Recent updates to FHA Single-Family Housing Policy Handbook 4000.1, effective February 16, 2021, include a revision to previous requirements regarding existing properties located in Runway Clear Zones, also known as Runway Protection Zones. HUD Handbook 4000.1 Pt.II.A.3(a)(ii)(S) specifies that a mortgagee must obtain a borrower’s acknowledgment when this hazard is present.

The Texas Finance Commission, on behalf of the Department of Savings and Mortgage Lending, published amendments to the Texas Administrative Code rules at Title 7, Part 4, Chapters 80 and 81, in the January 1, 2021 issue

Identifies the identity of a notary affixing an electronic signature and seal, and makes a document “tamper-evident.”

On January 13, 2021, the Consumer Financial Protection Bureau (CFPB) issued a “Statement Regarding the Provision of Financial Products and Services to Consumers with Limited English Proficiency (LEP)”.  The statement encourages financial institutions to expand services to LEP consumers who often face barriers such as language access issues when obtaining credit.

As previously announced, the U.S. Department of Agriculture – Rural Development (USDA) will be implementing a new Guaranteed Underwriting System (new GUS) on March 1, 2021.  Ahead of this change, the USDA published a preview of updates that will be made to several chapters of Handbook 1-3555 on the USDA LINC Training and Resource Library.

Updated text in Sections 6 and 8. (Date of Release to Production: 01/21/21)

As a result of feedback received from the CFPB through clients, DocMagic is making an update to the display of payoff items disclosed in the Payoffs and Payments table on the Alternate CD, when generated through an integration.  There are no changes to generations through DocMagic Online. 

On January 19th, the CFPB released a final rule that exempts certain depository institutions and credit unions from some requirements for establishing an escrow account on Higher-Priced Mortgage Loans (“HPML”).  The final rule implements Section 108 of the Economic Growth, Regulatory Relief and Consumer Protection Act passed in 2019.

On January 19th the CFPB and other financial regulators issued a new final rule codifying the prior issued statement on the role of supervisory guidance.  The CFPB acted together with the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the National Credit Union Administration.

What a difference a year makes! A year ago, many lenders in the mortgage industry were still inching their way towards an electronic closing. Now, after facing an unexpected pandemic, most lenders realize that paper-intensive processes are outdated and they are clamoring for some form of digital transformation.

Brian D. Pannell, DocMagic's Chief eServices Executive, examines some of the key changes the mortgage industry has seen over the last year.