Compliance Updates

April: Weekly Compliance Updates

IDS to incorporate Fannie Mae required MERS Rider in MT, OR, and WA

April 28, 2014

As a result of a recent judicial decision regarding MERS, Fannie Mae will now require a MERS Rider (FORM 3158) and related security instrument updates for MT, OR, and WA. Implementation for this change is required on Notes dated on or after October 15, 2014. It is anticipated that this change could affect multiple documents in our system, including the security instruments in these states, and may also require some small system customizations. The IDS Compliance team will verify the accuracy of any changes to our documents and system before the changes go live.

IDS to Stop Using Counseling List Interim Alternative Fix

April 21, 2014

Everyone in the industry is probably familiar with the required Counseling List implemented on January 10, 2014, along with the other Dodd-Frank changes. IDS Customers may or may not be aware that the CFPB offered lenders an interim alternative fix that entails providing borrowers with a disclosure that has a link to the CFPB website and instructions on how borrowers can obtain a list of counselors on-their-own. The CFPB has given lenders this option while building out their own systems to generate the same list. The CFPB informed lenders that they could use this alternative during about a six month implementation window. IDS has only used this interim alternative fix as a back-up on a few rare occasions when the HUD servers have stopped functioning. Here are the details of this requirement:

Regulation X requires that a counseling list be generated and delivered to customers for most types of loans. The CFPB has given lenders two options: (1) generating a list for borrowers directly from the CFPB's own portal, or (2) generating a similar list with information pulled from HUD servers. IDS provides its customers with the second option so that the list is automatically generated within our system with initial packages.
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IDS Compliance Webinar

April 14, 2014

On April 10, 2014, IDS held its first webinar to all customers to review changes made to the IDS Settings related to Dodd-Frank changes from this past January. IDS Marketing recorded the webinar and will publish it in both video and print formats in the coming week.