The Consumer Financial Protection Bureau (CFPB) has issued a proposed rule (click here) proposing two amendments to the TILA-RESPA Integrated Disclosures Rule: (1) an adjustment to the timing requirement for revised disclosures when the consumer locks a rate after the initial disclosures are provided; and (2) an amendment to permit language related to new construction loans to be included on the Loan Estimate:
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Regulation Z Threshold Amounts Raised for Exempt Transactions
In a September 9, 2014 notice, the Board of Governors of the Federal Reserve System (FRB) and the Consumer Financial Protection Bureau (CFPB) published final rules amending the official interpretation and commentary to Regulations Z by increasing the threshold for exempt consumer credit transactions to $54,600, effective January 1, 2015.
Regulation Z HOEPA and Qualified Mortgage Annual Threshold Adjustments
In the August 15, 2014 issue of the Federal Register (79 FR 48015), the Consumer Financial Protection Bureau established the following 2015 thresholds for high-cost and qualified mortgages under §§1026.32 and 1026.43, respectively.
Ability-to-Repay Interpretive Rule Issued by CFPB – Loan Assumption
On July 8, 2014, the CFPB issued an interpretive rule (click here) clarifying that when a person (“successor”) who has previously acquired title to the successor’s principal dwelling subsequently agrees to be added as obligor or substituted for the existing obligor on a consumer credit transaction secured by that dwelling (“loan”), the creditor’s written acknowledgement of the successor as obligor is not subject to the Ability-to-Repay Rule (ATR Rule) in §1026.43 of Regulation Z because that transaction is not an assumption as defined by §1026.20(b) of Regulation Z.
RESPA and TILA Violations Result in Significant Civil Penalties Paid to CFPB and FTC
This memorandum advises you of a $500,000 civil penalty paid to the Consumer Financial Protection Bureau (CFPB) pursuant to the following described Consent Order and of a $225,000 civil penalty paid to the Federal Trade Commission (FTC) pursuant to the following described Stipulated Order:
CFPB Publishes Qualified Mortgage Points and Fees Proposed Amendments in May 6, 2014
As a follow-up to our April 30, 2014, memorandum (click here) notifying you of the CFPB’s proposed rule to add a cure provision to the qualified mortgage points and fees limitation in §1026.43(e)(3) of Regulation Z, this is to inform you that the CFPB has now published this proposed rule for public comment in the May 6, 2014, issue of the Federal Register (click here). The text of the proposed amendments and their proposed official interpretations are set out below:
CFPB Issues Proposed Amendments to Qualified Mortgage Points and Fees
Today the CFPB issued proposed amendments to the Qualified Mortgage points and fees requirement in §1026.43(e)(3) to permit, under limited circumstances, the refunding of excess points and fees within 120 days after closing in order for the loan to meet this Qualified Mortgage requirement (click here). Once the proposal is published in the Federal Register, we will advise you by subsequent memorandum so that you will be able to submit comments on it to the CFPB.
CFPB Revises HELOC Brochure, CHARM Booklet, and Settlement Cost Booklet/Special Information Booklet
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:
Mortgage Company to Pay $9 Million in Restitution and $4 Million in Civil Penalties for Violating Regulation Z Loan Originator Compensation Rule
Today the Consumer Financial Protection Bureau issued a press release detailing the proposed settlement of its lawsuit against Castle & Cook Mortgage, LLC, a Utah based mortgage company, for illegal steering and loan originator compensation violations of the loan originator compensation rule in section 1026.36 of Regulation Z.
Interagency Statement on Fair Lending Compliance and the Ability-to-Repay/Qualified Mortgage Rule
On October 22, 2013, the CFPB, FDIC, FRB, NCUA, and OCC (“Agencies”) issued a statement (“Interagency Statement”) to address questions from residential mortgage lenders about disparate impact doctrine risks associated with offering only Qualified Mortgages under the new Ability-to-Repay and Qualified Mortgage Rule issued by the CFPB (“Ability-to-Repay Rule”).