureau satisfied this statutory mandate and issued proposed rules and forms on July 9, 2012. To accomplish this, the Bureau engaged in extensive consumer and industry research, analysis of public comment, and public outreach for more than a year. After issuing the proposal, the Bureau conducted a large-scale quantitative study of its proposed integrated disclosures with approximately 850 consumers, which concluded that the Bureau’s integrated disclosures had on average statistically significant better performance than the pre-existing disclosures under TILA and RESPA. On December 31, 2013, the Bureau published a final rule with new, integrated disclosures – “Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z)” (TILA-RESPA Final Rule). On January 20, 2015 and July 21, 2015, the Bureau issued amendments to the TILA-RESPA Final Rule. Additionally, the Bureau published technical corrections on December 24, 2015, and a

correction to supplementary information on February 10, 2016. On July 7, 2017, the Bureau issued further amendments intended to formalize guidance, and provide greater clarity and certainty (2017 TILA-RESPA Rule or 2017 amendments).1 The 2017 amendments were published in the Federal Register on August 11, 2017. The TILA-RESPA Final Rule, the amendments, and corrections are collectively referred to as the TILA-RESPA Rule in this Guide. The TILA-RESPA Rule provides a detailed explanation of how the forms should be filled out and used. The Good Faith Estimate (GFE) and the initial Truth-in-Lending disclosure (initial TIL) were combined into a single form, the Loan Estimate. Similar to those forms, the Loan Estimate form is designed to provide disclosures that will be helpful to consumers in understanding the key features, costs, and risks of the mortgage loan for which they are applying, and must be provided to consumers no later than the third business day after they submit a loan application. Second, the HUD-1 and final Truth-in-Lending disclosure (final TIL and, together with the initial TIL, the Truth-in-Lending forms) were combined into another form, the Closing Disclosure, which is designed to provide disclosures that will be helpful to consumers in understanding all of the costs of the transaction. This form must be provided to consumers at least three business days before consummation of the loan. The forms use clear language and design to make it easier for consumers to locate key information, such as interest rate, monthly payments, and costs to close the loan. The Loan Estimate and Closing Disclosure forms also provide more information to help consumers decide whether they can afford the loan and to facilitate comparison of the cost of different loan offers, including the cost of the loans over time. The TILA-RESPA Rule applies to most closed-end consumer mortgages. It does not apply to home equity lines of credit (HELOCs), reverse mortgages, or mortgages secured by a mobile home or by a dwelling (other than a cooperative unit) that is not attached to real property.2 Itdoes not generally apply to loans made by persons who are not considered “creditors” under TILA.3 Generally, the TILA-RESPA Rule’s provisions were effective on October 3, 2015. The December 2015 corrections were effective on December 24, 2015, and the February 2016 corrections were effective on February 10, 2016. The 2017 amendments are effective and will be incorporated into the Code of Federal Regulations on October 10, 2017. However, compliance with the 2017 amendments is not mandatory on the effective date. Generally, compliance with the amendments is only mandatory for transactions for which a creditor or mortgage broker receives an application on or after October 1, 2018. However, the requirements for the Escrow Cancellation Notice (Escrow Closing Notice) and Mortgage Servicing Transfer Notice Partial Payment Policy Disclosure (Partial Payment Policy Disclosure) provided post-consummation apply starting October 1, 2018 without regard to when the creditor or mortgage broker receives the application. The 2017 amendments include an optional compliance period, which begins on October 10, 2017 and is for transactions for which a creditor or mortgage broker receives an application prior to October 1, 2018. During this period, early compliance with the 2017 amendments is allowed, but not required. Additionally, if a creditor or mortgage broker receives an application prior to October 1, 2018, optional compliance continues to apply to that transaction after October 1, 2018 (except as noted regarding the Escrow Closing Notice and Partial Payment Policy Disclosures). During the optional compliance period (beginning on October 10, 2017 and for transactions with applications received prior to October 1, 2018), the provisions of the 2017 amendments can be implemented all at once or phased in over this period. For example, if a creditor chooses to phase in the 2017 amendments, those changes can be phased-in over the course of a transaction or by application date. Notwithstanding this flexibility, a person cannot phase in the 2017 amendments in a way that would violate provisions of Regulation Z that are not being changed.4 The information provided in this Guide incorporates the changes and clarifications from the 2017 amendments, and explains the TILA-RESPA Rule as of the mandatory compliance date on October 1, 2018. To understand the rule as it existed prior to the 2017 amendments, please review version 4.0 of the Guide, available on the Bureau’s website at https://www.consumerfinance.gov/policy-compliance/guidance/implementationguidance/tila-respa-disclosure-rule/.

1.1 What is the purpose of this guide? The purpose of this Guide is to provide an easy-to-use summary of the TILA-RESPA Rule. This Guide also highlights issues that small creditors, and those that work with them, might find helpful to consider when implementing the TILA-RESPA Rule. This Guide also meets the requirements of Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996, which requires the Bureau to issue a small-entity compliance guide to help small entities comply with these new regulations. You may want to review your processes, software, contracts with service providers, or other aspects of your business operations in order to identify any changes needed to comply with this rule. Changes related to this rule may take careful planning, time, or resources to implement. This Guide will help you identify and plan for any necessary changes. To support rule implementation, the Bureau continues to coordinate with other agencies, publish and update plain-language guides, and publish updates to the Official Interpretations, if needed.

 

This Guide summarizes the TILA-RESPA Rule, but it is not a substitute for the rule. Only the rule and its Official Interpretations (also known as commentary) can provide complete and definitive information regarding its requirements. The discussions below provide citations to the sections of the TILA-RESPA Rule on the subject being discussed. Keep in mind that the Official Interpretations, which provide detailed explanations of many of the TILA-RESPA Rule’s requirements, are found after the text of the rule and its appendices. The interpretations are arranged by rule section and paragraph for ease of use. The 2013 Final Rule and the Official Interpretations, and related corrections and amendments, are available at www.consumerfinance.gov/policy-compliance/rulemaking/final-rules/2013-integratedmortgage-disclosure-rule-under-real-estate-settlement-procedures-act-regulation-x-and-truthlending-act-regulation-z/. The focus of this Guide is the TILA-RESPA Rule. This Guide does not discuss other federal or state laws that may apply to the origination of closed-end credit. The content of this Guide does not include any rules, bulletins, guidance, or other interpretations issued or released after the date on the Guide’s cover page. At the end of this Guide, there is more information about the TILA-RESPA Rule and related implementation support from the Bureau. 1.2 Who should read this guide? If your organization originates closed-end residential mortgage loans, you may find this Guide helpful to determine your compliance obligations for the mortgage loans you originate. This Guide may also be helpful to settlement service providers, secondary market participants, software providers, and other companies that serve as business partners to creditors.

1.3 Where can I find additional resources that will help me understand the TILARESPA Rule? Resources to help you understand and comply with the Dodd-Frank Act mortgage reforms and our regulations, including downloadable compliance guides, are available through the CFPB’s website at www.consumerfinance.gov/policy-compliance/guidance/implementationguidance/. On this website, we also offer the ability to sign up for an email distribution list 20 CONSUMER FINANCIAL PROTECTION BUREAU SMALL ENTITY COMPLIANCE GUIDE: TILA-RESPA INTEGRATED DISCLOSURE RULE v 5.0 through which we announce additional resources and tools as they become available. The eRegulations tool, which is available at www.consumerfinance.gov/eregulations, includes an unofficial version of Regulation Z (12 CFR part 1026), in which the TILA-RESPA Rule is codified. The tool provides updated versions of the regulatory text and commentary in a single location. If after reviewing these materials, as well as the regulation and official commentary, you have a specific regulatory interpretation question about the TILA-RESPA Rule, you can submit it to us on our website at https://reginquiries.consumerfinance.gov/. Please understand that the responses we provide are not official interpretations of the Bureau and are not a substitute for formal legal counsel or other compliance advice. Email comments about the Guide to CFPB_RegulatoryImplementation@consumerfinance.gov. Your feedback is crucial to making this Guide as helpful as possible. The Bureau welcomes your suggestions for improvements and your thoughts on its usefulness and readability. The Bureau is particularly interested in feedback relating to:  How useful you found this Guide for understanding the TILA-RESPA Rule;  How useful you found this Guide for implementing the TILA-RESPA Rule at your business; or  Suggestions you have for improving the Guide, such as additional implementation tips. 21 CONSUMER FINANCIAL PROTECTION BUREAU SMALL ENTITY COMPLIANCE GUIDE: TILA-RESPA INTEGRATED DISCLOSURE RULE v 5.0 2. Overview of the TILARESPA Rule 2.1 What is the TILA-RESPA Rule about? The TILA-RESPA Rule consolidates four disclosure forms that were required under TILA and RESPA for closed-end credit transactions secured by real property or cooperative unit into two forms: a Loan Estimate that must be delivered or placed in the mail no later than the third business day after receiving the consumer’s application, and a Closing Disclosure that must be provided to the consumer at least three business days prior to consummation.

