Search Results

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

VA Advanced Notice of Proposed Rulemaking on Revising Allowable Charges and Fees Schedule in 38 CFR 36.4313(d)

In the April 13, 2017, issue of the Federal Register (82 FR 17792, click here) the Department of Veterans Affairs (VA) published an advanced notice of proposed rulemaking (ANPR) notifying the public that the VA is currently reviewing its regulations governing the allowable expenses that a veteran may pay or be charged in connection with obtaining a VA-guaranteed home loan, with a request for public comment, including the following questions republished in this memorandum.

Department of Veterans Affairs Issues Policy Clarification Regarding VA’s Non-Allowable Fee Itemization Requirements for Closing Disclosure

On April 11, 2016, the Department of Veterans Affairs (“VA”) issued a circular explaining VA’s fee itemization requirements regarding the Integrated Closing Disclosure (“CD”) for consumer transactions governed by the TILA-RESPA Integrated Disclosure Rule (Circular 26-16-11, click here). The circular requires that, for so-called “non-allowable” fees and charges under 36.4313(d)(2), any credits used to offset such fees must be separately itemized on the CD in the Seller Paid or Paid By Others column.

VA State Foreclosure Timeframes Allowable for Payment of Interest

In the December 4, 2015, issue of the Federal Register (80 FR 75899, click here), the Department of Veterans Affairs (VA) issued a notice concerning the state foreclosure timeframes allowable in the calculation of the maximum interest payable on a foreclosure of a VA-guaranteed loan. The new foreclosure timeframes will be effective for all loan terminations completed on or after January 4, 2016.

Proposed VA ARM Notification Requirements and Look-Back Period

In the January 29, 2015, issue of the Federal Register (80 FR 4812, click here) the Department of Veterans Affairs (VA) published a proposed rule to amend its ARM regulations at 38 CFR 36.4312(d) that, as stated in the proposed rule’s preamble, “would align VA’s disclosure and interest rate adjustment requirements with the implementing regulations of the Truth in Lending Act (TILA), as recently revised by the Consumer Financial Protection Bureau (CFPB). Specifically, the [proposed] rule would amend the timing, content, and format requirements for the disclosures provided to borrowers prior to an interest-rate adjustment. The proposed regulation would also require that an interest-rate adjustment correspond with the interest rate index available 45 days prior to the adjustment.

VA Issues Qualified Mortgage Interim Final Rule for Single Family Mortgages Guaranteed, Insured or Made by VA

In the May 9, 2014, issue of the Federal Register (79 FR 26620), click here, the Department of Veterans Affairs (VA) published an interim final rule defining qualified mortgage to mean any loan guaranteed, insured, or made by VA. The interim final rule establishes that almost all VA loans that meet current underwriting standards will be safe harbor qualified mortgages, but that some streamlined refinances, also known as Interest Rate Reduction Refinance Loans (IRRRLs), will be considered rebuttable presumption qualified mortgages. In the interim final rule VA is also specifying income verification requirements for IRRRLs. The rule does not change VA’s regulations or policies with respect to how lenders are to originate mortgages, except to the extent lenders want to make qualified mortgages.

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.

Article Categories

Join Our Mailing List