Links in “Mortgage Lending”
- OCC Provides Updated TILA Examination Guidelines
The OCC has released a new Truth in Lending Act booklet to replace the 2010 version in providing guidance and procedures related to examinations. The biggest changes surround Dodd-Frank's transfer of rulemaking authority and new requirements for high-priced mortgage loans. [12/17/14]
- Nasty Nuances of Lending Laws
Due to a statue of limitations for New Jersey mortgage foreclosures, a delinquent borrower of six years has essentially been awarded a "free house." The lender received only three monthly payments on a $520,000 note before the borrower defaulted on the loan; due to technicalities, the lender has no lien position in the property and the borrower owns it free and clear. [12/17/14]
- Do the Crime, Do the Time (Or Pay the Fine)
The FTC settled with a Florida-based mortgage modification scammer Monday, underscoring the FTC's resolve to "[shut] down bogus mortgage relief schemes." The scammer is required to pay $815,865 and is banned from participation in debt-relief programs. [12/16/14]
- CU Trades Blast New FHFA Proposal
No one in the credit union industry is happy about the Federal Housing Finance Agencyâs new proposed rule that would require credit unions to retain 10% of all of their assets in residential mortgages in order to retain their membership in the Federal Home Loan Bank system. All agree that, if adopted, the proposed the rule could significantly limit a valuable source of liquidity for credit unions. [12/15/14]
- The Ongoing Evolution of the Mortgage Servicing Rules
The CFPB is proposing more changes to the 2013 mortgage servicing rules. Among other things, the proposed changes include elements of force-placed insurance notices and periodic statement requirements found in RESPA and TILA. [12/15/14]
- Credit Unions Could Benefit from Lower Downpayment Requirements
FNMA and FHLMC have announced that they have revised their requirements to permit qualified applicants to apply for mortgage loans with as little as 3% down. The new program, which is scheduled to begin in March 2015, will be limited to first-time home buyers who get housing counseling. [12/9/14]
- New Loan Limits with the New Year
The FHA has released its loan limit schedule for high-cost and lower-cost areas to become effective January 1, 2015. The 2015 loan limits for highest and lowest cost areas will remain the same as 2014. [12/8/14]
- HUD Move May Signal Willingness to Bend Reverse-Mortgage Rules
In an effort to maximize the withdrawal of proceeds on a reverse mortgage, some lenders began leaving younger spouses off the title. However, when the named spouse dies, the unnamed spouse can face foreclosure. HUD's move to suspend foreclosure of one such unnamed spouse may signal the agency's willingness to protect consumers in similar situations. [12/8/14]
- CFPB Provides Guidance on Using Social Security Disability Income in Mortgage Lending
The CFPB recently issued a bulletin on how financial institutions should use income from social security disability benefits to determine repayment eligibility. In particular, the bulletin focuses on when it is not necessary to obtain verification from a physician concerning the length of the applicantâs disability. [12/4/14]
- Minimum Wage/Overtime Case for MLOs Goes Before SCOTUS
Oral arguments before the Supreme Court of the United States start today in a case that will look at whether mortgage loan officers are subject to minimum wage and overtime pay regulations. [12/1/14]
