The CFPB recently issued a final rule increasing the asset exemption threshold under the Home Mortgage Disclosure Act (HMDA) and a final rule increasing the asset exemption threshold for the Truth in Lending Act (TILA)...more
The CFPB recently issued a final rule that amends the Regulation Z ability to repay/qualified mortgage rule by extending the sunset date for the qualified mortgage (QM) based on a loan meeting certain product requirements and...more
As previously reported, in August 2020 the CFPB issued a proposed rule to create a new seasoned loan qualified mortgage (QM) under the Regulation Z ability to repay rule. Initially, comments on the proposal were due by...more
Since late July, the CFPB has issued seven consent orders against mortgage companies in which the CFPB asserts that the companies engaged in false and misleading advertising to service members and veterans. ...more
9/10/2020
/ Consent Order ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Enforcement Actions ,
False Advertising ,
Financial Services Industry ,
Mortgages ,
Regulation Z ,
Title X ,
Unfair or Deceptive Trade Practices ,
Veterans Administration
On August 21, 2020, the CFPB announced the issuance of a consent order against Go Direct Lenders, Inc. (Go Direct). This follows consent orders discussed in a previous blog post, that were announced on July 24, 2020 against...more
8/28/2020
/ Advertising ,
Consent Order ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
IRS ,
MAP Rule ,
Misleading Statements ,
Mortgage Lenders ,
Regulation Z ,
Unfair or Deceptive Trade Practices
As promised by the CFPB when it issued two Regulation Z ability to repay rule qualified mortgage (QM) loan proposals in June 2020, the CFPB recently issued a proposal to provide for a new seasoned QM loan. Comments will be...more
8/21/2020
/ Banking Sector ,
Consumer Financial Protection Bureau (CFPB) ,
Creditors ,
Financial Services Industry ,
Mortgage Servicers ,
Mortgages ,
Proposed Rules ,
Qualified Mortgage Rule ,
Rebuttable Presumptions ,
Regulation X ,
Regulation Z ,
Safe Harbors
On July 24, 2020, the CFPB announced the issuance of consent orders against Sovereign Lending Group, Inc. (Sovereign) and Prime Choice Funding, Inc. (Prime Choice). The CFPB indicated in their announcement that these consent...more
8/13/2020
/ Advertising ,
Consent Order ,
Consumer Financial Products ,
Consumer Financial Protection Act (CFPA) ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
MAP Rule ,
Misleading Statements ,
Misrepresentation ,
Mortgage Lenders ,
Regulation Z ,
Unfair or Deceptive Trade Practices
As previously reported, the Economic Growth, Regulatory Relief, and Consumer Protection Act (Growth Act), also known as S.2155, directs the CFPB to implement an exemption from the mandatory escrow account requirement for...more
7/7/2020
/ Consumer Financial Protection Bureau (CFPB) ,
Credit Unions ,
Creditors ,
Economic Growth Regulatory Relief and Consumer Protection Act ,
Escrow Accounts ,
Exemptions ,
High-Priced Mortgage Loans (HPML) ,
Mortgage Lenders ,
Proposed Regulation ,
Regulation Z ,
Truth in Lending Act (TILA)
The U.S. Department of Treasury recently issued the long-awaited Housing Reform Plan, and among various topics the Plan addresses the temporary qualified mortgage under the Regulation Z ability-to-repay rule for loans that...more
9/9/2019
/ Ability-to-Repay ,
Advanced Notice of Proposed Rulemaking (ANPRM) ,
Consumer Financial Products ,
Fannie Mae ,
Financial Regulatory Reform ,
Freddie Mac ,
GSE ,
Housing Market ,
Mortgages ,
Qualified Mortgage Rule ,
Regulation Z ,
Rulemaking Process ,
U.S. Treasury
The CFPB recently issued an advance notice of proposed rulemaking (ANPR) requesting comments on how to revise the qualified mortgage (QM) provisions of the Regulation Z ability to repay rule in view of the impending...more
7/30/2019
/ Ability-to-Repay ,
Advanced Notice of Proposed Rulemaking (ANPRM) ,
Comment Period ,
Consumer Financial Products ,
Consumer Financial Protection Bureau (CFPB) ,
Federal Housing Administration (FHA) ,
GSE ,
Loans ,
Mortgages ,
Public Comment ,
Qualified Mortgage Rule ,
Regulation Z ,
Rulemaking Process
On February 8, 2018 the United States House of Representatives passed The Mortgage Choice Act, H.R. 1153, to revise the definition of “points and fees” for purposes of the Regulation Z ability to repay/qualified mortgage...more
The CFPB recently released a revised version of the TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide.
