CFPB – SEMIANNUAL REGULATORY AGENDA

Recently the CFPB published its agenda as part of the Spring 2012 Unified Agenda of Federal Regulatory and Deregulatory Actions.  The CFPB reasonably anticipates having the regulatory matters identified below under consideration during the period from June 1, 2012 to May 31, 2013.  The next agenda will be published in fall 2012 and will update this agenda through October 1, 2013.

Law/Regulation:  Home Mortgage Disclosure Act/Regulation C

Summary:  The amendments made by the Dodd-Frank Act expand the scope of information relating to mortgage loans that must be collected and maintained under HMDA, including information about the points and fees payable at origination, the difference between the annual percentage rate associated with the loan and the benchmark rate(s) for all loans, the term of any prepayment penalty, the value of any real property pledged or proposed to be pledged as collateral, the actual or proposed term in months of the mortgage loan, and the age of applicant(s).

Action:  CFPB Expects Further Action

Date:  04/00/13

 

Law/Regulation:  Electronic Fund Transfers Act/Regulation E

Summary:  The CFPB expects to publish in the Federal Register an Advance Notice of Proposed Rulemaking seeking comment on the possible regulation of consumer-purchased general purpose reloadable prepaid cards, including whether to extend the protections of Regulation E to such products.

Action:  Advanced Notice of Proposed rulemaking

Date:  06/00/12

 

Law/Regulation:  Truth in Lending/Regulation Z (Appraisals)

Summary:  The amendments made by the Dodd-Frank Act to TILA require creditors to obtain an appraisal, including a physical property visit by a certified appraiser, before extending higher-risk mortgage credit. The TILA amendments also impose various new requirements for appraisal independence, the portability of appraisal reports, and charging of customary and reasonable fees.

Action:  Notice of Proposed Rulemaking

Date:  08/00/12

 

Law/Regulation:  Truth in Lending/Regulation Z (HOEPA/Section 32 Mortgages)

Summary:  The amendments made by the Dodd-Frank Act expand the scope of HOEPA coverage, by, among other changes: including home-­purchase loans and open-end credit plans (including home equity lines of credit); revising the thresholds that trigger HOEPA coverage including the annual percentage rate triggers and the “points and fees” trigger; and covering loans with prepayment penalties that exceed certain thresholds or that extend beyond 36 months after the closing of the loan. The amendments also add certain restrictions and requirements with regard to HOEPA loans including: prohibiting the financing, directly or indirectly, of any points and fees; prohibiting prepayment penalties and, in most circumstances, balloon payments; and requiring pre-loan counseling for consumers.

Action:  Notice of Proposed Rulemaking

Date: 06/00/12 (Actually occurred in July)

 

Law/Regulation:  Truth in Lending/Regulation Z (Mortgage Originator Standards)

Summary:  The CFPB expects to issue proposed regulations in August 2012 clarifying the use of the unique identifier, payment of discount points and origination fees and points, and qualification requirements for loan originators. The CFPB will issue at a later time proposed regulations on anti-steering provisions that TILA section 129B(c)(3)) requires the Bureau to adopt.

Action:  Notice of Proposed Rulemaking

Date: 08/00/12

 

Law/Regulation:  RESPA/Regulation X; TILA/Regulation Z (Mortgage Servicing)

Summary:  The Dodd-Frank Act amendments require consumers to receive periodic statement disclosures regarding their mortgage loans, and impose various requirements regarding error resolution and responses to inquiries, the imposition and cancellation of force­placed hazard insurance, prompt crediting, handling payoff amount requests, and other topics related to mortgage servicing

Action:  Notice of Proposed Rulemaking

Date:  07/00/12

 

Law/Regulation:  RESPA/Regulation X; TILA/Regulation Z (Disclosure Integration)

Summary:  The proposed rule would amend and integrate portions of Regulation Z (Truth in Lending) and Regulation X (Real Estate Settlement Procedures Act), which currently require mortgage lenders and brokers to provide separate sets of disclosures to consumers. The proposed model forms will be designed to enhance consumer understanding and provide guidance to lenders and brokers on compliance with the amended disclosure requirements. The project will address some new disclosure requirements imposed by title XIV of the Dodd-Frank Act.

