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Reporting a Material Adverse Event
We want to make sure you can leverage your partnership with us to its full potential. As your trusted partner, and in order to mitigate risk, we need to be made aware of any adverse events that could impact financial decision making.
Please contact us if you need to report a material adverse event. For more information on implications and reporting procedures, please access this guide.
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Municipal Bond Eligibility Requirement Changes
Effective April 1st, 2017, we will be rolling out changes to our Municipal Bond program to expand the eligibility criteria. Some of these changes will include the acceptance of Housing Authority municipal bonds, taxable municipal bonds and refunded municipal bonds.
Be on the lookout for more information in the Q2 edition of Collateral Quarterly.
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Certification of the BBC forms is the final step in submission. Make sure to click “certify” to ensure your BBCs are submitted on time. |
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Predatory Lending – What You Should Know
Are you familiar with our Anti-Predatory Lending Policy? If you haven't looked in a while, it may be a good idea to refresh your memory and understanding of what you can expect from us. Take a few moments and read Section II of the Member Products Policy. We require all residential mortgage collateral and purchased mortgage loans to comply with all anti-predatory lending laws and policies.
Please contact us if you have any questions regarding the policy, and we'd be happy to help.
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An Analysis On Collateral Eligibility
Each year, we take a look at results and trends regarding collateral usage. Based on Member Collateral Verifications (MCVs) in 2014, 90% of the loans reported to us were eligible collateral. Below is a summary of the top five exceptions. In the Q2 edition of Collateral Quarterly, we will have 2015 results available for you. Keep in mind; we use your last MCV results to set a sample size at the next MCV— the better the results, the lower the next MCV sample.
2014 Top 5 eligibility issues:
| Eligibility Issue |
% of Total Exceptions |
Comments: |
| Loan Not Primarily Secured by Subject Portfolio Collateral |
12.14% |
Frequently, we see loans of one type reported as another type. For example, non-owner 1-4 Family Residential may be confused as Multi-Family or Commercial. If you have any specific coding questions, please don't hesitate to contact us. |
| Not First Mortgage Lien/Collateral Property(s) subject to prior mortgages (or no evidence of recorded) |
6.07% |
For loan types requiring a first mortgage lien, the mortgage/deed of trust cannot be subject to any other mortgage or non mortgage lien. |
| Qualifying LTV exceeds Portfolio Limitation |
5.75% |
The maximum LTV for each loan type is identified in each Eligibility Checklist. |
| Lien Verification not Post Recording |
5.10% |
For all type codes, we require post recording lien verification (i.e. title work) demonstrating the requisite lien position.
- For conventional 1-4 family mortgage loan less than $250,000, we will accept loans with preliminary title work as long as that preliminary title work is within 75 days of the mortgage date with evidence of prior lien pay off.
- Also, for recently executed mortgages, such loans can be reported for up to 6 months while post closing lien verification is in process.
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| Original Note and/or Original Modifications Not Provided |
4.83% |
We require an original ink signature promissory note as well as modifications and extensions. Remember, scans or pdf images/copies of notes are not accepted. |
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Enhanced MCV Process
To ensure we see every member in a timely fashion and apply risk management more effectively and efficiently, we are working to enhance the MCV scheduling process. Part of this enhancement will now include an update to the MCV frequency for all of our members. Going forward, every member will have an MCV performed on pledged loan collateral every five (5) years. Members with increased risk factors may deem a more frequent MCV process, but will be determined on an individual member basis.
This scheduling update is aimed to also help you manage risk and identify any potential issues before a regulatory finding occurs. We understand you may have questions or concerns about this, and we are here to help walk you through these changes.
Additional information on MCV process changes will be coming soon.
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