FHFA Releases Advisory Bulletin on Oversight of Single-Family Seller/Servicer Relationships

On December 1, 2014, the Federal Housing Finance Agency (FHFA) released advisory bulletin AB 2014-07 entitled Oversight of Single-Family Seller/Servicer Relationships. The bulletin lays out the expectations for managing operational risks associated with its single-family Seller/Servicer counterparties, namely Fannie Mae and Freddie Mac (the Enterprises). The bulletin outlines several factors that the FHFA expects each […]

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Fannie Mae Announces Minor Changes to Servicing Guide for Insured Loss Events

On December 10, 2014, Fannie Mae released Servicing Guide Announcement SVC-2014-21 making minor changes to Section B-5-1, Insured Loss Events. Fannie Mae removed the requirement that the servicer must submit the Report of Property (Hazard) Insurance Loss (Form 176) when the servicer has been unable to establish contact with the borrower from the bullets under […]

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The CFPB Proposes Amendments to the 2013 Mortgage Rules RESPA and TILA

On December 15, 2014 the Consumer Financial Protection (CFPB) proposed amendments to certain mortgage servicing rules that were issued back in 2013 under the Real Estate Settlement Procedures Act (RESPA) Regulation X and the Truth in Lending Act (TILA) Regulation Z. The proposed rule changes include clarifications, revisions, or amendments regarding force-placed insurance notices. The […]

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Massachusetts Holds Public Hearing on New Flood Insurance Provisions

The Commonwealth of Massachusetts will hold a public hearing on December 16, 2014 to hear comments on recently passed legislation imposing new provisions with respect to Flood Insurance in the state.   On July 23, 2014, Chapter 177 of the Acts of 2014 (Chapter 177), An Act Further Regulating Flood Insurance, was signed into law […]

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DS News: FHFA Announces Policy Change For GSEs’ Existing REO Sales

“The Federal Housing Finance Agency (FHFA) announced a policy change on Wednesday that would allow Fannie Mae and Freddie Mac to sell existing REO properties to any qualified purchaser at fair market value, which would be determined by the companies. The new directive applies only to the single-family REO inventory of Fannie Mae and Freddie […]

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Fannie Mae Announces New Single Family Housing Servicing Guide

On November 14, 2014 Fannie Mae released the new, long anticipated, Single Family Housing Servicing Guide. The new guide replaces the 2012 Guide it its entirety. According to the announcement the new Servicing Guide: makes it easier to locate servicing-related policies and requirements; streamlines policy content by moving the procedural requirements to new separate Servicing […]

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New York Proposes Revised Force-Placed Insurance Regulations

The New York State Department of Financial Services (NY DFS) has re-proposed its Regulation on Force-Placed Insurance.  The regulations were originally proposed September of last year.  Based on comments received by the NY DFS, the re-proposed regulations modify certain provisions of the originally proposed regulations.   The proposed regulations set forth new requirements and restrictions on […]

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HUD/FHA Proposes Lender Placed Insurance Changes

On October 17, 2014 HUD issued a draft of changes to the servicing section of the Handbook.  One of the changes includes the following: Force-Placed Insurance The mortgagee may force-place insurance where consistent with federal regulations, including RESPA regulations on force-place insurance, if Borrowers fail to renew hazard insurance coverage when required. The mortgagee may […]

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Fannie Mae Updates Servicing Guide For Hazard And Flood Insurance Losses

Fannie Mae announced major changes to its procedures for handling hazard and flood insurance losses and insurance claim settlements.  On October 17th, Fannie released Servicing Guide Announcement SVC-2014-19 which completely replaces 9 sections of the Servicing Guide (Guide) pertaining to the handling of insurance claim settlements.  The Guide currently requires servicers to handle insurance losses […]

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Agencies Propose Flood Insurance Rules on Escrow, Detached Structures

On October 22, the FDIC, OCC, Federal Reserve, Farm Credit Administration and National Credit Union Administration (the Agencies) issued a joint statement proposing regulations to implement the mandatory escrow and detached structure required from the Homeowner Flood Insurance Affordability Act.  The proposal would exempt detached structures that are not used as a residence from a […]

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