Recently the federal financial institution regulatory agencies released updated Regulation Z Examination procedures. The revised interagency examination procedures reflect amendments implementing revisions to the Truth in Lending Act under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) that: (1) restrict mandatory arbitration agreements in mortgage loans; and (2) revise existing escrow requirements on first-lien higher-priced mortgage loans. These amendments are effective with respect to transactions for which the creditor receives an application […]
Category: Truth in Lending
CFPB PROPOSES CHANGES TO REGULATIONS B, X, AND Z
On June 24, 2013 the Consumer Financial Protection Bureau published proposed changes to several final rules originally published in January 2013. The proposal would: Provide procedures for obtaining follow-up information on loss-mitigation applications; Make it easier for servicers to offer short-term forbearance plans; Revise the definitions of “rural” and “underserved” and provide interim rules until the revised definitions are complete; Provide clarification about financing credit insurance; Clarify the definition of “loan originator;” Clarify the definition […]
CFPB PUBLISHES THE FINAL FINAL ABILITY-TO-REPAY AND QUALIFIED MORTGAGE STANDARDS
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 […]
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 […]