Member Conference: Charting Your Course. Presented by Denny Deischer, CRCM VP, Educational Services Missouri Bankers Association

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "Member Conference: Charting Your Course. Presented by Denny Deischer, CRCM VP, Educational Services Missouri Bankers Association"

Transcription

1 Member Conference: Charting Your Course Presented by Denny Deischer, CRCM VP, Educational Services Missouri Bankers Association

2 Interesting Facts & Statements Regarding Dodd-Frank Act Requirements o 280 of 398 (70%) of DFA rulemaking requirement deadlines missed o 121 (30%) requirements not yet been proposed Banker Testimony: Hard-dollar compliance costs for industry approaching $50 billion;...12% of total operating expenses Risk Management aspect of compliance stems from the challenge of achieving an adequate level of compliance performance while using a limited number of resources

3 Compliance Risks to be Managed Financial - Fines, penalties, reimbursements, legal fees, settlements and judgments Operational - Correcting noncompliance costs 3 times as much to correct than to prevent Reputation - Damage to reputation in the marketplace due to noncompliance; trust Competitive Noncompetitive posture in industry due to noncompliance consequences

4 Necessary Steps Enterprise Risk Program Compliance is risk comparable to CAMELS, but historically way back in cost outlay CO must have AUTHORITY to develop, implement and manage the Compliance Program Implement strong compliance monitoring program o Enables bank to build on-going formal program now o Prevents paying more later to fix serious problems Fram Oil Filter: Pay me now, or Pay me later CO/department must be viewed and function as an asset of the bank

5 What Regulatory Issues Ahead; Existing and Coming Up?

6 HPML facts Triggered if APR o > 1.5% above APOR for first lien loans o > 3.5% above APOR for subordinate lien Documented Ability to Repay verification required Required escrow for minimum of five years

7 HPML - issue Not offering HPML.. Fair Lending issue?? CRA concerns??

8 Posting/Crediting Payments facts credit payment date of receipt Provide conforming notice; reasonable cut-off time May post after receipt if no penalties assessed

9 Posting/Crediting Payments issues... Explain/justify cut-off earlier than lobby close/5:00 Customer notification; note, coupon, closing docs Receipt of payments at drive-ups; After lobby closing and Weekends Online payments; Disclose when posted? CFPB: Posting delay cannot harm customer

10 SCRA facts GAO recommends agencies increase loan testing for SCRA Honoring America s Veterans Act o Effective o Increase time limit to 1 yr. after service regarding limiting foreclosure or seizure of property o Applicable only to obligations consummated prior to military service Interest reduction: re-cast payment and amortization

11 SCRA issues Counseling letter goes to all delinquent borrowers Inadequate SCRA policy/procedures: o Determine service status prior to action o Review military status periodically o File documentation o Employee training

12 Flood Insurance - facts NO FORCE-PLACEMENT before 45 th day after notice FDIC: Reasonable time from determination and closing (10 days less if commitment sooner) May (should) notify of upcoming expiration of flood policy, but no mention of force-placing no value to customer not valid for no coverage

13 Flood Insurance issues Biggert-Waters Flood Insurance and Modernization Act of 2012: penalty $2,000 per violation with no annual cap Most premium subsidies eliminated; premium to as much as triple in next 3 years o Renewal premiums increasing 25%/year o Replacement/new policy toes to full risk rated premium Agencies want banks to inform borrowers of future premium increases

14

15 Escrow Accounts for Higher-Priced Mortgage Loans Effective June 1, 2013

16 General Rule A bank may not extend a: higher-priced mortgage loan secured by a first lien on a consumer s principal dwelling unless an escrow account is established before consummation for payment of: property taxes premiums for mortgage-related insurance required by the bank

17 Mortgage-related insurance Insurance: required by the bank against loss of or damage to property (hazard insurance) against liability arising out of the ownership or use of the property protecting the bank against the consumer s default or other credit loss

18 Insurance Exclusions Insurance premiums need not be included in escrow accounts for loans secured by dwellings in: condominiums planned unit developments other common interest communities in which dwelling ownership requires participation in a governing association, where the governing association has an obligation to the dwelling owners to maintain a master policy insuring all dwellings however escrow of taxes would still be required

19 Cancellation Provisions A bank (or servicer) may cancel a required escrow account only upon the earlier of: termination of the underlying debt obligation; or receipt no earlier than five years (previously one year) after consummation of a consumer s request to cancel the escrow account

20 Cancellation Provisions However, a bank (or servicer) cannot cancel an escrow account pursuant to a consumer s request unless the following conditions are satisfied: the unpaid principal balance is less than 80% of the original value of the property securing the underlying debt obligation; and the consumer currently is not delinquent or in default on the underlying debt obligation

21 Exemptions for Certain Banks Escrow accounts need not be established for a transaction if, at the time of consummation, four conditions are met by the lending bank.

22 Exemptions for Certain Banks First condition: As of the end of the preceding calendar year, the bank had total assets of less than $2 billion (this asset size threshold will adjust every year)

23 Exemptions for Certain Banks Second condition: During the preceding calendar year, the bank and its affiliates together originated 500 or fewer covered transactions, secured by a first lien

24 Exemptions for Certain Banks Third condition: During any of the preceding three (3) calendar years, the bank extended more than 50% of its total covered transactions, secured by a first lien, on properties that are located in counties designated either rural or underserved as defined by the CFPB

25 Exemptions for Certain Banks Fourth condition: Neither the bank nor its affiliate maintains an escrow account for any extension of consumer credit secured by real property or a dwelling that the bank or its affiliate currently services, other than escrow accounts established: for first-lien HPMLs on or after 4/1/10 and before 1/1/14; or after consummation as an accommodation to distressed consumers to assist them in avoiding default or foreclosure

26 ECOA Valuation Rule Effective January 18, 2014

27 Coverage Applies to credit to be secured by a first lien on a dwelling Applies to business-purpose credit as well as consumer credit Does not have to be principal dwelling

28 Providing Appraisals and Other Valuations Bank must provide applicant copy of all appraisals and other written valuations developed in connection with an application for credit that is to be secured by a first lien on a dwelling Bank must provide copy promptly upon completion or 3 business days prior to consummation, whichever is earlier (can be waived under certain circumstances)

29 Promptly Upon Completion Upon receipt and/or approval/acceptance, promptly means within a few days Completion occurs when the last version of appraisal is received, or when the bank has reviewed and accepted the appraisal, WHICHEVER IS LATER For Example: o Receipt/approval on 20 th day after application, copy provided/delivered on 25 th day after application with closing scheduled for 45 th day after application RIGHT! o Receipt/approval on 20 th day after application, copy provided/delivered on 36 th day after application with closing scheduled for 45 th day after application WRONG!

30 Disclosure: Notice of Appraisal Bank must mail or deliver disclosure no later than 3 rd business day after application received If multiple applicants, disclosure and appraisal copy need only be given to one Model Form C-9 in Appendix C of Reg. B We may order an appraisal to determine the property s value and charge you for this appraisal. We will promptly give you a copy of any appraisal, even if your loan does not close. You can pay for an additional appraisal for your own use at your own cost.

