quarterly agency updates q3 2019 - genworth financial€¦ · this presentation may not include all...

Quarterly Agency Updates and

Communications

3rd Quarter 2019

©2019 Genworth Financial, Inc. All rights reserved.

Agenda

Fannie Mae

– Notification Center

– Lender Announcements and Letters

– Program Updates

Freddie Mac

– Subscription Center

– Lender Bulletins and Letters

– Product Updates

This presentation may not include all Agency communications.

Agency Updates 3rd Quarter 2019 1

URLA

2

https://sf.freddiemac.com/content/_assets/resources/pdf/press-release/urla_ulad_announcement.pdf

Agency Updates 3rd Quarter 2019

https://sf.freddiemac.com/content/_assets/resources/pdf/press-release/urla_ulad_announcement.pdf

www.fanniemae.com

33Agency Updates 3rd Quarter 2019

http://www.fanniemae.com/

www.fanniemae.com


http://www.fanniemae.com/

The Use of Credit Scores

5

https://www.fanniemae.com/content/fact_sheet/credit-score-infographic.pdf


https://www.fanniemae.com/content/fact_sheet/credit-score-infographic.pdf

Final Rule on Credit Score Models


https://www.fhfa.gov/Media/PublicAffairs/PublicAffairsDocuments/Validation-and-Approval-of-Credit-

Score-Models-Final-Rule.pdf

https://www.fhfa.gov/Media/PublicAffairs/PublicAffairsDocuments/Validation-and-Approval-of-Credit-Score-Models-Final-Rule.pdf

https://www.fanniemae.com/singlefamily

Fannie Mae Website- Single Family


https://www.fanniemae.com/singlefamily

Fannie Mae CommunicationsAnnouncements, Lender Letters, Release Notes…


DU Release Notes


https://www.fanniemae.com/content/release_notes/du-do-release-notes-12072019.pdf

https://www.fanniemae.com/content/release_notes/du-do-release-notes-12072019.pdf

Announcement 2019-08Selling Guide Update- Highlights▪ Updates to HBE requirements. Beginning Oct. 23,

Fannie will waive the fee for the Framework online

course. They will also require HBE on all purchase

transactions with LTV/CLTVs > 95%

▪ Clarifications to employment offers and contracts.

Removes eligibility policies for a borrower who has not

yet started employment but has an offer or contract to

start a job will now based on the documentation the

lender can provide instead of the timing of the

borrower's employment start date.

▪ Revises rental income policy. To help prevent reverse

occupancy fraud while still providing flexibility to

borrowers who choose to use rental income in the loan

qualification process, Fannie added requirements for

when rental income can be used as part of qualifying

for a new loan.

▪ Established requirements for reporting anti-money

laundering activity. Fannie now requires all

sellers/servicers, including those not subject to the

anti-money laundering provisions of the Bank Secrecy

Act, to report loan-level instances of suspicious activity

using the self-report function in Loan Quality Connect.


https://www.fanniemae.com/content/announcement/sel1908.pdf


Eligibility Matrix- Updated


https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf

https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf

Announcement 2019-07Selling Guide Update- Highlights▪ Introduces construction-to-permanent financing for

manufactured homes. Lenders may now use

construction-to-permanent single-closing or two-

closing financing options when originating a

manufactured home loan. They also now permit

limited cash-out refinance transactions to involve a

new or existing manufactured home and updated the

types of costs that can be included in the loan

amount. (Effective immediately)

▪ Clarifies appraisal waiver eligibility for refinance

transactions. Removed the requirement that the

borrower name on the loan casefile must match the

borrower name on the prior appraisal. (Was effective

for all loan casefiles submitted on or after June 22,

2019)

▪ Removes Refi Plus options references. Removed all

references to Refi Plus™ options, which are being

retired. All DU Refi Plus/Refi Plus loans must be

delivered by Sept. 30.




Announcement 2019-07Selling Guide Update- Highlights

▪ Updates lender quality control (QC) requirements.

Updated lender QC process requirements to provide

more clarity and flexibility to lenders. Specifically,

Fannie added requirements to the QC vendor

reporting timeframes and the statistical sampling

methodology. They also clarified processes related to

the independence of the QC function, QC staff, and

the reverification of income, employment, and assets.