2.2 What transactions does the rule cover? (§ 1026.19(e) and (f)) The TILA-RESPA Rule applies to most closed-end consumer credit transactions secured by real property or a cooperative unit (regardless of whether state law classifies it as real property). Credit extended to certain trusts for tax or estate planning purposes is not exempt from the TILA-RESPA Rule. (Comment 3(a)-10). However, some specific categories of loans are excluded from the rule. Specifically, the TILA-RESPA Rule does not apply to HELOCs, reverse mortgages, or mortgages secured by a mobile home or by a dwelling (other than a cooperative unit) that is not attached to real property. (§ 1026.19(e) and (f)). For further discussion of coverage, see section 4 below.

2.3 What are the record retention requirements for the TILA-RESPA Rule? (§ 1026.25) The creditor must retain copies of the Closing Disclosure (and all documents related to the Closing Disclosure) for five years after consummation. The creditor, or servicer if applicable, must retain the post-consummation Escrow Closing Notice and Partial Payment Policy Disclosure for two years. For additional information, see section 16 below. For all other evidence of compliance with the Integrated Disclosure provisions of Regulation Z (including the Loan Estimate) creditors must maintain records for three years after consummation of the transaction. Creditors are obligated to obtain and retain a copy of the completed Closing Disclosures provided separately by a non-creditor settlement agent to a seller under 1026.38(t)(5), but are not obligated to collect underlying seller-specific documents and records from that third-party settlement agent to support these disclosures. To the extent the creditor does receive documentation related to the seller’s disclosure, such as when the creditor is the settlement agent, or when seller-related documents are provided to the creditor by a third-party settlement agent along with the completed disclosure, the creditor should adhere to the record retention requirements that apply to the Closing Disclosure. 2.4 What are the record retention requirements if the creditor transfers or sells the loan? (§ 1026.25) If a creditor sells, transfers, or otherwise disposes of its interest in a mortgage and does not service the mortgage, the creditor shall provide a copy of the Closing Disclosure to the new owner or servicer of the mortgage as a part of the transfer of the loan file. Both the creditor and the new owner or servicer shall retain the Closing Disclosure for the remainder of the five-year period.

2.5 Is there a requirement on how the records are retained? Regulations X and Z permit, but do not require, electronic recordkeeping. Records can be maintained by any method that reproduces disclosures and other records accurately, including computer programs. (Comment 25(a)-2)

3. Effective Date 3.1 When do I have to start following the TILA-RESPA Rule and using the Integrated Disclosures? The TILA-RESPA Rule generally took effect on October 3, 2015 for applications received on or after October 3, 2015. The Integrated Disclosures (i.e., the Loan Estimate and the Closing Disclosure) must be provided by a creditor or mortgage broker that receives an application from a consumer for a closed-end credit transaction secured by real property on or after October 3, 2015.5 Creditors were required to use the GFE, HUD-1, and Truth-in-Lending forms for applications received prior to October 3, 2015. 3.2 Are there any requirements that take effect regardless of when an application was received? Yes. As discussed in section 13, below, the TILA-RESPA Rule includes some restrictions on certain activity prior to a consumer’s receipt of the Loan Estimate. These restrictions took effect on the calendar date October 3, 2015, regardless of when an application was received. These activities include:

Imposing fees on a consumer before the consumer has received the Loan Estimate and indicated an intent to proceed with the transaction (§ 1026.19(e)(2)(i));  Providing written estimates of terms or costs specific to consumers before they receive the Loan Estimate without a written statement informing the consumer that the terms and costs may change (§ 1026.19(e)(2)(ii)); and  Requiring the submission of documents verifying information related to the consumer’s application before providing the Loan Estimate. (§ 1026.19(e)(2)(iii)) Beginning on October 1, 2018, a creditor must provide the Escrow Closing Notice and Partial Payment Policy Disclosure when required, regardless of when the creditor or mortgage broker received the application.6 (Comment 1(d)(5)-1) For example, for an application received on October 10, 2010, if the escrow account was cancelled on April 14, 2020, the creditor would be required to give the Escrow Closing Notice, because the cancellation occurred after October 1, 2018 and after that time, Escrow Closing Notice and Partial Payment Policy Disclosure are given regardless of when the application was received. (Comment 1(d)(5)-1.v.E) For more information about the Escrow Closing Notice and Partial Payment Policy Disclosure, see section 16 of this Guide. 6 Prior to October 1, 2018, it is acceptable for a creditor to give the Escrow Closing Notice and Partial Payment Policy Notice only to transactions where the application was received on or after October 3, 2015. For example, for an application received on October 10, 2010, if the escrow account was cancelled on December 19, 2016, the creditor would not be required to provide the Escrow Closing Notice because the application was received before October 3, 2015 and the cancellation occurred prior to October 1, 2018. A consumer may indicate an intent to proceed in any manner the consumer chooses, unless the creditor requires a particular manner of communication. (§ 1026.19(e)(2)(i)(A)). For further discussion on intent to proceed, see section 13.5 below. 26 CONSUMER FINANCIAL PROTECTION BUREAU SMALL ENTITY COMPLIANCE GUIDE: TILA-RESPA INTEGRATED DISCLOSURE RULE v 5.0 3.3 Can a creditor use the Integrated Disclosures for applications received before October 3, 2015? No. For transactions where the application is received prior to October 3, 2015, creditors will still need to follow the disclosure requirements under Regulations X and Z as they existed before the Integrated Disclosures were created by the TILA-RESPA Rule. A creditor will need to use the Truth-in-Lending disclosures, GFE, HUD-1, etc., as applicable, for those transactions. 27 CONSUMER FINANCIAL PROTECTION BUREAU SMALL ENTITY COMPLIANCE GUIDE: TILA-RESPA INTEGRATED DISCLOSURE RULE v 5.0 4. Coverage 4.1 What transactions are covered by the TILA-RESPA Rule? (§§ 1024.5; 1026.3; and 1026.19) The TILA-RESPA Rule applies to most closed-end consumer credit transactions secured by real property or a cooperative unit (regardless of whether state law classifies it as real property), but does not apply to:  HELOCs;  Reverse mortgages; or  Chattel-dwelling loans, such as loans secured by a mobile home or by a dwelling (other than a cooperative unit) that is not attached to real property. Consistent with existing rules under TILA, the TILA-RESPA Rule also generally does not apply to loans made by a person or entity that is not considered a creditor under Regulation Z. (§ 1026.2(a)(17)) There is also a partial exemption for certain transactions associated with housing assistance loan programs for low- and moderate-income consumers. (§ 1026.3(h)) However, certain types of loans that are subject to TILA but are not subject to RESPA are subject to the TILA-RESPA Rule’s integrated disclosure requirements, including:  Construction-only loans; and  Loans secured by vacant land or by 25 or more acres.

Source :https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/201710_cfpb_KBYO-Small-Entity-Compliance-Guide_v5.pdf

Veterans Benefits Administration Circular 26-17-26

Department of Veterans Affairs September 19, 2017

Washington, DC 20420

Annual Increase in Construction Cost Index and Specially Adapted Housing (SAH),

Special Housing Adaptations (SHA), and Temporary Residence Adaptations (TRA) Grants

Purpose. Effective October 1, 2017, the Department of Veterans Affairs (VA) announces that the SAH, SHA, and TRA grant amounts will increase. In order to match the Turner cost of construction increase of 4.88 percent from the Second Quarter 2016 to Second Quarter 2017, the maximum grant amounts for Veterans and Servicemembers eligible for housing assistance under Title 38 U.S.C., Section 2101(a), 2101(b), and 2101A, will increase as follows:

$81,080 – for individuals eligible under Section 2101(a);

$16,217 – for individuals eligible under Section 2101(b);

$35,593 – for individuals eligible under Section 2102A(b)(A); and

$ 6,355 – for individuals eligible under Section 2102A(b)(B).

Rescission: This Circular is automatically rescinded October 1, 2018.

