HUD ML 2017-18 – PACE Program Obligations

This guidance applies to the origination of all FHA Title II forward mortgage programs, and the Home Equity Conversion Mortgage program (HECM). This guidance is effective for case numbers issued thirty days after the date of this ML.

In ML 2016-11, FHA established requirements regarding the eligibility for FHA-insured mortgages of properties encumbered with PACE (Property Assessed Clean Energy) obligations that permitted, under some circumstances, a continuing obligation for repayment of the PACE obligation even after foreclosure and acquisition by FHA.

FHA is concerned about the potential for increased losses to the Mutual Mortgage Insurance Fund due to the priority lien status given to such assessments in the case of default. FHA is also concerned with the lack of consumer protections associated with the origination of the PACE assessment, which are far less comprehensive than that of traditional mortgage financing products. FHA’s involvement with accepting properties with PACE assessments may indirectly help to overshadow potential consumer abuses.

While the existence of FHA-insured financing for properties with PACE assessments creates additional choices for financing options, potential borrowers may face risk associated with the potential for property overvaluation due to the unknown or miscalculated effect of the PACE lien on the property value.

FHA is also aware of the need to provide guidance regarding the extinguishment of PACE obligations in association with forward mortgage refinances and HECMs.

Accordingly, FHA has revised its policies with respect to the insurance of mortgages on properties encumbered with PACE obligations.

The policies and procedures for the servicing of FHA-insured mortgages on properties encumbered with a PACE obligation as announced in ML 2016-06 are not impacted by this ML and remain in effect.

Summary of Changes:

The following is a summary of policy changes, which is provided for informational purposes only.

Outstanding PACE Obligations

Properties encumbered with PACE obligations will no longer be eligible for FHA-insured forward mortgages.

Refinances

Clarification is provided to identify PACE obligations as existing debt that may be paid off using a Rate and Term Refinance.

Current policies allowing the use of a Cash-Out refinance to pay off PACE obligations remain unchanged.

HECMs

The existing prohibition of properties encumbered with PACE obligations remains unchanged for HECMs.

Clarification is provided to identify PACE obligations as Mandatory Obligations that must be paid off at closing, and may be paid off using HECM proceeds.

Click here for a full copy of the mortgagee letter.

Email Etiquette

Technology is a wonderful tool and even more powerful when used to your advantage.

Escrow number on email subject line: Our system will automatically notate and attach any documents to your transaction to ensure information all transaction related information is  received. 

Use team email addresses: This ensures your email request will be handled by your assigned settlement team.

Attachment Size:  When scanning documents please make sure the file size is no larger than 10 Megabytes (MB).  Large attachments tend to travel slow, cause delivery delay,  or blocked by size limit settings.

Upcoming Webinar: Introduction to Trusts

Introduction to Trusts

Please join us for our upcoming webinar entitled: Introduction to Trusts. Reverse mortgages are complex and being prepared is key to a successful closing. We are happy to share our experience and knowledge with you. Together we can make the borrower’s experience is a pleasant one.

Wednesday, January 17, 2018 at 10:00 AM (Pacific Time)

Webinar Time Zone Conversion:

11:00 AM – 12:00 PM MST

12:00 PM – 1:00 PM CST

1:00 PM – 2:00 PM EST

Click Here to Register

After registering, you will receive an email with instructions on how to join the webinar.

Title Review Notifications

Each and every commitment/prelim is reviewed by the ARS settlement team prior to being sent to our customers. When our commitment is delivered, there will always be a review in the body of the email.

This review will list very important information about vesting, mortgages, liens, judgments and a list of requirements that are specific to the transaction. By reading these reviews, you will know what items could potentially cause delays, allowing all parties to start working on resolutions right away.

Upcoming Webinars

Title Review 101

Wednesday, December 13,  2017 – 10:00am PST/1:00pm EST 

Please join us for our upcoming webinar on Title Review 101. We will discuss the basics of title insurance, title commitments and how to review the reports for important and relevant information that will need to be addressed during the transaction.

Click Here to Register

 

Introduction to Powers of Attorney

Wednesday, December 20,  2017  10:00am PST/1:00pm EST

Reverse mortgages are complex and being prepared is key to a successful closing. Powers of Attorney are very common in the Reverse Mortgage industry. We are happy to share our experience and knowledge with you and together we can make the borrower’s experience a pleasant one. 

 Click Here to Register

Happy Holidays!

‘Let Us Know

If the market’s turning frightful
Choose the team that’s most insightful
If you’re wondering where to go
Let us know, Let us know, Let us know

Our expertise is always growing
And it doesn’t show signs of slowing
If you’d like your pipeline to flow
Let us know, Let us know, Let us know

We’ll make sure every step’s done right
From the order and through clear to close
to the day that your borrowers sign
In the comfort of their own home!

If your settlement team is flopping
If you’re tired of partner shopping
And prefer to work with the pros
Let us know, Let us know, Let us know

We’ll get you disbursed on time
We’ve seen it all and we’ll still get it done
Rest assured that you’ve chosen wise
Our operation is second to none

The competition is always trying
But in the end, there’s no denying
If your business is ready to grow
Let us know, Let us know, Let us know!

From our ARS family to yours, we wish you the Happiest of Holidays,

and Thank You for making Allegiant Reverse Services your trusted Title and Settlement partner!

