Category Archives: Mortgages

CFPB finalizes mortgage escrow rule amendments and list of “rural” or “underserved counties” and issues videos on mortgage rules

By Richard J. Andreano, Jr., on May 21st, 2013 Posted in Mortgages

The CFPB has issued final “clarifying and technical” amendments to its final mortgage escrow account rule dealing with the establishment of mandatory escrow accounts on higher-priced mortgage loans (HPML). The final escrow rule contains exemptions for certain creditors operating primarily in “rural” or “underserved” areas. Such creditors are also the subject of (1) a provision… More >

CFPB settles RESPA enforcement action involving affiliated business arrangements

By Richard J. Andreano, Jr., on May 21st, 2013 Posted in CFPB Enforcement, Mortgages

The CFPB has announced the settlement of an enforcement action in which it was alleged that two affiliated business arrangements (ABAs) violated Section 8 of the Real Estate Settlement Procedures Act. The arrangements involved two mortgage origination companies created by a Texas homebuilder who owned one company together with a bank and the other company together with… More >

House to hold hearing on CFPB ability to repay/QM rule

By Barbara S. Mishkin on May 20th, 2013 Posted in Mortgages

The House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit has scheduled a hearing for tomorrow, May 21, on “Qualified Mortgages: Examining the Impact of the Ability to Repay Rule.” There will be one panel consisting of two witnesses from the CFPB. The CFPB officials scheduled to appear are Peter Carroll, Assistant Director… More >

TILA ban on mandatory arbitration in mortgage loans takes effect June 1

By Alan S. Kaplinsky on May 17th, 2013 Posted in Arbitration, Mortgages

The Truth in Lending Act ban on mandatory arbitration provisions in certain mortgage loans becomes effective on June 1, 2013. Lenders now using mortgage loan documentation containing such provisions should take steps to ensure that they (and references to them) are removed from documentation to be used for loans that will be subject to the… More >

CFPB proposes delay in effective date of Reg Z prohibition on financing credit insurance premiums

By Alan S. Kaplinsky on May 10th, 2013 Posted in Mortgages

The CFPB has issued a proposal to temporarily delay the June 1, 2013 effective date of the Regulation Z prohibition on financing credit insurance premiums (Section 1026.36(i)). The proposal responds to concerns raised by industry about the CFPB’s interpretation that the prohibition would apply to level premiums (meaning premiums that remain the same amount each month,… More >

CFPB issues more small entity compliance guides for mortgage-related rules

By Barbara S. Mishkin on May 7th, 2013 Posted in Mortgages

The CFPB has issued several more Small Entity Compliance Guides on its mortgage-related rules. In addition to its guide on the ability-to-repay and qualified mortgage rule, the CFPB has now issued Small Entity Compliance Guides on the 2013 HOEPA rule, escrow rule for higher-priced mortgages, ECOA valuations rule, and TILA higher-priced mortgages appraisal rule. Each… More >

CFPB proposes clarifications and changes to Ability to Repay and Servicing Rules

By Richard J. Andreano, Jr., on April 25th, 2013 Posted in CFPB Rulemaking, Mortgages

In keeping with its promise to provide further guidance to the industry on the recent mortgage loan rules, the CFPB recently issued proposed clarifications and changes to the ability to repay/qualified mortgage rule and the servicing rules. Comments on the proposal will be due 30 days after it is published in the Federal Register. The… More >

CFPB proposes amendments to final mortgage escrow account rule

By Richard J. Andreano, Jr., on April 16th, 2013 Posted in Mortgages

The CFPB has proposed amendments to its final mortgage escrow account rule dealing with the establishment of mandatory escrow accounts on higher-priced mortgage loans (HPML). According to the proposal’s supplementary information, the proposal is the “first publication of additional guidance and updates regarding the Title XIV Final Rules.” It further states that because the final rule is… More >

CFPB issues Small Entity Compliance Guide for ability to repay mortgage rule; trade groups seek more time for implementation

By Richard J. Andreano, Jr., on April 11th, 2013 Posted in Mortgages

The CFPB has issued a Small Entity Compliance Guide on the ability to repay and qualified mortgage rule. According to the 45-page guide, it is intended to provide “an easy-to-use summary” of the rule and “highlights issues that small creditors, and those that work with them, might find helpful to consider when implementing the rule.” … More >

FDIC to host banker teleconferences on CFPB mortgage rules

By Barbara S. Mishkin on April 11th, 2013 Posted in Mortgages

The FDIC has scheduled the following three free teleconferences on the CFPB’s new mortgage-related rules for officers and employees of FDIC-supervised institutions: 1. May 2, 2013 on the CFPB final rules on ability to repay/qualified mortgages and escrow accounts, and the provisions of the final loan originator compensation rule prohibiting mandatory arbitration clauses and the financing… More >

CFPB sets up special e-mail list for mortgage developments

By Barbara S. Mishkin on April 8th, 2013 Posted in Mortgages

At the end of last week, the CFPB sent an e-mail to its e-mail subscribers indicating that the Bureau has set up a mortgage regulations-specific e-mail list. The CFPB indicated that those who sign up will receive implementation materials the same day they are released. The CFPB stated that anyone interested can sign up for… More >

Qualified mortgage remorse?

