The Federal Housing Financing Agency (FHFA) announced on July 16, 2021 that effective August 1, 2021 it is eliminating the 50 basis point Adverse Market Refinance Fee for refinance mortgage loans. The FHFA notes that the fee imposed on lenders originally was designed to cover losses projected as a result of the COVID-19 pandemic. However,
Mortgages
CFPB Issues Report Addressing Asian American and Pacific Islanders in the Mortgage Market
By Richard J. Andreano, Jr. on
The CFPB recently issued a report entitled Data Point: Asian American and Pacific Islanders in the Mortgage Market. The report briefly examines differences among subgroups of Asian American and Pacific Islanders (AAPI) based on the 2020 Home Mortgage Disclosure Act (HMDA) data. In issuing the report the CFPB stated that “[e]xisting studies often portray…
Fannie Mae and Freddie Mac Announce New Uniform Instruments
By Richard J. Andreano, Jr. on
Posted in Mortgages
On July 7, 2021 Fannie Mae and Freddie Mac announced new uniform notes, security instruments and riders. Lenders may begin using the new instruments immediately (Fannie Mae) or for loans originated on or after July 8, 2021 (Freddie Mac), and the new instruments must be used for loans with note dates on or after January…
CFPB issues final COVID-19 mortgage servicing rules
By Reid F. Herlihy on
On June 28, 2021, the CFPB issued its Mortgage Servicing COVID-19 Final Rule (the “Final Rule”). The Final Rule, which amends Regulation X, is effective August 31, 2021, and comes at the same time as certain related updates from other Federal agencies. We discuss those topics, along with an overview of the Final Rule, below.…
Connecticut Department of Banking Issues Order Establishing Remote Office Locations on a Permanent Basis
By Stacey L. Valerio on
Pursuant to the authority set forth in Section 205 of Senate Bill 1202, Connecticut’s Banking Commissioner signed an order that permits individuals engaged in certain licensable activity on behalf of certain consumer credit licensees to work from remote office locations not licensed as branch office locations. The order, available here, extends the previous no-action…
President Biden replaces FHFA Director based on Supreme Court decision—Now what happens?
By Richard J. Andreano, Jr. on
Posted in Mortgages, Regulatory and Enforcement
On June 23, 2021, President Biden replaced the Federal Housing Finance Agency (FHFA) Director Mark Calabria with Acting Director Sandra L. Thompson.
The move was made possible by the decision of the U.S. Supreme Court earlier in the day holding that the FHFA structure is unconstitutional because the Director could be removed by the…
CFPB issues statement on Juneteenth bill Truth in Lending Act issue
By Richard J. Andreano, Jr. on
As previously reported, the bill signed into law by President Biden on June 17, 2021 to create the Juneteenth National Independence Day actually results in an important change under the Truth in Lending Act (TILA) and Regulation Z. There is a specific definition of “business day” under Regulation Z for certain purposes, including the…
Juneteenth bill creates Truth in Lending Act issue
The bill signed into law by President Biden on June 17, 2021 to create the Juneteenth National Independence Day results in an important change under the Truth in Lending Act (TILA) and Regulation Z.
Under TILA and Regulation Z, there are two definitions of “business day.” One definition is “a day on which the creditor’s…
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…
HUD Addresses FHA Loan Eligibility of DACA Recipients and Documentation Requirements For Certain Other Non-Permanent Residents
By Richard J. Andreano, Jr. on
The U.S. Department of Housing and Urban Development (HUD) recently addressed eligibility for FHA mortgage loans for Deferred Action for Childhood Arrival (DACA) recipients in Mortgagee Letter 2021-12. As previously reported, at the end of the Trump administration HUD announced that effective January 19, 2021, individuals who are classified under DACA with the…