H.R. 3211, which amends the Truth in Lending Act’s definition of “points and fees,” was passed by a voice vote in the House of Representatives on June 9, 2014.  

The “points and fees” definition is used to determine whether a mortgage loan triggers application of the TILA high-cost mortgage loan provisions under the points and fees test, and whether a loan satisfies the points and fees limitation to be a qualified mortgage loan under the TILA ability to repay provisions. … Continue Reading

On May 9, 2014, the Department of Veterans Affairs (VA) issued an interim final rule defining a qualified mortgage (QM) for VA insured and guaranteed loans.  Under the proposed rule, all purchase money origination loans and refinances other than certain interest rate reduction refinance loans (IRRRL) guaranteed or insured by the VA are defined as safe harbor QM loans. … Continue Reading

The House Financial Services Committee has announced that on Tuesday, January 14, it will hold a hearing entitled “How Prospective and Current Homeowners Will Be Harmed by the CFPB’s Qualified Mortgage Rule.” 

The witnesses scheduled to appear are: (1) Jack Hartings, President and Chief Executive Officer, The Peoples Bank Co., on behalf of the Independent Community Bankers of America, (2) Bill Emerson, Chief Executive Officer, Quicken Loans, Inc.,… Continue Reading

With the January 10 effective date imminent, the CFPB has issued what it labels a “fact vs. fiction guide” on its ability-to-repay/qualified mortgage rule.  According to the CFPB, the guide is intended “to help dispel some of the most common misconceptions about what this new rule actually means for consumers.”  … Continue Reading

Last week, the CFPB announced that it has launched “a campaign to educate the public about the new protections provided by the Bureau’s mortgage rules.”   Consumers could, however, misinterpret the CFPB’s message as an encouragement to sue. 

The CFPB’s campaign consists of various educational materials. Among these materials is a factsheet on the new rules. … Continue Reading

The Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the National Credit Union Administration, and the Office of the Comptroller of the Currency (the “Prudential Regulators”) have issued an Interagency Statement on Supervisory Approach for Qualified and Non-Qualified Mortgage Loans (the “Interagency Statement”). In anticipation of the January 10, 2014 effective date of the CFPB’s Ability to Repay and Qualified Mortgage (“QM”) Standards Rule (the “Rule”), the Interagency Statement seeks to clarify the Prudential Regulators’ safety and soundness and CRA expectations.… Continue Reading

On December 4, the Fed will be holding a webinar on small creditor qualified mortgages.  Presenters from the CFPB will discuss the Bureau’s ability-to-repay/QM rule and address the rule’s provisions directed at small creditors.  The webinar is free and more information and a link to register is available here.… Continue Reading

The CFPB was one of five federal regulators issuing an interagency statement intended to address industry concerns regarding the fair lending risks associated with compliance with the CFPB’s ability-to-repay/qualified mortgage (QM) final rule.  In addition to the CFPB, the other regulators issuing the statement were the OCC, Fed, FDIC and NCUA. … Continue Reading

Federal regulators have issued their long-awaited revised qualified residential mortgage (QRM) proposal.  The proposal, which implements Section 941 of the Dodd-Frank Act, was issued jointly by the FDIC, Fed, OCC, SEC and, with respect to portions addressing residential mortgages, the FHFA and HUD (Agencies).  

Section 941 generally requires the retention by the sponsor of not less than 5% of the credit risk of assets that collateralize asset-backed securities (ABS). … Continue Reading

The House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit has scheduled a hearing for tomorrow, May 21, on “Qualified Mortgages: Examining the Impact of the Ability to Repay Rule.” 

There will be one panel consisting of two witnesses from the CFPB.  The CFPB officials scheduled to appear are Peter Carroll, Assistant Director for Mortgage Markets, and Kelly Cochran, Assistant Director for Regulations.… Continue Reading