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THE INFORMER Compliance and Regulatory News

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January 2014


THE INFORMER NEWS TO HELP INDUSTRY EXPERTS CREATE A STRATEGIC METHOD TO ACCOMMODATE NEW REGULATORY COMPLIANCE REQUIREMENTS

IN THIS ISSUE 4

CFPB: New Rules effective 1/10/14!

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INDUSTRY NEWS 5 7 7 9 9 11

Updates to Mortgage Release New Obtain Credit Bid Functionality FNMA’s 2014 Investor Reporting Calendar HUD “How to Avoid Foreclosure” Replaced The 9/11 National Memorial & Museum HUD Rescinding Demand Letters

10 Update on Bunk Wurth 11 NFL Superbowl Schedule SPONSORS 3 6 8

Elm Services, LLC Anchor Risk Management Martin, Leigh, Laws & Fritzlen, PPC

A publication of ELM Services, LLC. Follow us on:

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Our Company ELM Services, LLC (ELMS) was formed by a group of accomplished, well-respected leaders in the mortgage industry to provide a broad range of solutions to meet your needs. The principals and consultants of ELMS have an average of 20 years of experience in their chosen fields derived from executive positions in several private and public companies including: Goldman Sachs, Fannie Mae, FDIC, GE, First American Corporation, Bank of America, WAMU, Ocwen, and others. ELMS is dedicated to the needs of the mortgage industry, and we pride ourselves on our ability to provide world-class subject matter expertise in the areas of Foreclosure Claims Management, Credit Risk Solutions, Due Diligence and Technology Solutions. By combining a rare blend of experience, competencies and unparalleled service, ELMS has the capability to fully understand your business and the skill set to craft the best results for your firm.

Our Mission At ELMS, our mission is to provide state of the art Single Source Risk Management solutions which in turn allow our clients to maximize profits while minimizing risks.

Our Core Values At ELMS, these are the words we live by: Integrity. Quality. Leadership.

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2014 CFPB Changes

CFPB Rulings went into effect on January 10, 2014 Are you Ready? Effective January 10, 2014        

Qualified Mortgage/Ability to Repay Rule Loan Originator Compensation TILA HPML Appraisals ECOA Valuations Escrows 2013 HOEPA Rule Servicing TILA Servicing RESPA

Effective March 18, 2014 

Disparate Impact Rule

ELM Services has knowledgeable staff available to help your company get up to speed on these Pertinent regulatory changes. Contact Elm Services LLC for more information! 1-877-303-3567 (ELMS)

INDUSTRY UPDATE Have you heard about “Know before you Owe” forms? For more info: http://files.consumerfinance.gov/ f/201311_cfpb_factsheet_kbyo_mortgage-disclosures.pdf 4


INDUSTRY NEWS FNMA SVC-2013-21: FNMA Request for approval of Servicing Transfer (Form 629) (12/9/13)

This Announcement describes the process for requesting approval from FNMA to perform servicing transfers between Master servicers to a subservicer or from the subservicer to the master servicer.

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Request a Demo

INNOVATIVE RELIABLE

ROBUST

Merging Technology and Risk Management

Major Features Our Company Anchor Risk Management is a cornerstone for the success of your entire risk management function. We ensure business resilience with secure and compliant business processes, applications, information, and infrastructure. Our goal is to minimize your risk and maximize your potential.

Identify Risk with a Flexible and Reliable Tool  Cloud-based Default Claims Processing System

manages your claim timelines with integration to HUD and other Agency systems and eliminates the need for software and hardware purchase or internal implementation

Our System Our Cloud-based system is an industry focused product that offers the functionality and performance needed to provide a fast and accurate process. Anchor Risk Management was designed to ensure governance, minimize risk, and provide compliance. We will help you improve your bottom line.

Our Dedication At Anchor Risk Management we are dedicated to your success and working with you to provide real solutions. WWW.ANCHORRISKMANAGEMENT.COM

877-303-3567 Contact us for More Information

 Configurable Workflow allows for customization of

your workflow to match your internal process flows and to easily make updates for regulatory changes  Role Based Dashboard Configuration lets you decide

what functions and maintenance utilities are available for each user  Role-based Security allows tiered access to all steps

within each customized workflow  Edit Checks and Customizable Business Rules to

provide high data accuracy rates  Compliance Notifications and Messaging allowing

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processors to receive immediate internal messages and stay up to date on regulatory requirements


New Obtain Credit Bid Functionality Streamlines Foreclosure Sale Bidding

plication can be found on the FHLMC site.

On or after March 17, 2014, the process for

Full News Release: http://www.freddiemac.com/sell/single/ news/2013/1218_new_obtaincreditbid_functionality.html? j=325045&e=agibson@elmservicing.com&l=3730_HTML& u=10575976&mid=6125970&jb=0

preparing Freddie Mac foreclosure sale bids, referred to as “credit bids” will change. All credit bids must go through Freddie Mac’s Service Loans application (Service Loans application). (Guide bulletin 2013-27)

Credit bids obtained through this new functionality are only applicable for:  

First-lien mortgages not covered by mortgage insurance, unless Freddie Mac has delegations of authority with the Mortgage Insurer, and Mortgages not insured by the Federal Housing Administration, nor guaranteed by the U.S. Department of Veteran Affairs or Rural Housing Service, and Mortgages not otherwise subject to a credit enhancement.

