In the December 29, 2015 issue of the Federal Register 80 FR 81162, click here), the Office of the Comptroller of the Currency, Treasury (OCC), the Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) published a joint final rule amending their respective Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank,” “small savings association,” “intermediate small bank,” and “intermediate small savings association,” effective January 1, 2016.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
CFPB’s Christmas Gift – Technical Corrections To Regulation Z
In the December 24, 2015 issue of the Federal Register (80 FR 80228, click here) the CFPB published a final rule that makes technical corrections to Regulation Z and its Official Interpretations (12 CFR part 1026). Specifically, this final rule makes the following corrections to reinsert existing regulatory text that was inadvertently deleted from Regulation Z and its commentary:
Asset-size Thresholds Revised for HMDA and TILA
In the December 23, 2015 issue of the Federal Register, the following annually revised asset-size thresholds were published to be effective January 1, 2016: Home Mortgage Disclosure Act (80 FR 79673, click here) The CFPB has revised comment -2 under the definition “Financial institution” in §1003.2 of the Staff Commentary to Regulation C (12 CFR part 1003) to keep the asset-size exemption threshold for banks, savings associations, and credit unions for HMDA data collection in 2016 the same as it was for 2015. Therefore, effective January 1, 2016, banks, savings associations, and credit unions with assets at or below $44 million as of December 31, 2015, are exempt from collecting HMDA data for 2016. (Note: An institution’s exemption from collecting HMDA data in 2016 does not affect its responsibility to report data it was required to collect in 2015.)
CFPB Bulletin 2015-07 – In-Person Collection of Consumer Debt
On December 16, 2015, the Consumer Financial Protection Bureau (CFPB) issued Compliance Bulletin 2015-07 (click here) providing guidance to creditors and others who collect consumer debt about compliance with the UDAAP provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act, §§1031 and 1036, codified at 12 U.S.C. §§5531 and 5536(a)) and the Fair Debt Collection Practices Act (FDCPA, 15 U.S.C. §§1692a – 1692p) while attempting or attempting to collect consumer debts.
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.
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 Implements Supervisory Appeals Policy
On November 3, 2015, the Consumer Financial Protection Bureau (CFPB) posted on its website a written policy implementing a supervisory appeals process (click here) if a supervised entity disagrees with (i) a less than satisfactory compliance rating, (ii) an adverse finding in an examination report, or (iii) an adverse finding in a supervisory letter.
CFPB Compliance Bulletin 2015-05– Marketing Services Agreements
On October 8, 2015, the Consumer Financial Protection Bureau (CFPB) issued Compliance Bulletin 2015-05 (Bulletin, click here) regarding Marketing Services Agreements (MSA). The purpose of the Bulletin is to advise the mortgage lending industry of the substantial risks posed by entering into MSAs and, based on the CFPB’s investigative efforts, that it appears many MSAs are designed to evade the RESPA prohibition on the payment and acceptance of kickbacks and referral fees. The Bulletin provides an overview of the RESPA prohibition on mortgage kickbacks and referral fees, and describes examples from the CFPB’s enforcement experience as well as the risks faced by lenders entering into MSAs.