As previously reported, the Economic Growth, Regulatory Relief, and Consumer Protection Act (Growth Act), also known as S.2155, directs the CFPB to implement an exemption from the mandatory escrow account requirement for higher-priced mortgage loans (HPMLs) under the Truth in Lending Act (TILA) and Regulation Z for certain insured credit unions and insured depository
Mortgages
CFPB Proposes Temporary Extension of the GSE Patch and Revised Approach to the General Qualified Mortgage
By Richard J. Andreano, Jr. on
The CFPB recently proposed a temporary extension of the qualified mortgage (QM) that is based on a loan being eligible for sale to Fannie Mae or Freddie Mac (often referred to as the “GSE Patch”). The CFPB also proposed to replace the strict 43% debt-to-income (DTI) ratio basis for the general QM with an approach…
CFPB Publishes Interpretive Rule Changing HMDA Fields Used to Identify “Underserved” Areas
By Amanda E. Phillips on
On June 23, 2020, the CFPB published a new interpretive rule (the “Interpretive Rule”) to update the Home Mortgage Disclosure Act (HMDA) data fields that are used to identify “underserved” areas. Certain provisions of Regulation Z, that apply to creditors doing business in “rural or underserved” areas, look to the HMDA-based identification of “underserved” areas…
FFIEC Announces Release of 2019 HMDA Data
By Richard J. Andreano, Jr. on
On June 24, 2020, the Federal Financial Institutions Examination Council (FFIEC) announced the release of the 2019 Home Mortgage Disclosure Act (HMDA) data. This is early. In recent years the data were released in August or September, although the 2017 data were released in May. 2019 is the second year for which institutions were required…
CFPB Publishes TRID FAQ’s and a Factsheet on Treatment of Title Insurance Premiums
By Amanda E. Phillips on
On June 9, 2020, the CFPB published four new TRID FAQ’s and a TRID Factsheet (“Factsheet”). While the Factsheet is focused solely on the handling of title insurance disclosures under the rule, the FAQ’s cover various topics, including the separation of data when using separate Closing Disclosures for the consumer and the seller, the Total…
CFPB proposes Regulation Z changes to address discontinuation of LIBOR index; Ballard Spahr to hold July 14 webinar
By John L. Culhane, Jr. on
The CFPB has proposed amendments to Regulation Z to address the discontinuation of the London Inter-Bank Offered Rate (LIBOR) that is currently used by many creditors as the index for calculating the interest rate on credit cards and other variable-rate consumer credit products. In 2017, the United Kingdom’s Financial Conduct Authority, the regulator that oversees…
CFPB Issues Updated CHARM Booklet
By Richard J. Andreano, Jr. on
The CFPB recently announced the availability of an updated Consumer Handbook on Adjustable Rate Mortgages, often referred to as the “CHARM booklet.” The Federal Register notice regarding the public availability of the updated booklet is available here.
The biggest difference in the updated booklet is its size. The prior version issued in 2014…
This week’s podcast: The CFPB’s Loan Originator Rule’s compensation provisions: assessing compliance risk
By Barbara S. Mishkin on
We look at why compliance with the compensation provisions remains a high risk area for the mortgage industry. Discussion topics include how the Bureau identifies violations, litigation and enforcement liability, secondary market considerations, the Bureau’s increasing enforcement activity, and the areas likely to be revisited by the Bureau in proposed revisions to the compensation provisions.…
CFPB Updates HMDA Small Entity Compliance Guide
By Richard J. Andreano, Jr. on
As previously reported, in April 2020 the CFPB released a final rule to increase the threshold to report closed-end mortgage loans under the Home Mortgage Disclosure Act (HMDA) from 25 to 100 originated loans in each of the prior two years, and to increase the permanent threshold to report dwelling-secured open-end lines of credit…
CFPB Revises Confusing ECOA Valuations Rule Factsheet
By Richard J. Andreano, Jr. on
Posted in CFPB General, Mortgages
As previously reported, at the end of April 2020, the CFPB issued two factsheets regarding the Equal Credit Opportunity Act (ECOA) and Regulation B provisions that require creditors to provide the applicant with a copy of any written appraisal or other valuation developed in connection with an application for a first lien mortgage loan…