MLO COMPENSATION, REGULATION Z, AND DODD-FRANK ACT

Size: px
Start display at page:

Download "MLO COMPENSATION, REGULATION Z, AND DODD-FRANK ACT"

Transcription

1 MLO COMPENSATION, REGULATION Z, AND DODD-FRANK ACT Vermont Mortgage Bankers Association & Mortgage Bankers/Brokers Association of NH Mortgage Compliance Conference Thursday, March 3, 2011 Sean P. Mahoney K&L Gates LLP State Street Financial Center One Lincoln Street Boston, MA (617) Copyright 2010 by K&L Gates LLP. All rights reserved.

2 Overview Federal Reserve Final Regulation on compensation of mortgage loan originators Dodd-Frank Act will impact mortgage bankers and loan originators Creates new consumer financial services regulator Imposes new requirements on mortgage origination Imposes new securitization rules and exemptions to skin in the game requirements 1

3 Federal Reserve MLO Compensation Regulations 2

4 Fed Regulations Limit Forms of Compensation Applies to all loans for which an application is received after April 1, 2011 Prohibits a loan originator from receiving, and any person from paying to the loan originator, compensation in an amount that is based on any of the loan s terms or conditions (other than the loan amount) Mandates single source compensation Prohibits steering 3

5 Loan Originators Defined as a person (including an individual or entity, an employee or employer) who, for compensation or other monetary gain, or in expectation of compensation or other monetary gain, arranges, negotiates, or otherwise obtains an applicable extension of consumer credit for another person 4

6 Loan Originators Includes mortgage brokers, employees of mortgage brokers, employees of banks and other lenders, and named lenders in table-funded transactions 5

7 The Basic Concept The clear intent of the Federal Reserve is to remove any incentive of an originator to make one loan versus another From compensation perspective, originator should be ambivalent as to type of loan or rate customer pays Disrupts mortgage banking market as originators lose flexibility to reduce their own compensation to provide discount to borrowers 6

8 Prohibited Originator Compensation Any compensation based upon terms and conditions of loans interest rate annual percentage rate loan-to-value ratio existence of a prepayment penalty 7

9 Permissible Originator Compensation Compensation based on Loan amount (fixed percentage with or without floors and caps) Overall loan volume Long-term performance of the originator s loans Actual number of hours worked New customer/existing customer Fixed fee per loan, set in advance Percentage of applications that result in consummated transactions Quality of the loan files submitted to the creditor Legitimate business expenses 8

10 Single Source Compensation A loan originator s compensation may come directly from the consumer or another person but not both if any loan originator receives compensation directly from a consumer, such loan originator may not receive compensation from any other person in connection with the transaction no person who knows or has reason to know of the consumer-paid compensation to the loan originator may pay any compensation to a loan originator in connection with the transaction 9

11 Single Source Compensation Yield Spread Premiums Are allowed, but any YSP in excess of fixed broker compensation must be used to offset borrower closing costs YSP cannot be used to vary compensation paid to broker YSP can be present if points are paid, but the two are netted in Box 2 of the GFE (can only have credit or charge; not both) 10

12 Single Source Compensation If borrower pays broker s fee Broker and borrower are free to set compensation Broker s compensation may be paid out of loan proceeds But not out of discount points paid by borrower And not out of increased rate paid by borrower 11

13 Anti-Steering A loan originator may not direct or steer a consumer to consummate a transaction based on the fact that the originator will receive greater compensation from the creditor in that transaction than in other transactions the originator offered or could have offered to the consumer, unless the consummated transaction is in the consumer s interest In other words, broker may not elect to place loans of a certain type only with a certain lender based upon compensation paid by the lender 12

14 Consumer s Interest Standard Most relevant to mortgage brokers or table-funded transactions Compensation for loan originator from employer cannot vary by loan type Mortgage brokers have ability to place loan with different lenders Does not require loan originator to direct consumers to loans that pay lowest compensation, but loan with lowest compensation is deemed to satisfy the test 13

