As a follow-up to our May 6, 2014, memorandum on the CFPB’s proposed rule to add a cure provision to the qualified mortgage points and fees limitation in §1026.43(e)(3) of Regulation Z, this is to inform you that on October 22, 2014, the CFPB issued a final rule to that effect (click here). This final rule will be published in the Federal Register in the near future and will become effective on the date(s) set out therein. We will update this memorandum on our website when the final rule is published in the Federal Register to advise you of that fact and of the final rule’s effective date(s).
Search Results
Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Annual Privacy Notice Requirement Under the Gramm-Leach-Bliley Act (Regulation P) – CFPB Issues New Rule Amending Regulation P
Today the Consumer Financial Protection Bureau (CFPB) issued a final rule to allow financial institutions (including certain nonbanks within the CFPB’s jurisdiction) that limit their consumer data-sharing and meet other requirements to post their annual privacy notices online rather than delivering them individually. The final rule amends Regulation P (12 CFR part 1016) and will become effective upon publication in the Federal Register.
TILA-RESPA Integrated Disclosures Rule – Proposed Amendments
The Consumer Financial Protection Bureau (CFPB) has issued a proposed rule (click here) proposing two amendments to the TILA-RESPA Integrated Disclosures Rule: (1) an adjustment to the timing requirement for revised disclosures when the consumer locks a rate after the initial disclosures are provided; and (2) an amendment to permit language related to new construction loans to be included on the Loan Estimate:
FFIEC Announces Availability of 2013 HMDA Data
Reprinted below is the text of the CFPB press release regarding the 2013 HMDA data released by the FFIEC on September 22, 2014. Pay particular attention to the explanation of how the regulators use HMDA data in their examinations to determine whether a lender is complying with fair lending laws. With the addition of more data points in the proposed HMDA regulations (see the August 29, 2014 memorandum posted on our website www.bmandg.com), we believe future HMDA data will become more critical in fair lending examinations. For further information regarding the HMDA data, click on the hyperlinks and URLs in the CFPB press release.
Regulation Z Threshold Amounts Raised for Exempt Transactions
In a September 9, 2014 notice, the Board of Governors of the Federal Reserve System (FRB) and the Consumer Financial Protection Bureau (CFPB) published final rules amending the official interpretation and commentary to Regulations Z by increasing the threshold for exempt consumer credit transactions to $54,600, effective January 1, 2015.
Mortgage Loan Officer Overtime Pay in Light of Recent Cases
Recently we were asked by a client if the invalidation of the March 24, 2010 U.S. Department of Labor Administrator’s Interpretation No. 2010-1 (AI 2010-1) by the District of Columbia Circuit Court of Appeals’ July 2, 2013 decision in Mortgage Bankers Assoc. v. Harris, 720 F.3d 966 (D.C. Cir., 2013), cert. granted, 134 S.Ct. 2820 (U.S. Jun 16, 2014), herein the “Harris decision,” allows employers to re-classify their mortgage loan officers (MLO) as administrative employees exempt from overtime requirements under the Fair Labor Standards Act (FLSA). Our recommendation is that employers should not re-classify MLO employees as exempt administrative employees based on the Harris decision, for the following reasons:
CRA Interagency Questions and Answers – Proposed Revisions
In today’s Federal Register (79 FR 53838) the Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), and Federal Deposit Insurance Corporation (FDIC) published proposed revisions to their “Interagency Questions and Answers Regarding Community Reinvestment,” which provides guidance on the above federal agencies’ (collectively the Agencies) regulations implementing the Community Reinvestment Act (CRA). The Agencies also requested public comment on the proposed revisions.
Interagency Guidance Regarding Unfair or Deceptive Credit Practices
On August 22, 2014, the Consumer Financial Protection Bureau (CFPB), Federal Reserve Board (FRB), Federal Deposit Insurance Corporation (FDIC), National Credit Union Administration (NCUA), and Office of the Comptroller of the Currency (OCC) (herein “Agencies”) issued the above referenced Interagency Guidance (click here).
FHA Adjustable Rate Mortgage Interest Rate Adjustment and Notification Regulations under the FHA Single Family Mortgage Insurance Program are Revised
In the August 26, 2014, Federal Register (79 FR 50838), the Federal Housing Administration (FHA) published a final rule (click here) that revises two FHA single family adjustable rate mortgage (ARM) regulations. The final rule revises §203.49(d)(2) to require that an interest rate adjustment resulting in a corresponding change to the mortgagor’s monthly payment for a FHA-insured ARM have a 45-day look-back period.
FHA Final Rule Prohibits Post-Payment Interest Charges for Prepayment of FHA Mortgages under the FHA Single Family Mortgage Insurance Program
In the August 26, 2014, Federal Register (79 FR 50835), the Federal Housing Administration (FHA) published a final rule (click here) that effective for FHA-insured mortgages closing on or after January 21, 2015, revises FHA’s regulations to prohibit an FHA approved mortgagee from charging the mortgagor interest through the end of the month in which the mortgage is being prepaid, allowing them instead to charge interest only through the date the mortgage is prepaid, and prohibits the charging of interest beyond that date.