The Department of Veterans Affairs recently issued VA Circular 26-15-6, click here, regarding itemization of certain charges and credits disclosed on the HUD-1. In addition to the clarifications and requirements in the body of VA Circular 26-15-6, it also contains four examples attached as Exhibit A, Exhibit B, Exhibit C, and Exhibit D, respectively – to view or print an Exhibit, click on the appropriate Exhibit hyperlink above. VA Circular 26-15-6 is effective for all loans closed on or after May 1, 2015.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
CFPB Bulletin 2015-02: Discriminatory Lending Concerning Income Received Under Section 8 Housing Choice Voucher Homeownership Program
On May 11, 2015, the CFPB issued Bulletin 2015-02 (click here) to advise lenders regarding illegal discrimination against applicants that use income from the Section 8 Housing Choice Voucher Homeownership Program (“Section 8 HCV Program”), which was created to assist low-income, first-time homebuyers in purchasing homes.
CFPB Issues Revised Interpretive Rule For Homeownership Counseling Organizations Lists and High-Cost Mortgage Counseling
In the April 21, 2015, Federal Register (80 FR 22091, click here) the Consumer Financial Protection Bureau (CFPB) reissued its 2013 interpretive rule regarding the provision of lists of HUD-approved housing counseling agencies to mortgage loan applicants. The revised interpretive rule substantively restates the guidance in the 2013 interpretive rule and adds further guidance to address additional questions that have been raised since the issuance of the 2013 interpretative rule. The 2013 interpretive rule and its companion Bulletin 2013-13 were the subject of our November 19, 2013 memorandum. We recommend that you read the CFPB’s revised interpretative rule in conjunction with our November 19, 2013 memorandum, click here.
New RESPA Settlement Cost Booklet for TRID Transactions
In the April 1, 2015, issue of the Federal Register (80 FR 17414, click here) and in a March 31, 2015, press release (click here), the Consumer Financial Protection Bureau (CFPB) published a new RESPA-required settlement cost booklet titled “Your Home Loan Toolkit: A Step-by-Step Guide” (Booklet) for use with the new TILA and RESPA integrated disclosures (TRID) effective for applications received on or after August 1, 2015.
Loan Officer Overtime Pay Requirements Decided by U.S. Supreme Court
In an opinion issued March 9, 2015, in Perez v. Mortgage Bankers Ass’n, 2015 WL 998535 (U.S. Mar 09, 2015), click here, the United States Supreme Court provided an answer to the ongoing dispute between the mortgage banking industry and the U.S. Labor Department (DOL) regarding the status of mortgage loan officers under federal labor law for minimum wage and overtime compensation requirements.
Texas Home Equity Lending – 2015 Update
This memorandum will provide an overview of home equity lending embodied in Article XVI, Section 50, of the Texas Constitution and will also discuss some of the issues lenders face. The full text of Section 50, current to date, is attached to this memorandum (for ease of reference, the home equity and HELOC provisions are highlighted in bold typeface). All references to “sections,” “subsections,” and “parts” in this memorandum refer to the various provisions of Section 50, unless otherwise stated.
Rural Housing Service Issues Qualified Mortgage Proposed Rule
In the March 5, 2015, issue of the Federal Register (80 FR 11950, click here) the Rural Housing Service (RHS) issued a proposed rule to amend its Single Family Housing Guaranteed Loan Program regulations in 7 CFR Part 3555 to provide that a loan guaranteed by RHS is a Qualified Mortgage if it meets certain requirements set forth in 12 CFR 1026.43(e) of Regulation Z. The proposed rule amends §3555.10 by adding a “Qualified mortgage” definition and by adding new §3555.109 providing for an RHS qualified mortgage, as set forth below:
TILA-RESPA Integrated Disclosures Rule Amendments
In the February 19, 2015 Federal Register (80 FR 8767) the Consumer Financial Protection Bureau (CFPB) published a final rule (click here) making the following amendments to the TILA-RESPA Integrated Disclosures Rule: (1) an extension to the timing requirement for providing a revised Loan Estimate when the consumer locks a rate after the initial Loan Estimate is provided; and (2) an amendment to permit language related to new construction loans to be included on the Loan Estimate:
FHA Qualified Mortgage 2015 Points and Fees Adjustments
In the February 17, 2015 issue of the Federal Register (80 FR 8243, click here) the Department of Housing and Urban Development (HUD) announced the 2015 points and fees threshold for FHA qualified mortgages by adopting the Consumer Financial Protection Bureau’s August 14, 2014 final rule amending the qualified mortgage points and fees limit for 2015 (see our August 19, 2014 memorandum, click here).
Proposed Amendments to “Small Creditors” and “Rural” or “Underserved Areas” under Regulation Z
Our January 30, 2015, memorandum is hereby revised to reflect that on February 11, 2015, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register (80 FR 7770) a proposed rule (click here) to amend §1026.35 (Higher-Priced Mortgage Loans), §1026.43 (Ability to Repay/Qualified Mortgage) and their Official Interpretations in Regulation Z to facilitate lending by small creditors, particularly in rural and underserved areas.