Q&A: Here’s a question that a Wisconsin credit union recently asked The League’s Legal Affairs team, along with our answer. Do you have a compliance question? Contact The League’s Compliance Hotline at (608) 640-4050 or email.
Q. A question came up regarding the compliance dates for the Reconsideration of Value rule. Guidance I have seen is saying Aug. 29, 2024, for conventional reports. Does this mean for our “in-house” mortgages? We also do secondary market loans, and we have heard they pushed the compliance date for those types to October 31, 2024. Can you confirm the compliance dates?
A. This is generating some confusion because there are two sets of ROV guidance:
- The ROV guidance recently issued by the NCUA and other federal financial institution regulators is separate from the HUD/Fannie/Freddie guidance. It was final as of July 26, and it has not been delayed. We summarize it in this Compliance Courier.
- HUD, Fannie Mae, and Freddie Mac issued their own guidance earlier this spring. That guidance was to be implemented immediately, but it has now been delayed until the end of October.
This article from Ballard Spahr, a national law firm that practices extensively in consumer financial compliance, explains:
Originally the HUD ROV guidance could be implemented immediately and had to be implemented for FHA case numbers assigned on or after September 2, 2024. In Mortgage Letter 2024-16, HUD provides that the guidance still may be implemented immediately but must be implemented for FHA case numbers assigned on or after October 31, 2024.
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Originally, the Fannie Mae and Freddie Mac guidance could be implemented immediately and had to be implemented for loans with applications dated on or after August 29, 2024. In a Selling Notice and a Bulletin 2024-F, Fannie Mae and Freddie Mac, respectively, provide that lenders now must implement the ROV policy for loans with applications dated on or after Oct. 31, 2024, and Fannie Mae specifically notes that the guidance still may be implemented immediately.