Registration and instructions for utilizing the ap-

Download FNMA’s 2014 Investor Reporting and Remittance Calendar https://www.fanniemae.com/content/tool/2014-reporting-remitting-calendar.pdf

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Martin, Leigh, Laws & Fritzlen P.C. Banking and Creditors’ Rights Litigation Corporate and Business Law Real Estate Transactions

Kansas City

Overland Park

St. Louis

1044 Main Street, Suite 900 Kansas City, MO 64105 Tele: 816.221.1430 Fax: 816.221.1044

16305 Swingley Ridge Road, Suite 350 Chesterfield, MO 63017 Tele: 636.534.7600 Fax: 636.534.5520

6800 West 64th Street Overland Park, KS 66202 Tele: 913.671.3464 Fax: 816.221.1044

http://www.mllfpc.com/ What amendment enforced the direct election of senators by the people, instead of their election by the state legislature? 8


HUD Form PA-426 has been replaced with a new form (Mortgagee Letter 2014-01)

Effective January 20, 2014, “How to avoid Foreclosure” brochure has been replaced. The form name has been changed to “Save your Home: Tips to Avoid Foreclosure” HUD 2008-5-FHA and has been translated in English, Spanish, Chinese and Vietnamese. Providing additional details about compliance with applicable laws. Full News Release:

http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/letters/mortgagee

Watch the video below to see the history of how they arranged 2983 names in this memorial site:

The National 9/11 Memorial & Museum

9/11 was one of the most horrific crimes against

http://nsm-911memorial.cloudapp.net/

the United States. Although the pain can never be erased from the hearts of the families of survivors, New York has built an amazing memorial in honor of the thousands of people that lost their lives. They’ve established an efficient system to find the name of loved one with ease.

ADVERTISE WITH THE INFORMER A Publication of ELM Services, LLC. Free Professional Ad Creation! Reasonable Rates Click Here to Inquire

The 17th Amendment—Popular Election of Senators Part of the Progressive Movement, this amendment was first promoted in Wisconsin by Governor Robert LaFollette. http://www.law.cornell.edu/constitution/amendmentxvii

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Update on Bunk Wurth!

STRENGTH

SURVIVAL

A

lec (Bunk) Wurth grew up in Orange, California. At 36, Bunk was an excellent and dedicated special education teacher, a strong athlete, a committed friend, and a devoted son and brother.

LOVE

For more information about the work that Bunk Wurth offers to the world, watch this video from Fox News: http://youtu.be/TYadVuec_Do

Bunk sustained a serious spinal cord injury while playing in a rugby match on February 25, 2006 in Southern California. The C4 and C5 vertebrae were dislocated into his spine, and he immediately lost all movement and sensation from the shoulders down. Initially, Bunk was able to move his shoulders and breathe on his own; however, since the surgical repair to the vertebrae and in the weeks following the injury, bruising elevated up the spine to the C2 level, which is currently rendering him unable to breathe on his own and dependent on a ventilator. Family, friends, and especially Bunk are confident that through his hard work and determination, the unconditional support of his family and friends, a strong faith, sincere prayers and modern medicine, Bunk will recover. Bunk has never faltered in maintaining the clear vision of his full recovery and healing. Visit his website at: Through this ordeal Bunk has proven to be an inspiration to everyone around him. Around the age of 15 or 16, Bunk took an interest in painting the American Flag. The accident and his inability to walk did not discourage him from continuing with this gift that he shares with students at the Speech and Language Development Center in Buena Park, a school for young adults with language and behavioral disorders.

WWW.BUNKWURTH.ORG

See what Bunk is up to in his Physical Training…You will be surprised.

YouTube Link: http://TeamBunk.us7.list-manage.com/ track/click? Wurth did not let his injury stop him from painting. He currently cannot use his hands to paint, so he paints with a tool de- u=7f4ad1d2855e53592b3c54b1c&id=245840ee4e&e=33 ef779f7f signed for him to guide a paintbrush with his mouth.

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HUD Rescinding Demand Letters Sent to FHA-Approved Servicers Related to Mortgagee Letter 2005-30 and Mortgagee Letter 201338 (2013-364)

ML Letters 2005-30 & ML Letter 2013-38 are referred to in tis HUD Announcement and can be found on the HUD.gov website. Please see the enclosed letter from Ivery Himes, Director, Office of Single Family Asset Management, for additional information.

HUD announced that the de-

mand letters issued by FHA’s Mortgagee Compliance Monitor, Michaelson, Connor & Boul, related to expenses incurred as a result of servicers failing to meet reasonable diligence timeframes will be rescinded.

SuperBowl 2014

Denver Broncos vs. Seattle Seahawks SUPER BOWL XLVIII SUNDAY, FEB. 2, 6:30 p.m. ET

MetLife Stadium, East Rutherford, N.J.

THE INFORMER A Publication of ELM Services, LLC. Corporate Offices: 10801 Mastin Boulevard, Suite 600 Overland Park, KS 66210 1-877-303-ELMS www.elmservices.com

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If your ship doesn’t come in, swim out to meet it!” Jonathan Winters

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The Informer - January 2014