Break Out Session: Mortgage Loan Underwriting and Pricing
|
|
- Tracy Atkins
- 8 years ago
- Views:
Transcription
1
2 Break Out Session: Mortgage Loan Underwriting and Pricing
3 Agenda Ability to Repay (ATR)/Qualified Mortgages (QMs) Effective Date: Applications received on or after January 10, Home Ownership and Equity Protection Act (HOEPA) Effective Date: Applications received on or after January 10, 2014 Truth in Lending Act (TILA) Higher Priced Mortgage Loans Appraisal and Equal Credit Opportunity Act (ECOA) Valuations Effective Date: Applications received on or after January 18, 2014 Many of the final rules issued this past January have been revised through subsequent final rule making. In addition, there are existing pending proposals that may result in even further amendments to the rules. 3
4 Agenda ATR/QMs Effective Date: Applications received on or after January 10, HOEPA Effective Date: Applications received on or after January 10, 2014 TILA Higher Priced Mortgage Loans Appraisal and ECOA Valuations Effective Date: Applications received on or after January 18,
5 ATR: General Standards Coverage Exemptions Requirements All lenders making closed end residential loans Home Equity Line of Credit (HELOC) Timeshares Reverse Mortgages, temporary, bridge, or construction loans w/terms of 12 months or less Exempt transactions under Loan modifications Streamline refinances of non standard loans to standard loans Creditors must make a reasonable, good faith determination of a consumer s ATR Establishes certain legal protections for loans meeting eligibility requirements for a qualified mortgage Places limitations on prepayment penalties 5
6 ATR: 8 Underwriting Factors 1. Payment Underwriting 2. Mortgage Related Obligations Principal and Interest* *if adjustable rate mortgage (ARM), use greater of fully indexed or introductory rate 3. Income or Assets 4. Employment Status 5. Simultaneous Loans Consider and Verify 6. Debt, Alimony, Child Support 7. DTI or Residual Income 8. Credit History H1 6
7 ATR: 8 Underwriting Factors 1. Payment Consideration Principal and Interest* 2. Mortgage Related Obligations *if ARM, use greater of fully indexed or introductory rate 3. Income or Assets 4. Employment Status 5. Simultaneous Loans Consider and Verify 6. Debt, Alimony, Child Support 7. DTI or Residual Income 8. Credit History H1 7
8 ATR: 8 Underwriting Factors 1. Payment Consideration Principal and Interest* 2. Mortgage Related Obligations *if ARM, use greater of fully indexed or introductory rate 3. Income or Assets 4. Employment Status 5. Simultaneous Loans Consider and Verify 6. Debt, Alimony, Child Support 7. DTI or Residual Income 8. Credit History H1 8
9 ATR: 8 Underwriting Factors 1. Payment Consideration Principal and Interest* 2. Mortgage Related Obligations *if ARM, use greater of fully indexed or introductory rate 3. Income or Assets 4. Employment Status 5. Simultaneous Loans Consider and Verify 6. Debt, Alimony, Child Support 7. DTI or Residual Income 8. Credit History H1 9
10 ATR: 8 Underwriting Factors 1. Payment Consideration Principal and Interest* 2. Mortgage Related Obligations *if ARM, use greater of fully indexed or introductory rate 3. Income or Assets 4. Employment Status 5. Simultaneous Loans Consider and Verify 6. Debt, Alimony, Child Support 7. DTI or Residual Income 8. Credit History H1 10
11 ATR: 8 Underwriting Factors 1. Payment Consideration Principal and Interest* 2. Mortgage Related Obligations *if ARM, use greater of fully indexed or introductory rate 3. Income or Assets 4. Employment Status 5. Simultaneous Loans Consider and Verify 6. Debt, Alimony, Child Support 7. DTI or Residual Income 8. Credit History H1 11
12 ATR: 8 Underwriting Factors 1. Payment Consideration Principal and Interest* 2. Mortgage Related Obligations *if ARM, use greater of fully indexed or introductory rate 3. Income or Assets 4. Employment Status 5. Simultaneous Loans Consider and Verify 6. Debt, Alimony, Child Support 7. DTI or Residual Income 8. Credit History H1 12
13 ATR: Third Party Records Definition Exception A third party record is a document or other record prepared or reviewed by an appropriate person other than the consumer or the creditor A record the creditor maintains for an account of the consumer held by the creditor (e.g. bank statements, CDs, etc.) 13
14 ATR: QM Loans Types of Qualified Mortgage Loans 1. General 2. Small Creditor 3. Balloon Payment 4. Agency/Government Sponsored Enterprise Types of Legal Protection 1. Safe Harbor 2. Rebuttable Presumption H2 H3 14
