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.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
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.
VA Maximum Guaranty Limits for August 6 to December 31, 2012
The United States Department of Veterans Affairs (VA) has posted on its website at http://www.benefits.va.gov/homeloans/docs/loan_limits_august_2012.pdf a notice of change in the VA maximum guaranty limits for August 6, 2012 to December 31, 2012.
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.
Department of Veterans Affairs Uniform Appraisal Dataset Appraisal Reports
For clients who originate or purchase VA loans, below is the text of the October 21, 2011, VA memorandum by Gloria H. Pointer, Valuation Officer in the Houston Regional Loan Center, announcing the adoption of Uniform Appraisal Dataset (UAD) compliant appraisal reports for VA Loan Guaranty Programs.