Archive

SERVICING RULES – PREVIEW

Recently the Consumer Financial Protection Bureau outlined major new rules that impact mortgage loan servicing. The rules, which revise the Truth in Lending Act and the Real Estate Settlement Procedures Act, are required by the Dodd-Frank Act. Under the rules servicers must: Provide periodic statements for all residential mortgage loans; Provide a new notice 6 months prior to interest rate reset on ARM loans; Provide notices and establish other requirements for force-placed insurance; Credit payments […]

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TALK ABOUT BEING STUCK IN THE MIDDLE

Recently two members of Congress, Neugebauer (R-TX) and Capito (R-WV), asked Richard Cordrey, Director of the Consumer Financial Protection Bureau (CFPB), for assurances that the CFP will conduct a cost-benefit analysis for each rule it enacts, as required by the Dodd-Frank Act. Section 1022 of the Dodd-Frank Act requires the CFPB to consider the potential benefits and costs of any proposed rule. Congress passes the law that requires the CFPB to adopt a new rule. […]

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CFPB BULLETIN 2012-04 –FAIR LENDING

On April 18, 2012 the Consumer Financial Protection Bureau issued CFPB Bulletin 2012-04 that explains the agency’s position on compliance with the Equal Credit Opportunity Act and Regulation B. The bulletin does not offer any new insights into Fair Lending issues, but the CFPB certainly makes it clear that the agency is focusing on fair lending issues not only in mortgage lending, but also in credit cards, student loans and auto loans. A copy of […]

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PROPOSED REG Z REVISION – CREDIT CARD FEE LIMIT

Issue – The Bureau of Consumer Financial Protection (Bureau) is proposing to amend Regulation Z. Regulation Z generally limits the total amount of fees that a credit card issuer may require a consumer to pay with respect to an account, limiting fees to 25 percent of the credit limit in effect when the account is opened. Regulation Z currently states that this limitation applies prior to account opening and during the first year after account […]

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RENEWING LOANS WITH FORCE PLACED INSURANCE

“Can we renew a loan which is covered by force placed insurance?” Variations on this question have come up several times in recent seminars I have conducted. The answer to the question is no. If a borrower refuses to obtain flood insurance coverage as a condition of obtaining a loan, the loan is deficient and may not be made. Force placement of coverage is designed for use at any time during the loan in uninsured […]

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