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”).
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
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.
Consumer Financial Protection Bureau (CFPB) Warns Lenders of Duty To Investigate Consumer Credit Report Disputes
On September 4, 2013, the CFPB released Bulletin 2013-09 reminding those persons who furnish consumer information to credit reporting companies of the person’s duty under the Fair Credit Reporting Act to fully investigate consumer disputes referred to the person by a consumer report company. For your convenience, the text of CFPB Bulletin 2013-09 is reprinted below:
Revised Residential Mortgage Loan Originator Regulations Effective September 5, 2013
In the August 30, 2013, issue of the Texas Register (38 TexReg 5702), the Finance Commission of Texas published final amendments to the residential mortgage loan company, mortgage banker and residential mortgage loan originator rules in Title 7, Part 4, Chapters 80 and 81 of the Texas Administrative Code (7 TAC Chapters 80 and 81) to implement statutory changes made to Chapters 156, 157 and 180 of the Finance Code by the 2013 legislative session (see Senate Bill 1004, eff. September 1, 2013).
CFPB Examiners Find Mortgage Servicing Problems at Banks and Nonbanks
In a July 21, 2013, press release the Consumer Financial Protection Bureau (CFPB) stated it issued a report of even date detailing mortgage servicing problems at banks and nonbanks, which also found that many nonbanks lack robust systems for ensuring they are following federal laws. Below are redacted excerpts from the CFPB press release: 1. The report is available at: http://files.consumerfinance.gov/f/201308_cfpb_supervisory-highlights_august.pdf.
2013 Legislative Update from 83rd Regular Session of the Texas Legislature – Bills Effective Before September 1, 2013
This legislative update summarizes those bills effective before September 1, 2013, that we consider of interest to our clients. The legislative updates that follow this update will summarize the following bills that we consider of interest to our clients: (i) bills effective on and after September 1, 2013, and (ii) proposed constitutional amendments and, if applicable, their enabling legislation.