15 Consumer s Interest Standard Safe Harbor In general, if the originator obtains loan options from a significant number of the creditors with which it does business and for each type of transaction in which the consumer expressed an interest, presents the consumer with loan options Then any of the following among the options presented are in the consumer s interest the loan with the lowest interest rate the loan with the lowest interest rate without exotic features the loan with the lowest total dollar amount for origination points or fees and discount points 14

16 Bureau of Consumer and Financial Protection (CFPB) 15

17 Overview Title X of the Dodd-Frank Act (the Consumer Financial Protection Act of 2010) creates a new federal regulator, the Bureau of Consumer and Financial Protection (CFPB) Primary justification - existing federal regulators did not adequately protect consumers Interested in safety and soundness of banks Little federal examination and supervision of mortgage bankers 16

18 CFPB Organization An independent bureau within the Fed, considered an executive agency Run by a Director nominated by the President and confirmed by the Senate Main office in D.C. branch offices permitted Directed to coordinate with other federal agencies and state regulators 17

19 Bureau of Consumer and Financial Protection CFPB begins operations on the designated transfer date Various requirements and reforms are also keyed off of this date Designated transfer date is July 21,

20 CFPB Authority Charged with regulating the offering and providing of consumer financial products and services under the federal consumer financial protection laws Rulemaking Authority CFPB is authorized to implement the federal consumer protection laws through regulations, orders and guidance Has near exclusive authority to implement federal consumer protection laws 19

21 CFPB Supervisory Authority CFPB has authority to regulate, examine, and take enforcement action with respect to any person that engages in the offering or providing of a financial product or service to a consumer (subject to exemptions) Primary examination and enforcement authority with respect to compliance by mortgage-related businesses, and certain larger participants in financial services such as banks and credit unions with more than $10 billion in assets 20

22 Residential Mortgage Loan Reforms in the Dodd-Frank Act 21

23 Mortgage loan originator A mortgage originator is defined as any person (an individual or an organization) that, for or in the expectation of direct or indirect compensation or gain: Takes a residential mortgage loan application; Assists a consumer in obtaining or applying to obtain a residential mortgage loan; or Offers or negotiates terms of a residential mortgage loan Not a creditor that funds loan with its own resources and later resells the loan 22

24 Mortgage Originator Qualifications Mortgage originators must: Be qualified and licensed or registered in accordance with applicable law, including the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 ( SAFE Act ) Include a unique mortgage originator identifier on all loan documents FRB regulations to require depository institutions to establish compliance procedures with respect to this section and SAFE Act registration procedures 23

25 Prohibition on Steering Incentives Mortgage originator may not receive compensation that varies based on the terms of the loan, other than the principal amount Mortgage originator may not receive an origination fee or charge from any person other than the consumer, other than Bona fide third party charges Compensation from a third party if The originator does not receive compensation from the consumer and The consumer does not make an upfront payment of discount points, origination fees or other fees other than bona fide third party charges not retained by the originator, creditor or an affiliate As permitted by FRB 24

26 Prohibition on Steering Incentives FRB regulations to prohibit: Steering to a loan that consumer lacks a reasonable ability to repay or has predatory characteristics or effects Steering from a qualified mortgage for which the consumer is qualified to a non-qualified mortgage Abusive or unfair lending practices based on race, ethnicity, gender or age Mischaracterizing credit history, available loans or appraised value Discouraging a consumer from seeking a better loan elsewhere 25

27 Prohibition on Steering Incentives Rules of Construction: Prohibits a yield spread premium or similar compensation that would permit total originator compensation to vary based on loan terms, other than the amount of principal Does not limit creditor s compensation from resale of loan Does not restrict consumer s ability to capitalize permitted origination fees or costs Does not prohibit incentive payments to an originator based on the number of loans originated within a specified period of time 26

28 Liability The civil liability provisions of TILA (including new duty of care and steering prohibitions) apply to mortgage originators Maximum liability is The greater of Actual damages or An amount equal to 3 times the total amount of direct and indirect compensation or gain accruing to the mortgage originator in connection with the relevant loan Plus costs and attorneys fees 27