By Direction of the Under Secretary for Benefits

Jeffrey F. London

Director

Loan Guaranty Service

Distribution: CO: RPC 2018

SS(26A1) FLD: VBAFS, 1 each (Reproduce and distribute based on RPC 2018)

(LOCAL REPRODUCTION AUTHORIZED)

Source https://www.benefits.va.gov/HOMELOANS/documents/circulars/26_17_26.pdf

Lender Letter LL-2017-07                                                September 21, 2017

To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders

We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. In doing so, we are providing this Lender Letter with additional guidance and relief. Refer to the disaster resources on our Single-Family and corporate disaster relief pages. As stated in recent Lender Letters related to Hurricanes Harvey and Irma, we will provide reimbursement for property inspection costs incurred by lenders and servicers. We don’t want cost to be an inhibitor to obtaining inspections generally and we want to ensure that inspection costs are not passed on to impacted borrowers. The purpose of this Lender Letter is to describe our reimbursement policies and the process for obtaining them. We also remind servicers of a number of important policies related to inspections, property repair, and reporting of damage. Reimbursement Process We will be utilizing the existing process that is currently in place for expense reimbursement to servicers. All claims must be submitted by the servicer of the loan in the LoanSphere Invoicing™ system. This reimbursement process applies for property inspection costs incurred prior to purchase or securitization of the loan by Fannie Mae, and also for loans currently being serviced. Property Inspections and Reimbursement for Newly Originated Loans Property Inspections Before delivery of a mortgage loan to Fannie Mae where the property may have been damaged by a disaster, we expect the lender to take prudent and reasonable actions to determine whether the condition of the property may have materially changed. We are not prescriptive in how lenders make their representations and warranties around potential impact to property condition as a result of the disaster. “Prudent and reasonable actions” are not restricted to on-site inspection by a licensed or certified appraiser. Lenders may also obtain inspections from appraiser trainees, home inspectors, real estate agents, insurance adjustors, contractors, or any other qualified representatives of their choosing. Technology such as real-time aerial or satellite imagery might also enable lenders to meet this requirement.

PLEASE NOTE We are extending the disaster policies recently communicated in this and recent lender letters to all hurricanes occurring in the U.S. and its territories on or after August 25, 2017 and through the 2017 hurricane season. Where policy termination dates have been identified, we will issue updates as necessary.

Reimbursement The following reimbursement policies will apply to property inspections obtained prior to loan purchase or securitization by Fannie Mae for properties in the disaster area:

 Loans with appraisals: Reimbursement will occur for loans in process that were in the disaster area and have an Appraisal Effective Date prior to the disaster occurring.

 PIW loans: Reimbursement will occur for loans that were closed before the disaster occurred, where the lender intended to sell the loan to us with a property inspection waiver (PIW).

 Lenders, including direct sellers and correspondents who have incurred property inspection costs, will work with the servicer of record to seek reimbursement. (The servicer must submit all requests.)

 We will reimburse for the actual cost of property inspections incurred as a result of the disasters that occurred on or after August 25, 2017, up to a reasonable amount. Note that the reimbursement limits noted below pertaining to existing loans does not apply to newly originated loans, and we are not reimbursing the cost of appraisals.

 Servicers may begin submitting requests for reimbursement on or after October 1, 2017. Reimbursement requests must be made within one year of the invoice date.

 The servicer must maintain copies of the property inspection invoice and results in the loan file and must provide to us upon request. Property Inspection, Reimbursement, Repair, and Reporting Policies for Existing Loans Property Inspections Servicers must determine the extent and nature of the damage pursuant to Servicing Guide, D1-3-01: Evaluating the Damage Caused by a Disaster. If the servicer is unable to contact the borrower to make that determination, the servicer must inspect the property. The following table further outlines the servicer’s responsibilities for inspecting impacted properties based on the mortgage loan status prior to the disaster and the occupancy status of a delinquent mortgage loan (according to the last inspection prior to the disaster). For additional information about inspecting properties impacted by disaster, see Servicing Guide, D2-2-10: Requirements for Performing Property Inspections, and the Property Preservation Matrix and Reference Guide. If the property is in an area impacted by disaster and the mortgage loan is… Then the servicer must… current attempt to achieve Quality Right Party Contact (QRPC) to verify damage and determine the borrower’s intent on filing an insurance claim and completing necessary repairs. If the servicer is not able to achieve QRPC, then the servicer must inspect the property. If the initial inspection report shows damage, the servicer must continue monthly property inspections until the damage is remediated. delinquent and the property is occupied or the occupancy status is unknown attempt to achieve QRPC to verify damage and determine the borrower’s intent on filing an insurance claim and completing necessary repairs. If the servicer is not able to achieve QRPC, then the servicer must inspect the property. If the initial inspection report shows damage, the servicer must continue weekly property inspections © 2017 Fannie Mae. Trademarks of Fannie Mae. LL- 2017-07 3 of 4 until the damage is remediated. After the damage is remediated, the servicer must continue monthly inspections. If the initial inspection shows no damage, the servicer must continue monthly inspections. delinquent and the property is vacant immediately inspect the property. If the initial inspection report shows damage, the servicer must continue bi-weekly inspections until the damage is remediated. Once the damage is remediated, the servicer must continue monthly inspections. If the initial inspection shows no damage, the servicer must continue monthly inspections. The servicer must perform the required inspections using the Property Inspection Report (Form 30) or equivalent, and maintain a copy in the loan file (provided to Fannie Mae upon request). The servicer may exercise discretion in determining whether an interior or exterior property inspection is appropriate depending on the individual circumstances. Reimbursement We are updating our expense reimbursement process to accept requests for required inspection costs on current mortgage loans. Servicers should request reimbursement for these inspection costs under the normal process they follow today using our expense reimbursement system. The servicer should utilize the interior property inspection and/or exterior property inspection line items in its request to expedite processing. The following reimbursement policies will apply to property inspections obtained on existing loans with properties in the disaster area:  We will reimburse the servicer $15 for exterior inspections and $20 when an interior inspection is necessary, in accordance with the amounts in the Defined Expense Reimbursement Limits in Servicing Guide, F-1-06: Expense Reimbursement. However, if the servicer already ordered a more expensive FEMA disaster inspection prior to the date of this Lender Letter, we will reimburse the servicer for those costs.  We will reimburse for all mortgage loans in which Fannie Mae holds the risk of loss and the properties are impacted by disaster on or after August 25, 2017.  Servicers may begin submitting applicable requests for reimbursement on or after October 1, 2017.  Servicers must submit reimbursement requests for inspection costs on current mortgage loans within one year of the invoice date.  For inspections costs on delinquent mortgage loans, refer to the expense reimbursement deadlines in Servicing Guide, E-5-01: Requesting Reimbursement for Expenses. Performing Repairs and Addressing Urgent Conditions Servicers must immediately commence repair work for a delinquent mortgage loan if  the last inspection prior to the disaster showed the property as vacant, and  the servicer determines (through the post-disaster inspection or QRPC) that the property is still vacant and there is damage to the property. Refer to the Servicing Guide, D2-2-10: Requirements for Performing Property Inspections and the Property Preservation Matrix and Reference Guide for additional property preservation requirements and guidance. In addition, servicers are encouraged to address urgent conditions immediately and prior to our approval for matters outside the allowable threshold, in accordance with Fannie Mae’s Bid After The Fact (BATF) process in the Property Preservation Matrix and © 2017 Fannie Mae. Trademarks of Fannie Mae. LL- 2017-07 4 of 4 Reference Guide. We will give deference to servicer decisions on such repairs and will approve BATF requests as long as the repairs and associated costs keep with the intended spirit of our disaster assistance policies and are not materially unreasonable or unnecessary. Reporting Uninsured Loss Events Servicing Guide, B-5-02: Uninsured Loss Events, currently requires the servicer to send a complete report of the damage to its Fannie Mae Servicing Representative. Due to the extensive nature of the hurricane disasters, we are removing this reporting requirement for all loans going forward. Servicers are reminded that they must  determine the extent of the damage;  secure the property in accordance with the requirements in the Servicing Guide and the Property Preservation Matrix and Reference Guide, if applicable;  develop plans with the borrower to repair the property; and  assist the borrower in filing for any disaster relief that may be available. ***** If you have questions about this Lender Letter, please reach out to your Fannie Mae customer delivery team, Portfolio Manager, or our Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643). Carlos T. Perez Senior Vice President and Chief Credit Officer for Single-Family

Source: https://www.fanniemae.com/content/announcement/ll1707.pdf

AGENCY:

Bureau of Consumer Financial Protection.

ACTION:

Final rule; official interpretation.

SUMMARY:

The Bureau of Consumer Financial Protection (Bureau) is issuing this final rule amending the official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA). The Bureau is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises, as applicable, the dollar amounts for provisions implementing TILA and amendments to TILA, including under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The Bureau is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index (CPI) in effect on June 1, 2017.

DATES:

This final rule is effective January 1, 2018.

FOR FURTHER INFORMATION CONTACT:

Jaclyn Maier, Counsel, Office of Regulations, Consumer Financial Protection Bureau, 1700 G Street NW., Washington, DC 20552 at (202) 435-7700.

