In the January 29, 2015, issue of the Federal Register (80 FR 4812, click here) 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.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
CFPB Bulletin 2015-01 – Treatment of Confidential Supervisory Information
On January 27, 2015, the CFPB issued Bulletin 2015-01 as a reminder that, with limited exceptions, persons in possession of confidential supervisory information (CSI) are prohibited from disclosing CSI to third parties. To view and/or print the bulletin in full, click this hyperlink. Below is a redaction of the main points of the bulletin:
Annual FHA MIP Reduction Memo (ML 2015-01)
Effective for case numbers assigned on or after January 26, 2015, FHA Mortgage Letter 2015-01 (ML 2015-01) reduces annual MIP rates for FHA Title II forward mortgages and provides FHA lenders the opportunity for cancellation of existing case numbers in order to utilize the MIP rates contained in ML 2015-01.
TILA-RESPA Integrated Disclosures Rule Amendments
Effective August 1, 2015, the Consumer Financial Protection Bureau (CFPB) issued a final rule (click here), amending the TILA-RESPA Integrated Disclosures Rule to (i) extend the time requirement for a revised Loan Estimate when the consumer locks an interest rate after the initial Loan Estimate and (ii) permit language on the Loan Estimate informing borrowers of a revised Loan Estimate for a construction loan that is expected to take more than 60 days to settle. The final rule also amends the TILA Loan Originator Rule to require the loan originator names and NMLSR IDs on the Loan Estimate and the Closing Disclosure. Additionally, the final rule makes non-substantive corrections, including citation and cross-reference updates, and wording changes for clarification purposes, to various provisions of Regulations X and Z as amended or adopted by the TILA-RESPA Integrated Disclosures Rule.
Higher-Priced Mortgage Loan Appraisal Exemption Loan Threshold Adjustment
In the December 30, 2014, issue of the Federal Register (79 FR 78296), the CFPB, FRB and OCC adjusted the loan threshold exemption from the higher-priced mortgage loan appraisal rules. This adjusted loan threshold amount for exemption from the appraisal requirements for higher-priced mortgage loans is raised to $25,500 effective January 1, 2015, and is found in the official staff interpretations for the above Federal agencies respective regulations, as follows:
Texas Home Equity Lending – Amendments to Home Equity Lending Interpretations, §§153.1, 153.5, 153.15 and 153.51, Effective January 1, 2015
In the December 26, 2014, issue of the Texas Register (Volume 39 Number 52), the Finance Commission of Texas and the Texas Credit Union Commission (“commissions”) jointly adopted amendments to the following home equity lending interpretations in the Texas Administrative Code (7 TAC Chapter 153) without changes to the proposed amendments published for comment in the July 4, 2014, issue of the Texas Register (Volume 39 Number 27). The text of the adopted amended interpretations is set out below. To compare the pre-and-post-amended interpretations, please see the July 8, 2014 memorandum on the firm’s website.
Asset-size Thresholds Revised for CRA, HMDA and TILA
In the December 29, 2014 issue of the Federal Register, the following annually revised asset-size thresholds were published to be effective January 1, 2015:
NCUA Revises 12 CFR §§701.31 (Application) and 722.3 (Appraisals)
In the December 19, 2014 issue of the Federal Register (79 FR 75746) the National Credit Union Administration (NCUA) published a final rule, effective January 20, 2015, revising the definition of the term “application” in §701.31 and two appraisal requirements in §701.31(c)(5) and §722.3(a)(5), respectively. Effective January 20, 2015, the revised regulations will read as follows (note: deletions are in brackets and additions are underlined):
FDIC Integrates and Amends Flood Insurance Regulations for State Nonmember Banks and State Savings Associations
In the December 19, 2014 issue of the Federal Register (79 FR 75742) the Federal Deposit Insurance Corporation (FDIC), as the “appropriate Federal banking agency” for State nonmember banks and State savings associations, published a final rule integrating and amending its flood insurance regulations by removing and rescinding 12 CFR part 391, subpart D, which applies to State savings associations, and amending 12 CFR part 339 to include State savings associations. Thus, the amended flood insurance regulations in 12 CFR part 339 (§§339.1 through 339.10 and Appendix A) will apply to both State nonmember banks and State savings associations, effective January 20, 2015.
Mortgagee Letter 2014-25 – 2015 Maximum Loan Limits
On December 5, 2014, FHA published the above Mortgagee Letter (click here) that provides notice of FHA’s single family housing loan limits for Title II forward mortgages and home equity conversion mortgages (HECMs) effective for case numbers assigned on or after January 1, 2015. Below is a brief summary of ML 2014-25: