On October 22, the Fed, CFPB, FDIC, NCUA and OCC issued a joint statement to address industry questions on fair lending risks associated with offering only qualified mortgages. Joint Release. Joint Statement.
qualified mortgages
CFPB Update on Mortgage Regulation Exam Procedures
On August 15, the CFPB released a second update to its exam procedures in connection with mortgage regulations to cover: (i) ability-to-repay; (ii) qualified mortgages; (iii) high-cost mortgages; (iv) appraisals for higher-priced loans; and (v) amendments related to the escrows rule. CFPB Release. RESPA Exam Procedures. TILA Exam Procedures.
CFPB Proposed Modifications to Mortgage Rules
On June 24, the CFPB issued proposed clarifications and revisions to its January 2013 mortgage rules with respect to ability-to-repay and qualified mortgages. Among other items, the proposed rule would: (i) outline procedures for obtaining follow-up information on loss-mitigation activities; (ii) facilitate servicers’ offerings of short-term forbearance plans; (iii) facilitate lending in rural or underserved areas; (iv) make clarifications regarding the financing of credit insurance premiums; (v) clarify the definition of a loan originator; (vi) clarify the points and fees thresholds for manufactured housing employees; and (vii) revise the effective dates for the “Loan Originator rule” and the ban on financing of credit insurance to January 1, 2014 (instead of January 10, 2014). Comments on the proposed rules must be submitted by July 22. CFPB Release. CFPB Proposed Rule. CFPB Regulatory Implementation Page.