SUPPLEMENTARY INFORMATION:

The Bureau is amending the official interpretations for Regulation Z, which implements TILA, to update the dollar amounts of various thresholds that are adjusted annually based on the annual percentage change in the CPI as published by the Bureau of Labor Statistics (BLS). Specifically, for open-end consumer credit plans under TILA, the threshold that triggers requirements to disclose minimum interest charges will remain unchanged at $1.00 in 2018. For open-end consumer credit plans under the CARD Act amendments to TILA, the adjusted dollar amount for the safe harbor for a first violation penalty fee will remain unchanged at $27 in 2018 and the adjusted dollar amount for the safe harbor for a subsequent violation penalty fee will remain unchanged at $38 in 2018. For HOEPA loans, the adjusted total loan amount threshold for high-cost mortgages in 2018 will be $21,032. The adjusted points and fees dollar trigger for high-cost mortgages in 2018 will be $1,052. For the general rule to determine consumers’ ability to repay mortgage loans, the maximum thresholds for total points and fees for qualified mortgages in 2018 will be 3 percent of the total loan amount for a loan greater than or equal to $105,158; $3,155 for a loan amount greater than or equal to $63,095 but less than $105,158; 5 percent of the total loan amount for a loan greater than or equal to $21,032 but less than $63,095; $1,052 for a loan amount greater than or equal to $13,145 but less than $21,032; and 8 percent of the total loan amount for a loan amount less than $13,145.

I. Background

A. Credit Card Annual Adjustments

MINIMUM INTEREST CHARGE DISCLOSURE THRESHOLDS

Sections 1026.6(b)(2)(iii) and 1026.60(b)(3) of the Bureau’s Regulation Z implement sections 127(a)(3) and 127(c)(1)(A)(ii)(II) of TILA. Sections 1026.6(b)(2)(iii) and 1026.60(b)(3) require the disclosure of any minimum interest charge exceeding $1.00 that could be imposed during a billing cycle and provide that, for open-end consumer credit plans, the minimum interest charge thresholds will be re-calculated annually using the CPI that was in effect on the preceding June 1; the Bureau uses the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for this adjustment. When the cumulative change in the adjusted minimum value derived from applying the annual CPI-W level to the current amounts in §§ 1026.6(b)(2)(iii) and 1026.60(b)(3) has risen by a whole dollar, the minimum interest charge amounts set forth in the regulation will be increased by $1.00. The BLS publishes consumer-based indices monthly but does not report a CPI change on June 1; adjustments are reported in the middle of the month. This adjustment analysis is based on the CPI-W index in effect on June 1, 2017, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The CPI-W is a subset of the Consumer Price Index for All Urban Consumers (CPI-U) index and represents approximately 28 percent of the U.S. population. The adjustment analysis accounts for a 2.1 percent increase in the CPI-W from April 2016 to April 2017. This increase in the CPI-W when applied to the current amounts in §§ 1026.6(b)(2)(iii) and 1026.60(b)(3) did not trigger an increase in the minimum interest charge threshold of at least $1.00, and the Bureau is therefore not amending §§ 1026.6(b)(2)(iii) and 1026.60(b)(3).

SAFE HARBOR PENALTY FEES

Section 1026.52(b)(1)(ii)(A) and (B) of the Bureau’s Regulation Z implements section 149(e) of TILA, established by the CARD Act.^[1] Section 1026.52(b)(1)(ii)(D) provides that the safe harbor provision, which establishes the permissible penalty fee thresholds in § 1026.52(b)(1)(ii)(A) and (B), will be re-calculated annually using the CPI that was in effect on the preceding June 1; the Bureau uses the CPI-W for this adjustment. The BLS publishes consumer-based indices monthly but does not report a CPI change on June 1; adjustments are reported in the middle of the month. The CPI-W is a subset of the CPI-U index and represents approximately 28 percent of the U.S. population. When the cumulative change in the adjusted value derived Start Printed Page 41159from applying the annual CPI-W level to the current amounts in § 1026.52(b)(1)(ii)(A) and (B) has risen by a whole dollar, those amounts will be increased by $1.00. Similarly, when the cumulative change in the adjusted value derived from applying the annual CPI-W level to the current amounts in § 1026.52(b)(1)(ii)(A) and (B) has decreased by a whole dollar, those amounts will be decreased by $1.00. See comment 52(b)(1)(ii)-2. The 2018 adjustment analysis is based on the CPI-W index in effect on June 1, 2017, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The 2.1 percent increase in the CPI-W from April 2016 to April 2017 did not trigger an increase in the first violation safe harbor penalty fee of $27 or the subsequent violation safe harbor penalty fee of $38, and the Bureau is therefore not amending § 1026.52(b)(1)(ii)(A) and (B) for the 2018 calendar year.

B. HOEPA Annual Threshold Adjustments

Section 1026.32(a)(1)(ii) of the Bureau’s Regulation Z implements section 1431 of the Dodd-Frank Act,^[2] which amended the HOEPA points and fees coverage test. Under § 1026.32(a)(1)(ii)(A) and (B), when determining whether a transaction is a high-cost mortgage, the determination of the applicable points and fees coverage test is based upon whether the total loan amount is for $20,000 or more, or for less than $20,000. Section 1026.32(a)(1)(ii) provides that this threshold amount be recalculated annually using the CPI index in effect on June 1; the Bureau uses the CPI-U for this adjustment. The CPI-U is based on all urban consumers and represents approximately 88 percent of the U.S. population. The BLS publishes consumer-based indices monthly but does not report a CPI change on June 1; adjustments are reported in the middle of each month. The 2018 adjustment is based on the CPI-U index in effect on June 1, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The adjustment to the $20,000 figure being adopted here reflects a 2.2 percent increase in the CPI-U index for this period and is rounded to whole dollars for ease of compliance.

Under § 1026.32(a)(1)(ii)(B) the HOEPA points and fees dollar trigger is $1,000. Section 1026.32(a)(1)(ii)(B) provides that this threshold amount will be recalculated annually using the CPI index in effect on June 1; the Bureau uses the CPI-U for this adjustment. The 2018 adjustment is based on the CPI-U index in effect on June 1, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The adjustment to the $1,000 figure being adopted here reflects a 2.2 percent increase in the CPI-U index for this period and is rounded to whole dollars for ease of compliance.

C. Ability To Repay and Qualified Mortgages Annual Threshold Adjustments

The Bureau’s Regulation Z implements sections 1411 and 1412 of the Dodd-Frank Act, which generally require creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling, and establishes certain protections from liability under this requirement for qualified mortgages. Under § 1026.43(e)(3)(i), a covered transaction is not a qualified mortgage if the transaction’s points and fees exceed: 3 Percent of the total loan amount for a loan amount greater than or equal to $100,000; $3,000 for a loan amount greater than or equal to $60,000 but less than $100,000; 5 percent of the total loan amount for loans greater than or equal to $20,000 but less than $60,000; $1,000 for a loan amount greater than or equal to $12,500 but less than $20,000; or 8 percent of the total loan amount for loans less than $12,500. Section 1026.43(e)(3)(ii) provides that the limits and loan amounts in § 1026.43(e)(3)(i) are recalculated annually for inflation using the CPI-U index in effect on June 1. The CPI-U is based on all urban consumers and represents approximately 88 percent of the U.S. population. The BLS publishes consumer-based indices monthly but does not report a CPI change on June 1; adjustments are reported in the middle of each month. The 2018 adjustment is based on the CPI-U index in effect on June 1, which was reported by BLS on May 12, 2017, and reflects the percentage change from April 2016 to April 2017. The adjustment to the 2017 figures being adopted here reflects a 2.2 percent increase in the CPI-U index for this period and is rounded to whole dollars for ease of compliance.

II. Adjustment and Commentary Revision

A. Credit Card Annual Adjustments

MINIMUM INTEREST CHARGE DISCLOSURE THRESHOLDS—§§ 1026.6(B)(2)(III) AND 1026.60(B)(3)

The minimum interest charge amounts for §§ 1026.6(b)(2)(iii) and 1026.60(b)(3) will remain unchanged at $1.00 for the year 2018. Accordingly, the Bureau is not amending these sections of Regulation Z.

SAFE HARBOR PENALTY FEES—§ 1026.52(B)(1)(II)(A) AND (B)

The safe harbor penalty fee amounts remain unchanged at $27 for § 1026.52(b)(1)(ii)(A) (first violation safe harbor penalty fee) and $38 for § 1026.52(b)(1)(ii)(B) (subsequent violation safe harbor penalty fee) for the year 2018. Accordingly, the Bureau is not amending these sections of Regulation Z. The Bureau is amending comment 52(b)(1)(ii)-2.i to preserve a list of the historical thresholds for this provision.

