Industry News

WASHINGTON, D.C., June, 2013 - In order to ensure that the industry is compliant and ready to initiate all new borrower protections, the CFPB has launched the Regulatory Implementation web page. In the webpage provided they have consolidated all of the new 2013 mortgage rules, and providing all related implementation materials and guides into one quick reference location.
-Website

WASHINGTON, D.C., June, 2013 - With today’s postings, compliance guides are now available for all of the new mortgage rules originally issued by the CFPB in January. The CFPB plans to update these guides periodically as rule clarifications are finalized as part of the ongoing commitment to supporting implementation of the new mortgage rules.
-2013 Loan Originator Rule
-2013 Mortgage Servicing Rule

WASHINGTON, D.C., June, 2013 - the Consumer Financial Protection Bureau released its first round of updates to its examination procedures to address several of the new mortgage regulations issued by the Bureau earlier this year. The updated examination procedures cover the extended escrow account period for higher-priced mortgage loans and the prohibitions on mandatory arbitration clauses and waivers of certain consumer rights, each of which were effective on June 1, 2013.
-CFPB site.

WASHINGTON, D.C., May, 2013 - Today the Consumer Financial Protection Bureau (CFPB) finalized rules to facilitate access to credit by creating specific exemptions and modifications to the CFPB’s Ability-to-Repay rule for small creditors, community development lenders, and housing stabilization programs. The amendments also revised rules on how to calculate loan origination compensation for certain purposes. Today’s final rule amends the CFPB’s Ability-to-Repay rule, which was finalized in January of this year.
"Our Ability-to-Repay rule was crafted to promote responsible lending practices," said CFPB Director Richard Cordray. "Today's amendments embody our efforts to make reasonable changes to the rule in order to foster access to responsible credit for consumers."

The CFPB finalized its Ability-to-Repay rule on January 10, 2013. The Ability-to-Repay rule established that most new mortgages must comply with basic requirements that protect consumers from taking on loans they do not have the financial means to pay back. Lenders are presumed to have complied with the Ability-to-Repay rule if they issue “Qualified Mortgages” (QMs). These loans must meet certain requirements including prohibitions or limitations on the risky features that harmed consumers in the recent mortgage crisis. If a lender makes a Qualified Mortgage, consumers have greater assurance that they can pay back the loan.
- Read More

WASHINGTON, D.C., May, 2013 - In association with the issuance of this final rule providing clarifying amendments to the 2013 Escrows Final Rule, the Bureau is posting on its public website a final list of rural and underserved counties, for use with mortgages consummated from June 1, 2013, through December 31, 2013. In addition, the final rule restores certain existing Regulation Z requirements related to the consumer’s ability to repay and prepayment penalties for HPMLs.
- Amendments to the 2013 Escrows Final Rule under the Truth in Lending Act
- Final list of rural and underserved counties for 2013

WASHINGTON, D.C., May, 2013 - The CFPB goal with these guides is to provide an overview of the rules in a plain language and FAQ format which makes the content more accessible and consumable for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff.
- HOEPA Rule
- ECOA Valuation Rule
- TILA HPML Appraisal Rule

IRVING, TX, May, 2013 - TIB’s Annual Conference is quickly coming upon us. We would like to invite you to join Us this year for another outstanding Conference for our Community Banking industry! Please mark your calendar for October 16, 17 & 18.

MACOMB COUNTY, MI, April, 2013 - Macomb County courts’ phone and computer systems back... The Macomb County Circuit and Probate courts’ normal phone and computer systems are operational.
- Official Notice

WASHINGTON, D.C., April, 2013 - Today we are issuing another proposal to address questions regarding qualified mortgages and servicing that have come up since we first issued those rules in January. These proposals are part of our commitment to facilitate implementation of the rules issued in January under the Dodd-Frank Act. We at the Bureau believe that we have a responsibility not just to write a rule, but to see that it is implemented effectively.
- Read full article

WASHINGTON, D.C., April, 2013 - The Bureau of Consumer Financial Protection (CFPB) published the next in a series of implementation guides for compliance with the new rules in keeping with the Dodd-Frank Act. On April 19th, they published the guide to assist with the TILA Escrow Rule effective on June 1, 2013.
- Read full document

WASHINGTON, D.C., April, 2013 - Fannie Mae is revising several aspects of its execution of legal documents policy pertaining to servicers. This Announcement addresses changes related to: Quitclaim deeds, limited power of attorney, execution of assumptions, and releases of security.
Servicers are required to implement this policies in this announcement immediately.
- Read full article

WASHINGTON, D.C., April, 2013 - In our new Escrows Rule, rural counties are defined by using the USDA Economic Research Service’s urban influence codes, and underserved counties are defined by reference to data collected under the Home Mortgage Disclosure Act. As provided in the rule, the Bureau will publish a list of such counties. The Bureau will be publishing in the near future some proposed minor technical changes to the rule. You can download a preliminary list based on the proposed revisions in CSV, XLS, or PDF format. We expect to finalize that rule before June 1, 2013, and will publish the official list of “rural” and “underserved” counties for 2013 at that time.
- Read full article

