As part of our ongoing effort to keep you informed, each month we send to you a summary of the work we’re doing to ensure compliance with the ever-changing regulatory landscape.

Below you’ll find our Regulatory Compliance Change Management summary as of October 31, 2022.

To provide you more information, as well as an opportunity to ask questions, we also host a monthly conference call. The next call will take place on Thursday, December 1, 2022 at 3 p.m. ET. To register or send a question to be addressed on the call, please email compliancechgmngt@cenlar.com. If you have registered for a previous call, you do not need to request registration again. This call will be recorded and posted to CenAccess as well, so that you may listen at your convenience.

Any questions not for the call but related to the monthly summary, overview process or specific regulatory change items also can be sent to compliancechgmngt@cenlar.com. Our compliance department will respond to you within two business days of receipt (excluding weekends and holidays).

We’re currently working to reestablish compliance with our regulatory change management program on the following item. The item outlines what we are doing to achieve this, as well as the risk rating. 

• Q10850 Louisiana HB 1064 (Effective 8/01/2022)
What it is: This law relates to the deposit and disbursement of insurance proceeds in Louisiana. The bill provides for regulations regarding the deposit and disbursement of insurance proceeds following damage to residential property when a mortgagee or mortgage servicer has a security interest in all or part of the damaged property. The bill specifies that the provisions of the law regarding settlement proceeds apply to properties in this state containing 1 to 4 residential dwellings. However, the provisions do not apply to a mortgagee or mortgage servicer when the borrower-payee is in default on their mortgage loan, past due with payments, or in foreclosure. This change item has been deemed to be medium risk because of the number of potentially impacted accounts, the complexity of the change in which 2 or more business units are impacted, and the potential regulatory penalties.
What we’re doing: Escrow Flood and Escrow Hazard have processes in place and are finalizing procedures.

Noteworthy Items

• Q10873 FNMA Servicing Guide Announcement SVC 2022-06 and Q10874.2 FHLMC Bulletin 2022-17: Servicing
Fannie Mae and Freddie Mac are updating their Servicing Guides to require servicers to maintain the following fair lending data elements in a format that can be searched, queried and transferred for each mortgage loan, if obtained during the origination process, for mortgage loans originated on or after March 1, 2023:

• Race of borrower(s)
• Ethnicity of borrower(s)
• Age of borrower(s)
• Gender of borrower(s), and
• Preferred language of borrower(s)

In the event of a transfer of ownership/assumption, the servicer is authorized (but not required) to update these elements.

If there is a post-delivery servicing transfer, then the transferor servicer must deliver to the transferee servicer the fair lending data elements in a format that can be queried for each loan, if obtained during the origination process and is available, for mortgage loans originated on or after March 1, 2023.

Cenlar is aware of the requirements to maintain fair lending data and the expectation of considering the data in fair lending analytics. While Cenlar is not responsible for any of the client’s required government reporting of the fair lending data, Cenlar is responsible for capturing the fair lending data elements if the client has captured the data at the time of origination and provided to Cenlar at the time of the servicing transfer.

Cenlar will maintain the data in a format that can be queried. Clients who are subject to reporting certain fair lending data under the Regulation C (Home Mortgage Disclosure Act) reporting requirements should be aware of these agency announcements and the new data transfer and data storage requirements.