By Richard J. Andreano, Jr., on March 1st, 2013 Posted in Mortgages

Could the CFPB be worried that its ability-to-repay/qualified mortgage rule is already contracting the availability of mortgage credit? In his remarks earlier this week to the Credit Union National Association, Director Richard Cordray told mortgage executives that “the current mortgage market is so tight that lenders are leaving good money on the table by not… More >

CFPB focusing on mortgage servicing transfers

By Michael S. Waldron on February 19th, 2013 Posted in Mortgages

Although its new mortgage servicing regulations do not take effect until next January, the CFPB sent a reminder to residential mortgage servicers last week that they need to be ready now for the CFPB to take a close look at their operations. In Bulletin 2013-1, the CFPB issued guidance warning servicers and subservicers that CFPB… More >

CFPB announces mortgage rules implementation plan

By Richard J. Andreano, Jr., on February 14th, 2013 Posted in Mortgages

The CFPB has announced various steps it plans to take over the next year to support the industry’s implementation of the mortgage rules issued in January 2013 and which take effect in January 2014. Those rules include the new qualified mortgage/ability-to-repay rule and the mortgage servicing rules. Perhaps the most significant step planned by the CFPB… More >

Third Circuit TILA rescission decision adopts CFPB position

By Martin C. Bryce, Jr. on February 8th, 2013 Posted in Mortgages

The Third Circuit has now joined the Fourth Circuit in ruling that a lawsuit seeking rescission filed more than there years after loan consummation is timely as long as the borrower sent a written notice of rescission within the three-year period. In its decision issued on February 5 in Sherzer v. Homestar Mortgage Services, the… More >

Past CFPB actions may portend fate of mortgage rules

By Richard J. Andreano, Jr., on February 5th, 2013 Posted in CFPB Rulemaking, Mortgages

Following the invalidation of three presidential “recess” appointments to the NLRB by the D.C. Circuit Court of Appeals in Noel Canning v. NRLB, theories continue to swirl about the fate of Director Cordray. The Director was appointed based on the same recess authority and at the same time as the invalidated NRLB appointments. There also… More >

CFPB final ECOA appraisal rule issued

By Richard J. Andreano, Jr., on January 28th, 2013 Posted in Mortgages

Among the flurry of mortgage-related final rules issued by the CFPB this month was a final rule to implement a Dodd-Frank amendment to the Equal Credit Opportunity Act that requires creditors to provide to a first lien mortgage applicant a copy of all written appraisals and valuations developed in connection with the application. The final… More >

CFPB issues final rules on mortgage servicing, appraisals and loan originator compensation

By Richard J. Andreano, Jr., on January 23rd, 2013 Posted in Mortgages

The regulatory barrage continued last week with the CFPB issuing the last batch of mortgage-related rules it was required to finalize by the Dodd-Frank Act’s January 21 deadline. On January 17, the final rules implementing provisions of the Dodd-Frank Act that relate to mortgage servicing were issued. The servicing rules will take effect on January… More >

CFPB issues final mortgage escrow account and high-cost loan rules

By Richard J. Andreano, Jr., on January 15th, 2013 Posted in Mortgages

Last week was a busy one for the CFPB. In addition to the final ability to repay/qualified mortgage rule, the CFPB also issued final rules on mortgage escrow accounts and high-cost home loans. The final mortgage escrow account rule implements a section of the Dodd-Frank Act relating to the establishment of mandatory escrow accounts on… More >

Quoth the CFPB: “Nevermore” on loans made to consumers who can’t repay

By Richard J. Andreano, Jr., on January 11th, 2013 Posted in Mortgages

On January 10, 2013, the CFPB issued the long-awaited ability to repay/qualified mortgage rule and, while the devil will be in the details, it appears that cautious optimism for the mortgage industry is warranted. The industry fought hard for the creation of a safe harbor for qualified mortgages and the rule includes a safe harbor… More >

CFPB establishes when a final rule is “issued”

By Richard J. Andreano, Jr., on January 2nd, 2013 Posted in CFPB Rulemaking, Mortgages

The CFPB has published a final procedural rule that addresses what constitutes official issuance of a CFPB final rule. The procedural rule establishes that the CFPB’s final rules, including interim final rules, are deemed issued upon the earlier of when the final rule is posted on the CFPB website or when it is published in… More >

CFPB to hold field hearings on mortgage policy

By Richard J. Andreano, Jr., on December 20th, 2012 Posted in CFPB Rulemaking, Mortgages

The CFPB has announced that it will be holding two field hearings in January 2013 on mortgage policy. The first hearing is scheduled for January 10 in Baltimore and the second hearing is scheduled for January 17 in Atlanta. CFPB Director Richard Cordray is expected to deliver remarks at both hearings and there will also… More >

CFPB goes after another mortgage modification business

By Barbara S. Mishkin on December 13th, 2012 Posted in CFPB Enforcement, Mortgages

The CFPB announced that on December 3, 2012, it filed a second action in the U.S. District Court for the Central District of California seeking to shut down an alleged mortgage modification scam. Filed against National Legal Help Center and other defendants, the latest action charges the defendants with violations of the Consumer Financial Protection… More >