The above captioned Mortgagee Letter was issued June 20, 2008 to remind lenders of existing FHA policy regarding the use of non FHA-approved mortgage brokers when originating FHA-insured mortgages. A copy of ML 2008-17 is attached.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
RESPA: Proposed Rule to amend Regulation X (Federal Register, March 14, 2008, Pages 14030-14124).
This memorandum revises and replaces our April 14, 2008 memorandum on this subject. On March 14, 2008, the Department of Housing and Urban Development (“HUD”) published a proposed rule to amend Regulation X. If HUD adopts this rule, as proposed, it will have a significant impact on mortgage lending and closing practices.
Home Equity Lending – Proposed Amendments to Interpretations §§153.22, 153.51, and 153.84
The Finance Commission of Texas and the Texas Credit Union Commission (“Commissions”) jointly propose amendments to Interpretations 7 TAC §§ 153.22, 153.51, and 153.84 relating to interpretations of Sections 50(a)(6), (g), and (t)(3), Article XVI, Texas Constitution, regarding home equity lending on Texas homestead. These proposed amendments are published for comment in the March 14, 2008 issue of the Texas Register (Vol. 33, No. 11).
Proposed amendments to Regulation Z (Federal Register, Vol. 73, No. 6)
On January 9, 2008, the Board of Governors of the Federal Reserve System (“Board”) proposed significant amendments to Regulation Z, which are discussed in this memorandum. We believe these proposed amendments will have a dramatic impact on the way mortgage lending is conducted if the Board adopts them, as proposed.
Texas Home Equity Loans – New 12-day Notice and other Requirements
This memorandum is a follow-up to our November 1, 2007, memorandum on the same subject. Constitutional Amendment HJR 72, which amends the home equity provisions in Article 16, Section 50 of the Texas Constitution, approved by the voters on November 6, 2007, will take effect on December 4, 2007 (the date of the official vote canvass by the governor confirming statewide majority approval).
Mortgage Broker/Loan Officer- Revised Rules
In order to implement the recent legislative changes to the Mortgage Broker License Act (Chapter 156, Finance Code, herein the “Act”) made by House Bills 1716 and 2783 (see our Legislative Update dated August 6, 2007), the Finance Commission of Texas (“Finance Commission”) published in the November 2, 2007 issue of the Texas Register amendments to the following mortgage broker rules: 7 TAC §§80.1 – 80.7 (Licensing), §§80.12 – 80.14 (Administration and Records), §§80.20 and 80.21 (Inspections and Investigations), and §80.23 (Annual Reports). These amended rules become effective November 11, 2007.
FCC Rules on Unsolicited Facsimile Advertisements
Over the last several years we have periodically updated our clients on the status of the Federal Communications Commission’s rules on unsolicited facsimile advertisements (see memos dated August 18, 2003 (updated October 18, 2004 and June 28, 2005) and July 5, 2005). On April 5, 2006, in its Report and Order and Third Order on Reconsideration (“Order”), the Commission adopted its final rules regarding unsolicited facsimile advertisements. These rules became effective August 1, 2006, and implement the Telephone Protection Act of 1991 (Public Law No. 102-243) and the Junk Fax Prevention Act of 2005 (Public Law No. 109-21), codified at 47 U.S.C. §227.
Texas Finance Commission Relocates/ Amends Plain Language Rules and Forms
The Texas Finance Commission (“Commission”) published in the August 25, 2006 issue of the Texas Register (Vol. 31, No. 34) an extensive relocation and reorganization of administrative rules and model forms for secured and unsecured loans subject to Chapter 342 of the Texas Finance Code.
Home Equity Lending – Revisions to Interpretations
The Finance Commission of Texas and the Texas Credit Union Commission (“Commissions”) have jointly revised the following home equity Interpretations of §50(a)(6), Article XVI, Texas Constitution: §153.13 (Preclosing Disclosures), §153.18 (Limitation on Application of Proceeds), and §153.20 (No Blanks in Any Instrument). These revised Interpretations are published in the June 23, 2006 issue of the Texas Register (Vol. 31, No. 25) and become effective June 29, 2006.
Legislative Update from Texas Legislature 2005
This legislative update covers constitutional amendments SJR 7 and SJR 21, submitted for voter approval on November 8, 2005, and Sections 2.09, 2.10 and 2.11 of HB 955, and revises our November 4, 2005 legislative update on these issues. SJR 7 was approved and becomes effective when the secretary of state canvasses [authenticates] the votes for that amendment. SJR 21 was not approved and neither SJR 21 nor its implementing legislation in Sections 2.09, 2.10 and 2.11 of HB 955 will become law. This update summaries SJR 7 and SJR 21 with redactions from the Bill Analysis. This update also quotes the full text of SJR 7 with its additions underlined and its deletions in brackets with strikethroughs.