Pursuant to section 1473(q) of the Dodd-Frank Act, a group of federal agencies have proposed a quality control rule for automated valuation models (AVMs). The agencies are the Comptroller of the Currency, Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation, Federal Housing Finance Agency, Federal Reserve Board and National Credit Union Administration.… Continue Reading
CFPB Rulemaking
CFPB Seeks Input on Regulatory Flexibility Act Assessment of Mortgage Loan Originator Rules
By Richard J. Andreano, Jr. on
The CFPB recently announced that it is conducting a review of the Regulation Z mortgage loan originator rules under the Regulatory Flexibility Act (RFA) and is seeking comments on the economic impact of the rules on small entities. The CFPB advises that “[t]hese comments may assist the Bureau in determining whether the Loan Originator Rules should be continued without change or amended or rescinded to minimize any significant economic impact of the rules upon a substantial number of such small entities, consistent with the stated objectives of applicable Federal statutes.” … Continue Reading
CFPB seeks input on construction and construction-to-permanent loan trial disclosure sandbox application
By Richard J. Andreano, Jr. on
The CFPB recently announced that it is seeking input on a trial disclosure sandbox application from the Independent Community Bankers Association (ICBA) for alternative disclosures under the Truth in Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure (TRID) rule for construction and construction-to-permanent loans. The application is a template application, which means that if even approved by the CFPB it will not actually be operative. … Continue Reading
CFPB Adjusts HMDA and HPML Asset Exemption Thresholds
By Richard J. Andreano, Jr. on
The CFPB recently issued a final rule increasing the asset exemption threshold under the Home Mortgage Disclosure Act (HMDA) and a final rule increasing the asset exemption threshold for the Truth in Lending Act (TILA) requirement to maintain an escrow account for a higher-priced mortgage loan (HPML).
Banks, savings associations and credit unions are not subject to HMDA for a calendar year if their assets as of December 31, of the prior calendar year did not exceed an asset threshold. … Continue Reading
CFPB Issues Technical HMDA Rule for Closed-End Loan Threshold
By Richard J. Andreano, Jr. on
The CFPB recently issued a technical rule to reinstate the closed-end loan reporting threshold under the Home Mortgage Disclosure Act (HMDA) of 25 originated covered loans in each of the prior two calendar years that was adopted in an October 2015 rule. The technical rule will be effective on the date that it is published in the Federal Register.… Continue Reading
CFPB Addresses Approach to Court Order Overturning Closed-End Loan HMDA Reporting Threshold
By Richard J. Andreano, Jr. on
In a recent blog post, the CFPB addressed its approach to the court ruling that overturned the part of a CFPB April 2020 Home Mortgage Disclosure Act (HMDA) rule that increased the threshold to report closed-end mortgage loans from 25 covered loans originated in each of the prior two years to 100 covered loans originated in each of the prior two years.… Continue Reading
CFPB Issues RFI on Mortgage Refinances and Forbearances
By Richard J. Andreano, Jr. on
The CFPB recently issued a Request for Information Regarding Mortgage Refinances and Forbearances (RFI) Comments on the RFI will be due 60 days after publication in the Federal Register.
In the release announcing the RFI, the CFPB states that the RFI “is an example of the CFPB’s new approach to promoting competition and new products.”… Continue Reading
CFPB SBREFA Panel Outline on AVM Rulemaking Addresses Potential for Algorithmic Bias In Home Valuations
By Richard J. Andreano, Jr. on
The CFPB recently issued an outline entitled Small Business Advisory Review Panel for Automated Valuation Model (AVM) Rulemaking. While the outline addresses an upcoming joint rulemaking to implement quality control requirements for AVMs, the CFPB specifically focuses on the potential for AVMs to pose fair lending risks to homebuyers and homeowners. … Continue Reading
CFPB establishes new process for submission of petitions for rulemaking
By Alan S. Kaplinsky on
Posted in CFPB, CFPB Rulemaking
The CFPB has announced that it has established a new process intended to make “it easier for the public to meaningfully engage with the agency and request regulatory changes.”
The new process allows members of the public to submit petitions for rulemaking (including amendments to or repeals of existing rules) directly to the CFPB either electronically or by mail. … Continue Reading
CFPB Will Assess the 2015 HMDA Rule and Not Pursue Other HMDA Rulemakings
By Richard J. Andreano, Jr. on
In connection with the release of its latest semi-annual regulatory agenda, the CFPB announced that it will assess the October 2015 significant amendments to Regulation C under the Home Mortgage Disclosure Act (HMDA), and that it will not pursue other HMDA rulemakings.
The Dodd-Frank Act requires that the CFPB conduct an assessment of each significant rule or order it has adopted under federal consumer financial law and publish a report of each assessment no later than five years after the effective date of the rule or order.… Continue Reading