On May 29, 2013 the Consumer Financial Protection Bureau (CFPB) published a final2 rule to amend a final rule published in January 2013 that generally prohibits a creditor from making a mortgage loan unless the creditor determines that the consumer will have the ability to repay the loan.. The final2 rule provides an exemption to these requirements for creditors with certain designations, loans pursuant to certain programs, certain nonprofit creditors, and mortgage loans made in connection […]
Category: Dodd-Frank Act
CFPB PUBLISHES FINAL FINAL RULE AMENDING THE PROHIBITION ON FINANCING CREDIT INSURANCE PREMIUMS
On May 29, 2013 the Consumer Financial Protection Bureau (CFPB) published a final2 rule that amends Regulation Z to delay the June 1, 2013 effective date of a prohibition on creditors financing credit insurance premiums in connection with certain consumer credit transactions secured by a dwelling. The CFPB is delaying the effective date until January 10, 2014, to permit the Bureau to clarify, before the provision takes effect, its applicability to transactions other than those […]
CFPB PUBLISHES THE FINAL FINAL ESCROW RULE (WE HOPE.)
Recently the Consumer Financial Protection Bureau (CFPB) published what we hope is the final final revised rule for escrows on higher-priced mortgage loans (HPMLs). This final final rule amends the final rule the CFPB issued in January 2013. The January final rule lengthened the time for which a mandatory escrow account established for a higher-priced mortgage loan (HPML) must be maintained. The rule also established an exemption from the escrow requirement for certain creditors that operate predominantly […]
DELAY IN CREDIT INSURANCE EFFECTIVE DATE
On May 8 the Consumer Financial Protection Bureau (CFPB) published a proposal to temporarily delay the June 1, 2013, effective date of the prohibition on financing credit insurance premiums in connection with consumer credit transactions secured by a dwelling. The temporary delay provides the CFPB time to clarify, before the provision takes effect, its applicability to transactions other than those in which a lump-sum premium is added to the loan amount at closing. The proposal […]
CFPB PROPOSES MORE CHANGES TO THE QM AND SERVICING CHANGES
On April 19th the Consumer Financial Protection Bureau (CFPB) proposed changes to the Qualified Mortgage (QM) and Servicing Rules. The proposal addresses five topics: Debt-to-Income Ratio Under the Ability to Repay rule, a lender may make a qualified mortgage (QM), a loan for which certain features are prohibited and fees that can be charged are limited. The rule provides for different types of QMs, the main type requiring that a consumer’s debt-to-income ratio (DTI) show […]