In today’s issue of the Texas Register (Vol. 38 No.18) the Texas Department of Housing and Community Affairs published the following notice to all interested mortgage lenders: “The Texas Department of Housing and Community Affairs (the “Department”) intends to implement a Mortgage Credit Certificate Program (the “Program”) to assist eligible very low, low, and moderate income first-time homebuyers with the purchase of a residence located within the State of Texas.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Texas Home Equity Lending – 2013 Update
This memorandum will provide an overview of home equity lending embodied in Article XVI, Section 50, of the Texas Constitution and will also discuss some of the issues lenders face. The full text of Section 50, current to date, is attached to this memorandum (for ease of reference, the home equity and HELOC provisions are highlighted in bold typeface). All references to “sections,” “subsections,” and “parts” in this memorandum refer to the various provisions of Section 50, unless otherwise stated.
New Regulation Z Requirements Effective June 1, 2013 – Prohibition on Mandatory Arbitration Clauses and Waivers of Consumer Rights; and Prohibition
Effective June 1, 2013, for certain consumer credit transactions for which a creditor receives an application on or after that date, the Consumer Financial Protection Bureau (CFPB) amends Section 1026.36 of Regulation Z by adding paragraphs (h) and (i):
Interagency Statement on the Impact of Biggert-Waters Flood Insurance Reform Act of 2012
On March 29, 2013, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Farm Credit Administration jointly issued an interagency guidance entitled “Interagency Statement on the Impact of Biggert-Waters Act” regarding revisions to the Flood Disaster Protection Act of 1973. The guidance is reprinted below in full, but you also may access it by clicking on FIL-14-2013 issued by the Federal Deposit Insurance Corporation.
Federal Bank Regulatory Agencies Release Proposed Revisions to Interagency Questions and Answers Regarding Community Reinvestment
Today, 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 requesting comment on proposed revisions to “Interagency Questions and Answers Regarding Community Reinvestment.”
CFPB Press Release – January 2014 Mortgage Rules Implementation Plan Memo
On February 13, 2013, the above referenced press release announced a plan the CFPB will implement over the next year that focuses on the mortgage industry’s compliance with new consumer protections that go into effect in January 2014. To paraphrase an old saying: beware when someone says they are from the government and want to help.
CFPB Bulletin 2013-01 – Mortgage Servicing Transfers
On February 11, 2013, the CFPB issued the above referenced bulletin providing guidance to residential mortgage servicers and subservicers to address potential risks to consumers that may arise in connection with transfers of servicing. A related CFPB press release states, “the CFPB will make servicing transfer-related problems a focus of its supervisory activities. If servicers are not fulfilling their obligations under the law, the CFPB will take appropriate actions to address these violations and seek all appropriate corrective measures, including remediation of harm to consumers.”
FHA Annual MIP Requirements Revised – Mortgagee Letter 2013-04
On January 31, 2013, the FHA issued Mortgagee Letter 2013-04 (ML 2013-04) revising FHA polices concerning cancellation of the annual mortgage insurance premium (Annual MIP) and increase to the Annual MIP. For a complete explanation of these Annual MIP changes and their respective effective dates, you may print ML 2013-04 by clicking here.
New Escrow Account Requirements for Higher-Priced Mortgage Loans
In the January 22, 2013, issue of the Federal Register (Vol. 78, Pages 4726 – 4757, click here) the Bureau of Consumer Financial Protection (CFPB) published a final rule amending the escrow account requirement for first lien higher-priced mortgage loans under §1026.35 of Regulation Z.
Home Mortgage Disclosure Act (HMDA) Asset-size Exemption Raised For Data Collection in 2013
In the December 31, 2012, issue of the Federal Register (Vol. 77, Pages 76839 – 76840, click here) the Bureau of Consumer Financial Protection published a final rule amending the official commentary that interprets the requirements of HMDA’s Regulation C to reflect an increase in the asset-size exemption threshold for banks, savings associations, and credit unions for data collection in 2013. The exemption threshold is adjusted to increase to $42 million from $41 million. Therefore, banks, savings associations, and credit unions with assets of $42 million or less as of December 31, 2012, are exempt from collecting HMDA data in 2013. Please note, however, that this exemption from collecting date in 2013 does not affect a depository institution’s responsibility to report date it was required to collect in 2012.