California has joined 44 other states and the District of Columbia in passing laws to permitremote online notarization (“RON”). Notaries in California will not be able to perform suchnotarizations until January 1, 2030, however, in order to give the Secretary of State time toadopt regulations and establish the technology necessary to implement the RON laws. […]
In 2021, the Consumer Financial Protection Bureau (“CFPB”) issued a supervisory highlightoutlining its concerns with the Waiver of Borrower’s Rights, a document historically included inGeorgia closing packages. The CFPB found that use of the form, which requires borrowers towaive their rights to notice or to judicial hearing, is considered deceptive and violates theConsumer Financial Protection […]
Effective September 20, 2023, supervised lenders and servicers of residential mortgages will berequired to provide borrowers with an annual disclosure document informing them of their rightto cancel or to terminate private mortgage insurance, in accordance with the provisions of thefederal Homeowners Protection Act of 1998. The notice also must include the address andtelephone number the […]
North Dakota has revised its licensing laws to change the license type required for residentialmortgage lenders and has added a licensing requirement for residential mortgage servicers. Residential mortgage lenders will no longer be licensed under the North Dakota Money BrokersAct but will instead be required to hold a Residential Mortgage Lender License. The new lawalso […]
The effective date of the North Carolina Remote Electronic Notarization Act (“RENA”) has beendelayed one year until July 1, 2024 to allow the Secretary of State additional time to promulgaterules implementing the act. RENA also authorized the immediate use of emergency videonotarization until the effective date of the permanent legislation. With the effective date ofRENA […]
Maine will soon require a creditor, assignee or servicer that holds or controls consumer funds inan escrow account for the payment of insurance premiums to notify the insurer providinghomeowner’s insurance coverage if the mortgage is sold or transferred. A creditor, assignee orservicer may satisfy this requirement by providing the insurer with a copy of the […]
The reintroduction of the Securing and Enabling Commerce Using Remote and Electronic (“SECURE”) Notarization Act in the U.S. Senate advances efforts to establish nationwide remote online notarization (“RON”) standards. The SECURE Notarization Act would establish minimum nationwide standards for electronic and remote notarizations while allowing states flexibility to supplement with additional requirements.The mortgage industry supports […]
The Federal Housing Administration (“FHA”) announced recently that it will extend the deadline for COVID-19 related forbearance requests through May 31, 2023. The COVID-19 forbearance option had been set to expire at the end of the COVID-19 National Emergency. FHA announced in Mortgagee Letter 2023-08 that with the COVID-19 National Emergency set to expire early, […]
Fannie Mae announced this month that they will now allow alternatives to the Appraisal Update and/or Completion Report (Form 1004D) to confirm that construction or repairs have been completed. Traditionally, Form 1004D required the involvement of an appraiser to certify that conditions in an appraisal report done prior to construction or repairs have been satisfied. […]
On March 15, 2023, the Federal Housing Finance Agency (FHFA) announced a delay in the implementation of new upfront fees imposed on Fannie Mae and Freddie Mac borrowers with higher debt-to-income ratios. The FHFA originally announced the new upfront fee framework in January 2023 for certain borrowers with a DTI ratio above 40%, which was […]
