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.”
Search Results
Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
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.
Community Reinvestment Act Regulations – Technical Amendment
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.
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).