The S.A.F.E. Act, recently enacted by the Federal Housing Finance Agency (FHFA), has prompted many document and regulation changes. At the forefront of these changes are a provision for a new federal definition of Loan Originator and a requirement for all States to create and maintain a system for licensing and monitoring Loan Originators. This allows loan performance to be tracked at the individual loan level. The latest announcement from Fannie Mae earmarks multiple changes to their documents and other critical process changes.
Fannie Mae’s modification of Form 1003 is the primary change the institution made to comply with the SAFE Act. Fannie Mae requires the use of the new form for all mortgage loan applications taken on or after July 1, 2010. As well, this information must also be included in the data sent to Fannie Mae for loan review and must stay in the loan file permanently. Use of this form can be deferred in individual states who have not yet implemented the S.A.F.E. Act requirements through the Nationwide Mortgage Licensing System and Registry (NMLS). Those states must notify Fannie Mae of their compliance status for further guidance on using the new Form 1003.
Calyx Software’s Point 7.1 provided updated Utility settings to manage State and NMLS license information at the Company, Branch and Originator level. We also provided the ability to print this information on just about every page in the application. Point 7.2 addresses the new critical form update. The Loan Application (1003) has been updated per Fannie Mae requirements including updates to the Fannie Mae 3.2 file format, which enable the loan data to be included with the loan file.
Calyx has confirmed with Fannie Mae that use of the updated form prior to July 1, 2010 is compliant and acceptable.