The following excerpts are taken from the CFPB’s Summer 2018 edition of its Supervisory Highlights published in the October 18,...
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
7 TAC Chapters 80 and 81 – Texas Residential Mortgage Loan Companies
Effective January 7, 2018, the Finance Commission of Texas on behalf of the Department of Savings and Mortgage Lending revised the definition of “physical office” for residential mortgage loan companies and mortgage bankers, as follows:
Regulation Z Dollar Threshold For Exempt Consumer Transactions
In the November 27, 2015, issue of the Federal Register (80 FR 73947, click here), the Consumer Financial Protection Bureau (CFPB) and Federal Reserve Board (FRB) issued a final rule that the threshold for exempting consumer loans from Regulation Z during 2016 will remain $54,600.
Higher-Priced Mortgage Loan Appraisal Exemption For Smaller Loans
In the November 27, 2015, issue of the Federal Register (80 FR 73943, click here), the Consumer Financial Protection Bureau (CFPB), Federal Reserve Board (FRB), and Office of the Comptroller of the Currency (OCC) issued a final rule that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2016 will remain $25,500.
CFPB Bulletin 2015-06 – Guidance on Preauthorized EFTs
On November 23, 2015, the Consumer Financial Protection Bureau (CFPB) issued Compliance Bulletin 2015-06 (click here) providing guidance on the requirements of the Electronic Fund Transfer Act (EFTA) and is implementing Regulation E (12 CFR §1005.1, et seq.) when obtaining consumer authorization for preauthorized electronic fund transfers (ETFs) from a consumer’s account. One of the primary objectives of the EFTA and Regulation E is the protection of individual consumers engaging in EFTs. The CFPB is authorized, subject to certain exceptions, to enforce the EFTA and Regulation E against any person subject to the EFTA and Regulation E. This impacts mortgage lending because many lenders and their servicers solicit and obtain authorization from consumers for payment of mortgage loans by preauthorized EFTs.
CFPB Bulletin 2014-01 – Compliance Bulletin and Policy Guidance for Mortgage Servicing Transfers
On August 19, 2014, the CFPB issued the above referenced bulletin (click here) updating and replacing similar guidance by the CFPB in Bulletin 2013-01 issued prior to RESPA’s new servicing rule that took effect on January 10, 2014 (12 CFR §1024.30, et seq.).
CFPB Examiners Find Mortgage Servicing Problems at Banks and Nonbanks
In a July 21, 2013, press release the Consumer Financial Protection Bureau (CFPB) stated it issued a report of even date detailing mortgage servicing problems at banks and nonbanks, which also found that many nonbanks lack robust systems for ensuring they are following federal laws. Below are redacted excerpts from the CFPB press release: 1. The report is available at: http://files.consumerfinance.gov/f/201308_cfpb_supervisory-highlights_august.pdf.
CFPB Bulletin 2013-01 – Mortgage Servicing Transfers
On February 11, 2013, the CFPB issued the above referenced bulletin providing guidance to residential mortgage servicers and subservicers to address potential risks to consumers that may arise in connection with transfers of servicing. A related CFPB press release states, “the CFPB will make servicing transfer-related problems a focus of its supervisory activities. If servicers are not fulfilling their obligations under the law, the CFPB will take appropriate actions to address these violations and seek all appropriate corrective measures, including remediation of harm to consumers.”
Federal Regulators Issue Joint “Guidance” for Mortgage Servicer Practices impacting Military Homeowners with Permanent Change of Station Orders
On June 21, 2012, The Consumer Financial Protection Bureau, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (herein “regulators”) issued a joint guidance entitled “Interagency Guidance on Mortgage Servicing Practices Concerning Military Homeowners with Permanent Change of Station Orders” (herein Guidance”) to addresses risks related to military homeowners who have informed their loan servicer that they have received Permanent Change of Station (PCS) orders and who might seek assistance with their mortgage loans.
New Payoff Statement Rules Adopted by Texas Finance Commission
In the December 30, 2011 issue of the Texas Register (Vol. 36, No. 52) the Finance Commission of Texas (“Commission”) adopts the following Payoff Statement Rules (new 7 TAC Chapter 155) pursuant to the requirements of Section 343.106, Texas Finance Code, enacted by House Bill 558 in the 2011 regular session of the Texas Legislature (see our prior memorandums on House Bill 558 and the Commission’s proposed payoff statement rules dated August 15, 2011, and November 4, 2011, respectively). The Rules are effective January 8, 2012, except as noted on page 2 hereof: