Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z) Presentation Materials
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Constitutional Amendment SJR 18 (Reverse Mortgage) Effective Nov. 22, 2013
This fourth, and last, legislative update prepared by this firm for the 2013 legislative session advises you that constitutional amendment Senate Joint Resolution 18 (SJR 18), which amends Section 50(k), Article XVI, Texas Constitution, to authorize advances under a reverse mortgage for the purchase of a residential homestead property, is now effective. SJR 18 was approved by the voters on November 5, 2013, and became effective on November 22, 2013, when the vote was canvassed, the results were certified by the Texas Secretary of State, and a proclamation was issued by the Governor.
Mortgagee Letter 2013-41 Requires FHA-Approved Lenders to Self-report to FHA
Effective with the November 13, 2013, issuance of Mortgagee Letter 2013-41 (ML 2013-41) by the FHA, all Single Family FHA-approved lenders must self-report to FHA in accordance with the guidance set forth in ML 2013-41. The self-reporting requirements in ML 2013-41cover the following:
Federal Bank Regulatory Agencies Release Final Revisions to Interagency Questions and Answers Regarding Community Reinvestment
On November 15, 2013, the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency (“the federal bank regulatory agencies”) issued the following press release on their final revisions to “Interagency Questions and Answers Regarding Community Reinvestment.”
CFPB Requires Lenders to Provide a List of Homeownership Counseling Organizations to Loan Applicants Effective January 10, 2014
In the January 31, 2013 issue of the Federal Register (78 FR 6856) the Bureau of Consumer Financial Protection (CFPB) published a final rule that adds Section 1024.20 to Regulation X to require lenders to provide a loan applicant for a federally related mortgage loan (with certain exceptions) with a written list of homeownership counseling organizations not later than three business days after the lender or mortgage broker receives an application or information sufficient to complete an application. The final rule is effective on January 10, 2014, and applies to transactions for which an application is received on or after that date. The text of the final rule is located on pages 6961-6962 of the above Federal Register and also is reprinted in the attached Exhibit A.
From Origination to Funding – The Next 57 Days – Key Compliance Issues
Presentation from the November 13, 2013 TMBA Serminar From Origination to Funding The Next 57 Days Key Compliance Issues
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”).