15 ATR: QM Points and Fee Calculations For QMs, points and fees are calculated according to the revised rules in and are capped, as follows, based on the loan amount on the face of the note: Loan Amount Points and Fees Cap > $100,000 3% of the total loan amount > $60,000, but less than $100,000 $3,000 > $20,000, but less than $60,000 5% of the total loan amount > $12,500, but less than $20,000 $1,000 < $12,500 8% of the total loan amount Dollar amounts listed above will be adjusted annually for inflation and published each year in the commentary to Regulation Z H4 15
16 ATR: Examiner Expectations Identify acceptable third party verification documentation and develop processes to obtain verification of the ATR underwriting factors, particularly for those factors that the bank has addressed informally in the past. Conduct appropriate loan staff training regarding the bank s policies and procedures for considering and verifying the eight underwriting factors outlined in the final rule and/or the requirements for QM eligibility, if applicable. Develop policies, procedures, training, and internal controls to ensure eligibility requirements are met, particularly if the QM status is being relied upon for exemption of other regulatory requirements if the bank elects to originate QMs 16
17 Agenda ATR/Qualified Mortgages Effective Date: Applications received on or after January 10, HOEPA Effective Date: Applications received on or after January 10, 2014 TILA Higher Priced Mortgage Loans Appraisal and ECOA Valuations Effective Date: Applications received on or after January 18,
18 HOEPA: General Standards Coverage Exemptions Requirements Consumer credit secured by the consumer s principal dwelling Now includes purchase money transactions and HELOCs in addition to refinance and home improvement loans. Also, includes manufactured housing, mobile homes, and personal property. Reverse Mortgages Construction loans to finance the initial construction of a new dwelling Construction to perm (2 separate transactions) construction loan exempt, but perm is not Construction to perm (1 transaction) accordance with Appendix D to Regulation Z Loans to finance a vacation or second home Additional disclosures Expands restrictions and adds consumer protections Two additional counseling requirements, regardless if loan is high cost Revised annual percentage rate (APR)/points and fees trigger calculation to capture more transactions 18
19 HOEPA: Determining Coverage APR Fees Prepayment Penalty APR: Calculation is tiered based on loan amount and lien position; then compared to Average Prime Offer Rate for a comparable transaction Fees: Calculated differently than in the past and meant to expand coverage Prepayment Penalty (New): Certain prepayment penalties may result in HOEPA coverage if: Charged more than 36 months after consummation or account opening, or In an amount more than 2% of the amount prepaid H5 19
20 HOEPA: APR and Fee Calculations CAUTION The APR on the HOEPA test is calculated differently than the APR on the TILA disclosures (Primarily affects ARMs and Step rate transactions). The total loan amount used in the fee coverage test may not be the same as the loan amount on the face of the note (Amount financed less certain excludable fees, even if normally a finance charge). The points and fees for HOEPA coverage of HELOCs uses the same general calculation approach as closed end transactions, but also includes participation fees payable at or before account opening and fees you charge consumers to draw on their HELOCs (assuming at least one draw). 20
21 HOEPA: Requirements Requirements Written disclosure provided at least 3 business days prior to consummation Certification of counseling (in written form) Restrictions and additional consumer protections Ability to repay H6 21
22 HOEPA: Homeownership Counseling Pre loan Counseling Written List of Counselors Pre loan counseling is required for: All high cost (Section 32) mortgages All negative amortization loans made to first time borrowers A written list of homeownership counseling organizations is required to be provided within 3 business days of receiving the application: All federally related mortgages Regardless of whether or not the application is for a high cost mortgage The Bureau is working with HUD to develop a website to generate the list 22
23 HOEPA: Examiner Expectations Develop and implement policies and procedures, as well as internal controls and training to: Ensure compliance with the revised HOEPA regulations contained in Regulation Z o Identification of covered transactions and proper handling Ensure that applicants for federally related mortgages (whether or not a high cost mortgage) receive a written list of homeownership counseling organizations within three business days of receiving the application. o If the bank originates negative amortization loans, the lender must obtain sufficient documentation showing that a first time borrower has received homeownership counseling. 23