31 Reimbursement Bank cannot charge applicant for copy Bank may require applicant to pay a reasonable fee for the cost of the appraisal/valuation May not increase reimbursement fee to cover costs of providing copy

32 Providing Copies Requirements apply to whether credit extended, denied or if application is incomplete or withdrawn Copies may be provided in electronic form, subject to E-Sign Act

33 Effective January 18, 2014

34 Appraisals Required Bank cannot extend HPML to consumer without obtaining a written appraisal of the property Appraisal must be performed by certified or licensed appraiser Appraiser must conduct physical visit of property interior

35 Additional Appraisal for Certain HPMLs Two appraisals required, if seller acquired property: o 90 or fewer days prior to buyer s acquisition agreement and price exceeds seller s acquisition price by more than 10%; or o 91 to 180 days prior to buyer s acquisition agreement and price exceeds seller s acquisition price by more than 20%

36 Additional Appraisal for Certain HPMLs Two appraisals may not be performed by the same certified or licensed appraiser Bank may charge consumer for only one of the appraisals; no up-charging One of the appraisals must include an analysis of the pricing differences, changes in market conditions, and improvements to the property

37 Additional appraisal not required if consumer acquires property: from government agency from holder of defaulted mortgage from non-profit entity from person who acquired title by inheritance or through court order (divorce, etc.) in connection with employee relocation from servicemember - deploying or PCS order located in federal disaster area located in rural county

38 Required Disclosure Required language in regulation Bank may comply with disclosure requirement by using Regulation B language Disclosure must be delivered or placed in mail no later than third business day after application received

39 Copy of Appraisal(s) Bank must provide copy of written appraisal(s) Copy must be provided no later than 3 business days prior to consummation (NLT 30 days after determining loan will not consummate Customer cannot waive timing Bank may not charge consumer for copy Electronic copies under E-Sign Act

40 Ability-to-Repay and Qualified Mortgage Rules Effective January 10, 2014

41 Coverage Closed-end consumer credit secured by a dwelling o Including real property attached to the dwelling o 1-4 family, condos and co-ops o First or subordinate lien loans o Not limited to principal residences Excluded o HELOC o Timeshare plans o Reverse mortgages o Temporary or bridge loans with <12 month terms o Construction phase of < 12 months of construction-topermanent loans o Loans secured by vacant land

42 Repayment Ability (c)(1) Banks/creditors may not make a loan secured by a dwelling unless that bank/creditor makes a reasonable and good faith determination at or before consummation that the consumer will have the ability-to-repay (ATR) the loan, according to the terms and conditions ATR Rule creates new legal standards governing underwriting residential mortgage loans; o Minimum of eight (8) specific underwriting guidelines to be followed to determine borrower ATR o Third-party records must be used to verify information used to evaluate the underwriting factors

43 Minimum of 1. Current or reasonably expected income or assets 2. Current employment status 3. Monthly payment on the covered transaction 4. Monthly payment on any simultaneous loan 5. Monthly payment for mortgage-related obligations 6. Current debt obligations, alimony, and child support 7. Monthly debt-to-income ratio or residual income 8. Credit history

44 ATR Compliance UNDERSTAND: Policies, procedures, controls must be adopted, implemented, and documented Banks have options to reach ATR compliance; each options carries different liability risks: o Non-Qualified Mortgage (QM) Loans o Qualified Mortgage Loans QM Safe Harbor Loans QM Rebuttable Presumption Loans QM Government Related Loans Small Creditor QM Loans Small Creditor QM Balloon Loans

45 Non-QM Loans ATR Rule does not mandate any specific underwriting standards, i.e. no maximum DTI prescribed as with QM Loans ATR Rules for Non-QM Loans provide no extraordinary legal defenses to lenders Whether ATR determination is reasonable and in good faith depends on: o Underwriting standards o Facts and circumstances of a particular loan o How creditor s standards were applied to facts and circumstances Baseline requirement is that banks must determine consumer s ATR

46 (i) of (viii): Current or reasonable expected income or assets Verify income using a tax-return transcript from IRS Other records may be used [ (c)(4)] o Copies of returns consumer filed with IRS or State authority o Form W-2s or other forms used to report wages or tax withholding o Payroll statements/stubs including military earnings statements o Financial institution records o Employer-provided records o Federal, State or local governments agency records of benefits or entitlement income o Check cashing service receipts o Funds transfer service receipts

47 (ii) of (viii): Current Employment Status If relying on employment income, employment status must be verified and documented Employment status may be full-time, part-time, seasonal, irregular, military, or self-employment, so long as the creditor considers those characteristics

48 (iii) of (viii): Monthly payment on Covered Transaction [ (c)(5)] For other than balloon-payment, interest-only and negative amortization loans; Calculated using o Greater of the fully indexed rate or any introductory rate; and o Monthly, fully amortizing payments that are substantially equal For a balloon-payment loan; Calculated using o Maximum payment scheduled during the first five (5) years for loan that s not a HPML o Maximum payments in payment schedule, including any balloon payment for a HPML For an interest-only loan and negative amortization loan; Calculated using o Greater of the fully indexed rate or any introductory interest rate; and o Substantially equal, monthly payments of P & I that will repay loan over the term remaining as of the date the loan is recast

49 (iv) of (viii): Monthly payment on any Simultaneous Loan [ (c)(6)] If the simultaneous loan is a covered transaction, the monthly payment is to be calculated using: o The greater of the fully indexed rate or any introductory interest rate; and o Monthly, fully amortizing payments that are substantially equal ( (c)(5) If the simultaneous loan is a HELOC, the payment is calculated using the periodic payment required under the terms of the plan and the amount of credit to be drawn at or before consummation of the covered transaction

50 (v) of (viii): Monthly payment for mortgage-related obligations Calculated considering property taxes; premiums and similar charges that are required by the creditor; fees and special assessments imposed by a condominium, cooperative, or homeowners association; ground rent; and leasehold payments that are recurring o One-time fees not considered o Annual, semi-annual, quarterly fees considered by computing total

51 (vi) of (viii): Current debt obligations, alimony, and child support Current debt obligations include student loans, automobile loans, revolving debt, and existing mortgages that will not be paid off at or before consummation Should include debt obligations in forbearance or deferral at the time of underwriting if the forbearance or deferral period will expire

52 (vii) of (viii): Monthly debt-to-income (DTI) ratio or residual income [ (c)(7)] If considering DTI Ratio Must consider the ratio of the total monthly debt obligations to total monthly income If considering residual income Must consider the remaining income after subtracting total monthly debt obligations from total monthly income

53 (viii) of (viii) The consumer s credit history ATR Requirement does not mandate specific underwriting standards THEREFORE.. No maximum DTI ratio requirement as with QM Loans as discussed.. shortly

54 CFPB Guidance on ATR Requirement In many instances appropriate, prudent loans will not meet Qualified Mortgage (QM) requirements in the ATR rules, and CFPB encourages creditors to make non-qm loans

55 Qualified Mortgages [ (e)(1)] Safe harbor of compliance with ATR Requirements for QM that is not a higher-priced covered transaction Presumption of compliance with ATR Requirements o For higher-priced covered transaction that is a QM o Presumption is rebuttable if proven that creditor did not make reasonable and good faith determination of consumer s ATR

56 QM Safe Harbor Loan (e)(2) Interest rate not exceeding APOR by 1.5% or more for first lien loan (or 3.5% or more for subordinate lien loan) Regular, substantially equal periodic payments No negative amortization No interest-only payments (deferral of principal) No balloon final payment Points & fees within established limits under (e)(3) No terms exceeding 30 years Underwritten based on maximum interest rate for first five years Based on verified current/reasonably expected income or assets and current debt obligations, alimony and child support DTI not exceeding 43%

57 QM Rebuttable Presumption (e)(1) Loan meets QM Requirements It s an HPML; Interest rate exceeds APOR by 1.5% or more on first lien loan (or 3.5% or more for subordinate lien loan)

