In today’s Federal Register (75 FR 57252) the Secretary of the Treasury published notice that pursuant to Section 1062 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public Law 111-203), July 21, 2011 is the Designated Transfer Date for the transfer of all of the consumer financial protection functions of the Federal Reserve Board, the Federal Deposit Insurance Corporation, the Federal Trade Commission, the National Credit Union Administration, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the Department of Housing and Urban Development (as to HUD, this transfer only relates to RESPA, the SAFE Act, and the Interstate Land Sales Full Disclosure Act).
Search Results
Read articles below for analysis and discussion of recent trends by BM&G’s industry experts.
Final Rule Requiring Registration of Mortgage Loan Originators to Implement the SAFE Act – July 28, 2010 issue of the Federal Register
This memorandum is to advise you that in the above issue of the Federal Register (75 FR 44656) the following named federal agencies – Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (FRB), Federal Deposit Insurance Corporation (FDIC), Office of Thrift Supervision (OTS), Farm Credit Administration (FCA), and National Credit Union Administration (NCUA) – each adopted a parallel final rule (collectively the “Final Rule”) to implement the federal SAFE Act.
FHA Proposed Changes to Risk Management Practices – Reduction of Seller Concessions and New Loan-to-Value and Credit Score Requirements
In today’s Federal Register (75 FR 41217) HUD published notice that in order to enhance FHA risk management practices, FHA is proposing the following changes to its underwriting guidelines: 1. reduce “seller concessions”; 2. introduce a minimum eligibility credit score; 3. reduce the maximum LTV for low credit score borrowers; and 4. tighten underwriting standards for manually underwritten loans.
Community Reinvestment Act Proposed Rule Change to Revise the Term “Community Development”
In today’s Federal Register, the following federal agencies – OCC, FRB, FDIC and OTS – published a proposed rule to revise the definition of “community development.” In pertinent part, the proposed revised definition includes “[l]oans, investments, and services that [s]upport, enable, or facilitate projects or activities that meet the criteria described in Section 2301(c)(3) of the Housing and Economic Recovery Act of 2008 (HERA) … and are conducted in designated target areas identified in plans approved by the United States Department of Housing and Urban Development in accordance with the Neighborhood Stabilization Program (NSP) established by the HERA and the American Recovery and Reinvestment Act of 2009 … .”
Home Warranty Company Payment to Real Estate Broker or Agent Can Be a RESPA Section 8 Violation
In today’s Federal Register, HUD issued the following Interpretative Rule on compensation paid by a home warranty company (HWC) to a real estate broker or agent in connection with the sale of a homeowner warranty to a homebuyer or seller in a transaction involving a federally related mortgage loan: (1) A payment by an HWC for marl
Community Reinvestment Act Regulations: Notice by Federal Agencies to Hold Public Hearings on Potential Regulatory Changes
In today’s Federal Register, the following federal agencies – OCC, FRB, FDIC and OTS – published notice that they will hold joint public hearings to solicit comments that can be used for future revision of the CRA regulations. These public hearing dates and locations are as follows: 1. July 19, 2010-FDIC’s L. William Seidman Center, 3501 Fairfax Drive, Arlington, VA 22201-2305. 2. August 6, 2010-Federal Reserve Bank of Atlanta, 1000 Peachtree Street Northeast, Atlanta, GA 30309. 3. August 12, 2010-Federal Reserve Bank of Chicago, 230 South La Salle Street, Chicago, IL 60614. 4. August 17, 2010-Los Angeles Branch of the Federal Reserve Bank of San Francisco, 950 South Grand Avenue, Los Angeles, CA 90015.
HUD Strikes Again! Required Use Definition: Advanced Notice of Proposed Rulemaking (ANPR) in Federal Register (75 FR 31334)
In today’s Federal Register, HUD published the above ANPR to solicit comments that can be used for future revision of the definition of “required use” contained in Regulation X (24 CFR 3500.2(b)). If you do not want the debacle the lending community experienced when HUD attempted to revise the required use definition in its November 17, 2008 final rule (HUD withdrew this revised definition by final rule published May 15, 2009), we urge you to comment on this ANPR before the September 1, 2010 due date.
Finance Commission Adopts Residential Mortgage Loan Originator Regulation
Effective May 9, 2010, the Finance Commission of Texas (“Finance Commission”) adopted amendments to §§80.1 and 80.2, §§80.8 through 80.15, §§80.20 through 80.23 and new Subchapter L, Licensing, (§§80.301 through 80.307) of the Texas Residential Mortgage Loan Originator Regulations (formerly titled the “Mortgage Broker and Loan Officer Licensing Regulations”) contained in the Texas Administrative Code at 7 TAC Chapter 80. The text of these amended and new regulations (“Rules”) may be found at:http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=4&ti=7&pt=4&ch=80.
Office of Consumer Credit Commissioner Residential Mortgage
Effective May 6, 2010, the Finance Commission of Texas (Finance Commission) adopts new Chapter 2 to Title 7 of the Texas Administrative Code (7 TAC Chapter 2, §§2.101 – 2.105). The purpose of new Chapter 2 is to provide for certain application procedures and fees for those individuals applying for or renewing their licenses as a residential mortgage loan originator (RMLO) with the Office of Consumer Credit Commissioner (OCCC), as required by Chapter 180 of the Texas Finance Code enacted by the 2009 session of the Texas Legislature in House Bill 10 (i.e., Texas SAFE Act). For a detailed summary of the Texas SAFE Act, see our November 13, 2009 memorandum posted on our website http://www.bmandg.com/ under “Our Clients and Friends” web page.
FHA Reform Rules – Published in Federal Register (75 FR 23582)
In the April 20, 2010 issue of the Federal Register (75 FR 20718) the Federal Housing Administration (FHA) published its final rule, effective May 20, 2010, amending part 202 of FHA regulations (24 CFR Part 202) that: (1) increases the net worth requirements for FHA-approved lenders; (2) eliminates the FHA approval process for loan correspondents; and, (3) incorporates criteria specified in the Helping Families Save Their Homes Act of 2009 (HFSH Act). This memorandum attempts to redact what we consider are the more important parts of the final rule and HUD’s preamble published with the final rule in the above-cited issue of the Federal Register and does not address all aspects of the final rule or HUD’s preamble. You are advised to read the complete text of the final rule and HUD’s preamble and not to rely solely on this memorandum. The complete text of the final rule is attached to this memorandum for your information and use.