Search Results

Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.

CFPB Issues Qualified Mortgage Points and Fees Cure Amendments

As a follow-up to our May 6, 2014, memorandum on the CFPB’s proposed rule to add a cure provision to the qualified mortgage points and fees limitation in §1026.43(e)(3) of Regulation Z, this is to inform you that on October 22, 2014, the CFPB issued a final rule to that effect (click here). This final rule will be published in the Federal Register in the near future and will become effective on the date(s) set out therein. We will update this memorandum on our website when the final rule is published in the Federal Register to advise you of that fact and of the final rule’s effective date(s).

Ability-to-Repay Interpretive Rule Issued by CFPB – Loan Assumption

On July 8, 2014, the CFPB issued an interpretive rule (click here) clarifying that when a person (“successor”) who has previously acquired title to the successor’s principal dwelling subsequently agrees to be added as obligor or substituted for the existing obligor on a consumer credit transaction secured by that dwelling (“loan”), the creditor’s written acknowledgement of the successor as obligor is not subject to the Ability-to-Repay Rule (ATR Rule) in §1026.43 of Regulation Z because that transaction is not an assumption as defined by §1026.20(b) of Regulation Z.

CFPB Publishes Qualified Mortgage Points and Fees Proposed Amendments in May 6, 2014

As a follow-up to our April 30, 2014, memorandum (click here) notifying you of the CFPB’s proposed rule to add a cure provision to the qualified mortgage points and fees limitation in §1026.43(e)(3) of Regulation Z, this is to inform you that the CFPB has now published this proposed rule for public comment in the May 6, 2014, issue of the Federal Register (click here). The text of the proposed amendments and their proposed official interpretations are set out below:

CFPB Issues Proposed Amendments to Qualified Mortgage Points and Fees

Today the CFPB issued proposed amendments to the Qualified Mortgage points and fees requirement in §1026.43(e)(3) to permit, under limited circumstances, the refunding of excess points and fees within 120 days after closing in order for the loan to meet this Qualified Mortgage requirement (click here). Once the proposal is published in the Federal Register, we will advise you by subsequent memorandum so that you will be able to submit comments on it to the CFPB.

Interagency Statement on Fair Lending Compliance and the Ability-to-Repay/Qualified Mortgage Rule

On October 22, 2013, the CFPB, FDIC, FRB, NCUA, and OCC (“Agencies”) issued a statement (“Interagency Statement”) to address questions from residential mortgage lenders about disparate impact doctrine risks associated with offering only Qualified Mortgages under the new Ability-to-Repay and Qualified Mortgage Rule issued by the CFPB (“Ability-to-Repay Rule”).

HUD Issues Proposed Ability-To-Repay Qualified Mortgage Definition for Single Family Mortgages Insured and Guaranteed by HUD

In the September 30, 2013 issue of the Federal Register (78 FR 59890), click here, the Department of Housing and Urban Development (HUD) published a proposed rule that submits for public comment its definition of “qualified mortgage” for the types of loans that HUD insures, guarantees, or administers that aligns with the ability-to-repay criteria of the CFPB’s definition of “qualified mortgage” in its final rule. In this proposed rulemaking, HUD proposes that any forward single family mortgage insured or guaranteed by HUD shall meet the criteria of a qualified mortgage, as defined in the proposed rule, and HUD seeks comment on all components of its definition.

Article Categories

Join Our Mailing List