Last fall, we published a blog article that reviewed the intricacies of the “Liability after Foreclosure” disclosure. Here we provide a quick update and add some valuable new information. As a refresher, the following disclosure appears in the Loan Estimate but only when the transaction is defined as a refinance: Liability after Foreclosure Taking this loan could end any state law protection you may currently have against liability for unpaid debt if your lender forecloses […]
Category: Regulation Z
SPECULATION ABOUT THE CFPB’S PENDING TRID PROPOSAL
As a result of a lot of pressure from many players in the mortgage lending game the CFPB has reluctantly agreed to publish proposed rules to clarify the massive pile of confusion that is called TRID. Recently CFPB Director Cordray sent a letter to the leadership and members of several industry trade groups reporting that the agency has begun drafting a Notice of Proposed Rulemaking on the TRID rules. Cordray stated the goal for publication […]
TILA TYPE SIZE REQUIREMENT
On March 29, 2016, U.S. District Judge Alison Nathan in the case of Abigail Strubel, Plaintiff v Capital One Bank. N.A., Defendant granted summary judgment against a putative class action alleging that the Garamond LC font used by Capital One Bank in its credit card applications was not “clear and conspicuous” as required by the Truth in Lending Act. The plaintiffs argued that the commentary provided by the Consumer Financial Protection Bureau (CFPB) indicated that no […]
NEW LIFE FOR THOSE POPPED BALLOONS
Once again, the CFPB has waited until the eleventh hour to issue an interim final rule that many community bankers worked countless hours to prepare for! On Tuesday, March 22, 2016, the Bureau released the interim final rule to amend Regulation Z and implement provisions that many banks would have appreciated months ago. The interim final rule will implement Congress’s intent to expand the number of small creditors eligible to meet the special provisions under […]
PROVIDING REALTORS COPIES OF THE CLOSING DISCLOSURES
We have received numerous reports that realtors involved in purchase transactions are requesting (demanding) copies of the borrower’s closing statement. Some realtors have included language (see sample below) in the purchase contract to ensure they receive the closing disclosure. “All parties to this transaction, including buyers, sellers, real estate agents, lender, and closing agents acknowledge that the TRID Closing Disclosure, the Buyers Statement, the Sellers Statement, or any other summary form of the transaction does […]