Threshold Amount Raised for Exempt Transactions under Regulation Z In the November 21, 2012, issue of the Federal Register (77 FR 69736 – click here) 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 $53,000, effective January 1, 2013.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Proposed Rule Integrating RESPA and TILA Disclosures for Real Property Secured Loans
On August 23, 2012, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register (77 FR 51116) the following proposed rule: “Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z).” The comment period ends on November 6, 2012, for the proposed rule’s amendments to Regulation Z and Regulation X, including proposed §§1026.1(c) and 1026.4 for which we issued a memorandum on August 24, 2012. This memo will address the proposed rule’s other amendments to Regulation X and Regulation Z and will principally focus on the integrated disclosure amendments.
Proposed Rule Amending Sections 1026.25 and 1026.36 of Regulation Z Affecting Mortgage Loan Origination, Compensation, and Licensing
In the September 7, 2012 issue of the Federal Register (77 FR 55272), the Bureau of Consumer Financial Protection (CFPB) published a proposed rule that would amend §§1026.25 (Record Retention) and 1026.36 (Prohibited Acts or Practices and certain Requirements for Credit Secured by a Dwelling) of Regulation Z that would generally:
Proposed Rule Amending Regulation Z Affecting Mortgage Servicing
On September 17, 2012, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register (77 FR 57318) the following proposed rule: “2012 Truth in Lending Act (Regulation Z) Mortgage Servicing”. The proposed rule’s comment period ends on October 9, 2012.
Proposed Rule Amending Regulation Z HOEPA Loan Coverage – Comment Period Extended By Consumer Financial Protection Bureau
On August 15, 2012, this firm issued a memorandum (click here) on the proposed rule to amend the HOEPA Loan Coverage in §1026.32(a)(1)(i) and (b)(1)(i) of Regulation Z, which was published in the August 15, 2012 issue of the Federal Register by the Consumer Financial Protection Bureau (CFPB). The proposed rule’s comment period for this amendment was originally stated to end on September 7, 2012. The CFPB has reconsidered and in yesterday’s issue of the Federal Register (77 FR 54844) published a notice that it is extending the comment period for the proposed amendments to §1026.32(a)(1)(i) and (b)(1)(i) to November 6, 2012.
Proposed Rule Amending Regulation Z §1026.4 (Finance Charge) Comment Period Extended By Consumer Financial Protect Bureau
On August 24, 2012, this firm issued a memorandum on the proposed rule to amend the definition of finance charge in §1026.4 of Regulation Z, which was published in the August 23, 2012 issue of the Federal Register by the Consumer Financial Protection Bureau (CFPB). The proposed rule’s comment period was originally stated to end on September 7, 2012. The CFPB has reconsidered and in today’s issue of the Federal Register (77 FR 54843) has published notice that it is extending the comment period for the proposed amendments to §1026.4 to November 6, 2012. Except for the above extension of the comment period, all other statements in our August 24, 2012 memorandum remain unchanged.
Proposed Regulation Z Rules §§1026.1(c)(5) and 1026.4
On August 23, 2012, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register (77 FR 51116) the following proposed rule: “Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z)”. The proposed rule’s comment period ends on September 7, 2012, for proposed §§1026.1(c) and 1026.4. The proposed rule’s comment period ends on November 6, 2012, for all other proposed amendments to Regulation Z and Regulation X. This memo will address the proposed §§1026.1(c) and 1026.4, whose comment period ends September 7, 2012.
Proposed Rule Amending Sections 1026.25 and 1026.36 of Regulation Z Affecting Mortgage Loan Origination, Compensation, and Licensing
In an August 17, 2012 press release, the Bureau of Consumer Financial Protection (CFPB) released a proposed rule that would amend §§1026.25 (Record Retention) and 1026.36 (Prohibited Acts or Practices – dwelling secured credit) of Regulation Z that would generally: (1) Add new three year record retention requirements for loan originator compensation paid by or to mortgage brokers and loan originators, the “zero-zero loan alternative” and good faith determination (discussed below), and the bona fide interest rate reduction (discussed below). (2) Amend the definitions for “loan originator,” “mortgage broker,” and “creditor” and add a definition for “compensation.”
Proposed Regulation Z and Regulation X Rules Published Today Regarding HOEPA Loans and Homeownership Counseling
In today’s issue of the Federal Register (Vol. 77 No. 158), the Bureau of Consumer Financial Protection (CFPB) officially published the proposed rule “High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act (Regulation Z) and Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act (Regulation X)” that was the subject of its July 9, 2012 press release. This proposed rule has a comment period that ends on September 7, 2012.
Comment Period for Regulation Z Ability-to-Repay Proposed Rule Extended
On June 5, 2012, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register (77 FR 33120) a “Notice of reopening of comment period and request for comment” (Notice) regarding the proposed rule the Federal Reserve Board (FRB) published in the May 11, 2011 Federal Register (76 FR 27390) addressing ability-to-repay requirements applicable to consumer credit transactions secured by a dwelling and defining a “qualified mortgage.” Although the proposed rule’s original comment period ended on July 22, 2011, the CFPB is reopening the comment period until July 9, 2012, for comment on new data and information submitted during or obtained after the close of the original comment period that is discussed in the Notice.