(Must be implemented by 1/1/2020)

▪ Other Miscellaneous updates to DU data accuracy,

tolerances, errors in credit reports, DTI ratios in DU,

and HomeStyle Rennovation costs and escrow

accounts.




Announcement 2019-06Selling Guide Update

▪ HomeReady - updated the Selling Guide to

include the changes related to area median

income (AMI) limits for HomeReady mortgage

loans that were previously announced.

▪ Compliance with Office of Foreign Assets

Control Regulations – updated with additional

clarifications for compliance with OFAC

regulations regarding servicing.

▪ 4506-T – Removing requirement for a signed

4506-T for any borrower shoes income is not

being used to qualify for the loan


https://www.fanniemae.com/content/announcement/sel1906.pdf?utm_medium=email&utm_source=

sfMarkCloudNP&utm_campaign=SSNews&utm_term=_&utm_content=_NT


https://www.fanniemae.com/content/announcement/sel1906.pdf?utm_medium=email&utm_source=sfMarkCloudNP&utm_campaign=SSNews&utm_term=_&utm_content=_NT

Announcement 2019-06Selling Guide Update- continued

▪ Definition of Relocation Loans - Relocation

loan is now defined as an owner-occupied

purchase money loan, originated pursuant to

an established employee relocation program,

administered by the employer (or its agent),

where the employer relocates employees as

part of its normal course of business

▪ Disaster Policies Reminder

▪ Miscellaneous updates including DU

Validation Service, UAD references, General

Information on Project Standards, and

clarifications for HomeStyle Energy for

improvements on existing properties


https://www.fanniemae.com/content/announcement/sel1906.pdf?utm_medium=email&utm_source=

sfMarkCloudNP&utm_campaign=SSNews&utm_term=_&utm_content=_NT


https://www.fanniemae.com/content/announcement/sel1906.pdf?utm_medium=email&utm_source=sfMarkCloudNP&utm_campaign=SSNews&utm_term=_&utm_content=_NT

In Case You Missed It- August 2019


https://www.fanniemae.com/content/news/policy-communications-summary-2019.pdf

https://www.fanniemae.com/content/news/policy-communications-summary-2019.pdf

Surveys


https://www.fanniemae.com/portal/research-insights/surveys/mortgage-lender-sentiment-survey.html

https://www.fanniemae.com/portal/research-insights/surveys/mortgage-lender-sentiment-survey.html

Surveys


https://www.fanniemae.com/portal/research-insights/surveys/national-housing-survey.html

https://www.fanniemae.com/portal/research-insights/surveys/national-housing-survey.html

Economic & Housing Outlook


https://www.fanniemae.com/portal/research-insights/forecast/monthly-archive.html

https://www.fanniemae.com/portal/research-insights/forecast/monthly-archive.html

Publications


https://www.fanniemae.com/portal/research-insights/publications.html

https://www.fanniemae.com/portal/research-insights/publications.html

Freddie Mac Updates

Freddie Mac’s Website

– Link to www.freddiemac.com

– Subscription Center

– Learning Center

– http://www.freddiemac.com/loanadvisorsuite/

– Single Family News

– Pending Loan Product Advisor® Enhancements


http://www.freddiemac.com/

http://www.freddiemac.com/loanadvisorsuite/

www.freddiemac.com

22Agency Updates 3rd Quarter 2019 22

https://sf.freddiemac.com/about/single-family/subscription-center

http://www.freddiemac.com/

https://sf.freddiemac.com/about/single-family/subscription-center

Freddie Mac CommunicationsBulletins


Freddie Mac CommunicationsTools


Loan Product Advisor Documentation Matrix


http://www.freddiemac.com/learn/pdfs/uw/docmatrix.pdf

http://www.freddiemac.com/learn/pdfs/uw/docmatrix.pdf

Loan Product Advisor Documentation Matrix


Tool to help document files

https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf

https://sf.freddiemac.com/content/_assets/resources/pdf/update/docmatrix.pdf

GreenChoice Mortgages


https://sf.freddiemac.com/content/_assets/resources/pdf/other/greenchoice_mortgages.pdf

https://sf.freddiemac.com/content/_assets/resources/pdf/other/greenchoice_mortgages.pdf