24 Agenda ATR/Qualified Mortgages Effective Date: Applications received on or after January 10, HOEPA(HOEPA) Effective Date: Applications received on or after January 10, 2014 TILA Higher Priced Mortgage Loans Appraisal and ECOA Valuations Effective Date: Applications received on or after January 18,
25 TILA/ECOA: Appraisal Requirements Appraisals for Higher Priced Mortgage Loans under TILA Valuations under the ECOA There are two final rules, one rule amending the TILA and one rule amending the ECOA, that implement new requirements regarding the use and disclosure of appraisals for real estate transactions secured by a dwelling. 25
26 ECOA: Valuation Rules Coverage Exemptions Requirements Most closed end or open end credit secured by a first lien on a 1 4 family dwelling, whether or not the structure is attached to real property, and regardless of loan purpose (including business purpose) or credit decision outcome. Subordinate liens Must notify applicant within 3 days of application Must provide a free copy of written valuations promptly in connection with the transaction, whether or not the applicant requested copies regardless if credit is granted Must still deliver copies at or prior to consummation, or account opening, even if right to advanced copies of valuation(s) is waived H7 26
27 TILA: HPML Appraisal Rules Coverage Exemptions Requirements Applies only to covered HPMLs, first lien or subordinate lien closed end loans secured by a consumer s principal dwelling QMs Reverse Mortgages Bridge Loans (12 months or less for primary dwelling) Construction loans to finance the initial construction of a new dwelling (not limited to loans of 12 months or less) Loans secured by new manufactured homes Loans secured by boats, trailers, and mobile homes Requires appraisals meeting specified standards Provides applicants with a notification regarding the appraisal use Requires copies of the appraisal(s) be given to the applicants Requires an additional appraisal for flipped properties (additional exemptions apply) 27
28 TILA: HPML Appraisal Rule Safe Harbor 4 Steps for obtaining Safe Harbor for non exempt transactions: 1. Order an appraisal from a certified or licensed appraiser 2. Confirm that the appraisal contains certain information, including an interior inspection of the property 3. Verify that the appraiser is certified or licensed using the National Registry 4. You do not have knowledge contrary to the facts or certifications contained in the written appraisal 28
29 TILA: Flipped Property Rules Coverage Exemptions Requirements Flipped Properties Only applicable when a non exempt HPML is being used to purchase a home that is being sold within 90 to 180 days of its acquisition by the seller The exemptions most likely to apply include: Properties acquired through inheritance or divorce Properties located in presidentially declared disaster areas during which Title X of FIRREA requirements are waived Properties located in a rural county as published by the Bureau Refer to pages of the Small Entity Guide for a complete list of exemptions A second appraisal must be completed Additional appraisal fee cannot be charged to the consumer The price of the home being flipped must be a certain amount higher than the seller s acquisition cost 29
30 ECOA/TILA: Comparison Disclosure at Application Timing Requirements Copies of Appraisals Waivers of Copies ECOA disclosure also satisfies disclosure requirements of the HPML Appraisal Rules Proposed final rules regarding the RESPA/TILA disclosures may allow the appraisal disclosure to be integrated (yet to be finalized) If both rules apply, follow the rule that provides the earlier deadline for providing appraisal copies (Regulation Z) Copies must be free, but the cost of the appraisal may be charged However, the cost for the additional appraisal for flipped properties must be paid by creditor When there are multiple applicants, follow the ECOA Valuation Rule requirements for delivery of the disclosure and valuation copies to the primary applicant, when one is apparent Not an option under HPML Appraisal Rules Allowed under the ECOA Valuation Rules 30
31 ECOA/TILA: Appraisal Sample Notice Appendix C, Form C 9 We may order an appraisal to determine the property s value and charge you for this appraisal. We will promptly give you a copy of any appraisal, even if your loan does not close. You can pay for an additional appraisal for your own use at your own cost. 31