Our office will close at 4 pm on Thursday, December 14th for a company holiday celebration.

Kansas Tax Reduction Notice

79-3102. Mortgage registration; fee; exemptions; registered mortgage and note secured, exempt from additional taxation. [See Revisor’s Note] (a) Before any mortgage of real property, or renewal or extension of such a mortgage, is received and filed for record, there shall be paid to the register of deeds of the county in which such property or any part thereof is situated a registration tax of the principal debt or obligation which is secured by such mortgage, which tax shall be computed in accordance with the following schedules. In the event the mortgage states that an amount less than the entire principal debt or obligation will be secured thereby, the registration fee shall be paid on such lesser amount.

(1) For all mortgages of real property, or renewal or extension of such a mortgage, received and filed for record prior to January 1, 2015, the tax shall be 0.26% of the principal debt or obligation which is secured by such mortgage.

(2) For all mortgages of real property, or renewal or extension of such a mortgage, received and filed for record on and after January 1, 2015, but prior to January 1, 2016, the tax shall be 0.2% of the principal debt or obligation which is secured by such mortgage.

(3) For all mortgages of real property, or renewal or extension of such a mortgage, received and filed for record on and after January 1, 2016, but prior to January 1, 2017, the tax shall be 0.15% of the principal debt or obligation which is secured by such mortgage.

(4) For all mortgages of real property, or renewal or extension of such a mortgage, received and filed for record on and after January 1, 2017, but prior to January 1, 2018, the tax shall be 0.1% of the principal debt or obligation which is secured by such mortgage.

(5) For all mortgages of real property, or renewal or extension of such a mortgage, received and filed for record on and after January 1, 2018, but prior to January 1, 2019, the tax shall be 0.05% of the principal debt or obligation which is secured by such mortgage.

For a complete review of the Kansas County Legislative Session please click here.

Donation from the Reverse Mortgage Industry

On behalf of the Reverse Mortgage Industry & the contributing partners we wish to thank the Curry Senior Center for hosting the recent NRMLA Service Project.  Our volunteers were truly touched by your organization and the senior’s you serve.  Many are inspired by your commitment and plan to continue volunteering in their hometowns.  We appreciate all you do to support the needy seniors of San Francisco.

We are beyond thrilled to present the final contribution amount from the Art of Thankful Giving reception and auction.  We are donating $42,622.00. 

Below is the total contribution:

  • Previous donation for Thanksgiving Packages & Service Project: $10,000
  • Merchant Exchange donation (Julia Morgan Ballroom): $5,000
  • Contributing Partners* & Auction Proceeds: $42,622.00
  • TOTAL Benefit to Curry Senior Center: $57,622.00

Included on this email are the contributing partners. Without their support this event would not have happened.  Thank you to:

*Allegiant Reverse Services, American Advisors Group, Celink, Finance America Reverse, Landmark, Liberty Home Equity Solutions, Live Well Financial, Longbridge Financial, Mortgage Information Services, Nationwide Equites Corp, New View Advisors, LRES Corporation, Reverse Mortgage Funding, Reverse Vision, Premier Reverse Closing, and Weiner Brodsky Kidder.

Happy Holidays!  It was a pleasure working with you on this very successful event.

California Recording Fee Changes Effective January 1, 2018

SEC. 3. Section 27388.1 is added to the Government Code, to read:
27388.1. (a) (1) Commencing January 1, 2018, and except as provided in paragraph (2), in addition to any other
recording fees specified in this code, a fee of seventy-five dollars ($75) shall be paid at the time of recording of
every real estate instrument, paper, or notice required or permitted by law to be recorded, except those
expressly exempted from payment of recording fees, per each single transaction per parcel of real property.  The
fee imposed by this section shall not exceed two hundred twenty-five dollars ($225). “Real estate instrument,
paper, or notice” means a document relating to real property, including, but not limited to, the following: deed,
grant deed, trustee’s deed, deed of trust, reconveyance, quit claim deed, fictitious deed of trust, assignment of
deed of trust, request for notice of default, abstract of judgment, subordination agreement, declaration of
homestead, abandonment of homestead, notice of default, release or discharge, easement, notice of trustee sale,
notice of completion, UCC financing statement, mechanic’s lien, maps, and covenants, conditions, and
restrictions.

For complete details please click the link below.

SB-2 Full Text

 

Suddenly Alone

WE’LL CALL THEM THE MARTIN FAMILY. I have been friends with their family for a decade. They are a huge tribe of amazing people with big hearts, and lots of love for one another. With nine brothers and sisters, their children, their children’s children, all led by the family matriarch Great Grandma Mary, imagine the massive head count at their family gatherings. Every event is always filled with love, laughter and, of course, lots of food to feed the troops. When you’re immersed into a group at any function, no matter how big or small, there’s always that one connection you make that you know is just real. For me, that person was Aunt Kay. She’s extremely artistic and creative, which drew me to her immediately, being an artsy soul myself. She is also sarcastic, funny, a real spit fire and, always made me feel like a part of the “Tribe.”  A woman of admirable qualities, she is also a dedicated mother, grandmother and the loving wife of Carl for over 40 years.

Click the icon below to read the full story.

…Aunt Kay said to me. “Being able to rely
on someone knowledgeable that you can trust after something
like this happens makes a world of difference.”