29 Regulations FRB is to issue regulations to prohibit abusive, unfair, deceptive or predatory practices, to ensure that responsible, affordable credit remains available, and to effectuate, facilitate compliance with or prevent circumvention of the purposes of TILA Regulations will apply to all residential mortgage loans FRB has authority to establish full or partial exemptions from disclosure requirements for any class of residential mortgage loans 28

30 Ability to Repay No creditor may make a residential mortgage loan without determining that the consumer has a reasonable ability to repay the loan If the creditor knows or has reason to know that 1 or more loans secured by the same dwelling will be made to the same consumer, the creditor must determine that the consumer has a reasonable ability to repay all loans on the same dwelling 29

31 Qualified Mortgage Safe Harbor A rebuttable presumption not an absolute safe harbor Creditor may presume that a loan meets ability to repay requirements if it is a qualified mortgage 30

32 Qualified Mortgage Safe Harbor A qualified mortgage is a residential mortgage that: If fixed rate, is underwritten on the basis of a fully amortizing loan If adjustable rate, is underwritten based on the maximum rate permitted during the first 5 years No negative amortization or balloon payments No deferred repayment of principal Verified income and financial resources Complies with FRB regulations on debt-to-income ratios or residual income Points and fees do not exceed 3% Term does not exceed 30 years 31

33 Additional Loan Standards and Requirements Prepayment Penalties Allowed only for qualified mortgages Allowed for 3 years only (max. of 3%, 2%, 1% of outstanding balance) Must offer loan without a prepayment penalty Single Premium Credit Insurance Prohibition Applies to residential mortgage loans and home equity lines secured by principal dwellings Creditors cannot finance single premium credit insurance products except on a monthly basis 32

34 Additional Loan Standards and Requirements Arbitration Arbitration clauses prohibited in connection with residential mortgage loans and home equity lines secured by principal dwellings Negative Amortization Prohibited unless creditor makes certain requisite disclosures Counseling required for first-time borrowers Does not apply to reverse mortgages 33

35 Civil Liability and Defenses Increases civil liability exposure under TILA Statute of limitations for certain TILA violations is increased from 1 to 3 years Borrower may sue for recoupment after the initiation of foreclosure for violation of anti-steering prohibitions or ability to repay requirement Adds new legal defense to civil liability and rescission liability where obligor has been convicted of obtaining a residential mortgage by actual fraud 34

36 High-Cost Mortgage Criteria (Rates) First mortgage APR at consummation exceeds the average prime offer rate for a comparable transaction by more than 6.5% (8.5% if the dwelling is personal property and the transaction is for less than $50,000) Subordinate Mortgage APR at consummation exceeds the average prime offer rate for a comparable transaction by more than 8.5% 35

37 High-Cost Mortgage Criteria (Points and Fees) Total points and fees (excluding bona fide third party charges) exceed For a transaction of $20,000 or more, 5% of the total transaction amount For a transaction of less than $20,000, the lesser of 5% of the total transaction amount or $1,000 FRB may adjust dollar amount Loan documents permit prepayment fees more than 36 months after closing, or total prepayment fees exceed 2% of the amount prepaid 36

38 Super Appraisals for Higher Risk Mortgages Creditor is obligated to obtain A second, independent appraisal From a different licensed and certified appraiser Before making a higher risk mortgage loan Where the purpose of the loan is to finance the acquisition of property that had been acquired by the seller within the previous 180 days at a price lower than the current sale price This is to identify instances of apparent flipping 37

39 Higher-Risk Mortgage Definition Not a qualified mortgage If a first mortgage, the APR exceeds the average prime offer rate for a comparable transaction, as of the date the interest rate is set By 1.5% or more for loans within the Freddie Mac conforming loan limit (i.e., conforming loans) By 2.5% or more for loans in excess of Freddie Mac conforming loan limit (i.e., jumbo loans) If a subordinate mortgage, APR exceeds the average prime offer rate for a comparable transaction by 3.5% or more as of the date the interest rate is set 38

40 Appraisal Independence Requirements Acts or practices which violate appraisal independence are unlawful Compensation or coercion of appraiser by interested party Mischaracterization of appraised value Seeking to influence appraiser (including withholding or threatening to withhold payment) Regulations to determine other unlawful acts 39

41 Broker Price Opinions Defined an estimate prepared by a real estate broker, agent or sales person detailing the probable selling price of property May not be used as the primary basis for determining the value of the security property for a loan to finance the purchase of a consumer s principal dwelling 40

42 Copies of Appraisals and Valuations Creditor must provide a copy of all written appraisals and valuations to applicant for first mortgage on dwelling Valuation any estimate of value of a dwelling developed in connection with credit decision Obligation exists regardless of whether the loan is granted or denied, the application is complete or the application is withdrawn To be furnished no later than 3 days before closing Must be provided at no additional cost Creditor must notify applicant of right to receive copies in writing 41

43 Securitization Rules That Push Market to Plain Vanilla 42

44 Securitizers Required to Retain Risk Rulemaking required to mandate securitizers (not originators) retain at least a 5% interest in assets securitized Securitizer defined as an issuer of an asset-backed security a person who organizes and initiates an asset backed securities transaction by selling or transferring assets, either directly or indirectly, including through an affiliate, to the issuer Retained risk generally may not be hedged 43

45 Allocation of Risk Retention Regulations are to provide for allocation of risk between securitizers and originators that deliver into securitizations based on particular categories of assets determined with reference to the credit risk of the assets the characteristics of securitization transactions involving those assets potential impact of a risk retention requirement on the availability of credit to consumers and businesses 44

46 Qualified Residential Mortgages Exemption from risk retention requirements for securitizations consisting solely of qualified residential mortgages Essentially these are plain vanilla mortgages, but the precise definition will be determined by regulation can be no broader than definition of qualified mortgages under TILA must also take into loan features or underwriting practices shown to be associated with high or low risk of borrower default 45

47 Qualified Residential Mortgages Given exemption, originate-to-distribute will survive with respect to qualified residential mortgages Given that many mortgage lenders do not have wherewithal to retain risk, market may be overwhelmingly tilted to qualified residential mortgages Ultimately, these reforms may result in less innovation with respect to mortgage products 46

48 Government Backed Mortgage Loans Also exempt from risk retention provisions This makes sense as the originator or investor will have little risk associated with a loan guaranteed by the government These loans include Farm Credit Administration Federal Housing Administration Does not include Fannie Mae and Freddie Mac securitizations 47

49 Asset Class Regulations Regulations will establish asset classes and specifically govern securitizations of each of those asset classes incorporate underwriting guidelines established by the bank regulators that specify the terms, conditions, and characteristics of a loan within the asset class that indicate a low credit risk with respect to the loan asset classes include residential and commercial mortgages, commercial loans, auto loans, and any other asset classes deemed appropriate by regulators 48

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

Amendment to the AFR Wholesale Broker Agreement regarding Amendments to Regulation Z. Table of Contents

Amendment to the AFR Wholesale Broker Agreement regarding Amendments to Regulation Z. Table of Contents Amendment to the AFR Wholesale Broker Agreement regarding Amendments to Regulation Z Table of Contents Section 1 General Principles for Compliance 1.1 Mission Statement..... 2 1.2 Summary of TILA Amendment....

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

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

Summary of the Mortgage Lending Provisions In the Dodd-Frank Wall Street Reform and Consumer Protection Act

Summary of the Mortgage Lending Provisions In the Dodd-Frank Wall Street Reform and Consumer Protection Act Summary of the Mortgage Lending Provisions In the Dodd-Frank Wall Street Reform and Consumer Protection Act Prepared by Robert A. Cook and Meghan Musselman Hudson Cook Revised as of July 30, 2010 A Few

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

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

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

Financial Regulatory Reform: The New Rules on Loan Originator Compensation

Financial Regulatory Reform: The New Rules on Loan Originator Compensation Financial Regulatory Reform: The New Rules on Loan Originator Compensation 1 Introduction NOTICE: This information is not intended to be used as legal advice to any person or entity. The information contained

More information

Q & A with Lykken on Lending Team and Glen Corso

Q & A with Lykken on Lending Team and Glen Corso Blog Talk Radio Show July 12, 2010 Q & A with Lykken on Lending Team and Glen Corso General Questions Q: Throughout the MBA analysis of this legislation the term loan originator is used. Sometimes it seems

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

BROWN, FOWLER & ALSUP A Professional Corporation Attorneys at Law MEMORANDUM

BROWN, FOWLER & ALSUP A Professional Corporation Attorneys at Law MEMORANDUM BROWN, FOWLER & ALSUP A Professional Corporation Attorneys at Law J. Alton Alsup 10333 Richmond, Suite 860 Telephone 713/468-0400 Board Certified in Residential Real Estate Law Texas Board of Legal Specialization

More information

Title XIV. 14. Title XIV Mortgage Reform and Anti-Predatory Lending Act

Title XIV. 14. Title XIV Mortgage Reform and Anti-Predatory Lending Act Title XIV American Bankers Association Contact Bob Davis (202) 663-5588 rdavis@aba.com Joe Pigg (202) 663-5480 jpigg@aba.com Dechert LLP Authors Thomas P. Vartanian (202) 261-3439 thomas.vartanian@dechert.com

More information

Loan Originator Compensation: The New Paradigm

Loan Originator Compensation: The New Paradigm Loan Originator Compensation: The New Paradigm Presented for Maryland Association of Mortgage Professionals on March 3, 2011 by Marjorie A. Corwin Gordon, Feinblatt, Rothman, Hoffberger & Hollander, LLC

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

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

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

24-1.1E. Restrictions and limitations on high-cost home loans.

24-1.1E. Restrictions and limitations on high-cost home loans. 24-1.1E. Restrictions and limitations on high-cost home loans. (a) Definitions. The following definitions apply for the purposes of this section: (1) "Affiliate" means any company that controls, is controlled

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

Title XIV - Mortgage Reform and Anti-Predatory Lending Act. Short title: "Mortgage Reform and Anti-Predatory Lending Act"

Title XIV - Mortgage Reform and Anti-Predatory Lending Act. Short title: Mortgage Reform and Anti-Predatory Lending Act Title XIV - Mortgage Reform and Anti-Predatory Lending Act Short title: "Mortgage Reform and Anti-Predatory Lending Act" Subtitles A, B, C, and E are designated as Enumerated Consumer Law under the Bureau

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

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

Mortgage Loan Originator Compensation (12 CFR 1026)

Mortgage Loan Originator Compensation (12 CFR 1026) Mortgage Loan Originator Compensation (12 CFR 1026) In January 2013, the Consumer Financial Protection Bureau (CFPB) amended Regulation Z to implement requirements imposed by the Dodd-Frank Act concerning

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

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

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

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

TITLE XIV MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT

TITLE XIV MORTGAGE REFORM AND ANTI-PREDATORY LENDING ACT 124 STAT. 2136 PUBLIC LAW 111 203 JULY 21, 2010 obligated as of December 31, 2012, are hereby rescinded, and such amounts shall be deposited in the General Fund of the Treasury where such amounts shall

More information

Senate Bill 1149 Summary -- Prohibit Predatory Lending

Senate Bill 1149 Summary -- Prohibit Predatory Lending MEMORANDUM TO: FROM: Hal D. Lingerfelt Commissioner of Banks L. McNeil Chestnut Assistant Attorney General DATE: August 25, 1999 RE: Senate Bill 1149 Summary -- Prohibit Predatory Lending I. Background

More information

Financial Services Update - Special Alert January 30, 2013. CFPB Issues Final Loan Originator Compensation and Qualifications Rule

Financial Services Update - Special Alert January 30, 2013. CFPB Issues Final Loan Originator Compensation and Qualifications Rule Financial Services Update - Special Alert January 30, 2013 CFPB Issues Final Loan Originator Compensation and Qualifications Rule On January 20, the CFPB posted its final rule (the Rule) regarding loan

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 June 2012 RPL 12-11

Regulatory Practice Letter June 2012 RPL 12-11 Regulatory Practice Letter June 2012 RPL 12-11 Mortgage Rule Modifications under CFPB Consideration Executive Summary The Bureau of Consumer Financial Protection ( CFPB ) has announced that it intends

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

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

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

Dodd Frank Act Consumer Financial Protection Bureau Mortgage Lending

Dodd Frank Act Consumer Financial Protection Bureau Mortgage Lending Dodd Frank Act Consumer Financial Protection Bureau Mortgage Lending A Briefing for the Texas House Investments and Financial Services Committee John C. Fleming Consumer Financial Protection Bureau (CFPB)

More information

OFFICE OF THE ATTORNEY GENERAL GUIDANCE WITH RESPECT TO 940 CMR 8.00 et. seq. (as amended)

OFFICE OF THE ATTORNEY GENERAL GUIDANCE WITH RESPECT TO 940 CMR 8.00 et. seq. (as amended) OFFICE OF THE ATTORNEY GENERAL GUIDANCE WITH RESPECT TO 940 CMR 8.00 et. seq. (as amended) On October 17, 2007 the Office of the Attorney General amended 940 CMR 8.00 et. seq., the regulation under the

More information

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2009 SESSION LAW 2009-457 HOUSE BILL 1222

GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2009 SESSION LAW 2009-457 HOUSE BILL 1222 GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2009 SESSION LAW 2009-457 HOUSE BILL 1222 AN ACT TO UPDATE THE RATE SPREAD AND HIGH-COST HOME LOANS STATUTES, AND TO MAKE A CONFORMING CHANGE TO THE EMERGENCY

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

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 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

Short-Term Lenders Face Costly Path To Compliance

Short-Term Lenders Face Costly Path To Compliance Portfolio Media. Inc. 111 West 19 th Street, 5th Floor New York, NY 10011 www.law360.com Phone: +1 646 783 7100 Fax: +1 646 783 7161 customerservice@law360.com Short-Term Lenders Face Costly Path To Compliance

More information

Mon. ICBA Summary of the Military Lending Act Updated Regulation. August 2015. Month Year. Contact:

Mon. ICBA Summary of the Military Lending Act Updated Regulation. August 2015. Month Year. Contact: ICBA Summary of the Military Lending Act Updated Regulation August 2015 Month Year Mon Contact: Joe Gormley Assistant Vice President & Regulatory Counsel joseph.gormley@icba.org www.icba.org ICBA Summary

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

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

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

Final Rule Governing Loan Originator Compensation Practices

Final Rule Governing Loan Originator Compensation Practices August 31, 2010 Final Rule Governing Loan Originator Compensation Practices By Joseph Gabai Background On August 16, 2010, the Federal Reserve Board ( Board ) issued two proposed rules and three final

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

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

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

TITLE XIV: Mortgage Reform and Anti-Predatory Lending Act

TITLE XIV: Mortgage Reform and Anti-Predatory Lending Act TITLE XIV: Mortgage Reform and Anti-Predatory Lending Act Title XIV s short title is the Mortgage Reform and Anti-Predatory Lending Act. Sec. 1400(a) (p. 773). Subtitles A, B, C, and E, as well as Sections

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

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

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

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

209 CMR: DIVISION OF BANKS AND LOAN AGENCIES

209 CMR: DIVISION OF BANKS AND LOAN AGENCIES 209 CMR 32.00: TRUTH IN LENDING Section GENERAL 32.01: Purpose and Scope 32.02: Definitions and Rules of Construction 32.03: Exempt Transactions 32.04: Finance Charges OPEN END CREDIT 32.05: General Disclosure

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

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

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

Summary of Mortgage Related Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act July 21, 2010

Summary of Mortgage Related Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act July 21, 2010 Summary of Mortgage Related Provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act July 21, 2010 BACKGROUND This summary describes key points in the Dodd-Frank Wall Street Reform and

More information

Mortgage Lending Reform Provisions of the Dodd-Frank Act Will Bring Sweeping Changes

Mortgage Lending Reform Provisions of the Dodd-Frank Act Will Bring Sweeping Changes Mortgage Lending Reform Provisions of the Dodd-Frank Act Will Bring Sweeping Changes By Richard P. Hackett and Tom Quinn 1 On July 21, 2010, President Barack Obama signed into law the Dodd-Frank Wall Street

