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). Although substantially similar to the proposed rule’s cure provisions, the final rule contains the following modifications: • Sunsets the cure provision, so that the cure will not be available for transactions consummated after January 10, 2021. • Eliminates the condition that the creditor originate the loan in “good faith” as a qualified mortgage.
