In today’s Federal Register (77 FR 54722), the six federal financial regulatory agencies – Board of Governors of the Federal Reserve System (FRB), Bureau of Consumer Financial Protection (CFPB), Federal Deposit Insurance Corporation (FDIC), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC) – published a proposed rule amending Regulation Z to establish appraisal requirements for higher-risk mortgage loans.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
VA Maximum Guaranty Limits for August 6 to December 31, 2012
The United States Department of Veterans Affairs (VA) has posted on its website at http://www.benefits.va.gov/homeloans/docs/loan_limits_august_2012.pdf a notice of change in the VA maximum guaranty limits for August 6, 2012 to December 31, 2012.
Proposed Regulation Z Rules §§1026.1(c)(5) and 1026.4
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 proposed rule’s comment period ends on September 7, 2012, for proposed §§1026.1(c) and 1026.4. The proposed rule’s comment period ends on November 6, 2012, for all other proposed amendments to Regulation Z and Regulation X. This memo will address the proposed §§1026.1(c) and 1026.4, whose comment period ends September 7, 2012.
CFPB Issues Proposed Rule in Federal Register to Amend Regulation B Rules on Providing Appraisals to Loan Applicants
In the August 21, 2012 Federal Register (77 FR 50390), the Bureau of Consumer Financial Protection (CFPB) issued a proposed rule that would amend §1002.14 of Regulation B, the Form C-9 Notice, and the Official Interpretations to §1002.14 to require creditors to provide free copies of all written appraisals and valuations developed in connection with an application for a loan to be secured by a first lien on a dwelling. The proposed rule also would require creditors to notify applicants in writing of the right to receive a copy of each written appraisal or valuation at no additional cost. This proposed rule has a comment period that ends on October 15, 2012, and was the subject of our August 17, 2012 memorandum prior to the issuance of the proposed rule in the Federal Register.
Proposed Rule Amending Sections 1026.25 and 1026.36 of Regulation Z Affecting Mortgage Loan Origination, Compensation, and Licensing
In an August 17, 2012 press release, the Bureau of Consumer Financial Protection (CFPB) released a proposed rule that would amend §§1026.25 (Record Retention) and 1026.36 (Prohibited Acts or Practices – dwelling secured credit) of Regulation Z that would generally: (1) Add new three year record retention requirements for loan originator compensation paid by or to mortgage brokers and loan originators, the “zero-zero loan alternative” and good faith determination (discussed below), and the bona fide interest rate reduction (discussed below). (2) Amend the definitions for “loan originator,” “mortgage broker,” and “creditor” and add a definition for “compensation.”
Proposed Rule on Property Appraisals for Higher-Risk Mortgage Loans
In an August 15, 2012 press release, the six federal financial regulatory agencies – Board of Governors of the Federal Reserve System (FRB), Bureau of Consumer Financial Protection (CFPB), Federal Deposit Insurance Corporation (FDIC), Federal Housing Finance Agency (FHFA), National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC) – issued a proposed rule to establish appraisal requirements for higher-risk mortgage loans.
Proposed Regulation Z and Regulation X Rules Published Today Regarding HOEPA Loans and Homeownership Counseling
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.
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.