Dodd-Frank Act Mortgage Rulemakings Library

This is an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.  The CFPB finalized a HMDA regulation specifying several new data items lenders will be required to report about mortgage loans.  The rule does not specify how much of the information will be public.  The CFPB will accept public input on the privacy issues at a future time.

Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.  The updates include:

• The CFPB proposed several amendments to its mortgage servicing rules relating to loss mitigation, successors-in-interest to homeowners, and bankruptcy.

• The CFPB finalized a regulation that permits a cure period for points and fees calculations for QM mortgage loans until 2021, and amends the definition of a small mortgage servicer.

• The CFPB proposed changes to its integrated disclosures, including permitting revised loan estimates to be delivered the day following a rate-lock.

• The banking agencies, Farm Credit Administration, and NCUA proposed rules requiring escrows of flood insurance premiums, under the Homeowner Flood Insurance Affordability Act of 2014.. 

~~Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.  The updates include:
• The CFPB released its final KBYO rule, effective August 1, 2015.
• The Federal Reserve Board, the CFPB, the FDIC, the FHFA, the NCUA, and the OCC, issued a final rule supplementing their January 2013 interagency appraisal rule, which requires appraisals with interior inspections in some cases.  The amendment exempts certain refinances and transactions secured by a new manufactured home.  QM loans are exempt.
• HUD finalized its definition of QM loan.

 

Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.

• HUD proposed a QM regulation for FHA loans.
• The CFPB published a final regulation that revises loss mitigation, the definition of loan originator, creditors in rural or underserved areas, and compensation to manufactured home retailers.
• The CFPB published an interim final rule that removes the requirement to send periodic statements to bankruptcy-protected borrowers, and the requirement for early intervention for bankruptcy-protected borrowers and borrowers who sent FDCPA requests to cease communication.  It also requires counseling after a non-RESPA disclosure, rather than a GFE, for high-cost loans that are not subject to RESPA. 
• The banking agencies, FCA, NCUA, and Treasury proposed Biggert-Waters flood insurance regulations.  (This is not a Dodd-Frank rulemaking, but it will affect origination and servicing disclosures.) 

Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.

• The CFPB finalized amendments to its mortgage origination and servicing regulations, relating to loss mitigation, including the definition of first notice or filing for loss mitigation purposes, designated addresses for error assertions and information requests, and loan originator compensation.

Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.

• Six agencies reproposed their risk-retention rule.  It would define QRM the same as term QM in the ability-to-repay regulation.  The reproposal also has an alternative QRM definition that would include certain underwriting standards in addition to the qualified mortgage criteria.  The reproposal would recognize the full guarantee on payments of principal and interest provided by Fannie Mae and Freddie Mac as meeting the risk retention requirements while the GSEs are in conservatorship or receivership and have federal capital support.  

Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.

• The CFPB, FDIC, Federal Reserve, FHFA, NCUA, and OCC released a supplemental proposal relating to appraisals for higher-priced mortgage loans.  The proposal would exempt transactions secured by existing manufactured homes and not land, certain streamlined refinancings, and transactions of $25,000 or less.  Comments are due September 9, 2013. 

 Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.

• The CFPB finalized part of its ability-to-repay rule to remove employee compensation from the definition of points and fees, to exempt certain nonprofit and community-based lenders, to define a qualified mortgage to include certain loans made and held three years by small creditors, and to raise the threshold at which small creditor loans become higher-priced, to 350 basis points above the APOR.
• The CFPB delayed the effective date of its prohibition on financing credit insurance until January 31, 2014. 

 Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.

• The FFIEC Appraisal Subcommittee finalized revisions to its appraisal policy statements, effective June 1, 2013.  The final policy statements require that states, in reviewing reciprocity requests, determine whether the home state has credentialing requirements that meet or exceed those of the host state.  The ASC rejected basing reciprocity on whether the home state is in full compliance as beyond FIRREA’s scope.  The ASC did not address the recommendation that the ASC make such determinations. 

The final policy statement does address concerns expressed about the proposal to remove language that review appraisers need not be subject to the regulatory jurisdiction of the state where the property is located as long as the review appraiser does not perform the technical review in that state.  The final policy statement says review appraisers need to be credentialed in the state where the property is only if they provide an opinion of value. 

Attached please find an updated Roadmap to the Dodd-Frank Act Mortgage Rulemakings.

• The CFPB finalized an amendment to its higher-priced mortgage loans regulation, substantially as proposed, to require that creditors determine repayment ability, and to restrict prepayment penalties, until the final ability-to-repay rule becomes effective.  Without this change, there would have been a six-month period when these requirements would not be in place for higher-priced mortgage loans.  It also clarifies which counties are rural or underserved for a small lender exemption.

• The CFPB proposes to extend the effective date of 12 C.F.R. § 1026.26(i), which prohibits a mortgage creditor from financing premiums for credit insurance, but the prohibition does not apply if the premiums are calculated and paid in full monthly, or to certain credit unemployment insurance.  This rule was to have become effective June 1, 2013, but the CFPB received questions about the rule’s applicability to insurance on which premiums are paid periodically.  The CFPB reproposed this aspect of its regulation, and will delay its effective date until it provides clarifications and time to implement the rule.  Comments are due May 25, 2013.

Attached please find an updated Roadmap to Dodd-Frank Mortgage Rulemakings.

• The CFPB finalized a rule that requires delivery of property valuations, effective January 18, 2014. 
• The CFPB released a final loan originator compensation rule.  Most of it is effective January 10, 2014.  However, a prohibition on mandatory arbitration in loans secured by a dwelling, and a prohibition on financing single-premium credit insurance, are effective June 1, 2013.

• The CFPB finalized several rules that are effective January 10, 2014.  These include:
  • The ability-to-repay rule;
  • Two servicing rules, one as part of Regulation X and the other as part of Regulation Z; 
  • A revised regulation on high-cost, or HOEPA, mortgage loans, that also requires mortgage applicants to be given counseling information. 
• Effective January 18, 2014, the banking agencies, CFPB, FHFA, and NCUA finalized an appraisal rule for higher-price mortgage loans that requires interior inspections, and if there is a chance of property flipping, a second appraisal.
• The CFPB finalized an escrow rule, applicable to loans for which a lender receives an application on or after June 1, 2013.
• The CFPB proposed amendments to its ability-to-repay rule, to create more exemptions from the rule, and to address the inclusion of loan originator compensation in points and fees. 

 The attached Roadmap is a working draft that has been updated to reflect the recent flurry of proposed and final MORTGAGE rulemakings.  It includes the due dates for final rules.  Please click on the title hyperlink to access the full report.

•Six agencies proposed an appraisal rule for higher-risk mortgage loans. Section 1471 requires these loans to be underwritten with an appraisal that includes an interior inspection. Creditors would have to obtain an additional appraisal at no cost to the consumer for a home-purchase higher-risk mortgage loan if the seller acquired the property for a lower price during the past six months. Comments are due October 15, 2012.