32 ECOA/TILA: Examiner Expectations For any loan secured by a 1 st lien on a dwelling (including those originated by commercial lenders for business purposes), revise and/or implement policies and procedures as well as internal controls and training in place to ensure that applicants: Receive the appraisal disclosure within three business days of receiving the application (bank may also elect to provide the notice for any dwelling secured loan, regardless of lien position). Receive a copy of the appraisal or valuation used according to the timing requirements under the Regulation (regardless of the bank s credit decision). Identify all valuation methods utilized by lenders, and revise documentation procedures and checklists, as necessary, to ensure compliance with the ECOA rule. For non exempt HPML transactions, establish policies, procedures, and internal controls to address the requirements in the new rules. For creditors that choose to originate HPMLs that are exempt from the HPML Appraisals Rules, policies and procedures as well as internal controls should be established to ensure exemption eligibility. 32
33 Resources Federal Reserve Consumer Affairs Contact Consumer Financial Protection Bureau (Small Entity Compliance Guides) 33
34 34 Questions?
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 informationCFPB 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 informationDodd 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 informationCFPB 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 informationCFPB 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 informationThe 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 informationDodd 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 informationTILA 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 informationCUNA 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 information4/20/2015. Dodd Frank Sections 1411 and 1412. Defines pretty specifically the terms and dimensions of each. On this one, you can't blame the CFPB
Ability To Repay and Qualified Mortgages Presented by: TriComply, a Temenos Product Presenter: Blair Rugh, Compliance Director Florida Banker's Association, Annual Consumer Compliance Seminar April 29
More informationby: 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 informationESCROW 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 informationEarly 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 informationHigher 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 informationATR 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 informationDodd 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 informationThe 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 informationGLOSSARY 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 informationComparison 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 informationNEW 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 information1/22/2013. 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 informationABILITY 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 informationSection 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 informationRegulatory 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 informationCFPB 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 informationComparison 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 informationDodd 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 informationTILA 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 informationThe 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 informationAbility 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 informationAbility to Repay and Qualified Mortgage Rule
Ability to Repay and Qualified Mortgage Rule The Consumer Financial Protection Bureau adopted a rule that implements the Ability to Repay and Qualified Mortgage ( ATR/QM ) provisions of the Dodd-Frank
More informationThe 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 informationChanges 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 informationNew 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 informationQM - 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 informationRegulation 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 informationCFPB 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 informationHigh-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 informationNCUA 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 informationABILITY TO REPAY AND QUALIFIED MORTGAGE UNDERWRITING REFERENCE
ABILITY TO REPAY AND QUALIFIED MORTGAGE UNDERWRITING REFERENCE October 29, 2014 In case of any queries regarding the information available in this guide, please reach us at qmteam@swmc.com. Sun West Mortgage
More informationSandra 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 informationATR/QM FAQs. Table of Contents. General
Table of Contents General... 1 Ability to Repay (ATR)/Qualified Mortgage (QM)... 2 ATR Eligibility... 2 Qualifying Ratios... 3 Employment/Income... 4 Verifying Employment History (Employment Gaps)... 4
