Rules in September 2024 Release

Federal

You can now submit your loans to ECS for review without receiving a HOEPA HELOC documentation message for Federal High Cost closed-end loans. This update ensures that Rule Header 1000404 Full Documentation Required on HELOC (High-Cost) will trigger only for Federal High-Cost Open-End HELOCs.

CER-24016

State Rules

The language under certain existing status messages has been updated to provide more detailed dynamic messaging. This enhancement applies to both existing FAIL and new PASS status messages, offering additional information for users submitting loans in the state of Connecticut, where applicable and available.

CER-21983

The language under certain existing status messages has been updated to provide more detailed dynamic messaging. This enhancement applies to both existing FAIL and new PASS status messages, offering additional information for users submitting loans in the state of Iowa, where applicable and available.

CER-23744

You can now submit Minnesota conventional junior lien loans below the Fannie Mae (FNMA) conforming loan limit and receive more accurate status messages when the APR is compared against the Minnesota Home Loan Rate (MNHLR) threshold.

This update addresses concerns about future expected closing dates and the availability of the MNHLR. When the MNHLR index has not yet been published by the Minnesota Commerce Department, the system will provide:

  • A WARNING status message if the MN Home Loan Rate is unavailable and based on outdated information.

  • A PASS or FAIL status message by retrieving the APOR from the last business day of the second preceding month and adding four points to calculate the threshold.

When the MNHLR is available, both Rule Details will use the same threshold values, whether the rate is retrieved from the MN Commerce Department's site or calculated based on the APOR.

These updates are designed to help you identify whether the rate may exceed the threshold in a timely manner.

CER-24032

You can now submit Missouri junior lien loans and receive clearer, more accurate messages regarding late fees. This update ensures that the system correctly checks if your late fee amount and maximum allowed late fee are within the following thresholds:

  • Late Fee Amount: Should be less than or equal to the greater of 5% of the Principal Amount (PIAmount) or $15.
  • Maximum Late Fee Amount: Should be less than or equal to $50.

Missouri - Maximum Late Fee (Junior Liens)

Maximum Late Fee Must Be <= (Greater of 5% or $50)(2580)

This loan includes a late fee amount of ($_) and a maximum late fee amount of ($_). The Missouri Second Mortgage Loan Interest Provisions prohibit the late fee from exceeding 5% or $15, whichever is greater, not to exceed $50. (Mo. Rev. Stat. 408.231 - 408.241)

Maximum Late Fee Must Be <= (Greater of 5% or $50)(2580)

This loan includes a late fee amount of ($_) and a maximum late fee amount of ($_). The Missouri Second Mortgage Loan Interest Provisions prohibit the late fee from exceeding 5% or $15, whichever is greater, not to exceed $50. (Mo. Rev. Stat. 408.231 - 408.241)

CER-23991

You can now submit fixed-rate loans subject to the New Mexico High Cost Act with updated rate threshold testing. The system will now use the note rate instead of the APR to evaluate whether your loan meets the rate threshold requirements.

New Mexico rules affected by this change—

  • Rule Header 60660 New Mexico - High Cost (First Liens) (07/09)
  • Rule Header 60670 New Mexico - High Cost (Junior Liens) (07/09)
  • Rule Header 60700 New Mexico - High Cost (FHA/VA First Liens) (07/09)
  • Rule Header 60710 New Mexico - High Cost (FHA/VA Junior Liens) (07/09)

CER-23872

The system now applies the "No License" rule more accurately for New York loans under Rule Header 18800 New York - No License Required App Rule. The updated rule determines that no license is required when the credit purpose is not for personal, family, or household use.

CER-23894

You can now submit New York loans and receive a FAIL status message if any party pays recordation tax while the lender does not contribute. This update revises the rule to ensure that the lender must pay a portion of the recordation tax if any amount is paid by other parties, aligning with New York Tax Law.

New York - Recordation Tax

Portion of Recordation Tax Must Be Paid By Lender(21230)

The recordation tax is ($_) paid by the lender. New York Tax Law requires a portion of the recordation tax ($_) be paid by the lender. (NY Tax 253)

Portion of Recordation Tax Must Be Paid By Lender(21230)

The recordation tax is ($_) paid by the lender. New York Tax Law requires a portion of the recordation tax ($_) be paid by the lender. (NY Tax 253)

CER-23915

You can now submit West Virginia loans to ECS and receive a FAIL status message if certain fees paid by the borrower exceed the threshold set by the West Virginia Residential Mortgage Lender, Broker, and Servicer Act (RMLBSA) requirements.

The updated rules address the maximum fee limitations for West Virginia loans, to limit the Fee Threshold test to certain fees paid by Borrower. Fees paid by anyone else are excluded from this fee threshold test.

West Virginia - Maximum Fees (Excluding YSP)

Maximum Fees(20040)

The ($_) of fees included in this test do not exceed ($_), which is 6% of the loan amount. The West Virginia Residential Mortgage Lender, Broker, and Servicer Act prohibits certain fees from exceeding 6% of the loan. (W. Va. Code 31-17-8(m)(4))

West Virginia - Maximum Fees (Including YSP)

Maximum Fees(20070)

The ($_) of fees included in this test do not exceed ($_), which is 5% of the loan amount. The West Virginia Residential Mortgage Lender, Broker, and Servicer Act prohibits certain fees from exceeding 5% of the loan. (W. Va. Code 31-17-8(m)(4))

CER-23911

Current Section

Current Section

Rules in September 2024 Release