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On August 7, 2013 the CFPB published final rule that amends a May 22, 2013 Final Rule which along with three other final rules implements the Electronic Fund Transfer Act’s provisions regarding remittance transfers. The August 7, 2013 Final Rule makes a clarificatory amendment and technical correction to the May 22, 2013 Final Rule. First, the rule makes a clarificatory amendment to § 1005.33(c)(2)(iii). That section sets forth the remedies for errors that occur because

Following yesterday’s article on the Actual /360 method of accruing interest on loans I received several comments. One commenter pointed out that laws of some states permit the practice. For example earlier this year the Texas legislature passed H.B. 1979 which states that a lender and a borrower may calculate the interest on a commercial loan using the “paid in kind” method, the “365/360” method, the method in the existing law, or any other method

Recently the Board of Governors of the Federal Reserve System; Bureau of Consumer Financial Protection; Federal Deposit Insurance Corporation; Federal Housing Finance Agency; National Credit Union Administration; and Office of the Comptroller of the Currency (collectively, the Agencies). proposed additional changes to the Higher-Priced Mortgage Loan appraisal rules that were published January 18, 2013. The comment period for the proposal ends on September  9, 2013. The January Rule requires creditors to obtain an appraisal or

A recent conversation with a compliance officer took me back to the earliest days of my career. The bank is in the middle of a conversion to a new core accounting system. One of the company reps suggested the bank adopt the 365/360 method of accruing interest. Apparently management was excited about the increased yields on the loan portfolio and wanted to move immediately on the suggestion. The compliance officer wanted to know if there

Can a servicer offset the balance in an escrow account against the payoff balance quoted to the borrower? The answer depends on whether the transaction occurs today or after January 10, 2014. Today – If the transaction occurs today, Section 1024.17 (i)(4)(iii) states, “If a borrower pays off a mortgage loan during the escrow account computation year, the servicer shall submit a short year statement to the borrower within 60 days after receiving the pay-off funds.