More informationAbility to Repay/Qualified Mortgage Rule
Ability to Repay/Qualified Mortgage Rule Note: This document was used in support of a live discussion. As such, it does not necessarily express the entirety of that discussion nor the relative emphasis
More informationJANUARY 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 informationMinnesota 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 informationECOA & 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 informationSingle-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 informationBy - Nitin J. Dave 25-Year Veteran of FannieMae ATR / QM Agency Prospective Effectively Manage Repurchases, Make-Wholes & Indemnifications
By - Nitin J. Dave 25-Year Veteran of FannieMae ATR / QM Agency Prospective Effectively Manage Repurchases, Make-Wholes & Indemnifications Effective with Loan Applications on or after January 10, 2014
More informationINFOBYTES 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 informationMortgage 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 informationMortgage Lending in the Near Term: The Good, the Bad and the Ugly. Douglas Winn President Wilary Winn LLC
Mortgage Lending in the Near Term: The Good, the Bad and the Ugly Douglas Winn President Wilary Winn LLC Agenda Today s Topics 1. Regulatory environment CFPB and Proposed Risk Based Capital rules 2. Expected
More informationExample Scenario #1 - Points & Fees Scenario... 17
Table of Contents Dodd Frank Act Legislative History... 3 Covered & Excluded Loan Types... 3 Definitions - Terms to Know... 6 Ability to Repay (ATR)... 6 Qualified Mortgage (QM)... 6 Temporary QM... 6
More informationNew 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 informationAbility to Repay and Qualified Mortgage TILA 129 C
Congressional Concerns Ability to Repay and Qualified Mortgage TILA 129 C February 2014 Patti Blenden Financial Solutions 2 The Dodd Frank Act (DFA) changes reflect 3 primary concerns with the mortgage
More informationThe 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 informationThe 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 information2013 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 informationCFPB 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 informationThe New Residential Mortgage Origination and Servicing Regulatory Landscape
The New Residential Mortgage Origination and Servicing Regulatory Landscape September 27, 2013 Robert R. Davis American Bankers Association 1120 Connecticut Avenue, NW Washington, DC 20036 (202) 663 5588
More informationRE: RIN 2900 AO65 Loan Guaranty: Ability-to-Repay Standards and Qualified Mortgage Definition under the Truth in Lending Act
June 9, 2014 Mr. John Bell Assistant Director for Loan Policy and Valuation Veterans Benefits Administration, Department of Veterans Affairs 810 Vermont Avenue, NW Washington, DC 20420 RE: RIN 2900 AO65
More informationNational 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 informationHow 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 informationCFPB 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 informationEXPLOSION 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 informationSudhoff- Managing the Compliance Risk of Today's Mortgage Loans 1
Managing the Compliance Risk of Today s Mortgage Loans 30 th Annual Consumer Compliance Seminar April 29, 2015 Mollie Newsome Sudhoff, CRCM, CRP 0 Risky business Biggest Risk in Mortgage Lending today?
More informationTITLE 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 informationditech BUSINESS LENDING FREDDIE MAC ELIGIBLE ARM PRODUCT CORRESPONDENT ONLY
1. PRODUCT DESCRIPTION Conventional Conforming five year/one year adjustable rate mortgage Servicing retained 30-year term Fully amortizing Non-convertible ARM Plan ID 2725 Manufactured homes not eligible
More informationHow 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 informationWHAT TO EXPECT WITH DODD-FRANK AND WHY QM DOESN T MATTER.
WHAT TO EXPECT WITH DODD-FRANK AND WHY QM DOESN T MATTER. JANUARY 8, 2014 finance.car.org (213) 739-8383 financehelpline@car.org BACKGROUND ON THE LENDING ENVIRONMENT Sara Sutachan Manager of Broker &
More informationEqual 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 informationHOME EQUITY LINES OF CREDIT CHECK LIST. Name/Borrower. Address. Amount of Mortgage $
HOME EQUITY LINES OF CREDIT CHECK LIST Date Name/Borrower Address Amount of Mortgage $ Application Income Verification Additional: A. Copy of Recorded Deed B. Copy of Survey C. Tax receipts- School, County,
More informationAbility 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 informationFRESH. Agenda. Credit Union Integrated Mortgage Disclosures Are you Prepared?
