On December 11, 2013 the Department of Housing and Urban Development (HUD) published a final rule to establish a definition of “qualified mortgage” (QM) for the single family residential loans that HUD insures, guarantees, or administers that aligns with the statutory ability-to-repay criteria of the Truth-in-Lending Act (TILA) and the regulatory criteria of the definition of QM promulgated by the Consumer Financial Protection Bureau (CFPB). The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank […]
Tag: HUD
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 […]
ANOTHER HUD MATERNITY LEAVE CASE
The U.S. Department of Housing and Urban Development (HUD) recently announced that it has reached yet another agreement with a mortgage lender that apparently discriminated against a woman on maternity leave. The lender entered into the agreement to settle allegations that it denied woman a mortgage loan because she was pregnant and on maternity leave. The Fair Housing Act prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on […]
HUD’s EFFECTS TEST STANDARD
On February 15 the Department of Housing and Urban Development (HUD) published a final rule that formalizes a test for determining whether a given practice has an unjustified discriminatory effect, leading to liability under the Fair Housing Act. The final rule is effective on March 18, 2013. The regulation formalizes HUD’s long-held interpretation of the availability of “discriminatory effects” liability under the Fair Housing Act and to provide nationwide consistency in the application of that […]