An Enhanced Single-Family Guide and

Website


https://www.youtube.com/watch?v=tKp1W7PWbzA

https://www.youtube.com/watch?v=tKp1W7PWbzA

Updated Feedback Messages- October


https://sf.freddiemac.com/content/_assets/resources/pdf/other/sept_loan_product_advisor_feedback_mes

sages.pdf

https://sf.freddiemac.com/content/_assets/resources/pdf/other/sept_loan_product_advisor_feedback_messages.pdf

Bulletin 2019-20

30

Selling Updates

▪ Revisions to requirements for employed income analysis

and calculation – Required by April 2, 2020

▪ Revisions to Employer Assisted Homeownership (EAH)

Benefits that are unsecured loans or secured loans

▪ New Guide Chapter 4305 with requirements specific to

purchase transaction Mortgages

▪ The new chapter specifies acceptable uses of the proceeds

from a purchase transaction Mortgage as well as the

circumstances under which the Borrower may receive cash

back

▪ Updates to requirements for excluding monthly payments on

certain student loans from the monthly debt payment-to-

income (DTI) ratio – Effective January 2, 2020

▪ Revisions to requirements for calculating the monthly

housing expense-to-income and DTI ratios – Effective

January 2, 2020

▪ Updates to requirements for Condominium Projects –

Multiple effective dates

▪ Revisions to certain post-funding quality control review

requirements

▪ Updates to Seller in-house quality control program

requirements


https://guide.freddiemac.com/ci/okcsFattach/get/1003437_7

https://guide.freddiemac.com/ci/okcsFattach/get/1003437_7

Servicing Bulletins 2019-18 and 19


https://guide.freddiemac.com/app/guide/bulletins

https://guide.freddiemac.com/app/guide/bulletins

Bulletin 2019-17

32

▪ Escrow accounts - Requirements related to

Escrow accounts – (Effective 11/7)

▪ Employee relocation programs -

Requirements and flexibilities for

Mortgages made pursuant to employee

relocation programs (Effective immediately)

▪ Property eligibility for Manufactured Homes

- Guidance on the use of alternative

documentation, when the HUD data plate is

not present or legible, to evidence

Manufactured Home property eligibility

(Effective immediately)

▪ Properties located in Eligible Disaster

Areas - Clarification to age of

documentation requirements for property

valuation – (Effective 10/27)


https://guide.freddiemac.com/app/guide/bulletin/2019-17

https://guide.freddiemac.com/app/guide/bulletin/2019-17

Bulletin 2019-16

33

Home Possible Mortgages

▪ Changes to income limits including revised

borrower income limit, 2019 AMI limits, LPA

impacts

▪ Updates to requirements for rental income

▪ Extension of effective date for previously

revised requirements limiting financed

properties owned

Income

▪ Updates to LPA asset and income modeler

(AIM) – self employed borrowers

▪ Revised requirements for obtaining

borrower signature on the 4506-T


https://guide.freddiemac.com/app/guide/content/a_id/1003267

https://guide.freddiemac.com/app/guide/content/a_id/1003267

Lender News


http://app.infofreddiemac.com/e/es?s=325135053&e=91397&elqTrackId=19241722ba264d67b7fd712576fff

4eb&elq=d5f5da50e85646ba999f47951ddd259d&elqaid=7163&elqat=1

http://app.infofreddiemac.com/e/es?s=325135053&e=91397&elqTrackId=19241722ba264d67b7fd712576fff4eb&elq=d5f5da50e85646ba999f47951ddd259d&elqaid=7163&elqat=1

Economic & Housing Research


http://www.freddiemac.com/fmac-resources/research/pdf/201908-Forecast.pdf

http://www.freddiemac.com/fmac-resources/research/pdf/201908-Forecast.pdf

Choice Products


CHOICEHome GreenCHOICE

https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/choicehome-mortgages?utm_source=eloqua&utm_medium=email&utm_campaign=2019-05-09_CLN_NEWSLTTR_

https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/greenchoice-mortgages?utm_source=eloqua&utm_medium=email&utm_campaign=2019-05-09_CLN_NEWSLTTR_

Genworth Rate Express®


mi.genworth.com

Genworth Underwriting Guidelines


mi.genworth.com

LOS Connections


mi.genworth.com

Training Tools and Information


mi.genworth.com

Additional MI Site Information


mi.genworth.com

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Your Genworth Resources


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