In the August 26, 2014, Federal Register (79 FR 50835), the Federal Housing Administration (FHA) published a final rule (click here) that effective for FHA-insured mortgages closing on or after January 21, 2015, revises FHA’s regulations to prohibit an FHA approved mortgagee from charging the mortgagor interest through the end of the month in which the mortgage is being prepaid, allowing them instead to charge interest only through the date the mortgage is prepaid, and prohibits the charging of interest beyond that date.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
CFPB Publishes HMDA Proposed Amendments in Federal Register
In the August 29, 2014 issue of the Federal Register (click here) the CFPB published for public comment a proposed rule to amend Regulation C (12 CFR Part 1003) to implement amendments to the Home Mortgage Disclosure Act (HMDA) made by section 1094 of the Dodd-Frank Act. The rule proposes to add several new reporting requirements, to clarify several existing requirements, and to change institutional and transactional coverage.
CFPB Bulletin 2014-01 – Compliance Bulletin and Policy Guidance for Mortgage Servicing Transfers
On August 19, 2014, the CFPB issued the above referenced bulletin (click here) updating and replacing similar guidance by the CFPB in Bulletin 2013-01 issued prior to RESPA’s new servicing rule that took effect on January 10, 2014 (12 CFR §1024.30, et seq.).
Regulation Z HOEPA and Qualified Mortgage Annual Threshold Adjustments
In the August 15, 2014 issue of the Federal Register (79 FR 48015), the Consumer Financial Protection Bureau established the following 2015 thresholds for high-cost and qualified mortgages under §§1026.32 and 1026.43, respectively.
Proposed Pre-Licensure Education Expiration Policy
In a July 23, 2014 proposal posted on the NMLS Resource Center website, the State Regulatory Registry LLC, a limited liability company that owns and operates the Nationwide Mortgage Licensing System and Registry (NMLS), proposes to create the following three year pre-licensure education expiration policy:
Notice of Proposed Policy Statement Regarding Disclosure of Consumer Complaint Narrative Data in CFPB’s Consumer Complaint Database
In today’s Federal Register (79 FR 42765) the CFPB published a proposed policy statement requesting public comment regarding adding consumer complaint narrative data to its consumer complaint database. As stated in the proposed policy statement, the CFPB currently discloses certain complaint data it receives regarding consumer financial products and services through its web-based database (“Consumer Complaint Database”) that is available to the public. The CFPB proposes to expand that disclosure to include unstructured consumer complaint narrative data. Only those narratives for which consumer consent has been obtained and personal information scrubbing standard and methodology applied would be subject to disclosure. The proposed policy would supplement the CFPB’s existing policy statements establishing and expanding the Consumer Complaint Database.
Mortgage Credit Certificate Program
In the July 11, 2014 Texas Register (Volume 39, Number 28) the Texas Department of Housing and Community Affairs posted the following notice informing the public and all interested mortgage lenders about a new Mortgage Credit Certificate Program. The full text of the notice is reprinted below:
Ability-to-Repay Interpretive Rule Issued by CFPB – Loan Assumption
On July 8, 2014, the CFPB issued an interpretive rule (click here) clarifying that when a person (“successor”) who has previously acquired title to the successor’s principal dwelling subsequently agrees to be added as obligor or substituted for the existing obligor on a consumer credit transaction secured by that dwelling (“loan”), the creditor’s written acknowledgement of the successor as obligor is not subject to the Ability-to-Repay Rule (ATR Rule) in §1026.43 of Regulation Z because that transaction is not an assumption as defined by §1026.20(b) of Regulation Z.
Home Equity Lending – Proposed Amendments to Home Equity Lending Interpretations, §§153.1, 153.5, 153.15 and 153.51
In the July 4, 2014 issue of the Texas Register (Volume 39 Number 27), the Finance Commission of Texas and the Texas Credit Union Commission (“commissions”) jointly proposed amendments to the following home equity lending interpretations in the Texas Administrative Code (7 TAC Chapter 153), as set out below:
Federal Agencies Issue Guidance for Home Equity Lines of Credit Nearing End-of-Draw Periods
On July 1, 2014, the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA) and the Conference of State Bank Supervisors (CSBS) issued guidance to financial institutions regarding home equity lines of credit (HELOCs) nearing their end-of-draw periods.