Updates

June 15, 2021

New General Qualified Mortgage (QM) Test

Due to client requests to test and review loans against the new QM rules as early as possible we have updated the Loan Analysis. The new QM test was pushed live prior to the previously announced date. Any document requests on or after June 14, 2021 will receive results from the updated test.

June 1, 2021

New General QM Definition

As a result of changes required by the CFPB and FNMA/FHLMC

The CFPB issued a new definition for a general Qualified Mortgage (QM) that relies on a price-based APR test in place of the former 43% debt-to-income ratio test. See, 12 1026.43(e)(2)(vi). This test was made available for provisional use on March 1, 2021; however, its use has been limited due to the industry’s reliance on the Government Sponsored Entity (GSE, i.e., FNMA/FHLMC) patch, that made the 43% debt-to-income ratio test optional, unless the GSEs exited their federal government conservatorship. Fannie Mae and Freddie Mac have both issued guidance stating that they have entered into an agreement to exit conservatorship and will require conventional loan transactions with an application received date of July 1, 2021, or later, and a settlement date of August 31, 2021, or later, to comply with the new price-based APR test. See, FNMA Announcement, FHLMC Announcement.

Docu Prep will replace the current conventional QM 43% debt-to-income ratio test on its Loan Analysis product on the evening of June 12, 2021. The update to Loan Analysis will not be based on application or closing date, but rather, the new test will appear on all document requests made on or after June 13, 2021. This approach will not affect loans currently relying on the “GSE Patch,” nor should it affect any loans in production that were previously relying on the 43% debt-to-income ratio test as the new price-based test was designed to be more flexible with an almost 1:1 passing ratio when compared to the 43% debt-to-income test.

March 19, 2021

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

RURALHOU/22353 – Request for Single Family Housing Loan Guarantee (Rural Housing) #RD 3555-21. We updated this document to match the recently updated model form. Completed 03/18/2021.

New Jersey High-Cost Test Threshold on Loan Analysis – New Jersey posted its annual high-cost threshold for 2021 in Bulletin 21-4. This change will be completed 03/20/2021.

March 5, 2021

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

INDIANA SECURITY INSTRUMENTS – We updated these documents to match the recording requirements of newly enacted HB 1056, which eliminated the requirement for a notarized witness signature. Completed 03/05/2021.

IDSCABKR/22193 – SC Mortgage Broker Fee Agreement. We updated this document to match the recently updated model form. Completed 03/05/2021.

IDSCBRKR/22192 – SC Mortgage Broker Fee Agreement for Financial Services (Fixed Rate Loans). Replaced with IDSCABKR/22193. Completed 03/05/2021.

February 26, 2021

New URLA Reminder

For loans with an application dated on or after March 1, 2021 the Uniform Residential Loan Application will automatically change to the new format. For documentation on screen updates and changes please, go to the Docu Prep website at:

https://www.docuprep.com/uniform-residential-loan-application/

February 4, 2021

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

The HUD/VA Addendum to Uniform Residential Loan Application (HUD-92900a/VA 26-1802a) has been updated by HUD. The following two new forms have been created and are currently available for use. Mandatory use date for this form is 3/22/2021. If you would like to use the new form prior to this date please submit a support request. This change only applies to FHA. VA will continue to use the existing form.

AAPLFHA2/28048 – FHA Addendum to Uniform Residential Loan Application (HUD-92900-A)(2 pg). Available as of 02/02/2021.

AAPLFHA4/28051 – FHA Addendum to Uniform Residential Loan Application (HUD-92900-A)(4 pg). Available as of 02/02/2021.

We have also made the following changes:

ID92900B/11449 – Important Notice to Homeowner (HUD-92900-B). We updated this document to the latest version published by HUD. Completed 02/03/2021.

USF92561/4647 – HUD 92561 Borrowers Contract with Respect to Hotel Transient Use of Property. We updated this document to the latest version published by HUD. Completed 02/03/2021.

January 28, 2021

Document Updates and Changes

As a result of an ongoing review of our documents to ensure compliance with state and federal requirements, we have made the following changes:

SSVERIF/23868 – Social Security Administration (SSA) Authorization to verify SSN. We updated this document to the most recently published version 12/2020. Completed 01/27/2021.

January 22, 2021

LendingBlocks Product Update

As of January 25, 2021 the following items will have been added/updated in LendingBlocks:

Pipeline Statuses: Statuses can be added and reviewed in the Loan Information Panel on the right.

Loan Search Screen: Updated to include columns for current pipeline name and date.

Pipeline Report: Updated to allow for filtering loans by a particular status and date range.

January 13, 2021

Clarification regarding 4506-T/4506-C

We would like to clarify that with the IRS’s implementation of the 4506-C, the line that used to reference the 3rd party vendor (line 5a) has been removed from the 4506-T. If you use a 3rd party to request 4506 tax transcripts from the IRS, you will need to begin using the 4506-C, which references the 3rd party vendor. To facilitate this transition, we have added the 4506-C form to all customer packages that currently receive the 4506-T and have not previously requested that we replace the 4506-T with the 4506-C. Any clients who do not wish to receive both forms, please contact support at support@docuprep.com.

January 8, 2021

Document Updates and Changes

The IRS has created a new version of the 4506, the 4506-C, that must be used with any request for tax transcripts submitted through a 3rd party beginning on or after March 1, 2021. This document may be used immediately and is now available.

In conjunction with the new form, we have also updated the 4506-T to the most recent version (6/2019) removing the 3rd party information.

You have the option to add the 4506-C to your doc set in addition to or in place of the 4506-T. If you would like to add this new form to your doc set or you have any questions about this new form please submit a support request to support@docuprep.com.

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