B. HOEPA Annual Threshold Adjustment—Comments 32(a)(1)(ii)-1 and -3

Effective January 1, 2018, for purposes of determining under § 1026.32(a)(1)(ii) the points and fees coverage test under HOEPA to which a transaction is subject, the total loan amount threshold is $21,032, and the adjusted points and fees dollar trigger under § 1026.32(a)(1)(ii)(B) is $1,052. When the total loan amount for a transaction is $21,032 or more, and the points and fees amount exceeds 5 percent of the total loan amount, the transaction is a high-cost mortgage. When the total loan amount for a transaction is less than $21,032, and the points and fees amount exceeds the lesser of the adjusted points and fees dollar trigger of $1,052 or 8 percent of the total loan amount, the transaction is a high-cost mortgage. The Bureau is amending comments 32(a)(1)(ii)-1 and -3, which list the adjustments for each year, to reflect for 2018 the new loan amount dollar threshold and the new points and fees dollar trigger, respectively.

C. Ability To Repay and Qualified Mortgages Annual Threshold Adjustments

Effective January 1, 2018, for purposes of determining whether a covered transaction is a qualified mortgage under § 1026.43(e), a covered transaction is not a qualified mortgage if, pursuant to § 1026.43(e)(3), the transaction’s total points and fees exceed 3 percent of the total loan Start Printed Page 41160amount for a loan amount greater than or equal to $105,158; $3,155 for a loan amount greater than or equal to $63,095 but less than $105,158; 5 percent of the total loan amount for loans greater than or equal to $21,032 but less than $63,095; $1,052 for a loan amount greater than or equal to $13,145 but less than $21,032; or 8 percent of the total loan amount for loans less than $13,145. The Bureau is amending comment 43(e)(3)(ii)-1, which lists the adjustments for each year, to reflect the new dollar threshold amounts for 2018.

III. Procedural Requirements

A. Administrative Procedure Act

Under the Administrative Procedure Act, notice and opportunity for public comment are not required if the Bureau finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest. 5 U.S.C. 553(b)(B). Pursuant to this final rule, in Regulation Z, comments 32(a)(1)(ii)-1.iv and -3.iv, 43(e)(3)(ii)-1.iv, and 52(b)(1)(ii)-2.i.E in supplement I are added to update the exemption thresholds. The amendments in this final rule are technical and non-discretionary, as they merely apply the method previously established in Regulation Z for determining adjustments to the thresholds. For these reasons, the Bureau has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. The amendments therefore are adopted in final form.

B. Regulatory Flexibility Act

Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis. 5 U.S.C. 603(a), 604(a).

C. Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3506; 5 CFR part 1320), the Bureau reviewed this final rule. No collections of information pursuant to the Paperwork Reduction Act are contained in the final rule.

List of Subjects in 12 CFR Part 1026

Advertising

Consumer protection

Credit

Credit unions

Mortgages

National banks

Reporting and recordkeeping requirements

Savings associations

Truth in lending

Authority and Issuance

For the reasons set forth in the preamble, the Bureau amends Regulation Z, 12 CFR part 1026, as set forth below:

PART 1026—TRUTH IN LENDING (REGULATION Z)

1.The authority citation for part 1026 continues to read as follows:

Authority: 12 U.S.C. 2601, 2603-2605, 2607, 2609, 2617, 3353, 5511, 5512, 5532, 5581; 15 U.S.C. 1601 et seq.

2.In Supplement I to part 1026—Official Interpretations:

a.Under Section 1026.32—Requirements for High-Cost Mortgages, under 32(a) Coverage, under Paragraph 32(a)(1)(ii), paragraphs 1.iv and 3.iv are added.

b.Under Section 1026.43—Minimum Standards for Transactions Secured by a Dwelling, under 43(e) Qualified mortgages, under Paragraph 43(e)(3)(ii),paragraph 1.iv is added.

c.Under Section 1026.52—Limitations on Fees, under 52(b) Limitations on Penalty Fees, under 52(b)(1)(ii) Safe harbors, paragraph 2.i.E is added.

 

Source: https://www.federalregister.gov/documents/2017/08/30/2017-18003/truth-in-lending-regulation-z-annual-threshold-adjustments-credit-cards-hoepa-and-atrqm

WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a rule amending the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule. The Bureau has temporarily changed reporting requirements for banks and credit unions that issue home-equity lines of credit, and clarified the information that financial institutions are required to collect and report about their mortgage lending.

“The Home Mortgage Disclosure Act is a vital source of information on the health and fairness of the mortgage market,” said CFPB Director Richard Cordray. “Today’s amendments show that the Consumer Bureau is committed to ensuring that financial institutions are able to comply with the rule, and to promoting transparency across the largest consumer financial market in the world.”

The Home Mortgage Disclosure Act—originally enacted in 1975—requires most lenders to report information about the home loans that they originate or purchase, as well as applications received. Banking regulators and the public can use this data to monitor whether financial institutions are serving the housing needs of their communities, to assist in distributing public-sector investment in order to attract private investment to areas where it is needed, and to identify possible discriminatory lending patterns.

As directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB updated the HMDA regulation in 2015 to improve the quality and type of data reported by financial institutions. Most of the updated requirements take effect in January 2018, and the industry is working to bring operations into compliance.

Reporting Threshold

Under rules that are scheduled to take effect in January 2018, financial institutions would have been required under the Home Mortgage Disclosure Act to report home-equity lines of credit if they made 100 such loans in each of the last two years. Today’s final rule has increased that threshold to 500 loans through calendar years 2018 and 2019 so that the Bureau can consider whether to make a permanent adjustment. This change was initially proposed in July 2017.

This temporary increase in the threshold will provide time for the Bureau to consider whether to initiate another rulemaking to address the appropriate level for the threshold for data collected beginning January 1, 2020.

Clarifications and Technical Corrections

Today’s final rule contains a number of clarifications, technical corrections, and minor changes to the HMDA regulation. These include clarifying certain key terms, such as “temporary financing” and “automated underwriting system.” The changes finalized today will also, for example, establish transition rules for reporting certain loans purchased by financial institutions. Another change will facilitate reporting the census tract of a property, using a geocoding tool that will be provided on the Bureau’s website. These changes were initially proposed in April 2017.

The CFPB is committed to well-tailored and effective regulations and has sought to carefully calibrate its efforts to ensure consistency with respect to consumer financial protections across the financial services marketplace.

The final rule is available at:

http://files.consumerfinance.gov/f/documents/201708_cfpb_final-rule_home-mortgage-disclosure_regulation-c.pdf 

The CFPB is also releasing today an executive summary of the final rule, updates to technical filing instructions, and other implementation materials.  The CFPB hopes that these materials will help financial institutions understand and implement the changes adopted in the final rule.

The regulatory implementation materials are available here: 

https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/hmda-implementation/

The technical instructions are available here:

 https://www.consumerfinance.gov/data-research/hmda/for-filers

###The Consumer Financial Protection Bureau is a 21st century agency that helps consumer finance markets work by making rules more effective, by consistently and fairly enforcing those rules, and by empowering consumers  to take more control over their economic lives. For more information, visit consumerfinance.gov.  

Source: https://www.consumerfinance.gov/about-us/newsroom/cfpb-temporarily-changes-mortgage-data-rule-reporting-threshold-community-banks-and-credit-unions/

SUBJECT: EXTENSION OF CERTAIN HURRICANE-RELATED REQUIREMENTS AND PROPERTY INSPECTION REIMBURSEMENT FOR ELIGIBLE DISASTER AREAS This Guide Bulletin announces that our temporary selling and Servicing requirements related to Hurricane Harvey and Hurricane Irma in Bulletins 2017-14, 2017-16 and 2017-19 are extended to Mortgages and Borrowers whose Mortgaged Premises or places of employment are located in Eligible Disaster Areas impacted by all hurricanes on and after August 25, 2017 and through the 2017 hurricane season. However, the temporary suspension of foreclosure sales and evictions will only apply to Mortgaged Premises located in an Eligible Disaster Area as a result of Hurricane Harvey, Hurricane Irma and now Hurricane Maria. In the event of another hurricane, all previously announced selling flexibilities will be available as of the date of the Federal Emergency Management Agency (FEMA) major disaster declaration in Eligible Disaster Areas without further instruction from Freddie Mac. Freddie Mac selling-related systems will be updated as soon as possible after the disaster. We are also announcing details concerning property inspections and reporting requirements for Mortgages with properties in Eligible Disaster Areas.

TEMPORARY SELLING REQUIREMENTS Property inspection fee reimbursement Freddie Mac will reimburse Sellers through September 30, 2018 for property inspections completed prior to the sale or securitization of Mortgages secured by properties in Eligible Disaster Areas as a result of a 2017 hurricane:  Freddie Mac will reimburse Sellers after the Mortgage has been sold or securitized  The original appraisal must have been obtained prior to the area having been declared an Eligible Disaster Area  Freddie Mac will reimburse Sellers for actual inspection costs not to exceed $75 for an individual Mortgage  The Seller must maintain copies of the inspection invoice(s) in the Mortgage file More details regarding the reimbursement process will be posted on our Natural Disaster Relief web page. We will follow up with a Single-Family Update e-mail when additional information is available.

