In the January 10, 2014, Federal Register (79 FR 1836), the Bureau of Consumer Financial Protection (CFPB) published a Notice of Availability of the following revised consumer publications related to mortgage loans and home equity lines of credit transactions that are required under the Real Estate Settlement Procedures Act (RESPA), Regulation X, the Truth in Lending Act (TILA), and Regulation Z:
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Constitutional Amendment SJR 18 (Reverse Mortgage) Effective Nov. 22, 2013
This fourth, and last, legislative update prepared by this firm for the 2013 legislative session advises you that constitutional amendment Senate Joint Resolution 18 (SJR 18), which amends Section 50(k), Article XVI, Texas Constitution, to authorize advances under a reverse mortgage for the purchase of a residential homestead property, is now effective. SJR 18 was approved by the voters on November 5, 2013, and became effective on November 22, 2013, when the vote was canvassed, the results were certified by the Texas Secretary of State, and a proclamation was issued by the Governor.
2013 Legislative Update from 83rd Regular Session of the Texas Legislature – Constitutional Amendment SJR 18; Section 17.001 of SB 1093
This is the third legislative update prepared by this firm for the 2013 legislative session and covers proposed constitutional amendment Senate Joint Resolution 18 (SJR 18) that amends Section 50(k), Article XVI, Texas Constitution, to authorize advances under a reverse mortgage for the purchase of a residential homestead property, and Section 17.001 of Senate Bill 1093 (SB 1093) that amends Section 51.002(i) of the Texas Property Code. SJR 18 is to be submitted for voter approval at an election to be held November 5, 2013. If approved by the voters, SJR 18 becomes effective when the Texas Secretary of State canvasses [authenticates] the votes for the constitutional amendment proposed by SJR 18.
2013 Legislative Update from 83rd Regular Session of the Texas Legislature – Bills Effective On and After September 1, 2013
This legislative update summarizes those bills effective on and after September 1, 2013, that we consider of interest to our clients. On August 21, 2013, we provided a legislative update for bills effective before September 1, 2013. The legislative update that follows this update will summarize the proposed constitutional amendments and, if applicable, their enabling legislation that we consider of interest to our clients.
Revised Residential Mortgage Loan Originator Regulations Effective September 5, 2013
In the August 30, 2013, issue of the Texas Register (38 TexReg 5702), the Finance Commission of Texas published final amendments to the residential mortgage loan company, mortgage banker and residential mortgage loan originator rules in Title 7, Part 4, Chapters 80 and 81 of the Texas Administrative Code (7 TAC Chapters 80 and 81) to implement statutory changes made to Chapters 156, 157 and 180 of the Finance Code by the 2013 legislative session (see Senate Bill 1004, eff. September 1, 2013).
2013 Legislative Update from 83rd Regular Session of the Texas Legislature – Bills Effective Before September 1, 2013
This legislative update summarizes those bills effective before September 1, 2013, that we consider of interest to our clients. The legislative updates that follow this update will summarize the following bills that we consider of interest to our clients: (i) bills effective on and after September 1, 2013, and (ii) proposed constitutional amendments and, if applicable, their enabling legislation.
Texas Home Equity Loans – Per Diem Interest, Discount Points and Powers of Attorney under the Texas Supreme Court Decision in Finance Commission of Texas v. Norwood
The recent Texas Supreme Court decision in Finance Commission of Texas v. Norwood, 2013 WL 3119481 (Tex. June 21, 2013) redefines interest for the purpose of fees and limits the locations where powers of attorney may be executed in connection with home equity loans authorized by Article XVI, Section 50(a)(6) of the Texas Constitution. We previously sent our clients an email alert regarding the Norwood opinion, advising of its effect on discount points for the purposes of the three percent fee cap in section 50(a)(6)(E) and the new limitation where home equity powers of attorney must be executed. The email alert may be found on our website under Articles.
Uniform State Test for State-Licensed Mortgage Loan Originators
On May 20, 2013, the Consumer Financial Protection Bureau (CFPB) issued its Bulletin 2013-05 as guidance for the Uniform State Test for State-Licensed Mortgage Loan Originators developed by the Nationwide Mortgage Licensing System and Registry. The text of Bulletin 2013-05 is reprinted below:
Mortgage Credit Certificate Program
In today’s issue of the Texas Register (Vol. 38 No.18) the Texas Department of Housing and Community Affairs published the following notice to all interested mortgage lenders: “The Texas Department of Housing and Community Affairs (the “Department”) intends to implement a Mortgage Credit Certificate Program (the “Program”) to assist eligible very low, low, and moderate income first-time homebuyers with the purchase of a residence located within the State of Texas.
Texas Home Equity Lending – 2013 Update
This memorandum will provide an overview of home equity lending embodied in Article XVI, Section 50, of the Texas Constitution and will also discuss some of the issues lenders face. The full text of Section 50, current to date, is attached to this memorandum (for ease of reference, the home equity and HELOC provisions are highlighted in bold typeface). All references to “sections,” “subsections,” and “parts” in this memorandum refer to the various provisions of Section 50, unless otherwise stated.