Client Bulletin: September 27, 2024
Transfers of Ownership to a LLC, Formal Assumptions, and Release of Liability for Asset Loans
Cenlar is in the process of ensuring validation of your requirements related to the handling of Transfers of Ownership to a Limited Liability Company (LLC), Formal Assumptions, and Release of Liability for asset loans. Client Managers will be reaching out to you to confirm that these handling guidelines are accurate.
The requirements for a Transfer of Ownership of property to another person or inter vivos trust is clearly set forth in regulatory requirements. Generally, these transfers are made due to death of the homeowner, divorce or into an inter vivos trust for the benefit of the homeowner.
A Formal Assumption occurs when an individual requests to assume an existing loan. As part of an assumption transaction, you as owner/servicer would be releasing the current homeowners from liability and placing the responsibility entirely on a new “buyer”. This happens when the current homeowners on the loan are looking to have a new individual purchase the property and become liable for the existing mortgage through an assumption.
A Release of Liability removes one or more individuals from all obligations and places the responsibility on the remaining borrower. A Release of Liability typically occurs in the case of a divorce where one borrower is awarded the property through a final Divorce Decree or Separation Agreement.
Beginning tomorrow, October 1, 2024, you will need to submit a Client Request Form via CCM to provide clear guidance on your requirements and changes related to Transfers of Ownership into a LLC, Formal Assumptions, and Release of Liability for asset loans. Similarly, going forward, any future updates from you will need to be submitted in this way.
Introducing New XML Changes!
In order to ensure the best quality loan boarding data – and ultimately deliver excellent service to you and your homeowners – Cenlar continues to tweak our XML loan boarding file. Recently we have made changes to Exhibits A1 and A3 that impact how you interface with XML. Here’s what you need to know and do to make sure your loans are submitted correctly.
Exhibit A1
We have made several changes to the Standard XML Tab. These include:
- A new field for multiple structures/properties related to flood tracking. Please integrate this field into your existing interface.
- Updated fields with more detailed information:
- CBRExpirationDate – updated BK Field reference
- CBRIndicatorSwitch – updated BK Field reference
- FloodInsuranceAgentPayeeCode – updated valid codes for Land Only loans
- FloodInsuranceCoPayeeCode – updated valid codes for Land Only loans
- ElocItemizedNumber – updated valid codes from “01 to 14” to “01 to 99”
- Under the MISC Tab, we added three new valid values to the <ProductCode> table for down payment assistance (DPA) loans.
Exhibit A3
We’ve introduced a new XML Interface Edit to ensure the AcquisitionSaleId field is free from special characters, such as, !@#/. Beginning December 9, 2024, any special characters that are included in this field will cause the loan to be rejected.
Additionally, we updated several descriptions for clarity. These include:
- INVALID FIRST PAYMENT DATE
- INVALID NEXT DUE DATE
- MISSING OR INVALID SPECIAL FEATURE CODE
- MISSING TOTAL MONTHLY PAYMENT
Support Resources
For additional information and/or help implementing these changes, please refer to these documents on CenAccess:
- Exhibit A1 – XML Standard Interface File-20240913.xlsx
- Exhibit A3 – XML New Loan Boarding File Edits-20240913.xlsx
- 2024-09 New Loan Transfer Instructions Change Summary.docx
Jennifer Scoliard Becomes ACMA Fellow
Congratulations to SVP, Deputy General Counsel for Litigation, Jennifer Scoliard for being inducted into the American College of Mortgage Attorneys (ACMA) at the organization’s 2024 annual meeting in Chicago and 50th anniversary celebration this month. The ACMA is comprised of attorneys in North America who are experts in mortgage law. The organization shares a commitment to giving back to their profession and improving and reforming laws and procedures affecting real estate transactions.
Client Experience Survey Extended: Give Us Your Feedback by This Friday, October 4
Your opinion is vital to our evolution as an organization. Please complete our annual Client Experience Survey by this Friday, October 4. The survey should take no more than 5 to 10 minutes to complete.
A link should have arrived in your inbox on Tuesday, Sept. 10 from MarketCast (surveys@cenlar.marketcast.com). Be sure to check your spam folder if you can’t find the email in your inbox, and please don’t forward the survey on to anyone else — each link is personalized to you and your relationship with us. If you didn’t receive a survey or have any questions, please reach out to your client manager.
Thank you for your time and consideration, as we strive each and every day to be your trusted partner.
Ingrid Jaschok Speaks at Five Star 2024 Conference
Senior Vice President of Default Operations Ingrid Jaschok spoke at the Five Star 2024 Conference in Dallas last week with a panel of peers, titled “A High-Level Perspective of the Mortgage Servicing Industry.” The group discussed current opportunities in servicing, and delved into topics such as the looming CFPB amendments to Reg X and the effects of the “Show Me State” case on the foreclosure process.
Financial Crimes Team Kicks Off Homeowner Education Series
In the June issue of the Bulletin, we introduced our Financial Crimes team, which is led by Vice President of Fraud and Financial Crimes Sharon Blanchette. The team implements robust financial crime compliance processes and policies to protect clients and their homeowners, employees and Cenlar’s reputation.
The team is kicking off a campaign to educate homeowners on how to protect themselves from being victims of fraud.
Beginning in the month of October, you’ll see a campaign called “Be Aware, Protect Yourself,” on Cenlar’s Instagram channel, @cenlarfsb, providing helpful tips to homeowners on how to avoid fraud scams. Anti-fraud messaging will also be placed on CenNet.