Links in “Mortgage Lending”

The CFPB recently released a report outlining the most common consumer complaints regarding reverse mortgages. The report aims to inform consumers about the unique aspects of reverse mortgages in an effort to protect individuals from financial trouble. [2/10/15]

To help address the overlap caused by two different sets of loan disclosures (one for TILA and one for RESPA), the CFPB has finalized a rule with new, integrated disclosures. The implementation date—August 1—is looming. Get ready for the change with AffirmX Senior Analyst Coppelia Padgett. [2/6/15]

If the new settlement disclosures are giving you headaches, you're not alone. Precise timing requirements, inability to make changes at the closing table, the format of the new forms, lack of standard definitions for fees and charges, system incompatibilities and more are giving lenders a lot to handle in the weeks leading up to the Aug. 1 implementation date. (Note: AffirmX is offering a webinar on the subject. More info here.) [2/6/15]

Non-profit group sent testers of various racial groups portraying themselves as first-time home buyers under similar circumstances into an M&T Bank loan office in New York. The results? The group is now suing the bank in Manhattan federal court. How would your financial institution fare? [2/4/15]

It passed the House in 2013, but never made it to the Senate. Now the Mortgage Choice Act has been reintroduced in the Senate. The act would, among other things, exclude the amount of any loan level payment adjustment payment from the definition of points and fees for qualified mortgages. [2/4/15]

CFPB recently proposed amendments to Reg. Z governing mortgages that would affect the definition of "small creditors" and the term "rural." Here's a rundown of what the CFPB has put on the table. [2/4/15]

While the proposed changes to the mortgage rules just issued by the CFPB will benefit many credit unions, both NAFCU and CUNA still have concerns that the proposed rule does not go far enough. On the plus side, the small lender exemption limit from ATR/QM requirements could increase from 500 mortgage loan originations per year to 2,000 per year. However, since credit unions didn’t cause the mortgage abuse that led to stricter regulation, the trades continue to argue that all credit unions should be exempt. [1/30/15]

The CFPB is proposing several changes to its mortgage rules to facilitate responsible lending by small creditors, particularly in rural and underserved areas. The proposals would increase the number of financial institutions able to offer certain types of mortgages in rural and underserved areas and aid small creditors in adjusting their business practices to comply with the new rules. [1/30/15]

Once a senior member of the House banking panel, Mel Watt returned yesterday as the top regulator for the Federal Housing Finance Agency to a less-than-warm welcome. GOP lawmakers hammered on Watt for what they consider to be moves that are exposing the U.S. to the same problems that led to the mortgage crisis. [1/28/15]

Regulatory burdens are taking their toll, as more banks are considering exiting this market. 78% say they have increased the number of staff members dedicated to lending compliance. [1/27/15]