TEMPORARY SERVICING REQUIREMENTS FOR MORTGAGES IMPACTED BY HURRICANE MARIA Suspension of foreclosure sales For Mortgages secured by properties located in Eligible Disaster Areas affected by Hurricane Maria, Freddie Mac is requiring Servicers to suspend all foreclosure sales beginning on the date that FEMA declared the area to be an Eligible Disaster Area and lasting through December 31, 2017. However, if the Mortgaged Premises was identified as vacant or abandoned prior to Hurricane Maria, and the Servicer has completed its property inspection and confirmed that there is no insurable damage or ability to receive FEMA funds on the Mortgaged Premises, the Servicer may choose to proceed with the foreclosure sale on that Mortgage prior to December 31, 2017. TO: Freddie Mac Sellers and Servicers September 25, 2017 | 2017-21

Suspension of evictions:

Freddie Mac is notifying counsel providing default related legal services to suspend all eviction activities as of the date of this Bulletin for Borrowers with Mortgaged Premises in locations designated as an Eligible Disaster Area as a result of Hurricane Maria. We will continue to assess the damage and will reevaluate our requirements as circumstances dictate.

TEMPORARY SERVICING REQUIREMENTS FOR MORTGAGES IMPACTED BY AN ELIGIBLE DISASTER Reimbursement process for property inspections of Mortgaged Premises in Eligible Disaster Areas Effective for all property inspections conducted on and after August 29, 2017 of Mortgaged Premises in an Eligible Disaster Area As announced in Bulletins 2017-14 and 2017-19, Freddie Mac is aware that Servicers may need to conduct a property inspection of a Mortgaged Premises in an Eligible Disaster Area that would not normally be reimbursable in accordance with Guide Sections 9202.12 and 9701.9. As a result, we are announcing a temporary process for Servicers to seek reimbursement of the actual costs, subject to applicable expense limits, for exterior property inspections completed in accordance with Section 8404.2 and interior property inspections completed in accordance with Section 8202.11. For exterior property inspections, Servicers must use expense code 404005 (Exterior Property Inspection) with an expense limit of $15. For interior property inspections, Servicers must use expense code 404007 (Interior Property Inspection) with an expense limit of $20. However, if a Servicer already ordered or obtained a “FEMA inspection” where the cost exceeded the normal expense reimbursement amounts, Freddie Mac will reimburse those amounts if incurred prior to the date of this Bulletin. Servicers may temporarily submit property inspection reimbursement requests once per month via an Excel® spreadsheet to NPL_Invoices@freddiemac.com. The e-mail subject line should reference “Disaster related property inspection reimbursement request,” and the spreadsheet must include the following information for all Mortgages that a Servicer is seeking reimbursement for that month:  Freddie Mac Loan Number  Seller/Servicer Payee Code  Expense Code  Reimbursement request amount  Property inspection expense date paid  Vendor Name A Servicer unsure of its Seller/Servicer Payee code should send an e-mail request to 104_Expense@freddiemac.com. A property inspection completed on a Mortgage that was 60 or more days delinquent would already be required, and so is eligible for reimbursement in accordance with Sections 9202.12 and 9701.9. In this instance, Servicers must submit expense reimbursement requests in accordance with those Guide sections, and not through the temporary process described above.

EDR for Eligible Disasters We remind Servicers to report:  All Mortgages that are affected by an Eligible Disaster and are 31 or more days delinquent to Freddie Mac via EDR transmission within the first three Business Days of the month following the month the Servicer learned of the Eligible Disaster  Default action code 09 (Forbearance) for each month while the disaster forbearance plan status is relevant  Default action date (report the forbearance plan start date, which date may be prior to the Mortgage becoming 31 or more days delinquent)  Default reason code 034 (Eligible Disaster Area) for Mortgages where the Borrower’s Mortgaged Premises or place of employment is located in an Eligible Disaster Area  Default action code AW to notify us of the date of the Servicer’s first quality right party contact (QRPC) with the Borrower, which date must only be reported one time, in the month following the month when the event took place  Default action code AX to notify us of the date of the Servicer’s last QRPC with the Borrower, which date must only be reported one time, in the month following the month when the event took place Servicers should review Guide Exhibit 82, Electronic Default Reporting Transmission Code List, and the Electronic Default Reporting Quick Reference Guide for details on EDR.

CONCLUSION If you have any questions about the changes announced in this Bulletin, please contact your Freddie Mac representative or call the Customer Support Contact Center at (800) FREDDIE.

Sincerely,

Christina K. Boyle Senior Vice President Single-Family Sales and Relationship Management

Source: http://www.freddiemac.com/singlefamily/guide/bulletins/pdf/bll1721.pdf

hington, D.C 20250 DATE July 7, 2017 PROCEDURE NOTICE RD MANUAL CHANGES INSERT RD INS 2018-G U.S. GOVERNMENT MOTOR VEHICLE OPERATOR’S (WSAL) INSTRUCTIONS. This Instruction is partially revised to clarify several issues. Each driver must now certify that they have a valid operator’s license. Form RD 2018-3 was developed for those employees that do not already have an AD-728 or Form RD 2018-1 on file. A log must be maintained for vehicle usage and a new request form. REMOVE INSERT Table of Contents; Table of Contents revised; All Pages. Pages 1 through 11 revised 07-07-17. RD HANDBOOK CHANGES INSERT RD HB-1-3555 SFH GUARANTEED LOAN PROGRAM TECHNICAL (WSAL) HANDBOOK. Chapter 16: Paragraphs 16.2, the power of attorney language was updated to clarify when it may be utilized;. Paragraph 16.11(C)(1), language regarding the maximum hazard insurance deductible was modified; Attachment 16-A, Reference to HUD-1 was updated to Closing Disclosure, link to the training resource library was updated and reference to Form RD 1980-18 was updated to Form RD 3555-18. REMOVE INSERT Table of Contents: Table of Contents: Pages 11 & 12; Pages 11 & 12 revised; Chapter 16 dated 03-09-16: Chapter 16 dated 03-09-16: Pages 16-1 & 16-2 and Pages 16-1 & 16-2 and 16-17 & 16-18; and 16-17 & 16-18; and Attachment 16-A. Attachment 16-A revised 07-07-17. (OVER) READ PROCEDURE – DISCUSS IN STAFF CONFERENCE – KEEP PROCEDURE MANUAL UP TO DATE Page 2 ISSUED: PN 501 July 7, 2017 FORM REPLACEMENT RD 2018-2 RURAL DEVELOPMENT VEHICLE ALLOCATION (WSAL) METHODOLOGHY (VAM) dated 06-17. Prescribed in RD Instruction 2018-G. The Form and FMI are revised to add a block for the Departmental approval. This Form and FMI are available on the Rural Development Instructions home page (http://www.rd.usda.gov/publications/regulations-guidelines). No paper copy distribution of this form will be made, and it will not be stocked in the warehouse. REMOVE INSERT FMI dated 08-21-13. FMI revised 07-07-17. RD 2018-3 REQUEST TO RESERVE/USE GSA MOTOR VEHICLE (WSAL) dated 06-17. Prescribed in RD Instruction 2018-G. The Form and FMI are revised to provide a method of tracking requests to use a GSA motor vehicle and provides a certification that the requester of a motor vehicles has a valid operator’s license. This Form and FMI are available on the Rural Development Instructions home page (http://www.rd.usda.gov/publications/regulations-guidelines). No paper copy distribution of this form will be made, and it will not be stocked in the warehouse. INSERT FMI revised 07-07-17. NO SPECIAL PROCEDURE NOTICE RELEASED. ADMINISTRATIVE NOTICES RELEASED: (See AN Checklist)

 

Source: http://www.tenaco.com/wp-content/uploads/2017/07/RHS-Procedure-Notice-501.pdf

