Presentation from the November 13, 2013 TMBA Serminar From Origination to Funding The Next 57 Days Key Compliance Issues
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Mortgage Company to Pay $9 Million in Restitution and $4 Million in Civil Penalties for Violating Regulation Z Loan Originator Compensation Rule
Today the Consumer Financial Protection Bureau issued a press release detailing the proposed settlement of its lawsuit against Castle & Cook Mortgage, LLC, a Utah based mortgage company, for illegal steering and loan originator compensation violations of the loan originator compensation rule in section 1026.36 of Regulation Z.
Proposed Rulemaking to Implement the Biggert-Waters Flood Insurance Reform Act of 2012 Regarding Loans in Special Flood Hazard Areas
The Biggert-Waters Flood Insurance Reform Act of 2012 (the Act) significantly revised Federal flood insurance statutes (See our April 8, 2013 memorandum on the firm website at http://www.bmandg.com/). Certain provisions of the Act require the following Federal regulatory agencies to issue implementing regulations and conforming revisions to their current flood insurance regulations.
Proposed Policy Statement Establishing Joint Standards for Assessing Diversity Policies and Practices of Entities Regulated by the CFBP, FDIC, FRB, NCUA, OCC, or SEC
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 directs the above identified federal regulatory agencies (“Agencies”) to develop standards for assessing the diversity policies and practices of the entities regulated by the Agencies. Pursuant to that directive, in the October 25, 2013, issue of the Federal Register (78 FR 64052), the Agencies published the proposed policy statement Interagency Policy Statement Establishing Joint Standards for Assessing the Diversity Policies and Practices of Entities Regulated by the Agencies that identifies these standards and requests comment on all aspects of the proposed policy statement.
Interagency Statement on Fair Lending Compliance and the Ability-to-Repay/Qualified Mortgage Rule
On October 22, 2013, the CFPB, FDIC, FRB, NCUA, and OCC (“Agencies”) issued a statement (“Interagency Statement”) to address questions from residential mortgage lenders about disparate impact doctrine risks associated with offering only Qualified Mortgages under the new Ability-to-Repay and Qualified Mortgage Rule issued by the CFPB (“Ability-to-Repay Rule”).
Consumer Financial Protection Bureau (CFPB) Issues CFPB Bulletin 2013-11 on HMDA Compliance and CFPB Enforcement
On October 9, 2013, the CFPB released Bulletin 2013-11 (click here) to advise CFPB-supervised mortgage lenders (both depository and non-depository) of their responsibilities under HMDA and Regulation C to collect and report accurate HMDA data and of the CFBP’s enforcement actions for failure to do so. For a copy of Bulletin 2013-11, click on the above hyperlink.
2013 Legislative Update from 83rd Regular Session of the Texas Legislature – Constitutional Amendment SJR 18; Section 17.001 of SB 1093
This is the third legislative update prepared by this firm for the 2013 legislative session and covers proposed constitutional amendment Senate Joint Resolution 18 (SJR 18) that amends Section 50(k), Article XVI, Texas Constitution, to authorize advances under a reverse mortgage for the purchase of a residential homestead property, and Section 17.001 of Senate Bill 1093 (SB 1093) that amends Section 51.002(i) of the Texas Property Code. SJR 18 is to be submitted for voter approval at an election to be held November 5, 2013. If approved by the voters, SJR 18 becomes effective when the Texas Secretary of State canvasses [authenticates] the votes for the constitutional amendment proposed by SJR 18.
2013 Legislative Update from 83rd Regular Session of the Texas Legislature – Bills Effective On and After September 1, 2013
This legislative update summarizes those bills effective on and after September 1, 2013, that we consider of interest to our clients. On August 21, 2013, we provided a legislative update for bills effective before September 1, 2013. The legislative update that follows this update will summarize the proposed constitutional amendments and, if applicable, their enabling legislation that we consider of interest to our clients.
HUD Issues Proposed Ability-To-Repay Qualified Mortgage Definition for Single Family Mortgages Insured and Guaranteed by HUD
In the September 30, 2013 issue of the Federal Register (78 FR 59890), click here, the Department of Housing and Urban Development (HUD) published a proposed rule that submits for public comment its definition of “qualified mortgage” for the types of loans that HUD insures, guarantees, or administers that aligns with the ability-to-repay criteria of the CFPB’s definition of “qualified mortgage” in its final rule. In this proposed rulemaking, HUD proposes that any forward single family mortgage insured or guaranteed by HUD shall meet the criteria of a qualified mortgage, as defined in the proposed rule, and HUD seeks comment on all components of its definition.
Notice of Implementation of 2014 Qualified Mortgage Credit Certificate Program
In the September 13, 2013 issue of the Texas Register (Volume 38 Number 37), the Texas State Affordable Housing Corporation published the following notice regarding its 2014 Qualified Mortgage Credit Certificate Program: The Texas State Affordable Housing Corporation (the “Corporation”), a nonprofit corporation organized under the laws of the State of Texas (the “Program Area”), is implementing a qualified mortgage credit certificate program (the “Program”) within the Program Area to assist eligible purchasers. A Mortgage Credit Certificate (“MCC”) is an instrument designed to assist persons better afford home ownership.