MCUL & Affiliates 2015 Annual Convention and Exposition Credit Union Integrated Mortgage Disclosures Are you Prepared? Glory LeDu Thursday, June 4, 2015 2:00 p.m. Sponsored by: FRESH Ideas to Reinvent
More informationComparison 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 informationThe 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 informationTILA 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 informationChange is Coming: Navigating the Mortgage Arena. presented by:
Change is Coming: Navigating the Mortgage Arena presented by: Date December 4, 2013 Agenda Introduction Alphabet Soup CFPB s Ability to Repay and Qualified Mortgage General Rule / Special Rule Rebuttable
More informationAbility-to-Repay and Qualified Mortgage Rule
OCTOBER 17, 2013 Ability-to-Repay and Qualified Mortgage Rule SMALL ENTITY COMPLIANCE GUIDE 1 The Bureau recently finalized changes to this rule. The June 2013 ATR/QM Concurrent Final Rule, July 2013 Final
More informationFINANCIAL 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 informationVA IRRL 2. CURRENT FIRST MORTGAGE ELIGIBILITY
1. PRODUCT DESCRIPTION VA Fixed Rate and ARM Mortgages for Refinance Transactions Fixed Rate Mortgage 10 to 30 years in 5 year increments Fully amortizing Qualified Mortgage (QM) Safe Harbor loans are
More informationCFPB s Final Mortgage Regulations:
CFPB s Final Mortgage Regulations: Ability-to-Repay and Qualified Mortgage Rules November 4, 2013 E. Andrew Keeney, Esq. Kaufman & Canoles, P.C. Ability-to-Repay and Qualified Mortgage Rules E. Andrew
More informationHow To Get A Mortgage In The United States
AUGUST 14, 2013 Ability-to-Repay and Qualified Mortgage Rule SMALL ENTITY COMPLIANCE GUIDE The Bureau recently finalized changes to this rule. The June 2013 ATR/QM Concurrent Final Rule and July 2013 Final
More informationRegulatory 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 informationBROWN, 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 informationThe 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 informationMember Conference: Charting Your Course. Presented by Denny Deischer, CRCM VP, Educational Services Missouri Bankers Association
Member Conference: Charting Your Course Presented by Denny Deischer, CRCM VP, Educational Services Missouri Bankers Association Interesting Facts & Statements Regarding Dodd-Frank Act Requirements o 280
More informationAbility 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 informationConsumer 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 informationFinancial 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 informationCurrent Regulatory and Legal Climate for Credit Unions
Current Regulatory and Legal Climate for Credit Unions Moss Adams Supervisory Committee Training Workshop June 2, 2014 Harold B. Scoggins, III Farleigh Wada Witt 2 Conflicting Regulatory Imperatives 1.
More informationThe 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 informationMortgage 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 informationRegulatory 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 informationQUICK REFERENCE GUIDE TO DISCLOSURES TRUTH IN LENDING ACT AND REGULATION Z (1) (CLOSED-END HOME MORTGAGE TRANSACTIONS)
QUICK REFERENCE GUIDE TO DISCLOSURES TRUTH IN LENDING ACT AND REGULATION Z (1) (CLOSED-END HOME MORTGAGE TRANSACTIONS) Type of (2) Contents of Truth in Lending Statements 226.17 226.36 Early s 226.19(a)(1)
More informationMLO 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 informationSummary 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 informationReview of FHA s Policies
Review of FHA s Policies January 16, 2014 Presented by Arlene Nunes 1 Agenda HUD s Qualified Mortgage Rule 2014 FHA Loan Limits (ML 2013 43) Manual Underwriting Final Notice Single Family Housing Policy
More informationTitle 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 informationOverview. General Requirements
Truth in Lending Act Overview Congress passed legislation increasing the amount and type of credit information disclosed to the consumer through Title I of the Consumer Credit Protection Act of 1968, known
More informationUncertainty 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