Consumer Finance Protection Bureau (CFPB)

CFPB Issues Proposals to Amend Qualified Mortgage Definition and Extend GSE Patch

Charlie McDonaldPosted on July 10, 2020

On June 22, the CFPB issued two notices of proposed rulemaking (NPRMs) regarding the Qualified Mortgage (QM) exemption from the ability-to-repay requirements of Regulation Z. The first proposal would, among other changes, revise the general QM loan definition by replacing the QM borrower debt-to-income ratio limit with a price-based approach to determining loan eligibility. The second proposal would extend the current January 2021 sunset date in the provision granting QM status to mortgages eligible for purchase by Fannie Mae or Freddie Mac (the “GSE Patch”) to the date on which the amendments to the general QM loan definition become effective. Comments on the NPRM to revise the general QM loan definition are due 60 days following publication in the Federal Register. Comments on the NPRM to extend the GSE Patch are due 30 days following publication. Release. NPRM (General QM Loan Definition). NPRM (GSE Patch Extension).

CFPB Issues Guidance on Residential Mortgage Servicing Transfers

Charlie McDonaldPosted on May 18, 2020

On April 24, the CFPB released guidance outlining recommended best practices for transferring mortgage servicing rights to a servicer or sub-servicer in compliance with Regulation X. Release. Guidance.

CFPB Statement on Payday Rule

Editorial TeamPosted on January 22, 2018

On January 16, 2018, the Bureau of Consumer Financial Protection issued a statement that it would submit the Payday, Vehicle Title, and Certain High-Cost Installment Loans (more commonly known as the Payday Rule) through a review process and that it may, in the interim, waive certain requirements thereunder. Release.

CFPB Issues Final Rule Temporarily Raising Reporting Threshold for Home Equity Loans Under Home Mortgage Act Rules

Alexander RadisichPosted on September 11, 2017

On August 24, 2017, the Consumer Financial Protection Bureau (the “CFPB“) issued a new rule that amends the 2015 updates to the Home Mortgage Act (“HMDA“) rules. Under the HMDA rules that are scheduled to take effect in January 2018, financial institutions would have been required to report home‑equity lines of credit if they made 100 such loans in each of the last two years. The new final rule issued by the CFPB increases the threshold from 100 loans to 500 loans through 2018 and 2019 while the CFPB considers whether to make a permanent adjustment. Read more here.

CFPB Finalizes Effective Date Extension for Prepaid Accounts Rule

Editorial BoardPosted on May 1, 2017

On April 20, 2017, the Bureau of Consumer Financial Protection (CFPB) issued a final rule to delay the October 1, 2017 effective date of the rule governing Prepaid Accounts Under the Electronic Fund Transfer Act (Regulation E) and the Truth in Lending Act (Regulation Z) by six months, to April 1, 2018. Report. Rule.

Finance 20/20