In today’s issue of the Federal Register (Vol. 77 No. 158), the Bureau of Consumer Financial Protection (CFPB) officially published the proposed rule “High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act (Regulation Z) and Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act (Regulation X)” that was the subject of its July 9, 2012 press release. This proposed rule has a comment period that ends on September 7, 2012.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
CFPB Updated Final Rule Makes International Money Transfers Easier
In a press release dated August 7, 2012, the Consumer Financial Protection Bureau (CFPB) provided notification that it has updated its international money transfer rule issued February 7, 2012, (February Rule) to make the transfer process easier for institutions that handle 100 or fewer remittances a year. The updated rule the subject of the above press release (Updated Final Rule) clarifies the process for community banks, credit unions, and other financial institutions.
New Texas Department of Savings and Mortgage Lending Mortgage Banker Registration and Residential Mortgage Loan Originator Licensing Regulations
In the June 29, 2012 issue of the Texas Register (Vol. 37 No. 26), the Texas Finance Commission (the “Commission”) made revisions to the Texas Residential Mortgage Loan Originator Regulations (7 TAC Chapter 80) and the Mortgage Banker Registration and Residential Mortgage Loan Officer Licensing Regulations (7 TAC Chapter 81). This memorandum will only discuss the revisions to Chapter 81. See our July 24, 2012 memorandum for a discussion of the revisions to Chapter 80.
New Texas Department of Savings and Mortgage Lending Residential Mortgage Loan Originator Regulations Effective July 5, 2012
In the June 29, 2012 issue of the Texas Register (Vol. 37 No. 26), the Texas Finance Commission (the “Commission”) made revisions to the Texas Residential Mortgage Loan Originator Regulations (7 TAC Chapter 80) and the Mortgage Banker Registration and Residential Mortgage Loan Officer Licensing Regulations (7 TAC Chapter 81). This memorandum will only discuss the revisions to Chapter 80. A separate memorandum will discuss the revisions to Chapter 81.
Notice of the Implementation of a 2012B Qualified Mortgage Credit Certificate Program
In the July 13 2012 issue of the Texas Register (Vol. 37 No. 28), the Texas State Affordable Housing Corporation (the “Corporation”), a Texas nonprofit corporation published the following notice that it is implementing a qualified mortgage credit certificate program (the “Program”) within Texas (the “Program Area”) to assist eligible purchasers.
RESPA Fee-split Decision by SCOTUS Memo (Freeman v. Quicken Loan)
In a unanimous decision decided May 24, 2012, in Freeman, et al. v. Quicken Loans, Inc., 132 S.Ct. 2034 (2012), the U.S. Supreme Court refused to give deference to HUD’s undivided unearned fee interpretation expressed in Statement of Policy 2001-1 and ruled that Section 8(b) of RESPA (12 U.S.C. §2607(b))1 does not prohibit a settlement service provider from charging an unearned fee when the provider retains the entire fee.
Federal Regulators Issue Joint “Guidance” for Mortgage Servicer Practices impacting Military Homeowners with Permanent Change of Station Orders
On June 21, 2012, The Consumer Financial Protection Bureau, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (herein “regulators”) issued a joint guidance entitled “Interagency Guidance on Mortgage Servicing Practices Concerning Military Homeowners with Permanent Change of Station Orders” (herein Guidance”) to addresses risks related to military homeowners who have informed their loan servicer that they have received Permanent Change of Station (PCS) orders and who might seek assistance with their mortgage loans.
Comment Period for Regulation Z Ability-to-Repay Proposed Rule Extended
On June 5, 2012, the Consumer Financial Protection Bureau (CFPB) published in the Federal Register (77 FR 33120) a “Notice of reopening of comment period and request for comment” (Notice) regarding the proposed rule the Federal Reserve Board (FRB) published in the May 11, 2011 Federal Register (76 FR 27390) addressing ability-to-repay requirements applicable to consumer credit transactions secured by a dwelling and defining a “qualified mortgage.” Although the proposed rule’s original comment period ended on July 22, 2011, the CFPB is reopening the comment period until July 9, 2012, for comment on new data and information submitted during or obtained after the close of the original comment period that is discussed in the Notice.
Federal Supervisory Agencies Sign Memorandum of Understanding on Supervisory Coordination
On June 4, 2012, the five federal supervisory agencies identified below released a Memorandum of Understanding (MOU) that clarifies how they will coordinate their supervisory activities, consistent with the Dodd-Frank Act.
CFPB To Propose Rules Affecting Mortgage Points And Fees – Including Banning Origination Charges that Vary with the Size of the Loan
In a May 9, 2012 press release published today on the Consumer Financial Protection Bureau (CFPB) website, the CFPB outlined rules it is considering that would affect mortgage points and fees and mortgage loan originator qualifications. The CFPB expects to propose these rules this summer and finalize them by January 21, 2013. Below is a redaction of the May 9th press release explaining the CFBP’s proposal: “The 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) places certain restrictions on the points and fees offered with most mortgages. The CFPB is considering proposals that would: