On August 15, 2013, the Consumer Financial Protection Bureau (CFPB) released a second update to its exam procedures in connection with the new mortgage regulations issued in January 2013, most of which go into effect in January 2014. The update covers Ability-to-Repay/Qualified Mortgages, high-cost mortgages, and appraisals for higher-priced mortgage loans, as well as new amendments related to the escrows rule. The update also covers recent changes to credit card rules. The exam procedures now cover the mortgage origination rules issued through May 29, 2013, and mortgage servicing rules issued through July 10, 2013.
Search Results
Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Consumer Financial Protection Bureau (CFPB) Issues Bulletin 2013-07 and Bulletin 2013-08
Last week the CFPB posted the above Bulletins on the Guidance documents page of its website http://www.consumerfinance.gov/. Both Bulletins concern prohibited practices in connection with the collection of consumer debts.
Loan Originator Compensation
Please click on the video below to access the loan originator compensation presentation. Please make sure you have your speakers on to listen and follow the presentation materials. You may download the documents which are covered in the loan originator compensation presentation below within the “Downloads” section. For the best view of the documents open the following PDF file on your computer or download the PDF and follow along with the recorded presentation.
CFPB Files Federal Lawsuit Against Mortgage Company Alleging Violations of the Regulation Z Loan Originator Compensation Rule (ยง1026.36(d))
In a July 23, 2013 Press Release, the CFPB announced it had filed a federal civil complaint against a mortgage lender for violations of the Regulation Z loan originator compensation rule. The redacted text of the CFPB’s July 23, 2013 Press Release is reprinted below:
CFPB Amends Mortgage Servicing Rules under Regulation Z Effective on January 10, 2014
In the February 14, 2013 issue of the Federal Register (78 FR 10902), as amended in the July 24, 2013 issue of the Federal Register (78 FR 44686), the Bureau of Consumer Financial Protection (CFPB) published a final rule (“Reg. Z Servicing Rule”) that revises Regulation Z, as follows:
CFPB Proposed Amendments to the 2013 Mortgage Rules Under Regulation B, Regulation X, and Regulation Z
In the July 2, 2013 issue of the Federal Register (78 FR 39902) the Consumer Financial Protection Bureau (CFPB) published a proposed rule, click here, to clarify or revise regulatory provisions and official interpretations primarily relating to the 2013 Mortgage Servicing Final Rules (see, 78 FR 10695 (Reg. X) and 78 FR 10901 (Reg. Z), Feb. 14, 2013) and the 2013 Loan Originator Compensation Final Rule (see, 78 FR 11279, Feb. 15, 2013). The proposed rule also proposes modifications to the effective dates for provisions adopted by the 2013 Loan Originator Compensation Final Rule, and certain technical corrections and minor refinements to Regulations B, X, and Z. In the July 2, 2013 issue of the Federal Register (78 FR 39902) the Consumer Financial Protection Bureau (CFPB) published a proposed rule, click here, to clarify or revise regulatory provisions and official interpretations primarily relating to the 2013 Mortgage Servicing Final Rules (see, 78 FR 10695 (Reg. X) and 78 FR 10901 (Reg. Z), Feb. 14, 2013) and the 2013 Loan Originator Compensation Final Rule (see, 78 FR 11279, Feb. 15, 2013). The proposed rule also proposes modifications to the effective dates for provisions adopted by the 2013 Loan Originator Compensation Final Rule, and certain technical corrections and minor refinements to Regulations B, X, and Z.
Texas Home Equity Loans – Per Diem Interest, Discount Points and Powers of Attorney under the Texas Supreme Court Decision in Finance Commission of Texas v. Norwood
The recent Texas Supreme Court decision in Finance Commission of Texas v. Norwood, 2013 WL 3119481 (Tex. June 21, 2013) redefines interest for the purpose of fees and limits the locations where powers of attorney may be executed in connection with home equity loans authorized by Article XVI, Section 50(a)(6) of the Texas Constitution. We previously sent our clients an email alert regarding the Norwood opinion, advising of its effect on discount points for the purposes of the three percent fee cap in section 50(a)(6)(E) and the new limitation where home equity powers of attorney must be executed. The email alert may be found on our website under Articles.
Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z)
Presentation handout for the Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z) presentation.
CFPB Releases Exam Procedures for New Mortgage Rules
This memorandum is to advise you of the Consumer Financial Protection Bureau’s June 4, 2013, press release notifying the mortgage lending industry of updated exam procedures for the mortgage rules issued in January 2013. A redacted text of the CFPB press release is reprinted below for your information and use:
CFPB Delays Effective Date of the Regulation Z Prohibition on Financing Single-premium Credit Insurance to January 10, 2014
For certain consumer credit transactions for which a creditor receives an application on or after June 1, 2013, the Consumer Financial Protection Bureau (CFPB) amended Regulation Z by adding Section 1026.36 (i) prohibiting the financing of single-premium credit insurance (see our memorandum dated April 10, 2013). The effective date of Section 1026.36(i) was scheduled to be June 1, 2013, but the CFPB by final rule issued today has delayed its effective date until January 10, 2014. The text of Section 1026.36(i) is reprinted below: