CFPB Regulations. Review & Enforcement

Size: px
Start display at page:

Download "CFPB Regulations. Review & Enforcement"

Transcription

1 CFPB Regulations Review & Enforcement

2 Agenda Welcome Overview 2014 Regulations Loan Originator Compensation and Training, Certification, and Identifier Disclosure High-Cost/HOEPA Mortgage Loans & Homeownership Counseling Disclosures Mortgage Servicing Requirements Qualified Mortgage & Ability To Repay Appraisals: Disclosure and Delivery Requirements Appraisals: Higher-Priced Mortgage Loans How To Comply Conclusion Questions 2

3 Welcome Presenting today is a panel of experienced mortgage professionals. Tammie Johnson Client Relationship Manager Chris Kuhn Client Relationship Specialist All questions from the webinar will be addressed via , sales@mortgagecomplianceadvisors.com. The information provided by Mortgage Compliance Advisors, LLC has been taken from various public resources and does not constitute legal advice. 3

4 Overview Today s webinar will feature information about recently effective CFPB regulations Content will include a review of amendments implemented, requirements issued, and how companies can expect to comply Also includes background information relating to: Rule status Issuance/effective dates History; and Revisions (if any) 4

5 Loan Originator Compensation and Training, Certification, and Identifier Disclosure 5

6 Background Status: Final Rule Issued Date: January 20, 2013 Published Date: February 15, 2013 Revised Date: May 29, 2013 Clarifications in September 2013 Effective Date: January 1, 2014 (and other provisions January 10) Docket No. CFPB CFR Part 12 CFR

7 Background What is the goal of final rule concerning LO Comp? The final rule is designed to protect consumers by reducing incentives for loan originators to steer consumers into loans with particular terms. Restrictions and requirements ensure loan originators are adequately qualified. 7

8 Loan Originator Compensation Requirements Loan Originator Compensation requirements under the Truth In Lending Act (Regulation Z) CFPB Amends Regulation Z to implement amendments to Dodd-Frank Act The Final Rule implements requirements and restrictions imposed by the Dodd-Frank Act concerning loan originator compensation 8

9 Loan Originator Compensation Requirements (cont d.) In addition to requirements and restrictions, Dodd-Frank also implements the following: Qualifications of, and registration or licensing of, loan originators Compliance procedures for depository institutions Mandatory arbitration Financing of single-premium credit insurance Tests to determine when loan originators can be compensated through profits-based compensation arrangements 9

10 Loan Originator Compensation Requirements (cont d.) Amendments to Regulation Z Prohibits compensation based on a term of a transaction or proxy for a term Permits certain contributions to retirement plans or certain profits-based compensation determined based on profits from a mortgage business Prohibits dual compensation from consumer and creditor/other Permits brokerage firms to pay individual broker commissions if not based on terms 10

11 Loan Originator Compensation Requirements (cont d.) Makes loan originator screening and training requirements more consistent between banks and nonbanks Implements requirement to list loan originator ID numbers on certain loan documents The final rule also revises or provides additional commentary on Regulation Z s restrictions on loan originator compensation. 11

12 Compensation Based On Terms Final rule prohibits LO compensation that is based on a term of the transaction or a proxy for a loan term Compensation: defined by rule as salaries, commissions, and any financial or similar incentive. Term of a transaction: Defined as any right or obligation of the parties to a credit transaction, including LO fees, creditor fees, or required-product/service fees Proxy for a term a factor that: Consistently varies with a term of the transaction over a significant number of transactions; and Loan originator has the ability to add, drop, or change the factor when originating the transaction 12

13 Compensation Based On Terms (cont d.) Pricing Concession Designated Plans Non-Designated Plans Allows reductions in LO compensation to defray the costs above those estimated under RESPA Permits designated tax-advantaged plans A defined benefit or contribution plan - qualified under the Internal Revenue Code Employee annuity plans, simple retirement accounts, simple employee pensions, annuity contracts, or eligible deferred compensation plan Permits non-deferred profits-based compensation to LO s if: Non-deferred profits-based compensation does not exceed 10 percent of total compensation 10-percent total compensation limit, or The LO originated 10 or fewer transactions in a 12-month period 13

14 Permissible Bases of LO Compensation The final rule provides a safe harbor for the following bases of compensation, which are not deemed to be compensation based on terms or proxies: Overall dollar volume Long-term loan performance Hourly rate of pay for actual hours worked Existing or new customer Payment fixed in advance for each loan % of applications that result in consummated transactions Quality of loan files 14

15 Dual Compensation General prohibition against dual compensation: Where an LO receives compensation directly from a consumer in connection with a mortgage loan, no LO may receive compensation from another person in connection with the same transaction. Final rule provides exception: If a consumer pays a mortgage broker or other LO organization, the company may pay commissions to LO employees or contractors in connection with the same transaction Employee compensation cannot be based on terms 15

16 Qualification Requirements Individual loan originators must be qualified Registered or licensed as required under State and Federal Law LO s employed by depositories: subject to qualification requirements Criminal background checks Financing responsibility and character and fitness checks Training LO s employed by non-depositories: still subject to State licensing requirements (rule does not change these requirements) Loan originator organizations Must endure that their employees are licensed or registered to the extent required under the SAFE Act or State law; and LO s must provide their and their ILO s unique identifiers under the Nationwide Mortgage Licensing System and Registry (NMLSR) on loan documents Creditors are LO s 16

17 17 Home Ownership and Equity Protection Act

18 Background Status: Final Rule Issued Date: January 10, 2013 Published Date: January 31, 2013 Effective Date: January 10, 2014 Docket No. CFPB CFR Part 12 CFR CFR 1026 Federal Registry Entry 78 FR

19 HOEPA The final rule amends Regulation Z (Truth in Lending) by expanding the types of mortgage loans that are subject to the protections of the Home Ownership and Equity Protections Act of 1994 (HOEPA) revising and expanding the tests for coverage under HOEPA; and imposing additional restrictions on mortgages that are covered by HOEPA, including a pre-loan counseling requirement. Regulation Z TILA Amendments: High-Cost Mortgage and Homeownership Regulation X RESPA Amendments: Homeownership Counseling 19

20 HOEPA: Who Must Comply? Any person who originates more than one high cost mortgage in any twelve month period or originates one or more high cost mortgages through a mortgage broker is deemed a creditor and must comply with the requirements of HOEPA 20

21 High Cost Mortgage Regulation Z Amendments High Cost Mortgage and Homeownership Counseling What is a High Cost Mortgage? Defined as a loan secured by a consumer s principal dwelling primarily for consumer, family, or household purpose Including first and subordinate lien purchase money and refinancings, open-end HELOCS and closed-end home equity loans (tests must be met) Accordingly, there is de minimis exemption of up to one high cost mortgage each twelve months 21

22 Revised HOEPA Coverage Tests The final rule implements the Dodd-Frank Act's revisions to HOEPA's coverage tests by providing that a transaction is a highcost mortgage if any of the following tests are met: The transaction s annual percentage rate ( APR ) exceeds the applicable average prime offer rate ( APOR ) by more than 6.5 percentage points for most first-lien mortgages; or by more than 8.5 percentage points for a first mortgage if the dwelling is personal property and the transaction is less than $50,000; The transaction s APR exceeds the applicable APOR by more than 8.5 percentage points for subordinate lien mortgages; 22

23 Revised HOEPA Coverage Tests (cont d.) The transaction s points and fees exceed 5% of the total transaction amount or for loans below $20,000, the lesser of 8 percent of the total transaction amount or $1,000 (with the dollar figures also adjusted annually for inflation); or The credit transaction documents permit the creditor to charge or collect a prepayment penalty more than 36 months after transaction closing or permit such fees or penalties to exceed, in the aggregate, more than 2% of the amount prepaid. 23

24 Restrictions on Loan Terms The final rule also implements new Dodd-Frank Act restrictions and requirements concerning loan terms and origination practices for mortgages that fall within HOEPA's coverage test. For example: Balloon payments are generally banned, unless they are to account for the seasonal or irregular income of the borrower, they are part of a short-term bridge loan, or they are made by creditors meeting specified criteria, including operating predominantly in rural or underserved areas. Creditors are prohibited from charging prepayment penalties and financing points and fees. Late fees are restricted to four percent of the payment that is past due, fees for providing payoff statements are restricted, and fees for loan modification or payment deferral are banned. 24

25 Restrictions on Loan Terms (cont d.) Creditors originating HELOCs are required to assess consumers' ability to repay. (Creditors originating high-cost, closed-end credit transactions already are required to assess consumers' ability to repay under the Bureau's 2013 Ability-to-repay (ATR) Final Rule addressing a Dodd-Frank Act requirement that creditors determine that a consumer is able to repay a mortgage loan.) Creditors and mortgage brokers are prohibited from recommending or encouraging a consumer to default on a loan or debt to be refinanced by a high-cost mortgage. 25

26 Restrictions on Loan Terms (cont d.) Before making a high-cost mortgage, creditors are required to obtain confirmation from a federally certified or approved homeownership counselor that the consumer has received counseling on the advisability of the mortgage. 26

27 Counseling-Related Requirements The final rule implements two additional Dodd-Frank Act homeownership counseling-related provisions that are not amendments to HOEPA. The final rule requires lenders to provide a list of homeownership counseling organizations to consumers within three business days after they apply for a mortgage loan, with the exclusion of reverse mortgages and mortgage loans secured by a timeshare. The final rule requires the lender to obtain the list from either a Web site that will be developed by the Bureau or data that will made available by the Bureau or the Department of Housing and Urban Development (HUD) for compliance with this requirement. 27

28 Counseling-Related Requirements (cont d.) The final rule implements a new requirement under TILA that creditors must obtain confirmation that a first-time borrower has received homeownership counseling from a federally certified or approved homeownership counselor or counseling organization before making a loan that provides for or permits negative amortization to the borrower. 28

29 Appraisals for Higher-Priced Mortgage Loans 29

30 Background Status: Final Rule Issued Date: January 18, 2013 Published Date: February 13, 2013 Effective Date: January 18, 2014 Docket No. CFPB CFR Part 12 CFR

31 Appraisals for Higher-Priced Mortgage Loans CFPB issued a final rule to amend Regulation Z jointly with the Federal Reserve Board, FDIC, FHFA, NCUA, and OCC. This rule implements the Truth in Lending Act (TILA), and the official interpretation to the regulation. 31

32 Requirements The revisions to Regulation Z implement a new provision requiring appraisals for higher-risk mortgages that was added to TILA by the Dodd-Frank Act. For mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, the final rule requires creditors to: Obtain an appraisal or appraisals meeting certain specified standards, Provide applicants with a notification regarding the use of the appraisals; and Give applicants a copy of the written appraisals used. 32

33 Requirements (cont d.) Appraisals Required Generally, a creditor may not extend a higher-priced mortgage loan to a consumer without obtaining, prior to consummation, a written appraisal of the property to be mortgaged. The appraisal must be performed by a certified or licensed appraiser who conducts a physical visit of the interior of the property that will secure the transaction. 33

34 Requirements (cont d.) Appraisal Requirements do not apply to a: Qualified mortgage (as defined in Section ); Transaction secured by a new manufactured home; Transaction secured by a mobile home, boat or trailer; Transaction to finance the initial construction of a dwelling; and Loan with a maturity of 12 months or less, if the purpose of the loan is a bridge loan connection with the acquisition of a dwelling intended to become the consumer s principal dwelling; or Reverse mortgage. 34

35 What This Means For Creditors Safe Harbor. A creditor has obtained an appraisal that meets the above requirement if the creditor: Orders that the appraiser perform the appraisal in conformity with the Uniform Standards of Professional Appraisal Practice and Title XI of FIRREA Verifies through the National Registry that the appraiser who signed the appraiser s certification was a certified or licensed appraiser in the state in which the appraised property is locates as of the date the appraiser signed the appraiser s certification; Confirms that the elements in Appendix N are addressed in the appraisal; and Has no actual knowledge contrary to the facts or certifications contained in the appraisal. 35

36 What This Means For Creditors (cont d.) Second appraisal The rule requires a HPML mortgage loan creditor to obtain a second written appraisal based on an interior inspection of the property, at no cost to the borrower, in connection with certain flipped properties. Subject to certain exemptions, the second appraisal would be required where: The seller acquired the home within 180 days prior to the date of the consumer s purchase agreement; and The consumer is acquiring the home for a price that exceeds the seller s acquisition price by 10% (if the seller acquired the property within the past 90 days) or 20% (if the seller acquired the property between 91 and 180 days earlier). 36

37 37 Disclosure and Delivery of Free Copies of Appraisals

38 Background Status: Final Rule Issued Date: January 18, 2013 Published Date: January 31, 2013 Effective Date: January 18, 2014 Docket No. CFPB CFR Part 12 CFR

39 Appraisals: Disclosure and Delivery Requirements CFPB amends Regulation B Which implements the Equal Credit Opportunity Act (ECOA), and the Bureau s official interpretations of the regulation, which interpret and clarify the requirements of Regulation B. The final rule revises Regulation B to implement an ECOA amendment concerning appraisals and other valuations that were enacted as part of the Dodd-Frank Act. 39

40 Requirements In general, the revisions to Regulation B require creditors to provide to applicants free copies of all appraisals and other written valuations developed in connection with an application for a loan to be secured by a first lien on a dwelling; and Require creditors to notify applicants in writing that copies of appraisals will be provided to them promptly. 40

41 Requirements (cont d.) Requirement to Provide Copy of Appraisals Withdrawn, Denied and Incomplete Applications. This requirement applies even if the applicant withdraws or fails to complete the application or the creditor denies the request Electronic. Creditors may provide copies electronically consistent with ESIGN. 41

42 Application Disclosure General Requirement A creditor must mail or deliver notice of the applicant s right to receive a copy of all written appraisals developed in connection with the application for a loan secured by a first lien on a dwelling. Timing Mail or deliver not later than the third business day after the creditor receives the application. If a creditor determines that the loan will be secured by a first lien, then it must provide the notice not later than three business days after it determines the loan will be secured by a first lien on a dwelling. 42

43 Application Disclosure (cont d.) Fees. The creditor may not charge for providing the copy of the appraisal or other written valuation required by this rule, except that applicants may be required to pay a reasonable fee to reimburse the creditor for the cost unless otherwise prohibited by law. Prohibited fees include charges for photocopies, postage, or other costs. Cost may include an administration fee charged by an AVM 43

44 44 Mortgage Servicing Requirements

45 Background Status: Final Rule Issued Date: January 17, 2013 Published Date: February 14, 2013 Effective Date: January 10, 2014 Docket No. CFPB CFPB CFR Part 12 CFR CFR

46 Requirements CFPB Amends Regulation X Which implements the Real Estate Settlement Procedures Act of 1974 Implementation of commentary that sets forth an official interpretation to the regulation. CFPB amends Regulation Z Which implements the Truth in Lending Act and the official interpretation to the regulation, which interprets the requirements of Regulation Z These final rules implement provisions of the Dodd-Frank Act regarding mortgage loan servicing. 46

47 Servicer Obligations Specifically, the Regulation X final rule implements Dodd- Frank Act sections addressing servicers obligations: To correct errors asserted by mortgage loan borrowers To provide certain information requested by such borrowers; and To provide protections to such borrowers in connection with force-placed insurance. Additionally, this final rule addresses servicers obligations: To establish reasonable policies and procedures to achieve certain delineated objectives To provide information about mortgage loss mitigation options to delinquent borrowers 47

48 Servicer Obligations (cont d.) [continued] servicer obligations of final rule: To establish policies and procedures for providing delinquent borrowers with continuity of contact with servicer personnel capable of performing certain functions; and To evaluate borrowers applications for available loss mitigation options. Further, this final rule modifies and streamlines certain existing servicing-related provisions of Regulation X. 48

49 Notices & Other Requirements The Regulation Z final rule implements Dodd-Frank Act sections addressing: Initial rate adjustment notices for adjustable-rate mortgages Periodic statements for residential mortgage loans Prompt crediting of mortgage payments; and Responses to requests for payoff amounts This final rule also amends current rules governing the scope, timing, content, and format of disclosures to consumers regarding the interest rate adjustments of their variable-rate transactions. 49

50 50 Qualified Mortgage and Ability To Repay Requirements

51 Background Status: Final Rule Issued Date: January 10, 2013 Published Date: January 30, 2013 Effective Date: January 10, 2014 Docket No. CFPB CFPB CFR Part 12 CFR

52 Qualified Mortgage & Ability To Repay Applicability All consumer-purpose mortgages, except: Home Equity Lines Of Credit Timeshare Plans Reverse Mortgages Temporary Loans 52

53 Qualified Mortgage & Ability To Repay ATR requirement does not apply (but prepayment penalty restrictions do apply) for the following: Reverse Mortgages Temporary Loans, of 12 months or less Construction-to-Permanent loan, with a construction phase of 12 months or less Loans made pursuant to Housing Finance Agency programs and Emergency Economic Stabilization Act / Troubled Asset Relief Program Certain loans to low-to-moderate income consumers: Non-profits that extend credit no more than 200x per year. Creditors designated by Treasury as a Community Financial Development Institution or Down-Payment Assistance Provider of Secondary Financing. 53

54 Qualified Mortgage & Ability To Repay Beginning January 10, 2014, creditors must make an Ability To Repay determination in compliance with the CFPB s Rule. Creditors can comply in any of four ways. Options are: 1. General ATR must meet 8 general underwriting factors. 2. Originating QM 3. Originating Rural Balloon Payment QM 4. Refinancing a Non-Standard Mortgage into a Standard Mortgage For more information, download a copy of our recent QM webinar using the provided link: ATR and QM Webinar 54

55 CFPB Regulations: How To Comply Partner with a QC provider that understands your business. MCA offers a comprehensive suite of mortgage compliance solutions. Products and services include: QM Reviews Servicing Reviews MERS QC Reviews Plans & Policies 4506-T Income Verification And More 55

56 Thank You MCA is proud to offer unpaid webinars, and hopes that by doing so we will be fortunate enough to earn your business. For more information about what we offer, visit For questions, or to get started, contact our sales department at To live chat with MCA professionals, click the following link. 56

57 Questions? Please submit any questions concerning today s webinar to sales@mortgagecomplianceadvisors.com. 57

58 Resources The information provided by Mortgage Compliance Advisors, LLC has been taken from various public resources and does not constitute legal advice. Consumer Financial Protection Bureau Mortgage Bankers Association 58

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 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

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

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

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

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

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

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

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

More information

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

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

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

High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in

High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in BUREAU OF CONSUMER FINANCIAL PROTECTION BILLING CODE: 4810-AM-P 12 CFR Parts 1024 and 1026 [Docket No. CFPB-2012-0029] RIN 3170-AA12 High-Cost Mortgage and Homeownership Counseling Amendments to the Truth

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

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

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

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

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

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

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

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

More information

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

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

More information

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

Regulation Z Appraisals for Higher Priced Mortgage Loans

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

More information

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

Bureau of Consumer Financial Protection. No. 158 August 15, 2012. Part III

Bureau of Consumer Financial Protection. No. 158 August 15, 2012. Part III Vol. 77 Wednesday, No. 158 August 15, 2012 Part III Bureau of Consumer Financial Protection 12 CFR Parts 1024 and 1026 High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending

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

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

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

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

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

More information

How To Serve A Mortgage In The United States

How To Serve A Mortgage In The United States 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

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

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 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

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 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

ECOA & TILA APPRAISAL RULES

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

More information

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

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

Sandra L. Thompson Director Division of Risk Management Supervision 1 / Mark E. arce j1 Director Division of Depo or and Corsurner Protection

Sandra L. Thompson Director Division of Risk Management Supervision 1 / Mark E. arce j1 Director Division of Depo or and Corsurner Protection December 21, 2012 MEMORANDUM TO: The Board of Directors FROM: SUBJECT: Sandra L. Thompson Director ~w Division of Risk Management Supervision 1 / 4 Mark E. arce j1 Director Division of Depo or and Corsurner

More information

Equal Credit Opportunity Act (ECOA) Valuations Rule

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

More information

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

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 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

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

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

More information

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

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

More information

TILA Higher-Priced Mortgage Loans (HPML) Appraisal Rule

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

More information

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

Dodd Frank Act Mortgage Regulations Implementation Gap Analysis

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

More information

SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is publishing a final rule

SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is publishing a final rule BILLING CODE: 4810-AM-P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 [Docket No. CFPB-2013-0001] RIN No. 3170-AA16 Escrow Requirements under the Truth in Lending Act (Regulation Z) AGENCY:

More information

Escrow Requirements under the Truth in Lending Act (Regulation Z)

Escrow Requirements under the Truth in Lending Act (Regulation Z) BILLING CODE: 4810-AM-P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1026 [Docket No. CFPB-2013-0001] RIN No. 3170-AA16 Escrow Requirements under the Truth in Lending Act (Regulation Z) AGENCY:

More information

TILA Higher Priced Mortgage Loans Appraisal Rule

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

More information

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

2013 Loan Originator Rule

2013 Loan Originator Rule JUNE 7, 2013 2013 Loan Originator Rule SMALL ENTITY COMPLIANCE GUIDE 1 Table of Contents Introduction 1. Introduction... 8 I. What is the purpose of this guide?... 10 II. Who should read this guide?...

More information

2013 Loan Originator Rule

2013 Loan Originator Rule JANUARY 13, 2014 2013 Loan Originator Rule SMALL ENTITY COMPLIANCE GUIDE 1 Version Log The Bureau updates this guide on a periodic basis to reflect finalized clarifications to the rule which impacts guide

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

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

January 2013 CFPB Mortgage Rules: Charts Detailing Coverage of Transactions March 2013

January 2013 CFPB Mortgage Rules: Charts Detailing Coverage of Transactions March 2013 January 2013 CFPB Mortgage s: Charts Detailing Coverage of Transactions March 2013 2013 Morrison & Foerster LLP All Rights Reserved mofo.com In January 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

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

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

Disclosure and Delivery Requirements for Copies of Appraisals and Other Written Valuations Under the Equal Credit Opportunity Act (Regulation B)

Disclosure and Delivery Requirements for Copies of Appraisals and Other Written Valuations Under the Equal Credit Opportunity Act (Regulation B) Billing Code: 4810-AM-P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1002 [Docket No. CFPB-2012-0032] RIN 3170-AA26 Disclosure and Delivery Requirements for Copies of Appraisals and Other Written

More information

FINANCIAL SERVICES REGULATORY GROUP

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

More information

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

Homeownership Counseling (12 CFR 1024.20)

Homeownership Counseling (12 CFR 1024.20) (12 CFR 1024.20) The Consumer Financial Protection Bureau s (CFPB) new mortgage rules include new requirements for providing federally-related mortgage loan applicants with a list of homeownership counseling

More information

Bureau of Consumer Financial Protection. No. 21 January 31, 2013. Part II

Bureau of Consumer Financial Protection. No. 21 January 31, 2013. Part II Vol. 78 Thursday, No. 21 January 31, 2013 Part II Bureau of Consumer Financial Protection 12 CFR Parts 1024 and 1026 High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act

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

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

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

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

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

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

More information

TITLE I-RESIDENTIAL MORTGAGE LOAN ORIGINATION STANDARDS

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

More information

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

CFPB Mortgage Industry Reforms Rulemaking and Guidance. Katalina M. Bianco, J.D. Senior Attorney-Editor Richard Roth, J.D. Senior Attorney-Editor

CFPB Mortgage Industry Reforms Rulemaking and Guidance. Katalina M. Bianco, J.D. Senior Attorney-Editor Richard Roth, J.D. Senior Attorney-Editor CFPB Mortgage Industry Reforms Rulemaking and Guidance Katalina M. Bianco, J.D. Senior Attorney-Editor Richard Roth, J.D. Senior Attorney-Editor 2 CFPB Mortgage Industry Reforms Rulemaking and Guidance

More information

REGULATORY ALERT NATIONAL CREDIT UNION ADMINISTRATION 1775 DUKE STREET, ALEXANDRIA, VA 22314. DATE: January 2014 NO.: 14-RA-04

REGULATORY ALERT NATIONAL CREDIT UNION ADMINISTRATION 1775 DUKE STREET, ALEXANDRIA, VA 22314. DATE: January 2014 NO.: 14-RA-04 REGULATORY ALERT NATIONAL CREDIT UNION ADMINISTRATION 1775 DUKE STREET, ALEXANDRIA, VA 22314 DATE: January 2014 NO.: 14-RA-04 TO: SUBJECT: ENCL: Federally Insured Credit Unions Mortgage Servicing Requirements

More information

Reporting and recordkeeping requirements, Savings associations, Truth in lending.

Reporting and recordkeeping requirements, Savings associations, Truth in lending. List of Subjects in 12 CFR Part 1026 Advertising, Consumer protection, Credit, Credit unions, Mortgages, National banks, Reporting and recordkeeping requirements, Savings associations, Truth in lending.

More information

Regulatory Practice Letter September 2012 RPL 12-17

Regulatory Practice Letter September 2012 RPL 12-17 Regulatory Practice Letter September 2012 RPL 12-17 Mortgage Servicing Standards - CFPB Proposed Rule Executive Summary The Bureau of Consumer Financial Protection ( CFBP or Bureau ) released two proposed

More information

The CFPB Finalizes New Mortgage Servicing Rules

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

More information

Billing Code: 4810-AM-P 4810-33-P 6210-01-P 6714-01-P 7535-01-P 4810-AM-P DEPARTMENT OF THE TREASURY. Office of the Comptroller of the Currency

Billing Code: 4810-AM-P 4810-33-P 6210-01-P 6714-01-P 7535-01-P 4810-AM-P DEPARTMENT OF THE TREASURY. Office of the Comptroller of the Currency Billing Code: 4810-AM-P 4810-33-P 6210-01-P 6714-01-P 7535-01-P 4810-AM-P DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 34 and 164 [Docket No. OCC-2012-0013] RIN 1557-AD62

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

MLO COMPENSATION, REGULATION Z, AND DODD-FRANK ACT

MLO COMPENSATION, REGULATION Z, AND DODD-FRANK ACT 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

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

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

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

2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules

2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules JANUARY 8, 2014 2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules SMALL ENTITY COMPLIANCE GUIDE 1 Version Log The Bureau updates

More information

2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules

2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules JUNE 7, 2013 2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending Act (Regulation Z) Mortgage Servicing Final Rules SMALL ENTITY COMPLIANCE GUIDE 1 Please refer to our proposed

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

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

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

How To Get A Higher Risk Mortgage Loan Without Getting An Appraisal

How To Get A Higher Risk Mortgage Loan Without Getting An Appraisal DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency 12 CFR Parts 34 and 164 [Docket No. OCC-2012-0013] RIN 1557-AD62 BOARD OF GOVERNORS OF FEDERAL RESERVE SYSTEM 12 CFR Part 226 [Docket

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

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

Update on CFPB s TILA- RESPA Integrated Disclosure Rule

Update on CFPB s TILA- RESPA Integrated Disclosure Rule Update on CFPB s TILA- RESPA Integrated Disclosure Rule Mortgage Bankers Ruth A. Dillingham, Special Counsel First American Title Insurance Company This presentation is for informational purposes only

More information

Truth in Lending Act

Truth in Lending Act Comptroller s Handbook CC-TILA Consumer Compliance (CC) Truth in Lending Act December 2014 Office of the Comptroller of the Currency Washington, DC 20219 Contents Introduction...1 Background and Summary...

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

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

Amendments to the 2013 Mortgage Rules under the Equal Credit Opportunity Act

Amendments to the 2013 Mortgage Rules under the Equal Credit Opportunity Act BILLING CODE: 4810-AM-P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Parts 1002, 1024, and 1026 Docket No. CFPB-2013-0018 RIN 3170-AA37 Amendments to the 2013 Mortgage Rules under the Equal Credit Opportunity

More information

8 Hour SAFE Comprehensive 2014 Mortgage Loan Originator Course Participant Guide

8 Hour SAFE Comprehensive 2014 Mortgage Loan Originator Course Participant Guide 8 Hour SAFE Comprehensive 2014 Mortgage Loan Originator Course Participant Guide Presented by the Florida Association of Mortgage Brokers School 8 Hour SAFE Comprehensive 2014 Mortgage Loan Originator

More information

ii. 25(c)(2) Records related to requirements for loan originator compensation and

ii. 25(c)(2) Records related to requirements for loan originator compensation and 4. In Supplement I to Part 1026 Official Interpretations: A. Under Section 1026.25 Record Retention: i. Under 25(a) General rule, paragraph 5 is removed. ii. 25(c)(2) Records related to requirements for

More information

A New Era in Closings CFPB s Final Rule for Integrated Mortgage Disclosures. Michelle L. Korsmo Chief Executive Officer Steven Gottheim Counsel

A New Era in Closings CFPB s Final Rule for Integrated Mortgage Disclosures. Michelle L. Korsmo Chief Executive Officer Steven Gottheim Counsel A New Era in Closings CFPB s Final Rule for Integrated Mortgage Disclosures Michelle L. Korsmo Chief Executive Officer Steven Gottheim Counsel Agenda Basics: Why We re Here Final Rule The New Forms Evaluating

More information