On December 22, 2020 the Consumer Financial Protection Bureau published a final rule amending the official commentary that interprets the requirements of Regulation C (Home Mortgage Disclosure Act) to reflect the asset-size exemption threshold for banks, savings associations, and credit unions based on the annual percentage change in the average of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). For 2021, the exemption threshold is increased to $48 million from $47 […]
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$16M SETTLEMENT FOR OVERDRAFT FEES
On October 5, 2020, the Navy Federal Credit Union agreed to settle a class action suit for $16 million that will reimburse an estimated 700,000 current and former members who were charged two or three non-sufficient funds (NSF) fees on a single transaction by Navy Federal Credit Union between Jan. 28, 2014, and Oct. 27, 2020. An U.S. District Court judge in Virginia has issued a preliminary approval for the settlement in Lambert v. Navy Federal Credit Union, […]
FHFA ANNOUNCES 2021 CONFORMING LOAN LIMITS
On November 24, 2020, the Federal Housing Finance Agency (FHFA) announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2021. Baseline Limit The Housing and Economic Recovery Act establishes the maximum loan limit in those areas as a multiple of the area median home value, while setting a “ceiling” on that limit of 150 percent of the baseline loan limit. Median home values generally increased in high-cost […]
IRS UPDATES LIFE EXPECTANCY AND DISTRIBUTION TABLES RELATED TO REQUIRED MINIMUM DISTRIBUTIONS
The Internal Revenue Service (IRS) has issued a final rule updating life expectancy and distribution tables used to calculate required minimum distributions (RMD) from qualified retirement plans, individual retirement accounts and annuities, and certain other tax-favored employer-provided retirement arrangements. The final rule was published in the Federal Register on November 12, 2020. The RMD tables were last updated in 2002 and have been updated to allow for longer life expectancies. In addition to the new […]
TRID AND THE END OF DAYLIGHT SAVING TIME
Daylight Saving Time (DT) ends on November 1, 2020 at 2:00 a.m. What does DT have to do with TRID? The TRID rules under Regulation Z require creditors to disclose the time zone applicable to its location when disclosing the date and time the interest rate lock and estimate of closing costs will expire on the loan estimate. As a result, financial institutions located in areas that observe DT need to remember to change the […]