Second Mortgage Disclosure Process - Compliance Approvals - Updated Forms

Submitted by Anonymous on Wed, 01/13/2010 - 8:50am
Memo Subject: 
Second Mortgage Disclosure Process - Compliance Approvals - Updated Forms
Memo Date: 
01/06/2010 (All day)
Memo No.: 
10-01
  • Second Mortgage Disclosure Process
  • Compliance Approvals
  • MFA Updated Forms

Mortgage Loan Disclosure

As you all know the Mortgage Disclosure Improvement Act (“MDIA”) and the Real Estate Settlement Procedures Act (“RESPA”) are being enforced for all loans originated on or after January 1, 2010. This includes the second mortgages as well as the first (US Bank has sent out bulletins regarding the MDIA Guidelines for the first mortgages). Please make sure that the following documents are generated for the second mortgage according to the guidelines:

  • Separate 1003 for the second mortgage (at application and closing)
  • Second mortgage Good Faith Estimate
  • Separate TIL’s for the second mortgage (initial at application and final at closing)
  • Any appropriate re-disclosure documentation as required

Both US Bank and MFA are reviewing the files to ensure that they are in compliance with the guidelines.

Compliance Approvals

  1. E-Housing is no longer providing Pre-Close Compliance Letters as of January 1, 2010; therefore a compliance package for the first mortgage is no longer required to be sent to E-Housing. Underwriters must be trained by E-Housing to learn the Underwriter Certification process, if they have not been, to certify the loan for compliance for income, acquisition cost etc. The Underwriter Certification will take the place of the Pre-Closing Approval that has been provided by E-Housing and MFA will now require this Underwriter Certification printout to be included in the second mortgage compliance package.

    If Underwriters need assistance with training on the Underwriter Certification process please contact E-Housing at 888-643-7974 toll free. Only Underwriters will be trained.

  2. The complete first mortgage compliance package will be sent to US Bank at the time the closed loan package is sent. It will be the lender’s responsibility to print the compliance approval from US Bank’s web site and send to MFA prior to the second mortgage closed loan approval.

    Please contact the US Bank Help Desk at 800-562-5165 or mrbp.helpdesk@usbank.com.

Updated Forms

MFA has updated the following forms on our web site; please make sure to use the current forms when closing and shipping file:

  • Tax Credit Loan Program Note
  • Tax Credit Loan Program Mortgage
  • Tax Credit Loan Program Accrued Interest Payment Calculation Spreadsheet
  • Tax Credit Loan Program Information Statement and Affidavit
  • MFA Second Mortgage Loan Breakdown
  • Compliance Check List for Mortgage Booster and Tax Credit Loan Programs
  • Compliance Check List for Payment$aver and Helping Hand Program
  • Closed loan Check List for Mortgage Booster and Tax Credit Loan Programs
  • Closed loan Check List for Payment$aver and Helping Hand Program