CFPB Final Rules on High-Cost Mortgages

On January 10, the CFPB issued final rules that: (i) amend HOEPA to provide protections relating to risky loan features, such as prepayment penalties and to require homeownership counseling and (ii) require escrow accounts to be established for a minimum of 5 years for certain higher-priced mortgage loans, effective June 1.  CFPB Release.  CFPB Final HOEPA Rule.  CFPB Guide on HOEPA Rule.  CFPB Final Escrow Rule.  CFPB Guide on Escrow Rule.

Fed Adjusts Fee-Based Trigger for Additional Mortgage Loan Disclosures

On June 13, the Fed published its annual adjustment to the amount of fees triggering additional disclosure requirements under the Truth in Lending Act and HOEPA for home mortgage loans with rates or fees above a certain amount. The dollar amount of the trigger has been adjusted to $611, and will be effective starting on January 1, 2012. The adjustment does not affect rules for “higher-priced mortgage loans” adopted by the Fed in July 2008. Fed Release. Fed Rule.