58 QM Government Related Loan (e)(4)(ii) Eligible to be purchased, guaranteed, or insured by o HUD o VA o Department of Agriculture o RHS o Fannie Mae or Freddie Mac (as long as they remain in conservatorship) AND Meets requirements: o Substantially equal, regular periodic payments o No negative amortization o No deferral of principal o No balloon payments o Points and fees do not exceed limitations of (e)(3) o Term not exceeding 30 years o 43% DTI NOT Applicable Provisions end earlier of end of receivership status or January 10, 2021

59 Small Creditor Small Creditor QM Loan (e)(5) o Bank with less than $2 billion in assets o Bank made 500 or fewer first-lien mortgages prior calendar year o Bank does not operate predominantly in a rural or underserved area Loan o Meets all QM Requirements, other than 43% maximum DTI ratio o Rate does not exceed APOR by 3.5% or more on first or subordinate lien loan (>3.5% of APOR = QM Rebuttable Presumption treatment) o Held in portfolio for at least three years

60 Small Creditor QM Balloon Loan (f)(1) Small Creditor o Bank with less than $2 billion in assets o Bank and all affiliates made 500 or fewer first-lien mortgages prior calendar year o Bank made more than 50% of total mortgages on properties in a rural or underserved area in prior calendar year Loan o Term of at least 5 years o Meets all QM Requirements, other than 43% maximum DTI ratio o First or subordinate lien with interest rate that does not exceed APOR by 3.5% for comparable transactions o Held in portfolio for at least three years Two Year Transition: QM Balloon Loan treatment available for small creditors not operating in rural or underserved area for loans made on or before January 10, 2016

61 Effective January 10, 2014

62 Coverage Applies to any open- or closed-end consumer credit transaction secured by principal dwelling EXCEPT: Reverse mortgage Initial construction (only construction phase) Loans originated & financed by a Housing Finance Agency Loans originated through USDA s Rural Development Section 502 program

63 HOEPA Changes will now include purchasemoney loans & HELOC loans Not applicable to second or vacation homes

64 HOEPA Triggers APR trigger if APR exceeds APOR by: o 6.5% or more on first-lien loans o 8.5% or more on: subordinate-lien loans, or loans under $50,000 secured by personal property

65 HOEPA - Triggers Points & Fees: o o o 5% of total loan amount for loans of $20,000 and higher Lesser of $1,000 or 8% of total loan amount for loan amounts less than $20,000 Dollar amounts will be adjusted annually for inflation Prepayment Penalty: o o Penalty more than 2% of amount prepaid, or Penalty can be imposed more than 36 months after consummation

66 Requirements Disclosures: o Provided 3 days prior to consummation o Explanation of default consequences o APR, amount borrowed & monthly payment o Maximum payment under variable-rate program Restrictions: o Balloon payments generally banned (9/13/13 final rule: HOEPA balloon payment loans allowed provided meet QM requirements of (e)(6) or (f) [>50% loans in rural/underserved in any of previous 3 years]) o Prepayment penalties prohibited o Restricted due-on-sale provisions o Modification, renewal, extension fees prohibited o Late fees restricted to 4% of past due amount o Cannot finance Points/Fees o No negative amortization o Limitations on payment schedules o No default interest rates

67 Closed-end: o o o ATR Requirements Same requirements as ATR/QM rule HOEPA could be Qualified Mortgage if meets other QM criteria Cannot receive presumption of compliance if QM criteria not met Open-end: o ATR/QM rule does not apply to HELOCs o Still must consider/verify: Income/assets Current obligations

68 Homeownership Counseling Regulation X RESPA o Within 3 days of receiving application provide list of homeownership counseling organizations WHETHER HIGH- COST LOAN OR NOT!!! o Listing available through CFPB/HUD o List must not be more than 30 days old o Excludes reverse mortgages/time-share loans Reg. Z Negative Amortization Requirement o If negative amortization allowable, first-time borrower must receive homeownership counseling prior to consummation o Borrower cannot be steered to particular counselor/agency o Bank must receive counselor documentation prior to consummation o Counselor must be HUD-certified or approved

69 Homeownership Counseling HOEPA loans: o o o o o o HOEPA Loans Must receive written certification from counselor in retainable format Counselor/agency cannot be affiliated with bank Counselor must confirm RESPA/HOEPA disclosures before certification Counseling does not need to be in-person Payment of counseling fee cannot be condition before closing loan Fee may be paid by bank or financed

70 What Stressful Pressure!?!?

71 Questions? Concerns? Thanks for the Opportunity!!

CFPB Issues Much Anticipated Final Rules: Ability to Repay, Qualified Mortgages, Escrow Requirements and Homeownership Counseling

CFPB Issues Much Anticipated Final Rules: Ability to Repay, Qualified Mortgages, Escrow Requirements and Homeownership Counseling CFPB Issues Much Anticipated Final Rules: Ability to Repay, Qualified Mortgages, Escrow Requirements and Homeownership Counseling The Consumer Financial Protection Bureau ( CFPB ) issued their much anticipated

More information

Ability to Repay/Qualified Mortgage Rule

Ability to Repay/Qualified Mortgage Rule Ability to Repay/Qualified Mortgage Rule Note: This document was used in support of a live discussion. As such, it does not necessarily express the entirety of that discussion nor the relative emphasis

More information

The New Mortgage Servicing Rules. FMS East Coast Regional Conference September 17, 2013

The New Mortgage Servicing Rules. FMS East Coast Regional Conference September 17, 2013 The New Mortgage Servicing Rules FMS East Coast Regional Conference September 17, 2013 What are the new Mortgage Servicing Rules? Ability to Repay/Qualified Mortgage Rule 2013 HOEPA Rule Loan Originator

More information

The CFPB s Qualified Mortgage Requirements from the ATR/QM Final Rule (12 CFR 1026.43)

The CFPB s Qualified Mortgage Requirements from the ATR/QM Final Rule (12 CFR 1026.43) The CFPB s Qualified Mortgage Requirements from the ATR/QM Final Rule (12 CFR 1026.43) This has been updated to include changes from the CFPB final rule issued on September 13, 2013. In addition, this

More information

ESCROW REQUIREMENTS UNDER TILA

ESCROW REQUIREMENTS UNDER TILA Overview Escrow Requirements Reg. Z High Cost Mortgage and Counseling - Reg. Z & X Ability to Repay & Qualified Mortgages Reg. Z & X Mortgage Servicing Reg. Z & X Loan Originator Compensation Reg. Z Copies

More information

Break Out Session: Mortgage Loan Underwriting and Pricing

Break Out Session: Mortgage Loan Underwriting and Pricing Break Out Session: Mortgage Loan Underwriting and Pricing Agenda Ability to Repay (ATR)/Qualified Mortgages (QMs) Effective Date: Applications received on or after January 10, 2014 2013 Home Ownership

More information

CUNA s SUMMARY OF THE CFPB s MORTGAGE LENDING RULES Spring 2013

CUNA s SUMMARY OF THE CFPB s MORTGAGE LENDING RULES Spring 2013 MANDATORY ESCROW ACCOUNTS Effective: June 1, 2013 REGULATION Requires escrow accounts be maintained for five years (rather than the current one year) for higher-priced mortgage loans. A higher-priced mortgage

More information

Regulatory Practice Letter February 2013 RPL 13-07

Regulatory Practice Letter February 2013 RPL 13-07 Regulatory Practice Letter February 2013 RPL 13-07 High Cost Mortgages and Homeownership Counseling; Escrow Requirements - CFPB Final Rules Executive Summary The Bureau of Consumer Financial Protection

