Over the next six months Regulation Z will undergo the most extensive revisions in its 43 year history. The rules will primarily impact mortgage loan rules, for both open-end and closed-end credit. For mortgage loan disclosures, it will be the end of the world as we know it and the beginning of a brave new world of Regulation Z. Following is a summary of each piece of the revision process. Ability to Repay– A final […]
Category: Truth in Lending
CFPB DELAYS ABILITY TO REPAY RULE
On May 31st the Consumer Financial Protection Bureau (CFPB) announced that it is seeking additional public comment on new data and information that it has received in a rulemaking to require lenders to revise Regulation Z to assess consumers’ ability to repay mortgage loans before extending them credit. The latest comment period will close on July 9, 2012. The CFPB is a new agency so we need to cut them a little slack. What the […]
APPRAISAL SURVEY
Section 1026.41(f) of Regulation Z states, “The creditor and its agents shall compensate a fee appraiser for performing appraisal services at a rate that is customary and reasonable for comparable appraisal services performed in the geographic market of the property being appraised.” To assure the appraisal fee is “customary and reasonable” the creditor may either conduct its own appraiser survey or obtain a survey from a third party. In the past, several companies offer their […]
CFPB – A CONTINUATION OF THE SAME OLD STORY
It is not that often that a new federal financial institution regulatory agency is created, but when it happens one can only hope for something better than what existed before. But the Consumer Financial Protection Bureau (CFPB) continues to disappoint. The latest disappointment is relatively minor. In their regulatory agenda published last fall the CFPB stated that final rules revising Regulation Z provisions dealing with the borrower’s ability to repay would be published in April […]
SERVICING RULES – PREVIEW
Recently the Consumer Financial Protection Bureau outlined major new rules that impact mortgage loan servicing. The rules, which revise the Truth in Lending Act and the Real Estate Settlement Procedures Act, are required by the Dodd-Frank Act. Under the rules servicers must: Provide periodic statements for all residential mortgage loans; Provide a new notice 6 months prior to interest rate reset on ARM loans; Provide notices and establish other requirements for force-placed insurance; Credit payments […]