WASHINGTON, D.C., March, 2013 - FTC Staff Revises Online Advertising Disclosure Guidelines. Taking into account the expanding use of smartphones and additional digital platforms with small screens, the Federal Trade Commission has released new guidance for mobile and other online media advertisers, and explains how to make and maintain clear and conspicuous disclosures to avoid deceptive and unfair practice violations.
- Guidance article
- Updated .com Disclosures manual

WASHINGTON, D.C., February, 2013 - The section of this ML that increases the annual MIP is effective for case numbers assigned on or after April 1, 2013, except as noted below.
The following sections of this ML are effective for all mortgages with FHA case numbers assigned on or after June 3, 2013:

• revision to the period for assessing the annual MIP;
• removal of the exemption from the annual MIP for loans with terms of 15 years or less and LTVs of less than or equal to 78 percent at origination;
• increase in the annual MIP for mortgages with terms less than or equal to 15 years and LTV ratios less than or equal to 78 percent at origination.

WASHINGTON, D.C., January, 2013 - New rules will require 5 years of escrows instead of just 1. Effective with apps taken June 1, forward. The rule creates an exemption from the escrow requirement for small creditors that operate predominately in rural or underserved areas. Specifically, to be eligible for the exemption, a creditor must: (1) make more than half of its first-lien mortgages in rural or underserved areas; (2) have an asset size less than $2 billion; (3) together with its affiliates, have originated 500 or fewer first-lien mortgages during the preceding calendar year; and (4) together with its affiliates, not escrow for any mortgage it or its affiliates currently services, except in limited instances. Under the rule, eligible creditors need not establish escrow accounts for mortgages intended at consummation to be held in.
- Read document.

WASHINGTON, D.C., January, 2013 - Requires lenders to obtain an appraisal from certified license, written and conducts a physical property visit including interior of property.

• At application, the applicant must be provided with the notice included in the rule regarding the purpose of the appraisal, that the creditor will provide the applicant a copy of any written appraisal, that the creditor may charge the applicant for the appraisal, and that the applicant may choose to have a separate appraisal conducted at the expense of the applicant; and
• The creditor must provide the consumer with a free copy of any written appraisals obtained for the transaction at least three business days before consummation.

In addition, as required by the Dodd-Frank Act, the rule requires a HPML mortgage loan creditor to obtain a second written appraisal based on an interior inspection of the property, at no cost to the borrower, in connection with certain “flipped” properties. Subject to certain exemptions, the second appraisal would be required where:

• The seller acquired the home within 180 days prior to the date of the consumer’s purchase agreement; and
• The consumer is acquiring the home for a price that exceeds the seller’s acquisition price by 10% (if the seller acquired the property within the past 90 days) or 20% (if the seller acquired the property between 91 and 180 days earlier).

WASHINGTON, D.C., January, 2013 - 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). HOEPA/Section 32 loans will require home ownership counseling prior to closing. CFPB to publish a list of counselors and a lists of MSAs that are considered rural or underserved. Makes 5% the level to surpass to become a Section 32 loan and adds purchases as well as HELOCS to the definition.
Read full article.

WASHINGTON, D.C., January, 2013 - The Consumer Financial Protection Bureau (CFPB) is issuing rules to prevent mortgage lenders from steering borrowers into risky and high-cost loans. The rules ban certain incentives that loan originators had to sell unsafe loans to consumers in the run-up to the financial crisis. Read full article.
- A summary of the final rules is available here.

WASHINGTON, D.C., January, 2013 - The Bureau of Consumer Financial Protection (Bureau) is amending Regulation Z, which implements the Truth in Lending Act (TILA). Regulation Z currently prohibits a creditor from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan. The final rule implements sections 1411 and 1412 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), which generally require creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes certain protections from liability under this requirement for “qualified mortgages.” The final rule also implements section 1414 of the Dodd-Frank Act, which limits prepayment penalties. Finally, the final rule requires creditors to retain evidence of compliance with the rule for three years after a covered loan is consummated.
Read full document.

WASHINGTON, D.C., January, 2013 - Today the Consumer Financial Protection Bureau (CFPB) issued final rules to strengthen consumer protections for high-cost mortgages and to provide consumers with information about homeownership counseling. The Bureau also finalized a rule that requires escrow accounts be established for a minimum of five years for certain higher-priced mortgage loans. Read full article.

WASHINGTON, D.C., January, 2013 - Today the Consumer Financial Protection Bureau (CFPB) adopted a new rule that will protect consumers from irresponsible mortgage lending by requiring lenders to ensure prospective buyers have the ability to repay their mortgage. The rule also protects borrowers from risky lending practices such as “no doc” and “interest only” features that contributed to many homeowners ending up in delinquency and foreclosure after the 2008 housing collapse Read full article.

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