CFPB Publishes Updated Version of its Mortgage Servicing Small Entity Compliance Guide

On December 1, the CFPB published an updated version of the Mortgage Servicing Small Entity Compliance Guide on its “Mortgage Servicing Implementation & Guidance” webpage. The updated guide incorporates amendments made to mortgage servicing provisions in Regulation X and Regulation Z by the 2016 Mortgage Servicing final rule. Most provisions of the 2016 Mortgage Serving final rule take effect on October 19, 2017. However, the provisions relating to successors in interest and the provisions relating to periodic statements for borrowers in bankruptcy will not take effect until April 19, 2018.

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FHFA: No Increase on Multifamily Loan Caps for GSEs

On November 22, FHFA announced that Fannie Mae and Freddie Mac’s caps for multifamily lending will remain at $36.5 billion for 2017. The determination was based on the agency’s projection that the overall size of the multifamily finance market will remain roughly the same as it was in 2016. Multifamily loans in designated affordable and underserved segments will remain excluded from the caps.

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Dept. of Energy Releases Updated PACE Loan Guidelines

On November 18, the Department of Energy released new best practices guidelines for residential Property-Assessed Clean Energy (PACE) mortgages, which provide homeowners a way to finance energy-efficient home improvements through property tax assessments. The new guidelines are intended to help state and local governments as they expand their PACE programs, and address the various problems that have emerged in the market since the PACE framework was first established in 2009. Among other things, the guidelines suggest that PACE programs confirm property owners’ ability to repay their assessments, and that state and local governments work with program administrators to establish underwriting guidelines and criteria for PACE programs.

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Mortgage Services Provider Agrees to Settlement with NYDFS

In a press release issued November 9, Governor Andrew M. Cuomo announced that a leading mortgage services provider and its affiliate, agreed to pay a $28 million fine and engage a third-party auditor as part of a settlement agreement and consent order with the NY Department of Financial Services. The matter arose after a series of audits conducted by the NYDFS had revealed inconsistencies in how mortgage foreclosures were documented and processed. As part of the settlement agreement, the company has agreed to allow an independent third-party auditor to help identify borrowers entitled to refunds.

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HUD OIG: Mortgage Servicing Issues Cost FHA $2.23 Billion

On October 14, the HUD Office of Inspector General (HUD-OIG) published a report on HUD’s monitoring and payment of conveyance claims upon termination of FHA-insured mortgages. According to the report, mortgage servicers’ failure to foreclose on properties or meet conveyance deadlines may have cost the FHA an estimated $2.23 billion in unreasonable and unnecessary holding costs. HUD-OIG concluded that deficiencies in 24 CFR Part 203 did not “enable HUD to provide effective oversight and HUD monitored only a small percentage of servicers after the claim had been paid.” As a result of its findings, HUD-OIG recommended that HUD (i) amend 24 CFR Part 203 to include “a maximum period for filing insurance claims and disallowance of expenses incurred beyond established timelines”; (ii) develop an IT plan that that ensures significant operational changes to how HUD monitors single-family conveyance claims; and (iii) establish and implement controls to identify noncompliance with 24 CFR 203.402.

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