CFPB Launches New Regulatory Implementation Page to Ensure Industry Is Ready to Comply With New Mortgage Rules

27 June 2013 Consumer Class Defense Counsel Blog

The Consumer Financial Protection Bureau (“CFPB”) recently announced that it has launched a Regulatory Implementation page that consolidates all of the new 2013 mortgage rules and related implementation materials. CFPB indicates that the new web page is an effort to support rule implementation and ensure that the industry is ready to comply with the Dodd-Frank Act mortgage reforms and related rules. The Regulatory Implementation page provides various resources to assist with compliance including written guides, videos and quick reference charts. The written guides seek to make the content more accessible for industry constituents and highlight issues that small creditors, and those that work with them, might find helpful to consider when implementing the rules. The page features resources for the following Rules:

  • Ability to Repay /Qualified Mortgage: this rule generally requires that lenders make a reasonable, good-faith determination that the consumer has a reasonable ability to repay the loan, considering factors like the consumer’s income/assets and employment status against the mortgage loan payment, ongoing expenses related to the mortgage loan and other debt obligations.
  • 2013 Home Ownership and Equity Protections Act (HOEPA) Rule: this rule requires, among other things, that lenders of high-cost mortgages, give additional disclosures, avoid certain loan terms, and ensure the consumer receives additional protection, including homeownership counseling.
  • Loan Originator Compensation: this rule generally regulates how compensation is paid to a loan originator in most closed-end mortgage transactions and imposes qualification requirements on loan originators.
  • Equal Credit Opportunity Act (ECOA) Valuations: this rule amends the appraisal provisions of ECOA’s Regulation B and generally requires that lenders provide applicants for first-lien loans on a dwelling with copies of appraisals and other written valuations, developed in connection with the application.
  • TILA Higher-Priced Mortgage Loans (HPML) Appraisals: this rule imposes various disclosure requirements on lenders that originate covered HPMLs.
  • TILA Escrows: this rule lengthens to a minimum of five years the required period most creditors must maintain an escrow account for higher-priced mortgage loans. The rule offers regulatory relief for certain small creditors operating predominantly in rural or underserved markets
  • TILA and RESPA Servicing: The Mortgage Servicing Rules address, among other things, general servicing policies, procedures, and requirements; loss mitigation; early intervention with delinquent consumers; interest rate adjustment notices for ARMs; and periodic statements for mortgage loans.

A complete table of the new mortgage rules and related compliance aids, titled Mortgage Rules at a glance, is also featured on the Regulatory Implementation page.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Related Services