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Category Archives: Mortgages

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FDIC to hold teleconference on CFPB mortgage rules

Posted in Mortgages

The FDIC’s Division of Depositor and Consumer Protection will hold a teleconference on May 21, 2015 on implementation of the CFPB’s mortgage rules.  FDIC staff will share observations made by FDIC examiners during initial examinations since the rules became effective in January 2014.  In addition, FDIC staff will highlight a number of practices currently used… More >

Democrats release alternative regulatory relief bill

Posted in Mortgages, Privacy

Democrats on the Senate Banking Committee have released a regulatory relief bill intended to be an alternative to the bill released by Senator Richard Shelby.  While Senator Shelby’s bill is entitled the “Financial Regulatory Improvement Act of 2015,” the alternative bill is entitled the “Community Financial Institution Regulatory Relief and Consumer Protection Act of 2015.” The… More >

Shelby Draft Regulatory Relief Bill Addresses Various Residential Mortgage Issues

Posted in CFPB General, CFPB People, Mortgages, TILA / RESPA

On May 12, 2015 Senator Richard Shelby (R-AL) released a draft of a regulatory reform bill entitled the Financial Regulatory Improvement Act of 2015.  The draft bill addresses various residential mortgage lending issues, a number of which are summarized below.  The draft bill is scheduled for markup on May 21, 2015. TRID Safe Harbor.  Section… More >

Does Director Cordray fully appreciate the implications of the TRID rule?

Posted in Mortgages

Statements made by CFPB Director Cordray to the National Association of Realtors on May 12, 2015 suggest that the Director may not fully appreciate the implications of the TILA/RESPA Integrated Disclosure (TRID) rule that is scheduled to become effective August 1, 2015. The TRID rule requires that the combined consummation disclosure, which is called the… More >

CFPB issues compliance bulletin on unlawful discrimination based on receipt of mortgage assistance

Posted in Fair Credit, Mortgages

In a new compliance bulletin (Bulletin 2015-02), the CFPB “reminds” creditors of their obligation not to discriminate against applicants because their income includes vouchers from the Section 8 Housing Choice Voucher (HCV) Homeownership program.  The CFPB states in the bulletin that it “has become aware of one or more institutions excluding or refusing to consider… More >

CFPB files complaint against companies offering mortgage payment program

Posted in CFPB Enforcement, Mortgages

In a complaint filed yesterday in a California federal court, the CFPB alleges that two related companies offering a biweekly mortgage payment program and their individual owner engaged in deceptive telemarketing acts or practices that violated the Telemarketing Sales Rule and abusive and deceptive acts or practices that violated the Consumer Financial Protection Act.  The complaint seeks… More >

House to hold May 14 hearing on TILA-RESPA integrated disclosures

Posted in Mortgages

On May 14, 2015, the House Financial Services Committee’s Subcommittee on Housing and Insurance will hold a hearing on “TILA-RESPA Integrated Disclosure: Examining the Costs and Benefits of Changes to the Real Estate Settlement Process.” While the witnesses have not yet been announced, it is likely that the hearing will feature a renewed call from subcommittee… More >

Bipartisan House bill introduced to create temporary safe harbor from enforcement of TILA-RESPA integrated disclosure rule

Posted in Mortgages

Republican Congressman Steve Pearce and Democratic Congressman Brad Sherman have introduced a bill in the House of Representatives (H.R. 2213) that would provide lenders with a temporary safe harbor from enforcement of the TILA-RESPA integrated disclosure (TRID) rule which is set to take effect on August 1, 2015. The bill provides that the TRID rule… More >

CFPB/Fed webinar on TILA-RESPA integrated disclosures rule scheduled for May 26

Posted in CFPB General, CFPB Rulemaking, Hot Issues, Mortgages, TILA / RESPA

On May 26, 2015, the CFPB and Federal Reserve will be co-hosting the fifth and final webinar in their series on the TILA-RESPA integrated disclosures (TRID) rule.  Presumably, the reference to this webinar being the “final” webinar is intended to mean that it is the final TRID webinar before the rule becomes effective on August… More >

House passes bill to amend TILA points and fees definition for mortgage loans

Posted in Mortgages

Earlier this week, the House of Representatives passed a bill to amend the TILA definition of “points and fees” that is used to determine whether a loan is a high-cost mortgage or, for purposes of TILA’s ability to repay provisions, a qualified mortgage. The “Mortgage Choice Act,” H.R. 685, would amend the points and fees definition to… More >

