On June 4, 2020 the Consumer Financial Protection Bureau (CFPB) published a 219 page proposal to amend Regulation Z to facilitate creditors’ transition away from using the London Interbank Offered Rate (LIBOR) as an index for variable-rate consumer credit products. The CFPB is proposing changes to: Certain open-end and closed-end provisions to provide examples of replacement indices for LIBOR indices that meet certain Regulation Z standards. Certain open-end provisions restricting index changes, requiring change-in-terms notices,
On June 9 the Consumer Financial Protection Bureau (CFPB) published a nine-page booklet entitled Factsheet: TRID Title Insurance Disclosures. The factsheet clarifies the disclosures for both Lender and Owner’s Title Insurance, including the disclosure of a simultaneous issuance. Several helpful examples are included. On June 9 the CFPB also published three new Frequently Asked Questions (FAQs). The new FAQs explain: Seller-Paid Loan Costs and Other Costs on Separate Closing Disclosures to the Seller and the
On June 8, in response to the enactment of the Paycheck Protection Program (PPP) Flexibility Act, the Small Business Administration (SBA and the U.S. Treasury jointly announced that the SBA will promptly issue rules and guidance, a modified borrower application form, and a modified loan forgiveness application implementing these legislative amendments to the PPP. These modifications will implement the following important changes: Extend the covered period for loan forgiveness from eight weeks after the date
On June 9,2020 the Consumer Financial Protection Bureau (CFPB) announced the availability of an updated consumer publication, the Consumer Handbook on Adjustable Rate Mortgages booklet, also known as the CHARM booklet, required under the Real Estate Settlement Procedures Act (RESPA) implemented by Regulation X and the Truth in Lending Act (TILA) implemented by Regulation Z. New features include: A comparison table that describes adjustable rate mortgages and their differences in relation to fixed-rate loan products;
On June 5 the president signed the Paycheck Protection Program Flexibility Act of 2020 (Flexibility Act). The Flexibility Act makes numerous changes, including, but not limited to,: Extends the maturity period for new PPP loans made after June 5, 2020, from two to five years. By mutual agreement of the lender and the borrower the maturity on existing PPP loans may be extended. Payments of principal and interest on existing PPP loans were deferred for
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