From the Source: Matt Tully on FHA’s Latest Waterfall Update
Sagent Chief Compliance Officer Matt Tully recently shared insights with National Mortgage News about FHA’s latest waterfall update. He focused on the intersection of this and other recent changes plus timeline and technology impacts. See his quote below and read the full article here.
“Another challenge is the generally shorter timeline could make the busy fourth quarter more hectic.
Also, servicers will be juggling other changes this year like the end to the Veterans Affairs Servicing Purchase (VASP) program, said Sagent Chief Compliance Officer Matthew Tully.
One thing that will help is although the ML generally accelerates the original timeline, some of the technical work related to updating the FHA’s single-family default monitoring systems reporting codes and elements in line with the new directives is phased in over a longer period.
“You’ll actually start implementing the contours of the program on October 1, but then you won’t start doing the reporting until February,” said Tully, noting that this makes data updates important to investors more manageable from a technology development perspective.
He said while formal mortgagee letters like the FHA’s latest waterfall update can be lengthy reads, they ultimately are helpful because they provide servicers and vendors like Sagent with more actionable information than preliminary announcements that are made about policy shifts.
“Until there’s something that’s published, you can’t change how you service,” Tully said.
Staying on top of regulatory changes and policy shifts allows mortgage servicers to move quickly and implement changes during a hectic time. Our CCO Matt Tully has his finger on the pulse in DC + across the regulatory landscape, and regularly offers Sagent customers — and the media — insights based on his expertise and experience.
If you’re looking for servicing technology that helps you prioritize compliance while reducing costs and building long-term homeowner relationships, take a look at our end-to-end platform, Dara. Or just hit us up below!