SUBJECT: SELLING UPDATES This Guide Bulletin announces: Uniform Closing Dataset  Requirements for the delivery of the Uniform Closing Dataset through Loan Closing AdvisorSM – September 25, 2017 (New) Collateral representation and warranty relief expansion  Removal of the requirement that a Mortgage be submitted to Loan Product Advisor® to be eligible for collateral representation and warranty relief – August 4, 2017 Electronic Recording of paper and electronic closing and post-closing documents  Removal of the requirement that a Seller/Servicer retain a wet ink signed assignment of a Mortgage or a modification agreement when those paper documents are electronically recorded Selling System®  Requirements for third-party advisors, known as Secondary Market Advisors, to access the Selling System® to perform services for Sellers – July 31, 2017 (New)  Delivery requirements for low loan balance Mortgages – New  Pricing and contracting Guide terminology updates related to previously announced Selling System capabilities Additional Guide updates  Further updates as described in the Additional Guide Updates section of this Bulletin EFFECTIVE DATE All of the changes announced in this Bulletin are effective immediately unless otherwise noted. UNIFORM CLOSING DATASET Effective for Mortgages sold to Freddie Mac with Note Dates on and after September 25, 2017 When originally announced, the Uniform Closing Dataset (UCD) XML with the embedded closing disclosure PDF was to be required on all Mortgages sold to Freddie Mac with a Note Date on and after September 25, 2017. However, as communicated in our June 6, 2017 Single-Family News Center article, in response to Seller feedback regarding UCD adoption, the GSEs are offering a six-month relief period for embedding the closing disclosure PDF within the UCD XML file. Please refer to the UCD web page for more information. While Sellers must still submit the UCD XML file for Mortgages sold to Freddie Mac with Note Dates on and after September 25, 2017, they now have until at least April 2018 to deliver the XML file with the embedded PDF. Nonetheless, Sellers are encouraged to submit the UCD XML file with the embedded PDF starting on September 25, 2017 if they have the capability to do so. We will provide adequate notice to Sellers of the date when the delivery of the embedded PDF will be required. We have created new Guide Chapter 5801 to provide information and requirements related to the UCD and delivery through Loan Closing Advisor. TO: Freddie Mac Sellers July 12, 2017 | 2017-10 Page 2 Loan Closing Advisor is Freddie Mac’s electronic collection solution for the UCD that helps Sellers validate that their closing data aligns with the UCD. Loan Closing Advisor then assesses the data against the UCD specification, checking for the completeness, validity and accuracy of certain calculated values and consistency of the data. The submission of the UCD through Loan Closing Advisor is fulfilled when:  The transaction has received data quality feedback messages; and  The Loan Closing Advisor feedback certificate indicates that the UCD requirement has been satisfied To obtain access to Loan Closing Advisor, Sellers should contact their Freddie Mac Account Executive or visit the Loan Closing Advisor web page and click on the “Get Started” button to start the process. Guide impact: Guide Section 5801.1 COLLATERAL REPRESENTATION AND WARRANTY RELIEF EXPANSION Effective for appraisals submitted to the Uniform Collateral Data Portal® on and after August 4, 2017 In Bulletin 2017-3, we announced that a Mortgage must be submitted to Loan Product Advisor to be eligible for collateral representation and warranty relief. With this Bulletin, we are enhancing our offering by no longer requiring a submission to Loan Product Advisor. Therefore, eligibility will no longer be dependent on submission to Loan Product Advisor. Collateral representation and warranty relief status will continue to be communicated through the Uniform Collateral Data Portal®, Loan Collateral Advisor®, Selling System, Loan Coverage Advisor®, and when applicable, Loan Product Advisor and Loan Quality Advisor®. We are also updating our eligibility requirements to include that the Mortgage must have a loan-to-value (LTV)/total LTV (TLTV)/Home Equity Line of Credit (HELOC) TLTV (HTLTV) ratio less than or equal to 95% to obtain collateral representation and warranty relief. Guide impact: Section 5601.9 ELECTRONIC RECORDING OF PAPER AND ELECTRONIC CLOSING AND POSTCLOSING DOCUMENTS In Bulletin 2016-16 we announced that, for closing documents that are electronically recorded, Freddie Mac does not require Seller/Servicers to store paper copies. However, electronically recorded post-closing documents such as assignments of Mortgages, modification agreements, etc., were not explicitly referenced in Sections 1401.14 and 1401.15, which were revised as part of Bulletin 2016-16. Based on Seller/Servicer feedback, we are now specifying that a Seller/Servicer does not need to store the original wet ink-signed paper assignments of Mortgages or modification agreements when such documents are electronically recorded. Seller/Servicers may now store Electronic (as defined in Section 1401.2) copies of electronically-recorded paper assignments of Mortgages or paper modification agreements, etc., but must do so securely and ensure such Electronic copies contain all the recording information. We have also clarified storage and delivery requirements for paper and electronically created closing and postclosing documents that are electronically recorded, as follows:  Seller/Servicers may store such Electronic copies of such documents as long as the copies or other Recording Confirmations from the Recording Office contain all of the recording information  Seller/Servicers must still deliver to the Document Custodian or Designated Custodian, as applicable  The original wet-ink signed paper assignments of Mortgages, powers of attorney, modification agreements, etc., that have been electronically recorded, and  Paper copies of such electronically recorded documents or other Recording Confirmations from the Recording Office Revising these requirements will create operational efficiencies for Seller/Servicers by reducing some storage costs and making it easier to store and retrieve documents. In addition, it reduces the risk of lost documents.

After delivery of the Mortgage to Freddie Mac, a Servicer may only enter into paper modification agreements with original wet-ink signatures, except for Electronic modification agreements under the Home Affordable Modification Program (HAMP®). Servicers must comply with the requirements set forth in Section 9205.20 with respect to HAMP eModification Agreements, as defined in Section 9205.20. With respect to non-HAMP eModification Agreements, Servicers may store such documents electronically provided they deliver to the Document Custodian or Designated Custodian, as applicable, the original wet-ink signed paper modification agreement and paper copies of such electronically recorded documents. At this time, Servicers remain subject to the paper document retention requirements set forth in Chapters 3301 and 3302 for those documents that have not been electronically recorded. Guide impacts: Sections 1401.14, 1401.15, 2202.4, 6304.1, 6304.3 and 9206.17 SELLING SYSTEM Authorizing access to the Selling System for third-party advisors Effective July 31, 2017 More Sellers are utilizing the services of third-party advisors, now defined as Secondary Market Advisors (SMA), for assistance on secondary market activities. We have added requirements for Sellers that want an SMA to perform duties on their behalf in the Selling System. These new requirements include forms that both a Seller utilizing an SMA and an SMA must complete to provide the necessary authorizations and create a Selling Agent relationship between the Seller and the SMA. Section 2403.3 is being repurposed to outline the use of SMAs and Selling Agents. It previously contained requirements regarding separate written agreements between the Seller and Freddie Mac for entering the Selling System. This is being removed as the written agreements have now expired. Additionally, we have added new Glossary definitions for the terms Secondary Market Advisor and Selling Agent. For an SMA to become a Selling Agent and be authorized to act on behalf of the Seller, the following must occur:  The SMA must complete, sign and deliver to Freddie Mac new Guide Form 478, Secondary Market Advisor Selling Agent Agreement, and  The Seller that will be utilizing the SMA must complete, sign and deliver to Freddie Mac new Form 900SA, Selling System Agent Identification and Authorized User Role Form, for each authorized employee of the Selling Agent. A Seller that currently has an SMA performing services on its behalf in the Selling System under a services agreement and has an executed and approved “Selling System Price Sheet Analyst User ID Request Form” and/or Form 900 is not immediately required to execute a Form 900SA unless and until one of the conditions listed in Section 2403.3(f) applies. Guide impacts: Sections 2403.1, 2403.3 and 2403.11 and Forms 478 and 900SA and the Glossary Cash payups for Mortgages with low loan balances Effective June 26, 2017 Our June 14, 2017 Single-Family News Center article described how we simplified the process in the Selling System to receive cash payups for fixed-rate Mortgages with specific loan attributes, such as UPBs less than or equal to $175,000. In order to take advantage of these cash payups for each Mortgage, Sellers must deliver the ULDD Data Point Investor Feature Identifier (Sort ID 368) and enter the applicable valid value provided in new Section 6302.39 associated with the UPB of the Cash Specified Pool Type to which the Mortgage has been allocated. Guide impacts: Section 6302.39 and Guide Exhibit 34 Page 4 Pricing and contracting terminology updates Bulletin 2017-2 announced new Selling System functionality for Sellers to obtain their Guarantor and MultiLender pricing for Purchase Contracts. In support of those changes, we are updating Guide terminology to align with the Selling System’s new capabilities. We are replacing references in the Guide to “Master Commitment number” with “Pricing Identifier,” which we are adding as a Glossary term. “Pricing Identifier” is defined as a number (or such other designation that Freddie Mac may select) that identifies an agreement providing the terms under which Freddie Mac will purchase eligible Mortgages over a fixed period of time. In addition, we are updating the Glossary as follows:  Replacing the term “Master Commitment” with the term “Pricing Identifier Terms,” which is defined as terms associated with a Pricing Identifier under which the Seller may sell Mortgages to Freddie Mac  Replacing:  “Effective Date for Delivery” with “Pricing Identifier Effective Date”  “Master Commitment Amount” with “Commitment Amount”  “Required Delivery Date” with “Pricing Identifier Expiration Date”  Updating the definitions for “Master Agreement,” “Minimum Contract Servicing Spread,” “Purchase Contract” and “Purchase Documents”  Removing the term “Maximum Master Agreement Amount” as it is no longer relevant All applicable Guide references have been updated to reflect these terminology changes. Pursuant to Section 1501.2, provisions, including terms of business in Master Agreements and/or Master Commitments and other Purchase Documents, are hereby amended such that all references to previously-defined terms are deemed to be references to the revised Glossary terms noted above. Sections 1501.1 and 1501.2 have been revised to reflect updates to Master Agreements and other Purchase Contracts. Loan Product Advisor feedback messages have been updated to reflect these changes. Guide impacts: Sections 1501.1, 1501.2, 1501.4, 1501.5, 1501.6, 1501.7, 1501.8, 5203.2, 6201.1, 6201.2, 6201.15, 6202.3, 6203.4, 6203.5, 6204.4, 6204.5, 6205.4, 6205.5, 6302.3, 6302.4, 6401.1, and 6401.2, Exhibits 6, 28 and 28A, Form 900 and the Glossary ADDITIONAL GUIDE UPDATES Concurrent Transfers of Servicing Seller/Servicers are encouraged to implement the below changes immediately, but must do so no later than October 9, 2017. In response to Seller/Servicer feedback for processing Concurrent Transfer of Servicing requests, we are clarifying:  Responsibilities between the Seller, the Servicer and the Servicer’s Document Custodian  When certification of the Notes must be performed As a result, we are updating the Glossary as follows:  Deleting the term “Transferor Seller”  Revising the term “Concurrent Transfer of Servicing” as follows: Page 5 A Transfer of Servicing initiated by a Seller to a Servicer that occurs, subject to prior Freddie Mac approval, concurrently with Freddie Mac’s purchase of a Mortgage on the Settlement Date: for the sake of convenience, the Seller may be referred to as the “Transferor Servicer” and the Servicer may be referred to as the “Transferee Servicer.” In each instance, the Mortgage is delivered for certification to the Servicer’s Document Custodian. Guide impacts: Sections 6301.6 and 7101.9, Form 960 and the Glossary Exhibit 13 The Federal Emergency Management Agency (FEMA) has revised the Standard Flood Hazard Determination Form, FEMA Form 086-0-32, Freddie Mac Exhibit 13, and extended the expiration date to October 31, 2018. Use of the new form is recommended; however, the previous form with the expiration date May 30, 2015 continues to be acceptable. Guide impacts: Section 8202.3 and Exhibit 13 GUIDE UPDATES SPREADSHEET For a detailed list of the Guide updates associated with this Bulletin and the topics with which they correspond, refer to the Bulletin 2017-10 (Selling) Guide Updates Spreadsheet available at http://www.freddiemac.com/singlefamily/guide/docs/bll1710_spreadsheet.xls. CONCLUSION If you have any questions about the changes announced in this Bulletin, please contact your Freddie Mac representative or call Customer Support Contact Center at (800) FREDDIE. Sincerely, Christina K. Boyle Senior Vice President Single-Family Sales and Relationship Management