More information

Dodd Frank Act: Mortgage Rules

Dodd Frank Act: Mortgage Rules Dodd Frank Act: Mortgage Rules Karen M. Neeley 2012, Cox Smith Matthews Incorporated 1 Save the date! The following is a summary of the CFPB rules implementing Dodd Frank Act mortgage requirements. The

More information

New Mortgage Rules Update

New Mortgage Rules Update New Mortgage Rules Update 1 OBJECTIVES To provide information regarding the new mortgage rules, in particular: Ability-to-Repay/Qualified Mortgages; Mortgage Loan Origination Compensation; High-Cost Loans

More information

The CFPB s Ability-to-Repay Regulation Z Rules: (12 CFR 1026.43)

The CFPB s Ability-to-Repay Regulation Z Rules: (12 CFR 1026.43) The CFPB s Ability-to-Repay Regulation Z Rules: (12 CFR 1026.43) This has been updated to include changes from the CFPB final rule issued on September 13, 2013. In addition, this CompNOTES only covers

More information

The Impact of the CFPB s New Mortgage Rules on the Closing Process

The Impact of the CFPB s New Mortgage Rules on the Closing Process The Impact of the CFPB s New Mortgage Rules on the Closing Process March 11, 2014 Banking & Finance Practice Escrow Account Rule 4 Escrow Account Rule Effective June 1, 2013. Extends current rule from

More information

by: Stephen King, JD, AMLP

by: Stephen King, JD, AMLP Community Bank Audit Group Dodd-Frank Lending Issues June 2, 2014 by: Stephen King, JD, AMLP MEMBER OF PKF NORTH AMERICA, AN ASSOCIATION OF LEGALLY INDEPENDENT FIRMS 2013 Wolf & Company, P.C. Today s Agenda

More information

Early Summary of Ability to Repay and Qualified Mortgage Rules under Dodd-Frank Wall Street Reform and Consumer Protection Act.

Early Summary of Ability to Repay and Qualified Mortgage Rules under Dodd-Frank Wall Street Reform and Consumer Protection Act. Early Summary of Ability to Repay and Qualified Mortgage Rules under Dodd-Frank Wall Street Reform and Consumer Protection Act January 11, 2013 OVERVIEW - On January 10, 2013, the Consumer Financial Protection

More information

Ability-to-Repay and Qualified Mortgage Rule

Ability-to-Repay and Qualified Mortgage Rule APRIL 10, 2013 Ability-to-Repay and Qualified Mortgage Rule SMALL ENTITY COMPLIANCE GUIDE 1 Please refer to our concurrent proposal about the changes we have proposed to this rule. This notice proposes

More information

CFPB Mortgage Rules: Planning for Upcoming Deadlines

CFPB Mortgage Rules: Planning for Upcoming Deadlines CFPB Mortgage Rules: Planning for Upcoming Deadlines Amy Avitable Director of Regulatory Compliance, TCS BaNCS Copyright 2012 Tata Consultancy Services Limited 1 Amy Avitable, JD, CPA Amy Avitable is a

More information

CLIENT AND FRIENDS BANKING UPDATE SILVER, FREEDMAN & TAFF, L.L.P. 3299 K STREET, N.W., SUITE 100, WASHINGTON, D.C.

CLIENT AND FRIENDS BANKING UPDATE SILVER, FREEDMAN & TAFF, L.L.P. 3299 K STREET, N.W., SUITE 100, WASHINGTON, D.C. CLIENT AND FRIENDS BANKING UPDATE SILVER, FREEDMAN & TAFF, L.L.P. 3299 K STREET, N.W., SUITE 100, WASHINGTON, D.C. 20007 (202) 295-4500 (202) 337-5502 www.sftlaw.com A DETAILED SUMMARY OF THE CFPB S FINAL

More information

Comparison of Section 35(HPML) & Section 43(HPCT) Regulations

Comparison of Section 35(HPML) & Section 43(HPCT) Regulations Comparison of Section 35(HPML) & Section 43(HPCT) Regulations As of 01/07/2014-VS General Consumer Loan Type Not Applicable A closed-end consumer credit transaction secured by the consumer s principal

More information

Section 1026.43. Ability-to-Repay (ATR) 1026.43(c)(1) and Qualified Mortgage (QM) 1026.43(e), (f)

Section 1026.43. Ability-to-Repay (ATR) 1026.43(c)(1) and Qualified Mortgage (QM) 1026.43(e), (f) Section 1026.43 Ability-to-Repay (ATR) 1026.43(c)(1) and Qualified Mortgage (QM) 1026.43(e), (f) Effective January 10, 2014 As of 10/15/2013- By Venessa Snell This section applies to any consumer credit

More information

NCUA New Dodd-Frank Remittances and Mortgage Lending Rules Webinar. Part 2, December 18, 2013. Questions and Answers

NCUA New Dodd-Frank Remittances and Mortgage Lending Rules Webinar. Part 2, December 18, 2013. Questions and Answers NCUA New Dodd-Frank Remittances and Mortgage Lending Rules Webinar Topics covered: Regulation Z Mortgage Lending Rules Part 2, December 18, 2013 Questions and Answers Regulations X and Z Homeownership

More information

Dodd Frank Mortgage Reform 2014

Dodd Frank Mortgage Reform 2014 Dodd Frank Mortgage Reform 2014 Business Partner Deck v1 12.16.13 Overview RULE EFFECTIVE DATE Loan Originator Compensation - TILA Loans closed and paid on or after 1/01/14 Ability to Repay/Qualified Mortgages

More information

NEW CFPB RULES FOR HIGH COST MORTGAGES AND HOMEOWNERSHIP COUNSELING February 3, 2013

NEW CFPB RULES FOR HIGH COST MORTGAGES AND HOMEOWNERSHIP COUNSELING February 3, 2013 NEW CFPB RULES FOR HIGH COST MORTGAGES AND HOMEOWNERSHIP COUNSELING February 3, 2013 On January 10, 2013, the Consumer Financial Protection Bureau ( CFPB ) issued a final rule that carries out changes

More information

CFPB Regulations on Ability to Repay and Qualified Mortgages. MDDCCUA Training

CFPB Regulations on Ability to Repay and Qualified Mortgages. MDDCCUA Training CFPB Regulations on Ability to Repay and Qualified Mortgages MDDCCUA Training October 30, 2013 E. Andrew Keeney, Esq. Kaufman & Canoles, P.C. Ability-to-Repay and Qualified Mortgage Rules E. Andrew Keeney,

More information

Ability-to-Repay and Qualified Mortgage Rule

Ability-to-Repay and Qualified Mortgage Rule AUGUST 14, 2013 Ability-to-Repay and Qualified Mortgage Rule SMALL ENTITY COMPLIANCE GUIDE The Bureau recently finalized changes to this rule. The June 2013 ATR/QM Concurrent Final Rule and July 2013 Final

More information

The Consumer Financial Protection Bureau (Bureau) is issuing a final rule to implement

The Consumer Financial Protection Bureau (Bureau) is issuing a final rule to implement SUMMARY OF THE ABILITY-TO-REPAY AND QUALIFIED MORTGAGE RULE AND THE CONCURRENT PROPOSAL The Consumer Financial Protection Bureau (Bureau) is issuing a final rule to implement laws requiring mortgage lenders

More information

TILA Escrow Requirements for High Priced Mortgage Loans (12 CFR 1026.35)

