Rules in January 2024 Release

Enterprise

Update to Applicability Rules to Exclude the GSE Review

ECS enables users to indicate the specific components of compliance reviews to run (if any), and at what point the component should be run.

With this release, users can exclude the GSE Review component from their Compliance Review reports by accessing the Compliance Review Setup in Encompass Settings.

To Access the GSE Review Setting:

  1. On the menu bar, click Encompass, and then click Settings.

  2. On the left panel, click Additional Services, and then click Compliance Review Setup.

    • If this is the first time you are accessing the Compliance Review Setup, click the Get Setup button in the top right corner.
    • If you have completed the setup but want to change the settings, click the Change Setup button in the top right corner.

  3. In the Reviews to Include section, clear the GSE Review checkbox.

  4. Continue to click Next and then click Finish on step 5. Fee Mapping.

  5. Log out and log back in to Encompass to ensure the changes take effect.

The following Rule Headers and Rule Details are impacted by this update—

  • RH 55700 ER - HUD - HOEPA Mortgage High Cost
    • End Date: 09/30/2022
  • RH 55710 ER - HUD - HOEPA Mortgage High Cost (First Lien)
    • End Date: 01/09/2014
  • RH 55720 ER - HUD - HOEPA Mortgage High Cost (Junior Lien)
    • End Date: 01/09/2014
  • RH 1000419 Fannie Mae - ATR Exempt Loan 5% Points and Fees Limit (01/14)
  • RH 1000421 Freddie Mac - ATR Exempt Mortgage 5% Points and Fees Limit (01/14)
  • RH 1001404 Federal - Owners or Lenders Title Affiliate Retained Amount (Fannie Mae)
  • RH 1001405 Federal - Owners or Lenders Title Affiliate Retained Amount (Freddie Mac)

CER-22360

Federal

Updates to 2024 List of Rural or Underserved Counties and Rural Counties

The CFPB published the Rural and Underserved Areas and Counties lists provided on its website to include the lists for areas determined to be “rural or underserved” and counties determined to be “rural” in 2023 for purposes of applying certain regulatory provisions in 2024.

ECS has been updated accordingly to match the updated values from the Bureau. Reviews and warnings associated with the following Rule Headers are impacted by this update:

  • RH 1000156 Federal - HPML Rural or Underserved County Alert (First Lien)(06/2013)
    • RD 1000452 No Geo Code State or County FIPs Code Data for Property Address
    • RD 1000427 Property is Located in Rural or Underserved County
    • RD 1000428 Property is Not Located in a Rural or Underserved County
    • RD 1000430 System Cannot Determine whether Property is Located in Rural or Underserved County

The list of rural and underserved counties can be found on the Bureau’s website at: https://www.consumerfinance.gov/compliance/compliance-resources/mortgage-resources/rural-and-underserved-counties-list/

CER-22538

State Rules

KENTUCKY: Updates to License Rules to Remove the 8% Rate Limit Argument

ECS has been updated to provide accurate license requirement messages when the rate exceeds 8% for users who submit a loan in the state of Kentucky by removing the 8% rate limit argument in the system applicability rule for Kentucky licenses.

The following four License Application Rules are impacted by this update—

  • RH 16400 Kentucky - Mortgage Loan Brokers License Application Rule
  • RH 16380 Kentucky - Mortgage Loan Companies License Application Rule
  • RH 30290 Kentucky - Consumer Loan Company License App Rule
  • RH 16510 Kentucky - No License Required Application Rule

CER-22441

NEW JERSEY: Updates to RH 63450 Fees Not Allowed (MLFOP)(First Lien) to Allow Photocopy Fee Charged to Borrower

ECS has been updated to no longer return a FAIL status message under RH 63450 New Jersey - Fees Not Allowed (MLFOP)(First Lien) for users who submit a loan in the state of New Jersey and charge a fee to the borrower with a fee text of "Photocopy Fee" and mapped to Office Expense.

CER-22473

OHIO: 2024 Prepayment Penalty (PPP) Threshold Updates

Rules for Ohio first lien loans secured by a 1-2 unit dwelling have been updated to use the new Ohio Prepayment Penalty thresholds. The limit has been updated from $107,633 to $110,223. No penalties may be imposed on prepayment or refinancing of a residential mortgage loan with a note amount less than $110,223, effective January 1, 2024.

CER-22400

WASHINGTON: Updated Messaging to Include Interest Days in Year Used When Calculating Interest Accrual Method

(Updated 01/17/2024)

The Washington Interest and Usury provisions require the number of days used for the interest rate calculation to equal 365 for junior lien loans.

In this release, ECS has been updated to include—

  • additional detailed messaging in the existing FAIL and PASS status message for users who submit a junior lien loan in the state of Washington using the Actual or Periodic 360 option for determining the Interest Days in Year.
  • a new INFO status message and an updated FAIL status message for users who submit a junior lien loan in the state of Washington using any days other than the 365 option for determining the Days in Year Number (interim interest).

CER-22248

Current Section

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Rules in January 2024 Release