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

SB 1343. REFERENCE TITLE: home loans; prohibited activities. State of Arizona Senate Forty-fifth Legislature Second Regular Session 2002

SB 1343. REFERENCE TITLE: home loans; prohibited activities. State of Arizona Senate Forty-fifth Legislature Second Regular Session 2002 PLEASE NOTE: In most BUT NOT ALL instances, the page and line numbering of bills on this web site correspond to the page and line numbering of the official printed version of the bills. REFERENCE TITLE:

More information

STATE HIGH COST/PREDATORY LENDING REGULATIONS Updated 1/10/2014

STATE HIGH COST/PREDATORY LENDING REGULATIONS Updated 1/10/2014 STATE HIGH COST/PREDATORY LENDING REGULATIONS Updated 1/10/2014 State: Law: Cite: North Carolina NC High Cost Home Loan Law NC Rate Spread Home Loans Check both rules HB 2188 effective 10/01/2008 changes

More information

To Receive CPE Credit

To Receive CPE Credit Revisions to Loan Originator Compensation & Qualifications Under TILA Nancy Schoolman Senior Managing Consultant nschoolman@bkd.com 314.231.9844 Sheldon Hendrix Managing Consultant shendrix@bkd.com 713.499.4600

More information

MRS Title 9-A 8-103. Definitions and rules of construction

MRS Title 9-A 8-103. Definitions and rules of construction 9-A 8-103. Definitions and rules of construction The text included in this publication was prepared by the Maine Bureau of Financial Institutions and is current through July 15, 2008. It is a version that

More information

Guide to Fair Mortgage Lending and Home Preservation

Guide to Fair Mortgage Lending and Home Preservation Guide to Fair Mortgage Lending and Home Preservation Fair Housing Legal Support Center & Clinic Guide to Fair Mortgage Lending and Home Preservation What does this guide cover? What is Fair Lending? What

More information

HOME OWNERSHIP EQUITY PROTECTION ACT OF 1994. Raymond Natter 1

HOME OWNERSHIP EQUITY PROTECTION ACT OF 1994. Raymond Natter 1 HOME OWNERSHIP EQUITY PROTECTION ACT OF 1994 Raymond Natter 1 Recent Congressional attention to the problems of predatory mortgage lending has led for calls for the Federal Reserve Board to use its authority

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

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

Multistate Mortgage Committee (MMC) STATE NONDEPOSITORY EXAMINER GUIDELINES FOR REGULATION Z LOAN ORIGINATOR COMPENSATION RULE

Multistate Mortgage Committee (MMC) STATE NONDEPOSITORY EXAMINER GUIDELINES FOR REGULATION Z LOAN ORIGINATOR COMPENSATION RULE I. INTRODUCTION Multistate Mortgage Committee (MMC) STATE NONDEPOSITORY EXAMINER GUIDELINES FOR REGULATION Z LOAN ORIGINATOR COMPENSATION RULE On August 26, 2009, the Federal Reserve Board (FRB) published

More information

Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage

Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage BILLING CODE: 4810-AM-P BUREAU OF CONSUMER FINANCIAL PROTECTION Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage Brokers Transitioning to Mini-Correspondent Lenders AGENCY:

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

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

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

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

Financial Services Update May 21, 2014

Financial Services Update May 21, 2014 Financial Services Update May 21, 2014 HIGHLIGHTS Federal Regulatory Developments VA Issues Its Qualified Mortgage Rule Freddie Mac Outlines Seller/Servicer Guide Changes In Bulletin 2014-6 Revised Examination

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

T he restrictions of Sections 23A and Regulation W

T he restrictions of Sections 23A and Regulation W BNA s Banking Report Reproduced with permission from BNA s Banking Report, 100 BBR 109, 1/15/13, 01/15/2013. Copyright 2013 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com REGULATION

More information

ACTION ITEM REVISIONS AND MODIFICATIONS TO UNIVERSITY OF CALIFORNIA LOAN PROGRAM POLICIES AND PROCEDURES EXECUTIVE SUMMARY

ACTION ITEM REVISIONS AND MODIFICATIONS TO UNIVERSITY OF CALIFORNIA LOAN PROGRAM POLICIES AND PROCEDURES EXECUTIVE SUMMARY F9 Office of the President TO MEMBERS OF THE COMMITTEE ON FINANCE: For Meeting of November 14, 2013 ACTION ITEM REVISIONS AND MODIFICATIONS TO UNIVERSITY OF CALIFORNIA LOAN PROGRAM POLICIES AND PROCEDURES

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

Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan.

Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan. MORTGAGE GLOSSARY Adjustable Rate Mortgage (ARM): A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that

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

CUNA s COMPLIANCE HIGHLIGHTS

CUNA s COMPLIANCE HIGHLIGHTS CUNA s COMPLIANCE HIGHLIGHTS TILA/RESPA INTEGRATED MORTGAGE DISCLOSURES For more than 30 years, Federal law has required lenders to provide two different disclosure forms to consumers applying for a mortgage.

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

MORTGAGE REFORM AND THE IMPACT ON FINANCING AND FORECLOSURES

MORTGAGE REFORM AND THE IMPACT ON FINANCING AND FORECLOSURES MORTGAGE REFORM AND THE IMPACT ON FINANCING AND FORECLOSURES Lauren E. Winters, Senior Policy Analyst (503) 947-7039 Department of Consumer and Business Services, March 20, 2013 IMPORTANT INFORMATION ABOUT

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

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

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

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

SC Appleseed Legal Justice Center P.O. Box 7187 Columbia, South Carolina 29202 www.scjustice.org

SC Appleseed Legal Justice Center P.O. Box 7187 Columbia, South Carolina 29202 www.scjustice.org South Carolina High Cost Mortgage and Consumer Home Act: Act 42 of 2003 SC Appleseed Legal Justice Center P.O. Box 7187 Columbia, South Carolina 29202 www.scjustice.org Landmark piece of Legislation that

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

Qualified Mortgage Rule After 6 Months

Qualified Mortgage Rule After 6 Months Latest Developments Under TILA and RESPA Attorney David Pelletier dpelletier@axley.com 608.260.2495 Attorney Kevin D. Trost ktrost@axley.com 608.283.6747 WISCONSIN BANKING LAW UPDATE Community Bankers

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

Break Out Session: Mortgage Loan Servicing and Administration

Break Out Session: Mortgage Loan Servicing and Administration Break Out Session: Mortgage Loan Servicing and Administration 2 Agenda Mortgage Servicing Rules (Real Estate Settlement Procedures Act [RESPA] and Truth in Lending Act [TILA]) Effective Date: Applications

More information

COLORADO CONSUMER EQUITY PROTECTION ACT July 1, 2011

COLORADO CONSUMER EQUITY PROTECTION ACT July 1, 2011 COLORADO CONSUMER EQUITY PROTECTION ACT July 1, 2011 Table of Contents COLORADO CONSUMER EQUITY PROTECTION ACT... 1 PART 1 OBLIGOR PROTECTION... 1 5-3.5-101. Definitions.... 1 5-3.5-102. Protection of

More information

COMMUNICATION NO. 313635 PROPOSED ORDINANCE AMENDMENT. Sponsored by

COMMUNICATION NO. 313635 PROPOSED ORDINANCE AMENDMENT. Sponsored by COMMUNICATION NO. 313635 PROPOSED ORDINANCE AMENDMENT Sponsored by THE HONORABLE TONI PRECKWINKLE, PRESIDENT, EARLEAN COLLINS, JERRY BUTLER, JOHN P. DALEY, JESUS G. GARCIA, EDWIN REYES, ROBERT B. STEELE

More information

Lesson 13: Applying for a Mortgage Loan

Lesson 13: Applying for a Mortgage Loan 1 Real Estate Principles of Georgia Lesson 13: Applying for a Mortgage Loan 2 Choosing a Lender Types of lenders Types of lenders include: savings and loans commercial banks savings banks credit unions

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