TILA Escrow Requirements for High Priced Mortgage Loans (12 CFR 1026.35) TILA Escrow Requirements for High Priced Mortgage Loans (12 CFR 1026.35) The Consumer Financial Protection Bureau s (CFPB) mortgage rules include new escrow account requirements for higher-priced mortgage

More information

CFPB Regulations. Review & Enforcement

CFPB Regulations. Review & Enforcement CFPB Regulations Review & Enforcement Agenda Welcome Overview 2014 Regulations Loan Originator Compensation and Training, Certification, and Identifier Disclosure High-Cost/HOEPA Mortgage Loans & Homeownership

More information

Comparison of Section 35(HPML) & Section 32(HOEPA) Regulations Including CFPB 2013 & 2014 Updates As of 01/07/2014

Comparison of Section 35(HPML) & Section 32(HOEPA) Regulations Including CFPB 2013 & 2014 Updates As of 01/07/2014 Comparison of Section 35(HPML) & Section 32(HOEPA) Regulations Including CFPB 2013 & 2014 Updates As of 01/07/2014 General Consumer Loan Type Not Applicable HPML (12 CFR 1026.35) A closed-end consumer

More information

CFPB issues ability-to-repay and qualified mortgage rules

CFPB issues ability-to-repay and qualified mortgage rules 1 FEBRUARY 4, 2013 CFPB issues ability-to-repay and qualified mortgage rules By Raymond J. Gustini, Lloyd H. Spencer, Tiana M. Butcher, Courtney L. Lindsay II, and Pierce Han No standard is perfect, but

More information

New Loan Origination and Mortgage Servicing Rules

New Loan Origination and Mortgage Servicing Rules 5/15/ New Loan Origination and Mortgage Servicing Rules Personal Finance Seminar for Professionals University of Maryland Extension Presenter: Diane Cipollone, Esq. Director of Training National Fair Housing

More information

The CFPB s New Mortgage Rules: Is Your Financial Institution Ready?

The CFPB s New Mortgage Rules: Is Your Financial Institution Ready? BSA COMPLIANCE LOAN REVIEW VENDOR REVIEW MORTGAGE REVIEW The CFPB s New Mortgage Rules: Is Your Financial Institution Ready? September 18, 2013 Presented by: David Senior, Director of Enterprise Risk Management

More information

Ability-to-Repay and Qualified Mortgage Rule

Ability-to-Repay and Qualified Mortgage Rule OCTOBER 17, 2013 Ability-to-Repay and Qualified Mortgage Rule SMALL ENTITY COMPLIANCE GUIDE 1 The Bureau recently finalized changes to this rule. The June 2013 ATR/QM Concurrent Final Rule, July 2013 Final

More information

By - Nitin J. Dave 25-Year Veteran of FannieMae ATR / QM Agency Prospective Effectively Manage Repurchases, Make-Wholes & Indemnifications

By - Nitin J. Dave 25-Year Veteran of FannieMae ATR / QM Agency Prospective Effectively Manage Repurchases, Make-Wholes & Indemnifications By - Nitin J. Dave 25-Year Veteran of FannieMae ATR / QM Agency Prospective Effectively Manage Repurchases, Make-Wholes & Indemnifications Effective with Loan Applications on or after January 10, 2014

More information

Minnesota Credit Union Network

Minnesota Credit Union Network Minnesota Credit Union Network MnCUN CoMpliaNCe RefeReNCe GUide CFPB Mortgage Rules Summary Ability-to-Repay Rule Qualified Mortgage Rule Loan Originator Rule Home Ownership & Equity Protection Act Appraisals

More information

ATR and QM Effective Date

ATR and QM Effective Date The Consumer Financial Protection Bureau (CFPB) has issued the final regulations to implement the Ability to Repay (ATR) and Qualified Mortgage (QM) provisions under the Dodd-Frank Act. Greenbox Loans

More information

High-Cost, Higher-Priced What s the Difference? Comparison of the Similarities and Differences of Terms in Regulation Z

High-Cost, Higher-Priced What s the Difference? Comparison of the Similarities and Differences of Terms in Regulation Z High-Cost, Higher-Priced What s the Difference? Comparison of the Similarities and Differences of Terms in Regulation Z Regulation Z uses the terms high-cost mortgage, higher-priced mortgage and higher-priced

More information

The New Mortgage Lending Process: A 2014 Check-Up and 2015 Planning

The New Mortgage Lending Process: A 2014 Check-Up and 2015 Planning The New Mortgage Lending Process: A 2014 Check-Up and 2015 Planning Copyright 2012 Tata Consultancy Services Limited No Legal Advice, Opinions, or Services Provided This presentation does not constitute

More information

Dodd Frank Act Mortgage Rules FAQs

Dodd Frank Act Mortgage Rules FAQs Dodd Frank Act Mortgage Rules FAQs Qualified Mortgage (QM) Criteria 3% Fee Cap What goes in to the calculation of fees? The same test is used for HOEPA and for QM. It includes everything that goes in to

More information

Single-Family Legal Essentials: CFPB Rules. Part 1

Single-Family Legal Essentials: CFPB Rules. Part 1 Single-Family Legal Essentials: CFPB Rules Part 1 2 Introduction & Background Dodd-Frank Act Rulemaking Mandate Established CFPB and transferred authority over TILA, RESPA, and other consumer financial

More information

The Consumer Financial Protection Bureau s Ability-to-Repay and Qualified Mortgage Rule

The Consumer Financial Protection Bureau s Ability-to-Repay and Qualified Mortgage Rule ADVISORY February 2013 The Consumer Financial Protection Bureau s Ability-to-Repay and Qualified Mortgage Rule On January 10, 2013, the Consumer Financial Protection Bureau ( CFPB ) issued its final Ability-to-Repay

More information

Ability to Repay and Qualified Mortgages. Dave Loyst SVP Financial Institutions Group Stearns Lending, Inc.

Ability to Repay and Qualified Mortgages. Dave Loyst SVP Financial Institutions Group Stearns Lending, Inc. Ability to Repay and Qualified Mortgages Dave Loyst SVP Financial Institutions Group Stearns Lending, Inc. 1 Effective Date CFPB issued Final QM Rule January 2013 First revision to the final rule: May

More information

CFPB Mortgage Amendments. Get Caught Up!

CFPB Mortgage Amendments. Get Caught Up! CFPB Mortgage Amendments Get Caught Up! Agenda HPML Appraisal Requirements High Cost Mortgage QM Points and Fees QM Cure Provision HPML Escrow Requirements HMDA Revisions Loan Estimate Form Closing Disclosure

More information

Higher Priced Mortgage Loans Higher Priced Covered Transactions Qualified Mortgages High Cost Mortgage Loans Total Points and Fees

Higher Priced Mortgage Loans Higher Priced Covered Transactions Qualified Mortgages High Cost Mortgage Loans Total Points and Fees Seeded and Actual Questions from our Dodd Frank Act Mortgage Regulations Implementation Workshops Fort Walton Beach, Orlando, and Tampa September 2013 Ability to Repay Lending Questions 1. We are not sure

More information

TILA Higher-Priced Mortgage Loans (HPML) Escrow Rule

TILA Higher-Priced Mortgage Loans (HPML) Escrow Rule JANUARY 6, 2014 TILA Higher-Priced Mortgage Loans (HPML) Escrow Rule SMALL ENTITY COMPLIANCE GUIDE This guide has been updated for the following changes - the May 2013 Final Rule and October 2013 Final

