This legislative update summarizes the bills and one proposed constitutional amendment that we consider of interest to our clients, listed in order of importance and not when effective. The effective dates are noted in the applicable summary.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
VA Final Rule – ARM Notification Requirements and Look-Back Period
Recall that in the January 29, 2015, issue of the Federal Register (80 FR 4812) 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.” See the firm’s January 29, 2015 memorandum discussing this.
CFPB Bulletin 2015-03, PMI Cancellation and Termination Guidance
On August 4, 2015, the Consumer Financial Protection Bureau (CFPB) issued Compliance Bulletin 2015-03 (click here) to provide guidance regarding the cancellation and termination of private mortgage insurance (PMI) pursuant to the Homeowners Protection Act of 1998 codified in 12 USC 4901 et seq.(HPA), which was passed by Congress to address difficulties borrowers encountered in cancelling PMI when they had reached a certain level of equity in the property. The HPA provides specific cancellation and termination rights for borrowers and requirements that must be followed.
TRID Rule Amendments Delay Effective Date to October 3, 2015, and Make Technical Corrections
As you are aware, on July 21, 2015, the CFPB issued a final rule delaying the effective date of the TRID Rule until October 3, 2015. In today’s Federal Register (80 FR 43911, click here) the CFPB published the final rule delaying the TRID Rule’s effective date to October 3, 2015, amending the applicable sections of the Official Interpretations in Supplement I to Regulation Z to reflect the new effective date of October 3, 2015, and to make technical corrections to §1026.38 of the TRID Rule, as more fully noted below.
Loans in Special Flood Hazard Areas – Joint Final Rule
In the July 21, 2015, issue of the Federal Register (80 FR 43216, click here), the Federal Reserve Board (FRB), the Farm Credit Administration (FCA), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA), and the Office of the Comptroller of the Currency (OCC) issued a joint final rule that amends their respective regulations that apply to loans secured by properties located in special flood hazard areas. The joint final rule implements provisions of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA) relating to the escrowing of flood insurance payments and the exemption of certain detached structures from the mandatory flood insurance purchase requirement. The joint final rule also implements provisions in the Biggert-Waters Flood Insurance Reform Act of 2012 (the Biggert-Waters Act) relating to the force placement of flood insurance. Although the above agencies’ regulations, as amended by the joint final rule, are substantively consistent, the format of the regulatory text varies to conform to each agency’s current regulation.
Proposed Rule Minimum Wage and Overtime Pay Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees
In today’s issue of the Federal Register (80 FR 38516, click here) the Wage and Hour Division of the Department of Labor (DOL) published a proposed rule to update and revise the regulations implementing the exemption from minimum wage and overtime pay for executive, administrative, professional, outside sales, and computer employees.
TRID Rule – Proposed Amendments To Delay Effective Date
As you are aware, the CFPB announced on June 24, 2015, that it would delay the effective date of the TRID Rule until October 3, 2015, by publishing proposed amendments in the Federal Register. In today’s Federal Register (80 FR 36727, click here) the CFPB published proposed amendments to the applicable sections of the Official Interpretations in Supplement I to Regulation Z to delay the TRID Rule’s effective date to October 3, 2015, and to make other conforming changes, as more fully noted below in this memorandum.
CFPB Proposes Additional delay of TRID Rule to October 3, 2015
Today, the Consumer Financial Protection Bureau issued a Proposed Rule to further delay the effective date of the TRID Rule from October 1, 2015 as originally announced last week, to October 3, 2015. The CFPB selected Saturday, October 3rd, instead of Thursday, October 1st, to allow for a smoother implementation by allowing the industry time over the weekend to launch and test their systems. The CFPB also said that a Saturday launch is consistent with the original plan to implement TRID on Saturday, August 1st.
CFPB Statement on Know Before You Owe Delay
Today, Consumer Financial Protection Bureau (CFPB) Director Richard Cordray issued the following statement on the Know Before You Owe mortgage disclosure rule:
Diversity Policies and Practices – Federal Interagency Policy Statement
In the June 10, 2015, issue of the Federal Register (80 FR 33016, click here) the Federal Reserve Board (FRB), Bureau of Consumer Financial Protection (CFPB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), Office of the Comptroller of the Currency (OCC) and Securities and Exchange Commission (SEC) published an interagency policy statement establishing joint standards for assessing the diversity policies and practices of the entities they regulate (the “Policy Statement”). The Policy Statement is effective as of June 10, 2015, and applies to all entities regulated by any one of the above named federal agencies. The Policy Statement begins on page 33022 of the above cited Federal Register.