As we originally reported in Spring 2014 the Supreme Court of the United States (SCOTUS) granted review in the case of Jesinoski v. Countrywide Home Loans. In the case, argued on November 4, 2014, and decided January 13, 2015, SCOTUS reversed and remanded the decision of the Eighth Circuit Court of Appeals. In a unanimous opinion delivered by Justice Scalia, the court held that a “borrower exercising his right to rescind under the Act need only provide written […]
Tag: Lending Compliance
CFPB PROPOSAL IMPACTS SMALL CREDITORS AND RURAL AND UNDERSERVED AREAS
On January 29, 2015 the Consumer Financial Protection Bureau (CFPB) proposed several changes to Regulation Z that impact small creditors, particularly in rural and underserved areas. The proposal would increase the number of financial institutions able to offer certain types of Qualified Mortgages (QM) in rural and underserved areas. Ability -to-Repay rules, which took effect in January 2014, require lenders to make a reasonable and good-faith determination that prospective borrowers have the ability to repay […]
FINAL RULE REVISES TIL AND RESPA
On January 18, 2015 the Consumer Financial Protection Bureau (CFPB) approved final changes to Regulations X and Z. The changes are effective on August 1, 2015. The final rule: Extends the timing requirement for revised disclosures when consumers lock a rate or extend a rate lock after the Loan Estimate is provided; Clarifies placement of the Nationwide Mortgage Licensing System and Registry ID (NMLSR ID) on the integrated disclosures; Permits certain language related to construction […]
WHAT IS A MANUFACTURED HOME?
A number of different federal lending compliance regulations use the term “manufactured home.” For example, the appraisal rules in Section 1026.35(c) of Regulation Z contain exemptions for both mobile home and manufactured homes, but the exemptions differ for one category of home versus the other. For HMDA and Regulation C lenders must gather and submit information regarding, among other categories, the property type. There seems to be much confusion regarding the definition of “manufactured home.” […]
HOME BORROWERS DON’T SHOP
The Consumer Financial Protection Bureau (CFPB) recently published a blog article reporting the results of their National Survey of Mortgage Borrowers. Key findings from the survey include: Almost half of consumers who take out a mortgage for home purchase fail to shop prior to application; that is, they seriously consider only a single lender or mortgage broker before choosing where to apply. The tendency to shop is somewhat higher among first-time homebuyers. The primary source […]