More information

EXPLOSION OF NEW MORTGAGE REGULATION

EXPLOSION OF NEW MORTGAGE REGULATION EXPLOSION OF NEW MORTGAGE REGULATION ABILITY TO REPAY/QUALIFIED MORTGAGE RULE Mortgage Regulation Teleseminar Series January 24, 2013 FINANCIAL SERVICES REGULATORY GROUP Leonard A. Bernstein lbernstein@reedsmith.com

More information

The 4 CFPB Final Rules of the Dodd-Frank Wall Street Reform and Consumer Protection Act. December 2013

The 4 CFPB Final Rules of the Dodd-Frank Wall Street Reform and Consumer Protection Act. December 2013 The 4 CFPB Final Rules of the Dodd-Frank Wall Street Reform and Consumer Protection Act December 2013 Agenda 1. LO Compensation 2. ATR / QM / TQM 3. ECOA & HPML 4. HOEPA & Home Counseling Agenda In the

More information

INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB S FINAL ESCROW RULE

INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB S FINAL ESCROW RULE INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB S FINAL ESCROW RULE FEBRUARY 15, 2013 On January 10, 2013, the Consumer Financial Protection Bureau (the Bureau ) issued its final rule (the Rule or Escrow

More information

1/22/2013. Mortgage U, Inc. Copyright 2012 Mortgage U, Inc. Copyright 2012 Mortgage U, Inc. Copyright 2012 Mortgage U, Inc.

1/22/2013. Mortgage U, Inc. Copyright 2012 Mortgage U, Inc. Copyright 2012 Mortgage U, Inc. Copyright 2012 Mortgage U, Inc. Mortgage U, Inc Compliance Is A New World Consumer Financial Protection Bureau Qualified Mortgage QM final rule Points and fees amendment High Cost Mortgage Rules High Cost Appraisal Rules ECOA & HMDA

More information

CUNA s HOEPA (Home Ownership and Equity Protection Act) CHART (revised 10/22/2013)

CUNA s HOEPA (Home Ownership and Equity Protection Act) CHART (revised 10/22/2013) What: CFPB s new HOEPA requirements, 12 CFR 1026 Subpart E. HOEPA was initially enacted in 1994 as an amendment to Truth in Lending to address abusive practices in refinancing and home equity mortgage

More information

Dodd-Frank Financial Reform

Dodd-Frank Financial Reform Overview of Dodd-Frank Provisions for Residential Mortgage Lending Presented January 19, 2011 by Marjorie A. Corwin, Esquire Gordon, Feinblatt, Rothman, Hoffberger & Hollander, LLC 233 East Redwood Street

More information

Ability to Repay & QM Regulations

Ability to Repay & QM Regulations Ability to Repay & QM Regulations 2013 Rushmore Loan Management Services LLC. All Rights Reserved. This is intended as educational material only. It does not provide legal advice. Revised December 2013

More information

ABILITY TO REPAY/QUALIFIED MORTGAGE RULE

ABILITY TO REPAY/QUALIFIED MORTGAGE RULE ABILITY TO REPAY/QUALIFIED MORTGAGE RULE Overview Information contained in this document is proprietary to Quicken Loans Inc. and may not be reproduced or disclosed without written authorization. This

More information

Comparison of Section 32(HOEPA) Regulation; Current Rules vs. January 10, 2014 CFPB Changes As of 10/16/14

Comparison of Section 32(HOEPA) Regulation; Current Rules vs. January 10, 2014 CFPB Changes As of 10/16/14 Comparison of Section 32(HOEPA) Regulation; Current Rules vs. January 10, 2014 CFPB Changes As of 10/16/14 General Loan Type 1994 TILA amendments apply to homeowners that already owned their homes and

More information

ICBA Summary of the TILA Higher-Priced Mortgage Loan (HPML) Appraisal Rule

ICBA Summary of the TILA Higher-Priced Mortgage Loan (HPML) Appraisal Rule ICBA Summary of the TILA Higher-Priced Mortgage Loan (HPML) Appraisal Rule December 2016 Contact: Joe Gormley Assistant Vice President & Regulatory Counsel joseph.gormley@icba.org www.icba.org ICBA Summary

More information

2013 Financial Institutions Forum. www.padgett-cpa.com

2013 Financial Institutions Forum. www.padgett-cpa.com 2013 Financial Institutions Forum www.padgett-cpa.com Compliance Update Session Two by Annette Evans, CPA, CRCM and Martha Gallardo, CPA www.padgett-cpa.com Agenda ECOA Valuations Rule Higher-Priced Mortgage

More information

ATR/QM FAQs. Table of Contents. General

ATR/QM FAQs. Table of Contents. General Table of Contents General... 1 Ability to Repay (ATR)/Qualified Mortgage (QM)... 2 ATR Eligibility... 2 Qualifying Ratios... 3 Employment/Income... 4 Verifying Employment History (Employment Gaps)... 4

More information

CFPB FINAL RULES SUN WEST IMPLEMENTATION GUIDE

CFPB FINAL RULES SUN WEST IMPLEMENTATION GUIDE CFPB FINAL RULES SUN WEST IMPLEMENTATION GUIDE January 02, 2015 In case of any queries regarding the information available in this guide, please reach us at qmteam@swmc.com. Sun West Mortgage Company,

More information

The New Ability-to-Pay Rules; Qualified Mortgage Lending under the Dodd-Frank Act

The New Ability-to-Pay Rules; Qualified Mortgage Lending under the Dodd-Frank Act The New Ability-to-Pay Rules; Qualified Mortgage Lending under the Dodd-Frank Act October 2011 Scott D. Samlin Partner T +1 212-398-5819 scott.samlin@snrdenton.com Stephen F. J. Ornstein Partner T +1 202-408-9122

More information

Federal Banking Law Reporter Regulations, Regulation, 12 CFR 1026.35, Requirements for higher-priced mortgage loans.

Federal Banking Law Reporter Regulations, Regulation, 12 CFR 1026.35, Requirements for higher-priced mortgage loans. Federal Banking Law Reporter Regulations, Regulation, 12 CFR 1026.35, Requirements for higher-priced mortgage loans. Click to open document in a browser The following text of Section 1026.35 is effective

More information

TITLE I-RESIDENTIAL MORTGAGE LOAN ORIGINATION STANDARDS

TITLE I-RESIDENTIAL MORTGAGE LOAN ORIGINATION STANDARDS TITLE I-RESIDENTIAL MORTGAGE LOAN ORIGINATION STANDARDS Residential Mortgage Origination: Adds a number of new regulations and requirements to mortgage loan originators. The bill requires originators to

More information

4/20/2015. Dodd Frank Sections 1411 and 1412. Defines pretty specifically the terms and dimensions of each. On this one, you can't blame the CFPB

4/20/2015. Dodd Frank Sections 1411 and 1412. Defines pretty specifically the terms and dimensions of each. On this one, you can't blame the CFPB Ability To Repay and Qualified Mortgages Presented by: TriComply, a Temenos Product Presenter: Blair Rugh, Compliance Director Florida Banker's Association, Annual Consumer Compliance Seminar April 29

More information

CFPB s Final Mortgage Regulations:

CFPB s Final Mortgage Regulations: CFPB s Final Mortgage Regulations: Ability-to-Repay and Qualified Mortgage Rules November 4, 2013 E. Andrew Keeney, Esq. Kaufman & Canoles, P.C. Ability-to-Repay and Qualified Mortgage Rules E. Andrew

More information

Mortgage Lending in the Near Term: The Good, the Bad and the Ugly. Douglas Winn President Wilary Winn LLC

