This release describes the requirements of Wis. Admin. Code Ch. DFI-CU 54
(effective November 1, 1997), with cross-references to other regulations. Although federal credit unions are not subject to the state rule, similar guidelines are imposed by NCUA Letter to Credit Unions No. 124.
This release describes the Federal Reserve’s requirements for credit unions offering “high-cost” or “high-fee” mortgage loans subject to the Home Ownership and Equity Protection Act
(HOEPA) rules in Reg. Z. This will often include credit unions single premium credit life or credit disability insurance.
To protect consumers from unfair, abusive and deceptive practices in the mortgage market, the Truth in Lending Act and Reg. Z restrict how loan originators may be compensated. These rules are found in Reg. Z §226.36.
To comply with these rules, it is critical that a credit union analyze all of its closed-end mortgage lending to determine whether or when the credit union and its staff meet the regulation's definitions of "creditor," "loan originator," or "mortgage broker." The release explains what each term means. A credit union itself can be considered a loan originator in certain situations, and its employees may be loan originators, too. Each credit union must determine how the definitions apply to its mortgage loan programs.
This release applies to all credit unions, both state and federal. It describes a Truth in Lending regulation that requires lenders to consider a borrower’s ability to repay when originating closed-end consumer credit transactions secured by a dwelling. It also describes certain presumptions of compliance for loans that are considered “qualified mortgages.” This release is based on the Consumer Financial Protection Bureau’s (the CFPB’s) “Ability-to-Repay and Qualified Mortgage Rules Small Entity Compliance Guide,” but it also addresses Wisconsin law and cross-references other League resources.
This release applies to all credit unions, both state and federal. It describes nine federal Mortgage Servicing Rules – regulations issued by the Consumer Financial Protection Bureau (CFPB) that address the duties of mortgage loan “servicers.” This release is based on the CFPB’s “2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending (Regulation Z Mortgage Servicing Final Rules, Small Entity Compliance Guide,” but it also addresses Wisconsin law and cross-references other League resources. It is current through September 2013 amendments.
This release applies to all credit unions, both state and federal. It describes Truth in Lending regulations (Reg. Z) that prohibit lenders from financing any premiums or fees for credit insurance (which includes debt suspension or cancellation agreements) in connection with most home loans and home equity lines of credit.
This release applies to all credit unions, both state and federal. It describes state and federal requirements to provide mortgage loan applicants with copies of appraisals or other valuations used in connection with their loans.
The Consumer Financial Protection Bureau (CFPB) recently issued a press release, bulletin, and interim final rule amending and clarifying parts of the mortgage servicing regulations that went into effect Jan. 10, 2014.
The Consumer Financial Protection Bureau (CFPB) is releasing final regulations today, designed to give consumers better tools and information when dealing with mortgage servicers. The rules will take effect on January 10, 2014.
Compliance Courier 11/21/13
The Consumer Financial Protection Bureau (CFPB) has issued its new (and long-awaited) "Know Before You Owe" mortgage forms and rule. The new forms will replace the early Truth in Lending statement and the Good Faith Estimate (which are given early in the application process) and the Settlement Statement and final Truth in Lending disclosure forms (which are given at closing).
As explained in ii Release No. B068, when a credit union makes a first-lien "higher-priced mortgage loan" (HPML) it must escrow for taxes, homeowners insurance and other insurance the credit union requires. This escrow rule has several exceptions, and a new exception takes effect June 1: Small credit unions in certain "rural" or "underserved" areas will not be required to establish escrows for first-lien HPMLs.
Everyone is eager for even more mortgage lending rules from the Consumer Financial Protection Bureau (CFPB), right? The federal regulators have been working overtime lately to issue rules required by the Dodd-Frank Act. Two new sets of rules have now been issued … in addition to the other six final rules that have come out in the last two weeks.
The Federal Housing Finance Agency (FHFA) has announced that it is directing Fannie Mae and Freddie Mac to buy only mortgage loans that meet the requirements for a qualified mortgage, including those that meet the special or temporary qualified mortgage definition, and loans that are exempt from the "ability to repay" requirements.
Compliance Courier September 23, 2013
The CFPB has ammended Truth in Lending rules that will prohibit the financing of credit insurance premiums for mortgage loans.
The final rules were included in a set of mortgage regulation amendments recently published by the Consumer Financial Protection Bureau (CFPB). The full text of amendments is online here. Additional resources to help credit unions comply with all of the 2013-14 mortgage rules changes can be found on theCFPB's Regulatory Implementation page.
Compliance Courier 11/14/13
Two recent developments will affect Wisconsin credit unions’ ability to offer demand loans:
•It appears that demand loans, like balloon loans, generally cannot be "qualified mortgages" under new rules taking effect in January – unless the credit union is a "small creditor."
•The Administrator of the Wisconsin Consumer Act (WCA) now views demand clauses as violating the WCA, and it will not continue to approve The League’s consumer loan form if it includes a demand clause.
Several of The League's ii Releases are being updated to address changes to Truth in Lending's Regulation Z. The Consumer Financial Protection Bureau (CFPB) recently amended Reg. Z §1026.36, as required by the federal Dodd-Frank Act. Effective Jan. 10, 2014, these changes will apply to "loan originators" who handle closed-end loans secured by a consumer's dwelling.
Compliance Courier 1/3/14
The CFPB, NCUA, and other federal regulators have adopted new rules that exempt certain types of "higher-priced mortgage loans" (HPMLs) from new appraisal requirements taking effect Jan. 18, 2014.
The federal agencies that regulate financial institutions are releasing new joint final rules that will require interior appraisals and appraisal notices for certain "higher-priced mortgage loans" (HPMLs), effective Jan. 18, 2014. An additional appraisal will be required, at no cost to the borrower, if the house is being "flipped."
The Consumer Financial Protection Bureau (CFPB) has issued quite a few new mortgage lending rules recently, as required by the Dodd-Frank Act. Most of the regulations aren’t effective until next year, but a few go into effect June 1, 2013, including these two:
union cannot finance, directly or indirectly, any premiums or fees for credit insurance in connection with a consumer loan secured by a dwelling.
Also, residential mortgage documents cannot require arbitration for disputes.
Compliance Courier 9/23/13
The Consumer Financial Protection Bureau (CFPB) recently amended its mortgage lending rules to ease compliance somewhat for lenders that meet the definition of "small creditor" under Reg. Z. The two changes are:
Amendments to rules that went into effect in June 2013 will make it easier for "small creditors" to avoid establishing escrow accounts for first-lien higher-priced mortgage loans.
For two years (until Jan. 10, 2016), all "small creditors," regardless whether they lend predominantly in "rural" or "underserved" areas, can continue originating balloon "high-cost" mortgages – if the loans meet the requirements for "qualified mortgages" under Reg. Z. That rules goes into effect for applications received on or after Jan. 10, 2014. (Similar amendments to the qualified mortgage rules were made last month.)
CFPB video guidance to the 2013 Mortgage Servicing Rules. Mr. Ben Olson, the Deputy Assistant Director for Regulations at the Consumer Financial Protection Bureau, discusses the Bureau’s January 2013 final rule under the Homeownership and Equity Protection Act (HOEPA), effective on January 10th, 2014.
These final rules implement provisions of the Dodd-Frank Act regarding mortgage loan servicing.
The Reg. X final rule implements servicers’ obligations to correct errors asserted by mortgage borrowers; to provide certain information requested by such borrowers; and to provide protections to such borrowers in connection with force-placed, servicers’ obligations to establish reasonable policies and procedures to achieve certain objectives; to provide information about mortgage loss mitigation.
The Reg. Z final rule implements rate adjustment notices for adjustable-rate mortgages, periodic statements for residential mortgage loans, prompt crediting of mortgage payments, and responses to requests for payoff amounts. amounts.
The CFPB amended Reg. Z, which implements the Truth in Lending Act (TILA). Reg. Z currently prohibits a creditor from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan. The final rule implements sections 1411 & 1412 of the Dodd-Frank Wall Street Reform & Consumer Protection Act (Dodd-Frank Act), which generally require creditors to make a reasonable, good faith determination of a consumer’s ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) & establishes certain protections from liability under this requirement for “qualified mortgages.” The final rule also implements section 1414 of the Dodd-Frank Act, which limits prepayment penalties. Finally, the final rule requires creditors to retain evidence of compliance with the rule for three years after a covered loan is consummated.
CFPB video guidance to the 2013 Mortgage Servicing Rules. Ms. Kelly Cochran, the Assistant Director for Regulations at the CFPB, gives an overview of the ability to repay and Qualified Mortgage Final Rule, effective on January 10th of 2014.
This rule implements the Truth in Lending Act (TILA), and the official interpretation to the regulation. The revisions to Regulation Z implement a new provision requiring appraisals for “higher-risk mortgages” that was added to TILA by the Dodd-Frank Act. For mortgages with an annual percentage rate that exceeds the average prime offer rate by a specified percentage, the final rule requires creditors to obtain an appraisal or appraisals meeting certain specified standards, provide applicants with a notification regarding the use of the appraisals, and give applicants a copy of the written appraisals used.
