Compliance Newsletter Issue 1-24

Legal & Regulatory Updates

Fannie Mae and Freddie Mac
This week, Fannie Mae and Freddie Mac provided Servicing Guide updates which related to streamlining of the forbearance workout options and other servicing processes which do not relate to the default legal service law firms. 

VA
The VA amends Circular 26-16-14 to change the rescission date from July 1, 2018 to July 1, 2020.  Circular 26-16-14  provides clarifications regarding documents required to properly provide a clear and marketable title for conveyed properties to the VA in every state.  The required documents  and submission timelines can be found in Title Documentation, Insurance and Timeframe Requirements spreadsheet located at: https://www.benefits.va.gov/HOMELOANS/documents/docs/title_document_timeframes_and_requirements_2017.xls

The VA also issued Circular 26-18-16  which include the measures mortgagees may employ to provide relief to borrowers affected by the severe storms and flooding in Maine.

USDA
USDA has extended the foreclosure moratorium for Presidentially Declared Disaster areas impacted by Hurricane Maria until September 17, 2018.  This extension applies to new foreclosures as well as foreclosure already initiated.

COMPLIANCE TIP

When the client schedules an on-site audit, it is always helpful to review the specific client requirements and most recent client updates to ensure that informed and accurate answers are provided to the auditors during on-site interviews.  ​

DID YOU KNOW?

Information Security is a critical component of any business, but it can be hard to manage in the midst of your daily business activities. We will work with you to ensure that your security program is effective, efficient, and consistent with current standards and regulations.

Contact us at 860-440-9500 for more information.

State Law Updates

New Hampshire
New Hampshire bill HB-1687 amends provisions related to the retail installment sales of motor vehicles, small, title, and payday loan provisions.

Another state's bill SB-314  provides a rebuttable presumption that an individual is not engaged in the business of a mortgage banker, broker, servicer, or originator if the individual is not involved in more than three (3) loans in any consecutive twelve (12) month period.

FDCPA: "Mini-Miranda" Notifications

BY SVIATLANA LIASHCHYNA
All foreclosure law firms provide “mini-Miranda” disclosures in all their written and oral communications with a customer. The firms provide these disclosures to comply with the Fair Debt Collection Practices Act (FDCPA) requirements[1] and contractual requirements; however, the FDCPA is not clear whether it applies to the foreclosure law firms. Considering the judicial interpretation differences, firms are left with the question of whether their “mini-Miranda” disclosure should state “the firm MAY be deemed to be a debt collector” or “the firm IS deemed to be a debt collector.”
Although certain jurisdictions have not yet addressed whether the actions completed by law firms during the foreclosure proceedings fall under the FDCPA requirements[2], the courts that have rendered their opinion on this matter mostly considered the following: 

Read More