Mortgage Lending in the Near Term: The Good, the Bad and the Ugly. Douglas Winn President Wilary Winn LLC Mortgage Lending in the Near Term: The Good, the Bad and the Ugly Douglas Winn President Wilary Winn LLC Agenda Today s Topics 1. Regulatory environment CFPB and Proposed Risk Based Capital rules 2. Expected

More information

Consumer Financial Protection Bureau Issues Ability-to-Repay and Qualified-Mortgage Standards Implementing Dodd-Frank

Consumer Financial Protection Bureau Issues Ability-to-Repay and Qualified-Mortgage Standards Implementing Dodd-Frank January 14, 2013 Consumer Financial Protection Bureau Issues Ability-to-Repay and Qualified-Mortgage Standards Implementing Dodd-Frank On January 10, 2013, the Consumer Financial Protection Bureau ( CFPB

More information

Regulation Z Appraisals for Higher Priced Mortgage Loans

Regulation Z Appraisals for Higher Priced Mortgage Loans Regulation Z Appraisals for Higher Priced Mortgage Loans (12 CFR 1026.35 (c)) October 31, 201 3 In January 2013, the Consumer Financial Protection Bureau and the federal financial institution regulators

More information

QM - Qualified Mortgages. Internal Training Use only July 1, 2014 #T014

QM - Qualified Mortgages. Internal Training Use only July 1, 2014 #T014 QM - Qualified Mortgages Internal Training Use only July 1, 2014 #T014 Rules & Terms to Know QM ATR HPML High Cost Rebuttable Presumption Safe Harbor Excludable Discount Pts History of QM & ATR Rules The

More information

JANUARY 2014. Shopping for a mortgage? What you can expect under federal rules

JANUARY 2014. Shopping for a mortgage? What you can expect under federal rules JANUARY 2014 Shopping for a mortgage? What you can expect under federal rules You ll be offered a mortgage that s set up to be affordable. When you apply for a mortgage, you may struggle to understand

More information

Changes in Mortgage Regulation in 2013 Katie Wechsler December, 2012

Changes in Mortgage Regulation in 2013 Katie Wechsler December, 2012 Changes in Mortgage Regulation in 2013 Katie Wechsler December, 2012 In 2011 and 2012 the Federal banking agencies proposed several regulations to the mortgage industry, none of which have been finalized,

More information

Summary of 2013 Mortgage Rules Issued by the Consumer Financial Protection Bureau

Summary of 2013 Mortgage Rules Issued by the Consumer Financial Protection Bureau Summary of 2013 Mortgage Rules Issued by the Consumer Financial Protection Bureau Promontory Financial Group, LLC 801 17th Street, NW, Suite 1100 Washington, DC 20006 +1 202 384 1200 promontory.com Contents

More information

Summary of 2013 Mortgage Rules Issued by the Consumer Financial Protection Bureau

Summary of 2013 Mortgage Rules Issued by the Consumer Financial Protection Bureau Summary of 2013 Mortgage Rules Issued by the Consumer Financial Protection Bureau Promontory Financial Group, LLC 801 17th Street, NW, Suite 1100 Washington, DC 20006 +1 202 384 1200 promontory.com Contents

More information

National Banker Call

National Banker Call National Banker Call Loan Originator Compensation and HOEPA Final Rules Thursday, June 6, 2013 The information contained in this presentation is for informational purposes only and is provided as a public

More information

Ability to Repay and Qualified Mortgage Rule

Ability to Repay and Qualified Mortgage Rule Ability to Repay and Qualified Mortgage Rule The Consumer Financial Protection Bureau adopted a rule that implements the Ability to Repay and Qualified Mortgage ( ATR/QM ) provisions of the Dodd-Frank

More information

CFPB proposes amendments to the ability-to-repay and qualified mortgage rules

CFPB proposes amendments to the ability-to-repay and qualified mortgage rules 1 MARCH 15, 2013 CFPB proposes amendments to the ability-to-repay and qualified mortgage rules By Raymond J. Gustini and Lloyd H. Spencer The Consumer Financial Protection Bureau ( CFPB or the Bureau )

More information

Example Scenario #1 - Points & Fees Scenario... 17

Example Scenario #1 - Points & Fees Scenario... 17 Table of Contents Dodd Frank Act Legislative History... 3 Covered & Excluded Loan Types... 3 Definitions - Terms to Know... 6 Ability to Repay (ATR)... 6 Qualified Mortgage (QM)... 6 Temporary QM... 6

More information

Federal Reserve Proposes Changes to Regulation Z to Implement New Ability-to-Repay Requirement for Residential Mortgage Loans

Federal Reserve Proposes Changes to Regulation Z to Implement New Ability-to-Repay Requirement for Residential Mortgage Loans Federal Reserve Proposes Changes to Regulation Z to Implement New Ability-to-Repay Requirement for Residential Mortgage Loans April 22, 2011 On April 20, 2011, the Federal Reserve released a proposed rule

More information

GLOSSARY OF TERMS. Amortization Repayment of a debt in regular installments of principal and interest, rather than interest only payments

GLOSSARY OF TERMS. Amortization Repayment of a debt in regular installments of principal and interest, rather than interest only payments GLOSSARY OF TERMS Ability to Repay (ATR) The Ability to Repay rule protects consumers from taking on mortgages that exceed their financial means, by mandating the documentation / proof of income and assets.

More information

DISCLAIMER. Page - 1 - of 17

DISCLAIMER. Page - 1 - of 17 DISCLAIMER The information provided in this presentation and any printed material is for informational purposes only. None of the forms, materials or opinions is offered, or should be construed, as legal

More information

ECOA & TILA APPRAISAL RULES

ECOA & TILA APPRAISAL RULES ECOA & TILA APPRAISAL RULES Appraisal Customer Access Issues Managing the Dodd-Frank Act Appraisal Process Who owns the appraisal or valuation? For which party or parties is the appraisal performed? Patti

More information

TILA Higher Priced Mortgage Loans Appraisal Rule

TILA Higher Priced Mortgage Loans Appraisal Rule TILA Higher Priced Mortgage Loans Appraisal Rule Promote the informed use of consumer credit by requiring disclosures about its costs and terms Purpose of the TILA HPML Appraisal Rule: Congress enacted

More information

FRESH. Agenda. Credit Union Integrated Mortgage Disclosures Are you Prepared?

FRESH. Agenda. Credit Union Integrated Mortgage Disclosures Are you Prepared? MCUL & Affiliates 2015 Annual Convention and Exposition Credit Union Integrated Mortgage Disclosures Are you Prepared? Glory LeDu Thursday, June 4, 2015 2:00 p.m. Sponsored by: FRESH Ideas to Reinvent

More information

Summary of the proposed changes to the Mortgage Servicing Rules. The Consumer Financial Protection Bureau is proposing several amendments to the

Summary of the proposed changes to the Mortgage Servicing Rules. The Consumer Financial Protection Bureau is proposing several amendments to the Summary of the proposed changes to the Mortgage Servicing Rules The Consumer Financial Protection Bureau is proposing several amendments to the Bureau s Mortgage Servicing Rules under Regulation X, which

More information

Regulatory Practice Letter July 2013 RPL 13-17

Regulatory Practice Letter July 2013 RPL 13-17 Regulatory Practice Letter July 2013 RPL 13-17 CPFB Finalizes Additional Amendments to Rules Governing Ability-to Repay and Mortgage Servicing Standards Executive Summary The Bureau of Consumer Financial

More information

Change is Coming: Navigating the Mortgage Arena. presented by:

Change is Coming: Navigating the Mortgage Arena. presented by: Change is Coming: Navigating the Mortgage Arena presented by: Date December 4, 2013 Agenda Introduction Alphabet Soup CFPB s Ability to Repay and Qualified Mortgage General Rule / Special Rule Rebuttable

More information

WHAT TO EXPECT WITH DODD-FRANK AND WHY QM DOESN T MATTER.

