Recently we have received several inquiries from financial institutions regarding the new Mortgage Call Reports (MCRs) required by the Nationwide Mortgage Licensing System (NMLS). A MCR is required of a company that holds a state license or registration through the NMLS. Remember the SAFE Act requires all mortgage loan originators, both financial institutions and other mortgage lenders, to register with the NMLS. Financial institution MLOs merely have to register. Non-banks MLOs have to both get […]


Recently the Federal Reserve Board (FRB) requested comment on a proposed rule under Regulation Z that requires creditors to determine a consumer’s ability to repay a mortgage before making the loan and also establishes minimum mortgage underwriting standards. We already have a similar requirement for Section 32 mortgages, Section 35 mortgages (higher-priced mortgage loans), and for open-end credit. The requirement is being expanded to all consumer mortgage loans (except home equity lines of credit, timeshare […]

New Regulation Z Dollar Threshold

On March 24, 2011 the Federal Reserve Board approved a change to Regulation Z that increases the threshold for transactions exempt from Regulation Z from $25,000 to $50,000. This change was mandated by the Dodd Frank Act. The change is effective on July 21, 2011. So you may be wondering – What are the details of this change? What does the change mean to my bank? DETAILS Currently, the Truth in Lending Act (TILA) exempts […]


The Department of Housing and Urban Development (HUD) recently published an issue of its periodic newsletter – RESPA ROUNDUP. This issue provides guidance on several issues related to the Good Faith Estimate (GFE) and the Uniform Settlement Statement (HUD-1). The articles include: * HUD-1 Line 803 Tolerance Violation; * Credit Report Charges; * Loan Originator Fails to Issue GFE; and * 4506-T 9Tax Transcript Fees. We must be totally crazy to write and read about […]