In the December 21, 2012, issue of the Federal Register (Vol. 77, Pages 75521 – 75523, click here) the Office of the Comptroller of the Currency, Treasury (OCC), the Board of Governors of the Federal Reserve System (FRB), and the Federal Deposit Insurance Corporation (FDIC) published a joint final rule amending their respective Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank,” “small savings association,” “intermediate small bank,” and “intermediate small savings association,” effective January 1, 2013. As required by the CRA regulations, the adjustment to the threshold amount is based on the annual percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
FHA Interpretive Rule Regarding Prohibited Sources of Minimum Cash Investment Under the National Housing Act
In the December 5, 2012, issue of the Federal Register (Vol. 77, Pages 72219 – 72223, click here) the Federal Housing Administration (FHA) published an Interpretive Rule to clarify the scope of the provision in the National Housing Act that prohibits certain sources of a mortgagor’s funds for the required minimum cash investment for single family mortgages to be insured by the FHA.
FHA Extends Wavier of Property Flipping Rule in 24 CFR 203.37a(b)(2)
In the November 29, 2012, issue of the Federal Register (Vol. 77, Pages 71099 – 71101, click here) the Federal Housing Administration (FHA) published notice that it is extending the temporary waiver of the FHA Regulation prohibiting property flipping in connection with FHA insured loans until December 31, 2014. The notice Summary (redacted for brevity) is republished below: This notice of waiver extension announces that FHA is extending the availability of the temporary waiver of its regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, until December 31, 2014. This waiver, which was first issued in January 2010, took effect for all sales contracts executed on or after February 1, 2010. On January 28, 2011, FHA extended the waiver through calendar 2011. On December 28, 2011, FHA extended the waiver through calendar 2012. Prior to the waiver, a mortgage was not eligible for FHA insurance if the contract of sale for the purchase of the property that secured the mortgage was executed within 90 days of the prior acquisition by the seller, and the seller did not come under any of the exemptions to this 90-day period specified in the regulation. The waiver is applicable to all single family properties being resold within the 90-day period after prior acquisition. Additionally, the waiver is subject to certain conditions, and mortgages must meet these conditions to be eligible for the waiver [See pages 71100 – 71101 of the Notice]. The waiver is not applicable to mortgages insured under HUD’s Home Equity Conversion Mortgage (HECM) Program.
CFPB Delays Implementation of Certain TILA and RESPA Mortgage Disclosures Required by Title XIV of the Dodd-Frank Act
In the November 23, 2012, issue of the Federal Register (77 FR 70105 – click here) the Consumer Financial Protection Bureau (CFPB) published a final rule amending §1026.1(c) of Regulation Z, and its official interpretations, to delay implementation of the following new mortgage disclosures required by Title XIV of the Dodd-Frank Act that would otherwise take effect on January 21, 2013: • Warning regarding negative amortization features. Dodd-Frank Act section 1414(a); TILA section 129C(f)(1). • Disclosure of State law anti-deficiency protections. Dodd-Frank Act section 1414(c); TILA section 129C(g)(2) and (3).
Regulation Z Threshold Amounts Raised for Exempt Transactions and Points and Fees for HOEPA Loans, Effective January 1, 2013
Threshold Amount Raised for Exempt Transactions under Regulation Z In the November 21, 2012, issue of the Federal Register (77 FR 69736 – click here) the Board of Governors of the Federal Reserve System (FRB) and the Consumer Financial Protection Bureau (CFPB) published final rules amending the official interpretation and commentary to Regulations Z by increasing the threshold for exempt consumer credit transactions to $53,000, effective January 1, 2013.
CFPB Press Release – Consumer Financial Protection Bureau and Federal Housing Finance Agency to Jointly Develop National Mortgage Database
On November 1, 2012 the Consumer Financial Protection Bureau issued the following press release. No action on the part of our clients is required. This memorandum is for informational purposes only.
CFPB Bulletin 2012-07 – Appeals of Supervisory Matters
On October 31, 2012, the CFPB issued the above bulletin that advises it is implementing a policy that will allow its supervised entities to appeal certain supervisory findings in the examination reports and supervisory letters it issues to the financial service providers that the CFPB supervises.
NMLS 2013 Annual Renewal Period
The 2013 Renewal Period in NMLS begins November 1 and goes through December 31. The following steps will help you prepare for and complete the renewal process in NMLS. Step 1 – Prepare for the renewal process NMLS has prepared a Renewal Handbook for state-licensed company and individual users to guide them through the renewal process. The handbook will provide information on how to prepare to request renewal of licenses in NMLS. • Renewal Handbook for Companies • Renewal Handbook for Individuals Do I need to renew my license if I received my approval for licensure after November 1, 2012? See State-Specific Renewal FAQs.
Proposed Rule Integrating RESPA and TILA Disclosures for Real Property Secured Loans
On August 23, 2012, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register (77 FR 51116) the following proposed rule: “Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z).” The comment period ends on November 6, 2012, for the proposed rule’s amendments to Regulation Z and Regulation X, including proposed §§1026.1(c) and 1026.4 for which we issued a memorandum on August 24, 2012. This memo will address the proposed rule’s other amendments to Regulation X and Regulation Z and will principally focus on the integrated disclosure amendments.
Proposed Rule Amending Sections 1026.25 and 1026.36 of Regulation Z Affecting Mortgage Loan Origination, Compensation, and Licensing
In the September 7, 2012 issue of the Federal Register (77 FR 55272), the Bureau of Consumer Financial Protection (CFPB) published a proposed rule that would amend §§1026.25 (Record Retention) and 1026.36 (Prohibited Acts or Practices and certain Requirements for Credit Secured by a Dwelling) of Regulation Z that would generally: