Ability to Repay/Qualified Mortgage Rule

Size: px
Start display at page:

Download "Ability to Repay/Qualified Mortgage Rule"

Transcription

1 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 of topics therein.

2 Disclaimer The Bureau issued the Title XIV mortgage rules in January of 2013 to implement provisions under the Dodd Frank Wall Street Reform and Consumer Protection Act. The rules have been further clarified and updated by final rules issued in May, July and September, Most of the rules will take effect in January This presentation is current as of November 7, This presentation does not represent legal interpretation, guidance or advice of the Bureau. While efforts have been made to ensure accuracy, this presentation is not a substitute for the rule. Only the rule and its Official Interpretations can provide complete and definitive information regarding requirements. This document does not bind the Bureau and does not create any rights, benefits, or defenses, substantive or procedural, that are enforceable by any party in any manner. 1

3 Background Bureau finalized amendments to Regulations B, X, and Z that relate to mortgage origination; most amendments take effect in January Ability-to-Repay and Qualified Mortgages ( and.43) High-cost Mortgages (HOEPA) ( and.34) New Counseling-Related Requirements ( and ) Escrows for Higher-priced Mortgage Loans ( ) New Appraisal Requirements ( and ) Loan Originators ( ) A summary of each rule and the rules themselves are available on the Bureau s website at: 2

4 ABILITY-TO-REPAY/ QUALIFIED MORTGAGES FINAL RULE 3

5 Ability-to-Repay/Qualified Mortgages General ability-to-repay requirement Applies broadly to closed-end transactions secured by a dwelling Requires creditor to make a reasonable, good faith determination that consumer can repay the loan Qualified mortgages Restricts certain loan features, caps points and fees, and imposes certain underwriting requirements Safe harbor for loans below the higher-priced mortgage threshold; rebuttable presumption for higher-priced loans 4

6 Ability-to-Repay Requirement Creditor must make a reasonable and good faith determination that the consumer will have a reasonable ability to repay the loan according to its terms Consider and verify certain consumer-specific information Requirements for calculating mortgage payment No specific requirements for loan features or points and fees 5

7 ATR Eight Underwriting Factors The 8 ATR factors cover normal underwriting considerations: Income, assets and employment status 1. Current or reasonably expected income or assets (other than the value of the property that secures the loan) that the consumer will rely on to repay the loan 2. Current employment status (if you rely on employment income when assessing the consumer s ability to repay) Debts monthly payments on the new loan, and simultaneous loans, property costs, alimony, child-support obligations, and other debts 3. Monthly mortgage payment for this loan. You calculate this using the introductory or fullyindexed rate, whichever is higher, and monthly, fully-amortizing payments that are substantially equal 4.Monthly payment on any simultaneous loans secured by the same property 5. Monthly payments for property taxes and insurance that you require the consumer to buy, and certain other costs related to the property such as homeowners association fees or ground rent 6. Debts, alimony, and child-support obligations Risk - monthly debt -to-income ratio or residual income, and credit history 7. Monthly debt-to-income ratio or residual income, that you calculated using the total of all of the mortgage and non-mortgage obligations listed above, as a ratio of gross monthly income 8.Credit history They do not include loan to value ratios 6

8 Verifying information using 3 rd party records An organization must verify the information it relies on using reasonably reliable third-party records. For example, if a consumer tells the lender about his or her income, the lender must verify a consumer s income using documents such as W-2s or payroll statements. There are a variety of sources and documents that may help to verify the information relied on for determining ATR and for verifying each of the eight factors. 7

9 ATR factor (1) Income or assets 1. Current or reasonably expected income or assets (other than the value of the property that secures the loan) that the consumer will rely on to repay the loan. Only required to consider income or assets necessary to repay the loan. Income or assets include: Wages, self-employment income, bonuses, tips, commissions, dividends, rental income, benefits payments, bank accounts, investments or trust funds. Verification can be by W-2 or payroll statement, tax returns, bank statements, receipts from check cashing or funds-transfer services, benefits program documentation, or employer records. The consumer can provide tax return transcripts or payroll statements. 8

10 ATR factor (2) Employment status 2. Current employment status (if the lender relies on employment income when assessing the consumer s ability to repay) This can be full-time, part-time, seasonal, irregular, military, or self-employment. Verification can be by Documenting a consumer s employment status by calling the employer and receiving an oral verification, as long as the lender maintains a record of the information received on the call. 9

11 ATR factor (3) Mortgage Payment 3. Monthly mortgage payment for this loan. Calculate this using the introductory or fully-indexed rate, whichever is higher, and monthly, fully-amortizing payments that are substantially equal Other special rules: Balloon loans If they are higher-priced, the monthly payment is based on the maximum payment in the payment schedule, including the balloon payment. If they are not higher priced, the monthly payment is based on the maximum payment in the first 5 years. Interest-only and negative amortization loans also have special rules for calculating monthly payments. 10

12 ATR factor (4) Simultaneous loans 4. Monthly payment on any simultaneous loans secured by the same property If a lender knows (or has reason to know) that there will be a simultaneous transaction around the time the loan closes, the lender must consider the monthly payment on that transaction: For HELOCs the ATR assessment should include a monthly payment on the simultaneous loan that is calculated based on the amount of credit to be drawn down at or before consummation of the main loan. For non-helocs - the ATR assessment should include a monthly payment on the simultaneous loan calculated as appropriate for adjustable-rate mortgages, interest-only loans, or other categories discussed above, depending on what type of simultaneous loan is made. 11

13 ATR factor (5) Monthly property costs 5. Monthly payments for property taxes and insurance that the creditor requires the consumer to buy, and certain other costs related to the property such as homeowners association fees or ground rent Records for mortgage-related obligations can include: Property taxes: government entities or the amount listed on the title report Cooperative, condominium, or homeowners associations: a billing statement from the association Levies and assessments: statement from the assessing entity (for example, a water district bill) Ground rent: the current ground rent agreement Lease payments: the existing lease agreement Other records: can be reasonably reliable if they come from a third party 12

14 ATR factor (6) Debts 6. Debts, alimony, and child-support obligations Typical recurrent monthly debts include: Student loans Auto loans Revolving debt Existing mortgages not being paid off at or before closing Verification can be by Using a credit report to verify a consumer s debt obligations or on other items reported on the consumer s application; The lender does not need to obtain individual statements for every debt. 13

15 ATR factor (7) DTI 7. Monthly debt-to-income ratio or residual income, calculated using the total of all of the mortgage and non-mortgage obligations listed above, as a ratio of gross monthly income. To calculate the DTI ratio or residual income the lender uses the verified information about the consumers income, along with the consumers debt information. The general ATR standard requires creditors to consider DTI or residual income, but does not contain specific DTI or residual income thresholds. 14

16 ATR factor (8) Credit history 8.Credit history The rule does not specify how credit history should be weighed against other factors or how the various aspects of a consumer s credit history should be weighted to reach a reasonable, good faith determination of ability to repay. Verification: If a consumer does not have a credit history from a credit bureau, the lender can verify credit history using documents that show nontraditional credit references, such as rental payment history or utility payments. 15

17 Record Retention The rule requires that lenders retain evidence that they complied with the ATR/QM rule, including the prepayment penalty limitations, for three years after closing. 16

18 Looking at ATR determinations To determine whether the lender generally made a reasonable and good faith ATR determination, examiners can look at: Underwriting standards: Does the lender use standards that have historically produced comparatively low rates of delinquency and default during adverse economic conditions? Payment history: Has the consumer paid on time for a significant time after origination or reset of an adjustable-rate mortgage? 17

19 Looking for unreasonable ATR determinations Factors showing the ATR determination was not reasonable and in good faith: Underwriting standards: Evidence was ignored that the underwriting standards are not effective at determining consumers repayment ability. Inconsistency: Underwriting standards are inconsistent or different standards were used for similar loans without having a reasonable justification. Payment history: The consumer defaults early in the loan, or shortly after the loan resets, without having experienced a significant financial challenge or life-altering event. 18

20 Consequences for failing to determine ATR A lender that fails to consider the borrower s ability to repay a loan faces the risk that the borrower, or a class action on behalf of similarly situated borrowers, or an enforcement action by a state or Federal regulator may recover 3 years of finance charges and attorneys fees Statutory damages not less than $400 or greater than $4,000 are also permitted 3 year statute of limitations for affirmative claims. 19

21 Qualified Mortgage: Presumption of Compliance Safe Harbor Loan satisfies QM criteria and APR is less than: First liens: APOR + 1.5% Second Liens: APOR + 3.5% OR Loan satisfies small creditor QM or balloon QM and APR is less than APOR + 3.5% Rebuttable Presumption Loan satisfies QM criteria and APR equals or exceeds: First liens: APOR + 1.5% Second Liens: APOR + 3.5% Rebuttal limited to insufficient residual income 20

22 Qualified Mortgage: Features Limits on loan features No negative amortization or interest-only periods No balloon payments (except for certain portfolio loans by small creditors) Loan term may not exceed 30 years Points and fees cap Generally 3% of total loan amount Higher caps for loans <$100,000 Up to two additional bona fide discount points allowed depending on rate Relevant underwriting requirements Use maximum rate in first five years after first payment, full amortization Consider and verify income or assets Consider and verify current debt obligations, alimony, and child support Monthly debt-to-income ratio cannot exceed 43% 21

23 Qualified Mortgage: Temp. Alternative QM Government Patch Limits on loan features Same as permanent definition Points and fees cap Same as permanent definition Relevant underwriting requirements (alternative) Must be eligible for purchase, guarantee, or insurance by: Fannie Mae or Freddie Mac (sunsets when conservatorship ends or 7 years) HUD, VA, Department of Agriculture or Rural Housing Service (sunsets when agency rules take effect or 7 years) Factors wholly unrelated to ability-to-repay are excluded from eligibility criteria 22

24 Qualified Mortgage: Small Creditor Portfolio QM Limits on loan features Same as permanent definition Points and fees cap Same as permanent definition Relevant Underwriting Requirements Same as permanent definition, but no 43% DTI requirement Special Requirements Creditors must have <$2 billion in assets and (with affiliates) originate 500 covered mortgages per year; no restriction on location Must generally be held in portfolio for 3 years Threshold for safe harbor increased to 3.5% above APOR rather than 1.5% 23

25 Qualified Mortgage: Balloon QM Limits on loan features Points and fees cap Relevant Underwriting Requirements Same as permanent definition, although balloons are not restricted Same as permanent definition Same as permanent definition, but no 43% DTI requirement Special Requirements Creditors must have <$2 billion in assets and (with affiliates) originate 500 covered mortgages per year > 50% of first-lien mortgages made in rural or underserved counties in the preceding calendar year Must generally be held in portfolio for 3 years Threshold for safe harbor increased to 3.5% above APOR Two-year transition period Effective through 2015 while Bureau reconsiders rural and underserved definitions Allows small creditors to make balloon payment QMs regardless of rural or underserved status 24

26 Consequences of a failed QM What happens if a loan does not meet the standards for a QM? A: There is no requirement to make a QM; a QM demonstrates compliance with the ATR requirement. Without a QM safe harbor or rebuttable presumption, the lender will have to defend the loan as meeting the ability to repay requirements. For examiners who find that the loan fails as a QM, they must look at whether lender considered the borrower s ability to repay. 25

27 Points and Fees Worksheet High Cost Mortgage (Section ) Worksheet. The FFIEC Exam procedures for TILA have had a HCM (Section ) Worksheet, for examiners to determine whether a loan meets the points and fees limits for high cost loans. That worksheet has been revised to reflect the current rules. It is also useful to examiners for determining whether a QM is within the points and fees limits. QM Points and fees (Test 2 only) is the same for HCMs and QMs. The worksheet is useful for examiners because the points and fees test is the same for closed-end high cost mortgages and for QMs. After calculating points and fees, the examiner checks to see if they exceed the threshold that applies. For QMs the points and fees threshold is generally 3% of the loan amount (higher for loans under $100,000) 26

28 Calculating QM Points and fees with HCM Worksheet STEP 1: Total Points and Fees. All charges payable in connection with the transaction and known at or before consummation. A. Items included in the finance charge B. Loan originator compensation C. Certain non-finance charges under (c)(7) where the amount of the fee is unreasonable, or the creditor or affiliate receives compensation from the charge D. Premiums or other charges for optional or required insurance payable at or before consummation or account opening E. Maximum prepayment penalty F. For a refinance transaction, prepayment penalty paid to terminate prior transaction Total Points & Fees: Add Subtotals for A-F (Closed-End) 27

29 Calculating QM Points and fees with HCM Worksheet STEP 2: Determine the Total Loan Amount ( (b)(4)) 1. Determine the Amount Financed ( (b)) The full amount of principal repayable under the terms of the note or other loan contract Minus: Prepaid finance charges ( (a)(23)) Equals: Amount Financed 2. Deduct the points and fees from the Amount Financed to arrive at the Total Loan Amount 28

30 Calculating QM Points and fees with HCM Worksheet QM points and fees calculation - for transactions of $100,000 or more A. Calculate 3 percent of the total loan amount (from Step 2) B. Total Points & Fees from Step 1 C. If B exceeds A the loan is not a QM. 29

31 Comparison of ATR and QM requirements 30

32 Transaction Coverage and Exemptions 31

33 Questions? More information: 32

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

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

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

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 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 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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Member Conference: Charting Your Course. Presented by Denny Deischer, CRCM VP, Educational Services Missouri Bankers Association Member Conference: Charting Your Course Presented by Denny Deischer, CRCM VP, Educational Services Missouri Bankers Association Interesting Facts & Statements Regarding Dodd-Frank Act Requirements o 280

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 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

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

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

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

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

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

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

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

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 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

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

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

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

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

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

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

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

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

Federal Reserve Issues Proposed Ability-to-Repay Rule

Federal Reserve Issues Proposed Ability-to-Repay Rule April 28, 2011 Federal Reserve Issues Proposed Ability-to-Repay Rule By Joseph Gabai On April 19, 2011, the Federal Reserve Board ( Board ) issued a proposed rule to implement ability-to-repay requirements

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

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

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

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

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

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

Federal Home Loan Bank of Topeka. Mortgage Lending in the Near Term: The Good, The Bad, and The Ugly. April 25, 2014

Federal Home Loan Bank of Topeka. Mortgage Lending in the Near Term: The Good, The Bad, and The Ugly. April 25, 2014 Federal Home Loan Bank of Topeka Mortgage Lending in the Near Term: The Good, The Bad, and The Ugly April 25, 2014 1 Agenda Today s Topics 1. Regulatory environment CFPB and BASEL III 2. Expected drop

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

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

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

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

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

CFPB Ability-to- Repay Standard An analysis of the Consumer Financial Protection Bureau s Ability-to-Repay and Qualified Mortgage rule

CFPB Ability-to- Repay Standard An analysis of the Consumer Financial Protection Bureau s Ability-to-Repay and Qualified Mortgage rule www.pwcregulatory.com www.pwc.com/consumerfinance CFPB Ability-to- Repay Standard An analysis of the Consumer Financial Protection Bureau s Ability-to-Repay and Qualified Mortgage rule January 2013 A joint

More information

ABILITY TO REPAY AND QUALIFIED MORTGAGE UNDERWRITING REFERENCE

ABILITY TO REPAY AND QUALIFIED MORTGAGE UNDERWRITING REFERENCE ABILITY TO REPAY AND QUALIFIED MORTGAGE UNDERWRITING REFERENCE October 29, 2014 In case of any queries regarding the information available in this guide, please reach us at qmteam@swmc.com. Sun West Mortgage

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

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

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

INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB'S FINAL ABILITY-TO- REPAY/QUALIFIED MORTGAGE RULE

INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB'S FINAL ABILITY-TO- REPAY/QUALIFIED MORTGAGE RULE INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB'S FINAL ABILITY-TO- REPAY/QUALIFIED MORTGAGE RULE JANUARY 23, 2013 After considering a proposed rule and comments for more than a year and a half, the

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

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

ii. 25(c) Records related to certain requirements for mortgage loans, 25(c)(3) Records

ii. 25(c) Records related to certain requirements for mortgage loans, 25(c)(3) Records 6. In Supplement I to Part 1026 Official Interpretations: A. Under Section 1026.25 Record Retention: i. Under 25(a) General rule, paragraph 2 is revised. ii. 25(c) Records related to certain requirements

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

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

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

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

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

Mortgage Lending laws and how it affects you, the REALTOR. Presented by Anders Hostelley and Leonard Loventhal

Mortgage Lending laws and how it affects you, the REALTOR. Presented by Anders Hostelley and Leonard Loventhal Mortgage Lending laws and how it affects you, the REALTOR. Presented by Anders Hostelley and Leonard Loventhal Secure and Fair Enforcement for Mortgage Licensing Act Title V of P.L. 110-289, the Secure

More information

2013 RELU Annual Summer Conference Friday, August 9, 2013 The Riverhouse, Bend, OR

2013 RELU Annual Summer Conference Friday, August 9, 2013 The Riverhouse, Bend, OR 2013 RELU Annual Summer Conference Friday, August 9, 2013 The Riverhouse, Bend, OR Regulating the Financers: Dodd-Frank and Oregon Licensing Requirements Lauren E. Winters, Senior Policy Analyst (503)

More information

TILA-RESPA Integrated Disclosures

TILA-RESPA Integrated Disclosures Outlook Live Webinar- June 17, 2014 TILA-RESPA Integrated Disclosures Presented by the Consumer Financial Protection Bureau Visit us at www.consumercomplianceoutlook.org Disclaimer The Bureau issued the

More information

INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB'S FINAL ABILITY-TO- REPAY/QUALIFIED MORTGAGE RULE

INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB'S FINAL ABILITY-TO- REPAY/QUALIFIED MORTGAGE RULE INFOBYTES SPECIAL ALERT: DETAILED ANALYSIS OF CFPB'S FINAL ABILITY-TO- REPAY/QUALIFIED MORTGAGE RULE JANUARY 23, 2013 After considering a proposed rule and comments for more than a year and a half, the

More information

Title 9-A: MAINE CONSUMER CREDIT CODE

Title 9-A: MAINE CONSUMER CREDIT CODE Maine Revised Statutes Title 9-A: MAINE CONSUMER CREDIT CODE Article : 8-506. ENHANCED RESTRICTIONS ON CERTAIN CREDITORS In addition to the compliance requirements of section 8-504, subsection 1, unless

More information

The Federal Register published the proposed rule on August 23, 2012.

The Federal Register published the proposed rule on August 23, 2012. CFPB Issues Draft RESPA-TILA Proposed Rules On July 9, the Consumer Financial Protection Bureau ( Bureau or CFPB ) released draft proposed rules and model forms that combine the required disclosures under

More information

Client Alert. CFPB Ability to Repay Rules Issued. January 28, 2013. By Thomas J. Noto, Leonard N. Chanin, and Joseph Gabai

Client Alert. CFPB Ability to Repay Rules Issued. January 28, 2013. By Thomas J. Noto, Leonard N. Chanin, and Joseph Gabai January 28, 2013 CFPB Ability to Repay Rules Issued By Thomas J. Noto, Leonard N. Chanin, and Joseph Gabai SUMMARY On January 10, 2013, the Consumer Financial Protection Bureau issued much-anticipated

More information

CFPB Proposes New Mortgage Disclosure Rules

CFPB Proposes New Mortgage Disclosure Rules A DV I S O RY July 2012 On July 9, 2012, the Bureau of Consumer Financial Protection (CFPB) issued a proposed rule on mortgage disclosures (Proposed Rule) implementing requirements of the Dodd-Frank Wall

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

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

Mortgage Bankers and Brokers Association of New Hampshire

Mortgage Bankers and Brokers Association of New Hampshire Mortgage Bankers and Brokers Association of New Hampshire March 24, 2014 Ken Markison, MBA Regulatory Counsel Presented by David H. Stevens President, Mortgage Bankers Association Introduction Seven weeks

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

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

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

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

Ability to Repay and Qualified Mortgage TILA 129 C

Ability to Repay and Qualified Mortgage TILA 129 C Congressional Concerns Ability to Repay and Qualified Mortgage TILA 129 C February 2014 Patti Blenden Financial Solutions 2 The Dodd Frank Act (DFA) changes reflect 3 primary concerns with the mortgage

More information

Ability to Repay/Qualified Mortgages FAQ

Ability to Repay/Qualified Mortgages FAQ The Ability to Repay (ATR)/Qualified Mortgages (QM) provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act require lenders to make a reasonable, good faith determination of a borrower

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

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

Regulatory Practice Letter

Regulatory Practice Letter RPL Number 10-17 Financial Services Regulatory Practice Regulatory Practice Letter ADVISORY Amendments to Mortgage Loan Provisions under Regulation Z Executive Summary The Federal Reserve Board ( Fed )

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

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