CFPB video guidance to the 2013 Mortgage Servicing Rules. Mr. Richard Cordray, the Director of the Consumer Financial Protection Bureau, gives a one hour video overview of all of the rules as part of a broader effort to help comply with the Dodd-Frank Act’s mortgage reforms.
The final rule revises Regulation B to implement an ECOA amendment concerning appraisals and other valuations that was enacted as part of the Dodd-Frank Act. In general, the revisions to Regulation B require creditors to provide to applicants free copies of all appraisals and other written valuations developed in connection with an application for a loan to be secured by a first lien on a dwelling, and require creditors to notify applicants in writing that copies of appraisals will be provided to them promptly.
CFPB video guidance to the 2013 Mortgage Servicing Rules. Mr. Ben Olson, the Deputy Assistant Director for Regulations at the Consumer Financial Protection Bureau, discusses the two final rules issued by the Bureau in January, 2013, on appraisals.
Both of these rules are effective on January 18th, 2014. This is staff guidance on the Bureau's two final rules on appraisals amending the Truth in Lending Act and Regulation Z implementing provisions of the Dodd-Frank Act.
The CFPB is issuing a final rule that amends Regulation Z (Truth in Lending) to implement certain amendments to the Truth in Lending Act made by the Dodd-Frank Act. Regulation Z currently requires creditors to establish escrow accounts for higher-priced mortgage loans secured by a first lien on a principal dwelling. The rule implements statutory changes made by the Dodd-Frank Act that lengthen the time for which a mandatory escrow account established for a higher-priced mortgage loan must be maintained. The rule also exempts certain transactions from the statute’s escrow requirement. The primary exemption applies to mortgage transactions extended by creditors that operate predominantly in rural or underserved areas, originate a limited number of first-lien covered transactions, have assets below a certain threshold, and do not maintain escrow accounts on mortgage obligations they currently service.
The CFPB issued this final rule to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act’s amendments to the Truth in Lending Act and the Real Estate Settlement Procedures Act. The final rule amends Regulation Z (Truth in Lending) by expanding the types of mortgage loans that are subject to the protections of the Home Ownership and Equity Protections Act of 1994 (HOEPA), revising and expanding the tests for coverage under HOEPA, and imposing additional restrictions on mortgages that are covered by HOEPA, including a pre-loan counseling requirement. The final rule also amends Regulation Z and Regulation X (Real Estate Settlement Procedures Act) by imposing certain other requirements related to homeownership counseling, including a requirement that consumers receive information about homeownership counseling providers.
The final rule implements requirements & restrictions imposed by the Dodd-Frank Act concerning loan originator compensation; qualifications of, & registration or licensing of loan originators; compliance procedures for depository institutions; mandatory arbitration; & the financing of single-premium credit insurance.
The amendments to § 1026.36(h) and (i) are effective on June 1, 2013. All other provisions of the rule are effective on January 10, 2014.
CFPB video guidance and summary of the Loan Originator Rule. Highlights issues that small loan originators and creditors, and those that work with them, might find helpful to consider when implementing the rule.
CFPB Mortgage Origination Rules:
Homeownership Counseling list requirements - The Consumer Financial Protection Bureau (CFPB) is issuing this bulletin to provide guidance to lenders regarding the homeownership counseling list requirement finalized in the High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act (Regulation Z) and Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act (RESPA Housing Counselor Amendments) Final Rule (2013 HOEPA Final Rule)1. Pursuant to the Dodd-Frank Act, the CFPB issued the RESPA Homeownership Counselor Amendments in January 2013, effective on January 10, 2014.
CFPB Mortgage Servicing Rules: Implementation Guidance for Certain Mortgage Servicing Rules. The Consumer Financial Protection Bureau (CFPB) is issuing this bulletin to provide
guidance in implementing certain of the 2013 Real Estate Settlement Procedures Act (RESPA) and Truth in Lending Act (TILA) Servicing Final Rules. The CFPB issued the 2013 RESPA and TILA Final Rules in January 2013 and they take effect on January 10,
CFPB video guidance to the 2013 Mortgage Servicing Rules. Mr. Mitchell Hochberg, senior counsel in the Office of Regulations at the Consumer Financial Protection Bureau, discusses the mortgage servicing final rule provisions.
Learn more about the rule in a plain language and FAQ format which makes the content more accessible for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff.
CFPB video guidance to the 2013 Mortgage Servicing Rules. Mr. Paul Mondor, Managing Counsel in the Office of Regulations at the CFPB, talks through the Bureau’s new escrows rule adopted in January 2013, effective June 1st, 2013.