WHAT TO EXPECT WITH DODD-FRANK AND WHY QM DOESN T MATTER. WHAT TO EXPECT WITH DODD-FRANK AND WHY QM DOESN T MATTER. JANUARY 8, 2014 finance.car.org (213) 739-8383 financehelpline@car.org BACKGROUND ON THE LENDING ENVIRONMENT Sara Sutachan Manager of Broker &

More information

Standards for Determining Monthly Debt and Income Appendix Q

Standards for Determining Monthly Debt and Income Appendix Q Standards for Determining Monthly Debt and Income Appendix Q October 2014 2012 Genworth Financial, Inc. All rights reserved. Agenda What we will cover General Income Requirements Documentation Requirements

More information

Dodd Frank Act Mortgage Regulations Implementation Gap Analysis

Dodd Frank Act Mortgage Regulations Implementation Gap Analysis POLICY CHANGES POL1 POL2 POL3 POL4 POL5 POL7 POL8 HPML & Reg B Appraisals HPML Appraisals Consumer (MH) Commercial & other consumer lenders compensation Tellers/Retail referral program Policy and/or SAFE

More information

FINANCIAL SERVICES REGULATORY GROUP

FINANCIAL SERVICES REGULATORY GROUP EXPLOSION OF NEW MORTGAGE REGULATION ECOA Appraisal Rule; HOEPA Regulations; Appraisals for High-Priced Mortgage Rule; Escrow Rule Mortgage Regulation Teleseminar Series March 7, 2013 FINANCIAL SERVICES

More information

Liabilities. 3.6-A General Requirements. 3.6-B Monthly Housing Expense. Section 3.6: Liabilities. A borrower s liabilities include the following:

Liabilities. 3.6-A General Requirements. 3.6-B Monthly Housing Expense. Section 3.6: Liabilities. A borrower s liabilities include the following: Liabilities 3.6-A General Requirements A borrower s liabilities include the following: Monthly housing expense on the borrower s principal residence Revolving charge accounts Installment loan debts Lease

More information

Advertising, Consumer protection, Mortgages, Reporting and recordkeeping

Advertising, Consumer protection, Mortgages, Reporting and recordkeeping List of Subjects in 12 CFR Part 1026 Advertising, Consumer protection, Mortgages, Reporting and recordkeeping requirements, Truth in Lending. Authority and Issuance For the reasons set forth in the preamble,

More information

2013 Home Ownership and Equity Protection Act (HOEPA) Rule

2013 Home Ownership and Equity Protection Act (HOEPA) Rule MAY 2, 2013 2013 Home Ownership and Equity Protection Act (HOEPA) Rule SMALL ENTITY COMPLIANCE GUIDE The Bureau recently finalized changes to this rule. The revisions amend the final rule issued January

More information

NMLS #1820 TILA and Regulation Z Ability-to-Repay and Qualified Mortgage Rules TRUTH-IN-LENDING/REGULATION Z POLICY

NMLS #1820 TILA and Regulation Z Ability-to-Repay and Qualified Mortgage Rules TRUTH-IN-LENDING/REGULATION Z POLICY OVERVIEW TRUTH-IN-LENDING/REGULATION Z POLICY ABILITY TO REPAY (APPENDIX Q UNDERWRITING GUIDELINES) AND QUALIFIED MORTGAGE PROTECTIONS The Truth-In-Lending Act (TILA), in addition to requiring extensive

More information

Mortgage Rules Are Out; Now What? The New Rules. A LOT becomes effective in January 2014!

Mortgage Rules Are Out; Now What? The New Rules. A LOT becomes effective in January 2014! Mortgage Rules Are Out; Now What? presented by Jack Konyk Executive Director, Government Affairs Presentation for Mortgage Bankers Association Of Southwestern Pennsylvania 1 November 4, 2013 The New Rules

More information

TILA Higher-Priced Mortgage Loans (HPML) Appraisal Rule

TILA Higher-Priced Mortgage Loans (HPML) Appraisal Rule JANUARY 13, 2014 TILA Higher-Priced Mortgage Loans (HPML) Appraisal Rule SMALL ENTITY COMPLIANCE GUIDE Version Log The Bureau updates this guide on a periodic basis to reflect finalized clarifications

More information

Uncertainty Regarding Fed Proposal and CFPB Action on Minimum Underwriting Standards for Consideration of a Consumer s Ability to Repay

Uncertainty Regarding Fed Proposal and CFPB Action on Minimum Underwriting Standards for Consideration of a Consumer s Ability to Repay June 2011 Uncertainty Regarding Fed Proposal and CFPB Action on Minimum Underwriting Standards for Consideration of a Consumer s Ability to Repay BY KEVIN L. PETRASIC, HELEN Y. LEE & AMANDA M. JABOUR Comments

More information

Equal Credit Opportunity Act (ECOA) Valuations Rule

Equal Credit Opportunity Act (ECOA) Valuations Rule MAY 2, 2013 Equal Credit Opportunity Act (ECOA) Valuations Rule SMALL ENTITY COMPLIANCE GUIDE 1 Table of Contents 1. Introduction... 5 I. What is the purpose of this guide?... 6 II. Who should read this

More information

How the New CFPB Regulations Will Impact the Reverse Mortgage Business. Jim Milano milano@thewbkfirm.com NRMLA

How the New CFPB Regulations Will Impact the Reverse Mortgage Business. Jim Milano milano@thewbkfirm.com NRMLA How the New CFPB Regulations Will Impact the Reverse Mortgage Business NRMLA Eastern Regional Meeting & Finance and Investment Forum March 19-20, 2013 Jim Milano milano@thewbkfirm.com 1 CFPB Regulatory

More information

The CFPB Finalizes New Mortgage Servicing Rules

The CFPB Finalizes New Mortgage Servicing Rules A DV I S O RY April 2013 The CFPB Finalizes New Mortgage Servicing Rules On January 17, 2013, the Consumer Financial Protection Bureau (CFPB) finalized rules implementing the mortgage loan servicing requirements

More information

The Qualified Mortgage and Ability to Repay Rules

The Qualified Mortgage and Ability to Repay Rules The Qualified Mortgage and Ability to Repay Rules Although green shoots are appearing, the post financial crisis mortgage market has faced numerous challenges and uncertainties. Chief among them has been

More information

ditech BUSINESS LENDING FREDDIE MAC ELIGIBLE FIXED RATE TEXAS HOME EQUITY PRODUCT

ditech BUSINESS LENDING FREDDIE MAC ELIGIBLE FIXED RATE TEXAS HOME EQUITY PRODUCT 1. PRODUCT DESCRIPTION Conventional Conforming fixed rate mortgage Servicing retained 10 to 30 years in 5 year increments Fully amortizing Qualified Mortgage (QM) Safe Harbor loans are permitted Qualified

More information

The New Residential Mortgage Origination and Servicing Regulatory Landscape

The New Residential Mortgage Origination and Servicing Regulatory Landscape The New Residential Mortgage Origination and Servicing Regulatory Landscape September 27, 2013 Robert R. Davis American Bankers Association 1120 Connecticut Avenue, NW Washington, DC 20036 (202) 663 5588

More information