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This is to advise that on October 6, 2015, Fannie Mae issued LL-2015-06, click here, advising lenders of Fannie Mae’s current policy regarding TRID noncompliance in connection with loans sold or assigned to Fannie Mae:

As you are aware, the TRID Rule will take effect on October 3. Among the new requirements, §1026.19(e)(2)(ii) of Regulation Z will require a disclaimer “[i]f a creditor or other person provides a consumer with a written estimate of terms or costs specific to that consumer” before the consumer receives the loan estimate. Recall that a loan estimate cannot be issued until the customer has submitted an application as defined by §1026.3(ii) of Regulation Z, which consists of the customer’s name, income, social security number, property address, estimated property value, and loan amount sought. The disclaimer must clearly and conspicuously state at the top of the written estimate in 12-point or larger font: “Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.”

In the September 22, 2015, issue of the Federal Register (80 FR 57154) the Consumer Financial Protection Bureau (CFPB) published notice of the availability of its Spanish-language translation of the settlement cost booklet, Your home loan toolkit, which will replace the current settlement cost booklet when the TILA-RESPA Integrated Disclosure Rule (TRID Rule) goes into effect for loan applications received on or after October 3, 2015. This new booklet is designed to be used in connection with the new Loan Estimate and Closing Disclosure forms required by the TRID Rule. The CFPB previously published notice of the availability of the English-language version of this new booklet in the April 1, 2015, issue of the Federal Register (80 FR 17414).

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.

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.

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.

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.