Source: http://www.freddiemac.com/singlefamily/guide/bulletins/pdf/bll1710.pdf

Servicing Guide Announcement SVC-2017-06 July 12, 2017 Servicing Guide Updates The Servicing Guide has been updated to include changes related to Property Inspection and Preservation Updates. These policy changes also apply to Home Keeper® loans but are not applicable to Home Equity Conversion Mortgage (HECM) loans. The affected topics for these policy changes are included below. Servicers should review the Servicing Guide and the Property Preservation Matrix and Reference Guide to gain a full understanding of the changes. Property Inspection and Preservation Updates In response to industry feedback and in an effort to better serve our customers, we are  updating the Property Preservation Matrix and Reference Guide to provide servicers with more specific and detailed procedures for preserving and completing inspections for properties that secure delinquent mortgage loans;  restructuring Servicing Guide D2-2-10, Requirements for Performing Property Inspections, to clarify requirements for ordering and completing inspections for properties that secure mortgage loans that are in default; and  making the process easier for completing maintenance work by adding or updating reimbursement limits in Servicing Guide F-1-06, Expense Reimbursement, for the following:  moisture control,  address discoloration,  roof cleaning,  repair/replace fascia,  repair/replace soffits,  emergency pump water,  plumbing services,  utility service – initial service and per month,  code violations for fines/fees/liens,  cleaning toilet – life of loan maximum expense limit added,  repair/replace fence gate/lania,  repair/replace exterior door, and  repair/replace exterior door jamb. Additionally, Servicing Guide E-3.3-03, Inspecting Properties Prior to Foreclosure Sale, has been updated to change the number of days to complete an inspection from 30 to 35 days prior to the foreclosure sale. Additional Servicing Guide Topics Impacted References to the revised Property Preservation Matrix and Reference Guide were added to the following topics:  A2-1-01, General Servicer Duties and Responsibilities  D1-6-02, Handling Notices of Liens, Legal Action, Other Actions Impacting Fannie Mae’s Interest  D2-2-10, Requirements for Performing Property Inspections  D2-3.3-01, Fannie Mae Short Sale  D2-3.3-02, Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure)  E-1.2-02, Timing of the Foreclosure Referral for Mortgage Loans Generally  E-3.2-12, Performing Property Preservation During Foreclosure Proceedings © 2017 Fannie Mae. Trademarks of Fannie Mae. SVC-2017-06 2 of 2  E-3.3-03, Inspecting Properties Prior to Foreclosure Sale  E-3.5-02, Handling Third-Party Sales  F-1-06, Expense Reimbursement  F-1-09, Managing Foreclosure Proceedings Effective Date Policy changes must be implemented by October 1, 2017. However, servicers are encouraged to implement the updated expense limits and guidelines for these policy changes as of the date of this Announcement. ***** Contact your Customer Delivery Team, Portfolio Manager, or Fannie Mae’s Single-Family Servicer Support Center at 1- 800-2FANNIE (1-800-232-6643) with any questions regarding this Announcement. Carlos T. Perez Senior Vice President and Chief Credit Officer for Single-Family

Source: https://www.fanniemae.com/content/announcement/svc1706.pdf

BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 [Docket No. CFPB-2016-0038] RIN 3170-AA61 Amendments to Federal Mortgage Disclosure Requirements under the Truth in Lending Act (Regulation Z) AGENCY: Bureau of Consumer Financial Protection. ACTION: Final rule; official interpretation. SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is modifying the Federal mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act that are implemented in Regulation Z. This rule memorializes the Bureau’s informal guidance on various issues and makes additional clarifications and technical amendments. This rule also creates tolerances for the total of payments, adjusts a partial exemption mainly affecting housing finance agencies and nonprofits, extends coverage of the TILA-RESPA integrated disclosure (integrated disclosure) requirements to all cooperative units, and provides guidance on sharing the integrated disclosures with various parties involved in the mortgage origination process. DATES: The final rule is effective [INSERT DATE 60 DAYS AFTER DATE OF PUBLICATION IN THE FEDERAL REGISTER]. However, the mandatory compliance date is October 1, 2018. For additional discussion of these dates, see part VI of the SUPPLEMENTARY INFORMATION Section below. FOR FURTHER INFORMATION CONTACT: Jeffrey Haywood, Paralegal Specialist, 2 Dania Ayoubi, Pedro De Oliveira, Angela Fox, Jaclyn Maier, Alexandra Reimelt, and Shelley Thompson, Counsels, and Krista Ayoub, David Friend, Nicholas Hluchyj, and Priscilla Walton-Fein, Senior Counsels, Office of Regulations, Consumer Financial Protection Bureau, 1700 G Street, NW., Washington, DC 20552, at 202-435-7700. SUPPLEMENTARY INFORMATION: I. Summary of the Final Rule For more than 30 years, Federal law required lenders to issue two overlapping sets of disclosures to consumers applying for a mortgage. In October 2015, integrated disclosures issued by the Consumer Financial Protection Bureau, pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, took effect.1 The Bureau has worked actively to support implementation both before and after the effective date by providing compliance guides, webinars, and other implementation aids. To further these ongoing efforts, on July 28, 2016, the Bureau proposed amendments to the integrated disclosure requirements in Regulation Z (the proposal). 2 The Bureau is now issuing this final rule to memorialize certain past informal guidance, whether provided through webinar, compliance guide, or otherwise, and make additional clarifications and technical amendments. This final rule also makes a limited number of additional substantive changes where the Bureau has identified discrete solutions to specific implementation challenges. Specifically, among other changes, the final rule:

Source: https://s3.amazonaws.com/files.consumerfinance.gov/f/documents/201707_cfpb_Final-Rule_Amendments-to-Federal-Mortgage-Disclosure-Requirements_TILA.pdf