The revised version incorporates the recent amendments to the rule that became effective on October...more
10/12/2017
/ Banking Sector ,
Closing Documents ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Disclosure Requirements ,
Escrow Instructions ,
Financial Institutions ,
Financial Services Industry ,
Mortgage Lenders ,
Mortgages ,
Regulation Z ,
TILA-RESPA Integrated Disclosure Rule (TRID)
On May 4 H.R. 10, the Financial CHOICE Act (the Act) introduced by House Financial Services Committee Chairman Jeb Hensarling, R-Texas, obtained enough votes to move the bill on to the House of Representatives floor. The Act...more
5/15/2017
/ Ability-to-Repay ,
Consumer Financial Protection Bureau (CFPB) ,
Dodd-Frank ,
Escrow Accounts ,
Financial Services Industry ,
HMDA ,
Mortgage Loan Originators ,
Mortgages ,
Popular ,
Proposed Legislation ,
Regulation Z ,
Regulatory Oversight ,
Reporting Requirements
The Consumer Financial Protection Bureau (CFPB) has published a notice in the Federal Register announcing that it has revised its methodology statement for calculating the average prime offer rates (APORs) under Regulations C...more
The CFPB has published a notice in the Federal Register announcing that it has revised its methodology statement for calculating the average prime offer rates (APORs) under Regulations C and Z.
Regulation C requires...more
As previously reported, the Consumer Financial Protection Bureau (CFPB) proposed substantive and technical revisions to the TILA/RESPA Integrated Disclosure (TRID) rule, which the CFPB refers to as the "Know Before You Owe"...more
8/4/2016
/ Banking Sector ,
Closing Documents ,
Consumer Financial Protection Bureau (CFPB) ,
Consumer Lenders ,
Disclosure Requirements ,
Gramm-Leach-Blilely Act ,
Mortgage Lenders ,
Mortgages ,
Property Insurance ,
Property Tax ,
Regulation Z ,
Residential Real Estate Market ,
TILA-RESPA Integrated Disclosure Rule (TRID) ,
Title Insurance
In emails sent to CFPB email subscription holders, the CFPB announced the publication of new annotated versions of the Loan Estimate and Closing Disclosure that include citations to sections in Chapter 2 of the Truth in...more
The CFPB recently published a fact sheet for small creditors operating in rural or underserved areas. As we have reported, the CFPB issued a final rule, which became effective on January 1, 2016, revising the definitions of...more
As we have addressed, Congress passed the Helping Expand Lending Practices in Rural Communities Act of 2015 (HELP Act) on December 4, 2015, in efforts to expand the designation of additional areas as being "rural" under...more
4/15/2016
/ Ability-to-Repay ,
Comment Period ,
Consumer Financial Protection Bureau (CFPB) ,
Escrow Accounts ,
Final Rules ,
HELP Act ,
Mortgages ,
New Legislation ,
Regulation Z ,
Rural Areas ,
Truth in Lending Act (TILA)
As we have addressed, Congress passed the Helping Expand Lending Practices in Rural Communities Act of 2015 (HELP Act) on December 4, 2015, in efforts to expand the designation of additional areas as being “rural” under...more
As we previously addressed, the CFPB issued a final rule to expand the definition of “rural areas” under Regulation Z with regard to the authority of small creditors to make certain qualified mortgage loans under the ability...more
The Consumer Financial Protection Bureau (CFPB) has issued a "fact sheet" regarding the disclosure of construction-to-permanent loans under the TILA/RESPA Integrated Disclosure (TRID) rule, which the CFPB refers to as the...more
The CFPB has issued a final rule containing “technical corrections” to the final TILA-RESPA Integrated Disclosure (TRID) rule that became effective on October 3, 2015. The corrections are effective December 24, 2015, the date...more
Since it is unusual for CFPB annual adjustments to result in reduced thresholds, we want to remind blog readers of the reduced HOEPA and QM points and fee limits that will be effective January 1, 2016. Effective January 1,...more
The U.S. House of Representatives passed a bill that would provide a safe harbor exception for depository institutions from certain provisions of the Truth in Lending Act and Regulation Z, and for mortgage originators from...more