CFPB issues final rule on homeownership counseling requirements

Posted in Mortgages

The CFPB has issued a final rule to assist lender compliance with RESPA and TILA homeownership counseling requirements.  Under RESPA, a lender must provide applicants for a federally related mortgage loan with a list of certified homeownership counselors.  TILA prohibits a creditor from making a high-cost mortgage loan unless it receives written certification that the… More >

House passes regulatory reform bills

Posted in CFPB General, Mortgages, Privacy

Earlier this week, the House of Representatives, in bipartisan votes, passed the following regulatory reform bills: The “Eliminate Privacy Notice Confusion Act, H.R. 601, would create an exemption from the Gramm-Leach-Bliley Act’s annual notice requirement for institutions that have not changed their privacy policies since their most recent annual notice and only share personal information… More >

Senate Banking Committee to hold April 16 hearing on mortgage credit availability

Posted in Mortgages

On April 16, 2015, the Senate Committee on Banking, Housing and Urban Affairs will conduct a hearing entitled, “Regulatory Burdens to Obtaining Mortgage Credit.”  The witnesses scheduled to appear are: Tom Woods, President, Custom Woods Homes, and Chairman, National Association of Home Builders Chris Polychron, Executive Broker, First Choice Realty, and President, National Association of… More >

CFPB targets another mortgage lender for deceptive advertising

Posted in CFPB Enforcement, Mortgages

The CFPB has announced the settlement of an enforcement action against a California-based mortgage lender for alleged deceptive advertising practices, including the use of advertisements that the CFPB claimed falsely led consumers to believe that the company was affiliated with the U.S. government.  The consent order requires the lender to pay a civil penalty of… More >

CFPB updates home buying information booklet

Posted in Mortgages

The CFPB has issued an updated version of the home buying information booklet (also known as the special information or settlement cost booklet) required under RESPA and TILA.  The new booklet is entitled “Your home loan toolkit: A step-by-step guide.”  (The booklet it replaces is entitled “Shopping for Your Home Loan: Settlement Cost Booklet.”)  The new booklet… More >

CFPB takes action on misleading advertisements

Posted in CFPB Enforcement, FTC, Mortgages

Late last week, on February 12, the CFPB announced actions against three mortgage companies for alleged violations of Regulation N, the Mortgage Acts and Practices Advertising Rule.  Among other restrictions, Regulation N bars any commercial misrepresentation of the relationship between a credit provider and a government.  According to the CFPB, the three mortgage companies at… More >

CFPB issues report on reverse mortgage complaints

Posted in Mortgages

The CFPB has issued a “Snapshot of reverse mortgage complaints” covering complaints submitted to the CFPB from December 2011 (when the CFPB began accepting consumer complaints on reverse mortgages) through December 2014. According to the report, the CFPB handled approximately 1200 reverse mortgage complaints during that period.  The issues those complaints involved and the percentage… More >

CFPB finalizes amendments to TILA/RESPA integrated disclosures rule and loan originator rule

Posted in CFPB Rulemaking, Mortgages, TILA / RESPA

On Tuesday, January 20, the CFPB promulgated its first final rule of 2015, a series of minor amendments to the TILA/RESPA integrated disclosures (TRID) rule.  The substantive changes to the TRID rule are (1) an extension of the time period to issue a revised Loan Estimate when an interest rate moves from floating to locked,… More >

CFPB report explores consumers’ mortgage shopping experience

Posted in CFPB General, Mortgages, Research, TILA / RESPA

In a report released on January 13, 2015, the CFPB announced that nearly half of consumers do not shop among multiple lenders before applying for a mortgage loan.  Even fewer—about one of every four—submit multiple applications to gauge the best deal, the Bureau says. The report is the first to harness data gathered by the… More >

CFPB adjusts HMDA/TILA asset-size exemption thresholds

Posted in Mortgages

Adjustments to two asset-size exemption thresholds were published by the CFPB in today’s Federal Register.  First, the CFPB has increased the asset-size exemption threshold under HMDA/Regulation C which is currently set at $43 million.  Banks, savings associations, and credit unions with assets at or below $44 million as of December 31, 2014 are exempt from… More >

CFPB increases appraisal requirement exemption threshold

Posted in Mortgages

The CFPB, Fed, and OCC have adjusted the threshold for smaller loans that are exempt from the appraisal requirement for “higher priced mortgage loans.”  The appraisal requirement became effective January 18, 2014, and the exemption, which is subject to annual adjustment for inflation, currently applies to credit extensions of $25,000 or less. Effective January 1,… More >