On December 21, 2017, the CFPB issued a Public Statement for HMDA data collected in 2018 and reported in 2019. In the Public Statement, the CFPB states that it does not intend to require data resubmission unless data errors are material or assess penalties with respect to errors in data collected in 2018 and reported in 2019, and that any examinations of 2018 HMDA data will be diagnostic to help institutions identify compliance weaknesses and will credit good-faith compliance efforts.
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Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Changes to Home Equity Lending in Texas – (S.J.R. 60)
Please click on the video below to access the Changes to Home Equity Lending in Texas – (S.J.R. 60) presentation. Please make sure you have your speakers on to listen and follow the presentation materials.
Updated Exemption Thresholds for Consumer Credit Transactions and Higher-
In the November 9, 2017 issue of the Federal Register (82 FR 51977) (click here), the Board of Governors of the Federal Reserve System (“Board”) and the Bureau of Consumer Financial Protection (“CFPB”) published a final rule increasing the threshold for consumer credit transactions exempt from the Truth In Lending Act. Also in the November 9, 2017 issue of the Federal Register (82 FR 51973) (click here), the Board, CFPB and the Office of the Comptroller of the Treasury (“OCC”) published a final rule increasing the threshold exemption from required appraisals for higher-priced mortgage loans. In both instances, the final rules will take effect on January 1, 2018.
CFPB Launches Beta Test Version of HMDA Platform
Today the CFPB announced the beta launch of the new HMDA Platform. For your information and use, the text of the CFPB announcement is reprinted below:
Disaster Appraisal Exceptions Memo
In the October 24, 2017 issue of the Federal Register (82 FR 49089) (click here) the Department of the Treasury’s Office of the Comptroller of the Currency, the Federal Reserve System, the Federal Deposit Insurance Corporation, and the National Credit Union Administration (collectively the “Agencies”), published a Statement and Order creating temporary exceptions to the statutory and regulatory appraisal requirements imposed on depository-institution lenders pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 for areas of the United States impacted by Hurricanes Harvey, Irma, and Maria. The exceptions will last for three years, dated from when the President declared a major disaster in an area.
Texas “Cash Out” Rules to Change
Attorney Tom Black explains the proposed changes to the Texas “Cash Out” rules and offers insights to possible implementation issues in the video below. These changes are associated with our June 15th memo on “Home Equity Lending Proposed Constitutional Amendments” which can be accessed by clicking the link under “Complete Memorandum” below.
Community Reinvestment Act Regulations – Proposed Amendments
In the September 20, 2017, issue of the Federal Register (82 FR 43910, click here) the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (collectively, the Agencies) published proposed amendments to their respective regulations implementing the Community Reinvestment Act (CRA) in order to amend the existing definitions of “home mortgage loan” and “consumer loan” and the public file content requirements to conform to the recent amendments made by the Consumer Financial Protection Bureau to Regulation C, which implements the Home Mortgage Disclosure Act (HMDA), and to make technical amendments to remove unnecessary cross references as a result of the amended definitions, and to remove obsolete references to the Neighborhood Stabilization Program.
Regulation C (HMDA) Amendments
In the September 13, 2017, issue of the Federal Register (82 FR 43088, click here) the CFPB published a final rule amending its 2015 HMDA (Regulation C) Final Rule to: (i) make technical corrections and clarify certain requirements; (ii) temporarily increase the threshold for collecting and reporting data about open-end lines of credit for a period of two years so that financial institutions originating fewer than 500 open-end lines of credit in either of the preceding two years would not be required to begin collecting such data until January 1, 2020; and (iii) adopt a new reporting exclusion.
Regulation Z HOEPA and Qualified Mortgage Annual Threshold Adjustments
In the August 30, 2017, issue of the Federal Register (82 FR 41158, click here), the Consumer Financial Protection Bureau established the following 2018 thresholds for high-cost and qualified mortgages under §§1026.32 and 1026.43, respectively.
Lender Responsibility under New Durable Power of Attorney Law
On July 13, 2017 (revised July 24, 2017), we posted on the firm’s website Legislative Update II summarizing the new requirements enacted into law by House Bill 1974 (click here) and Senate Bills 39 and 1193 (click here and here), which are effective September 1, 2017, that substantially affect durable powers of attorney under Chapters 751 and 752 of the Estates Code. If you have not read Legislative Update II, we advise that you do so before September 1, 2017, because it details important new requirements regarding the acceptance of or refusal to accept durable powers of attorney.