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On November 16, 2012 the Consumer Financial Protection Bureau (CFPB) announced that it will give creditors extra time to provide certain new disclosures required under the Dodd-Frank Wall Street Reform and Consumer Protection Act in order to allow a more seamless integration with other mortgage disclosures that have been proposed by the Bureau. The Dodd-Frank Act: Requires the CFPB to integrate certain disclosures from the Truth in Lending Act (TILA) and the Real Estate Settlement […]

This is the final part of a five part series that explores issues related to discount points. The previous articles provided a primer on discount points, explored UDAAP concerns that result from unearned discount points, considered how unearned discount points could lead to fair lending violations, and provided a glimpse of how Regulation Z revisions will change the handling of discount points in the future. In this part we discuss policies, procedures and controls needed […]

This is the fourth part of a five part series that explores issues related to discount points. The previous article considered how unearned discount points could result in fair lending violations. This part provides a glimpse of how changes to Regulation Z will change how discount points are handled in the future. On August 17, 2012, the Consumer Financial Protection Bureau (CFPB) proposed two revisions to Regulation Z to implement provisions of the Dodd-Frank Act […]

This is the third part of a five part series that explores issues related to discount points. The previous article explored UDAAP concerns resulting from unearned discount points. This article considers how unearned discount points may result in fair lending violations. Almost any lending practice may result in an disparate impact violation under the Equal Credit Opportunity Act (ECOA), as implemented by Regulation B, and the Fair Housing Act (FHA). Charging unearned discount points is […]

This is the second part of a five-part series that explores issues related to discount points. The previous article provided a primer on discount points. This article explores UDAAP concerns that result from unearned discount points. Unearned discount points may result in charges of unfair, deceptive or abusive acts or practices (UDAAP). An act or practice is deceptive when: The representation, omission, or practice misleads or is likely to mislead the consumer; The consumer’s interpretation […]