The First of July
by Fredric J. Gooch - General Counsel/VP of Compliance
The Fourth of July is a day that everyone looks forward to and is often referred to as the "Great American Holiday." For those in the compliance business it is a time to celebrate our independence or survival from the First of July. The First of July is definitely not a nationally recognized holiday, nor is it a day compliance professionals enjoy, as it is commonly a day when regulatory changes passed by state legislatures become effective. This year we saw several changes become effective on the First of July. Here is a list of new laws and regulations that went in to effect July first and the changes DocuTech has made to its products.
- Connecticut repealed the Secondary Mortgage Loan Act in Substitute House Bill 577 that went into effect July 1, 2008. Now all CT licensees will be under the Nondepository Mortgage Lenders and Brokers Act. Under the SMLA, the prepayment penalty limit was 3%; under the NMLBA, the prepayment penalty limit will be 6 months interest.
- Per Massachusetts Gen. Laws Ann. ch. 183 § 6D, effective July 1, 2008, every Massachusetts mortgage and assignment of mortgage should contain the name, post office address and license number of the mortgage broker and, if applicable, the mortgage loan originator. If no mortgage broker or mortgage loan originator was involved with the mortgage, it should be stated on the document.
- Per the revised requirements to Ohio Administrative Code §1301:8-3-07(H), effective July 1, 2008, lenders must clearly indicate the federal or state statutory authority pursuant to which a loan is made by prominently disclosing the information in the loan documents of second lien loans. Also, a disclosure with specific ARM related information must be given at least six months but not more than seven months before the initial scheduled reset date on second lien ARM loans with an initial fixed rate period.
- Washington House Bill 2770 went into effect June 12, 2008, and contains new restrictions on prepayment penalties for Adjustable Rate Mortgages.
- Wyoming passed Senate File 44, effective July 1, 2008, amending several provisions of the Residential Mortgage Practices Act. One of the new requirements is a Loan Origination and Compensation Agreement, to be given by brokers. The Wyoming notary acknowledgement language was also revised.
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Mortgage Compliance Updates - Mortgage Loan Docs
Financial Reform Is Just Around the Corner Document Imaging versus Electronic Document Management Risk-Based Pricing Notices New California Broker Higher-Priced Mortgage Loan Disclosure Lender's Look to Automate Loan Accuracy Bankers as Buyers 2010 Catching Up On the RESPA FAQs - Transfer Taxes DocuTech Provides Insight on E-Closings and Compliance Issue Using Worksheets In Initial Disclosure Packages New Rules for High Priced Loans Increase in Upfront Premiums for FHA Mortgage Insurance The Safe Act and State Licensed Originators New Model Privacy Notices Mortgage Compliance - Be Good and Lucky A Loan Closer's Nightmare Arkansas Disclosure and Certification VA Itemization of Origination Charge RESPA 2010 - Good Faith Estimate 801 Fee DocuTech Provides Full Service in NetOxygen Cirrus FHA Announces Policy Changes - Jan 2010 DocuTech Launches RESPA Resources Page HUD-1 Settlement Statement (Page 3) Revised NY Pre-Application Disclosure SC Mortgage Loan Originator Unique Identifier Addendum FHA Mortgage Loan Correspondent Disclosure Update to FNMA 1003, Cx4193 FHA 1% Origination Cap Removed Indiana Notice to Borrower New RESPA Documents ConformX - Update to FNMA 1008 Completing the New HUD-1 Settlement Statement Using the Correct Disclosure Package Revised FHA Informed Consumer Choice Disclosure Notice RESPA Reform: GFE Page Two Fast Food and Compliance Higher Priced Mortgage Loans Getting to Know the New Good Faith Estimate (Jan 2010) Prepare Now for January 2010 RESPA Changes Changes to Regulation Z - July 2009 Stay Compliant with Broker ID Laws eDisclosures - Sort Out the Mess Appraisal Integrity Legal and Mortgage Compliance Issues You Need to Know FHA Provides Guidance on New Mexico Security Instrument The Impact of Broker ID Laws Home Valuation Code of Conduct Effective Countrywide/Bank of America Update HVCC Verification of Receipt of Appraisal Form Freddie Bulletin 2008-4: Multiple Subjects The Future Is In Our Hands FHA Risk-Based Premiums Take a Break Changes to California Mortgage Loan Disclosure Statements The New HOEPA Rule - 2008 Housing and Economic Recovery Act - 2008 Rebuild After National Mortgage Crisis New Mortgage Legislation Effective July Courts Side With Borrowers Over Lenders Kentucky Emergency Rule (HB 552) Prepays FHA Mortgage Insurance Premium Calculations Kentucky Emergency Rule (HB 552) Home Foreclosure Blocked Due to Predatory Lending Violations HUD Proposes RESPA Reform 2008 California RE 885 Disclosure Massachusetts Borrower Counseling Disclosure Home Valuation Code of Conduct Proposed Regulation-Z Changes DC Adds New Disclosure For Non-Conventional Loans Conforming Loan Limits Increased Countrywide Interest Credit Clarification Maine Net Tangible Benefit Disclosure Up New Massachusetts Regulations Take Effect Maine Requires Net Tangible Benefit Form Colorado Emergency Prepay Rule MERS Requires Street Address on NY Docs Fred Gooch's Article in National Mortgage Professional
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