Archive

NEW RISK RETENTION (QRM) PROPOSAL

On August 28 the Board of Governors of the Federal Reserve System, the Department of Housing and Urban Development, the Federal Deposit Insurance Corporation, the Federal Housing Finance Agency, the Office of the Comptroller of the Currency, and the Securities and Exchange Commission issued a notice revising a proposed rule requiring sponsors of securitization transactions to retain risk in those transactions. The new proposal revises a proposed rule the agencies issued in 2011 to implement […]

MOST RECENT CFPB SEMI-ANNUAL RULEMAKING AGENDA

Recently the Consumer Financial Protection Bureau (CFPB) published its most recent semiannual rulemaking agenda. There were no big surprises in the agenda. This article reviews three issues of concern. Integrated Disclosures and Finance Charge Rules – The biggest rules yet to be finalized are the new integrated disclosures. The disclosures include the loan estimate (that combines the early TIL disclosure and the good faith estimate) and the closing disclosure (that combines the final TIL disclosures […]

REVISED REGULATION Z EXAMINATION PROCEDURES

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 […]

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 […]