The U.S. Department of Treasury recently issued the long-awaited Housing Reform Plan, and among various topics the Plan addresses the temporary qualified mortgage under the Regulation Z ability-to-repay rule for loans that are eligible for sale to Fannie Mae or Freddie Mac (the GSEs). The Department concurs with the position of the CFPB, set forth in its outstanding advance notice of proposed rulemaking on the ability-to-repay rule, that the temporary qualified mortgage, often referred to as the GSE patch, should expire as scheduled on January 10, 2021, or after a short extension of the sunset date.… Continue Reading
Mortgages
CFPB Updates HMDA Webinars and Issues New HMDA Webinar
By Richard J. Andreano, Jr. on
The CFPB recently updated two prior Home Mortgage Disclosure Act (HMDA) webinars to reflect amendments to HMDA made by the Economic Growth, Regulatory Relief, and Consumer Protection Act, and the interpretive and procedural rule issued by the CFPB last year. We previously reported on the amendments and the interpretive and procedural rule.… Continue Reading
2018 HMDA Data Released
By Richard J. Andreano, Jr. on
The Federal Financial Institutions Examination Counsel (FFIEC) recently announced the release of 2018 Home Mortgage Disclosure Act (HMDA) data. Calendar year 2018 is the first year that financial institutions reported mortgage loan information based on the significantly expanded HMDA data categories.
In addition to the data, two articles were released. One article addresses the new and revised data points in the 2018 HMDA data, and provides initial observations about the nation’s mortgage market in 2018 based on the new or revised data points.… Continue Reading
HUD publishes proposed revisions to disparate impact rule
HUD’s proposed revisions to its disparate impact rule were published in today’s Federal Register. Comments on the proposal are due on or before October 18, 2019.
Originally adopted in 2013, the rule sets forth the requirements for HUD or a private plaintiff to establish liability under the Fair Housing Act for discriminatory practices based on disparate impact even if there is no discriminatory intent. … Continue Reading
HUD Throws in the Towel on Down Payment Assistance Revisions
By Richard J. Andreano, Jr. on
We have reported on the attempt by the U.S. Department of Housing and Urban Development (HUD) to impose new documentation requirements for down payment assistance provided by government entities to be used in connection with Federal Housing Administration (FHA) insured mortgage loans. For now, those efforts have come to an end.… Continue Reading
Proposed changes to HUD disparate impact rule would create new burden-shifting framework to reflect Inclusive Communities
By Richard J. Andreano, Jr. on
The Department of Housing and Urban Development is expected to soon release proposed revisions to its 2013 rule under which HUD or a private plaintiff can establish liability under the Fair Housing Act (FHA) for discriminatory practices based on disparate impact even if there is no discriminatory intent (Rule). The proposal has been submitted to Congress for review pursuant to the Congressional Review Act. … Continue Reading
CFPB Updates TRID Rule FAQs to Address Providing a Loan Estimate to Consumers
By Richard J. Andreano, Jr. on
The CFPB recently updated the TRID rule FAQs to address questions about providing a Loan Estimate to consumers. The FAQs mostly confirm guidance previously provided by the CFPB in various forms.
The FAQs focus on the obligation of a creditor to issue a Loan Estimate once the consumer submits the six items of information specified in the definition of “application” applicable to the TRID rule.… Continue Reading
HUD Reduces Maximum LTV for FHA Cash-Out Refinance Loans
By Richard J. Andreano, Jr. on
In Mortgagee Letter 2019-11, the U.S. Department of Housing and Urban Development (HUD) announced that it is reducing the maximum loan-to-value ratio and combined maximum loan-to-value ratio on cash-out refinance mortgages from 85% to 80%. The change is effective for case numbers assigned on or after September 1, 2019. The limitation will apply to the property’s adjusted value, as determined under HUD guidelines.… Continue Reading
CFPB Reopens HMDA Proposed Rule Comment Period
By Richard J. Andreano, Jr. on
The CFPB recently announced that it is reopening the comment period for the May 2019 Home Mortgage Disclosure Act (HMDA) rule proposal. Comments on certain aspects of the proposal, addressed below, are due by October 15, 2019.
The CFPB notes that later this summer the national loan level dataset for 2018 and the CFPB’s annual overview of residential mortgage lending based on that data (collectively, the “2018 HMDA Data”) will be released, and that stakeholders have asked to submit comments on the May 2019 proposal based on the 2018 HMDA Data.… Continue Reading
CFPB Seeks Comment on Replacing Temporary GSE Patch Under Ability to Repay Rule
By Richard J. Andreano, Jr. on
The CFPB recently issued an advance notice of proposed rulemaking (ANPR) requesting comments on how to revise the qualified mortgage (QM) provisions of the Regulation Z ability to repay rule in view of the impending expiration of the temporary QM for loans that meet the statutory QM criteria and are eligible for purchase or guaranty by Fannie Mae or Freddie Mac.… Continue Reading