Action:  Notice of Proposed Rulemaking

Date:  07/00/12

 

Law/Regulation:  Equal Credit Opportunity Act/Regulation B (Appraisals)

Summary:  The amendments made by the Dodd-Frank Act amend ECOA by requiring creditors to automatically provide applicants a free copy of any and all appraisals or valuations developed in connection with an application for a loan secured by a first lien on a dwelling, and to give applicants notice of the right to receive such copies. In addition, the amendment requires that free copies be delivered promptly, but in no case later than three days prior to the closing of the loan, unless the applicant waives the right to receive a copy within 3 days prior to closing or the loan does not close.

Action:  Notice of Proposed Rulemaking

Date:  07/00/12

 

Law/Regulation:  Restatement of Federal Consumer Financial Law Regulations

Summary:  The CFPB has recodified existing regulations implementing certain portions of the Fair Credit Reporting Act, certain portions of the Gramm-Leach-Bliley Act, the Secure and Fair Enforcement for Mortgage Licensing Act, the Equal Credit Opportunity Act, the Fair Debt Collection Practices Act, the Truth in Savings Act, the Interstate Land Sales and Full Disclosure Act, the Consumer Leasing Act, certain portions of the Electronic Fund Transfer Act, section 43(c) of the Federal Deposit Insurance Act, the Home Mortgage Disclosure Act, the Real Estate Settlement Procedures Act, the Truth in Lending Act, and section 626 of the Omnibus Appropriations Act of 2009. The CFPB’s interim final rules made no substantive changes to the regulations of the agencies from which the rulemaking authority transferred, but made nomenclature, technical, and other conforming changes required by the Dodd-Frank Act and consolidated multiple versions of the regulations under those statutes where rulewriting authority previously had been split across multiple agencies. Changes included, for example, revisions to references to the transferor agency, internal cross-references, addresses for filing applications and notices, and references to the scope of the CFPB’s authority as amended by the Dodd-Frank Act.

Action:  CFPB Expects Further Action

Date:  09/00/12

 

Law/Regulation:  Truth in Lending/Regulation Z (Escrow Accounts)

Summary:  The Federal Reserve Board (Board) published in the Federal Register on March 2, 2011, a proposed rule to implement certain amendments to the Truth in Lending Act (TILA) made by the Dodd-Frank Act that lengthen the time for which a mandatory escrow account established for a higher-priced mortgage loan must be maintained. In addition, the Board’s proposal would implement the Dodd Frank Act’s disclosure requirements regarding escrow accounts. The Board’s proposal also would exempt certain loans from the statute’s escrow requirement, pursuant to authority in the Dodd-Frank Act. The primary exemption would apply to mortgage loans extended by creditors that operate predominantly in rural or underserved areas and meet certain other prerequisites.

Action:  Final Rule

Date:  12/00/12

 

Law/Regulation:  Truth in Lending/Regulation Z (Ability to Repay)

Summary:  The Federal Reserve Board published for public comment on May 11, 2011, a proposed rule amending Regulation Z to implement amendments to the Truth in Lending Act (TILA) made by the Dodd-Frank Act. Regulation Z currently prohibits a creditor from making a higher-priced mortgage loan without regard to the consumer’s ability to repay the loan. The proposal would implement statutory changes made by the Dodd-Frank Act that expand the scope of the ability-to-repay requirement to cover any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan). In addition, the proposal would establish standards for complying with the ability-to-repay requirement, including by making a “qualified mortgage.” The proposal also implements the Dodd-Frank Act’s limits on prepayment penalties. Finally, the proposal would require creditors to retain evidence of compliance with this rule for three years after a loan is consummated.

Action:  Final Rule

Date:  12/00/12

 

Law/Regulation:  Electronic Fund Transfers Act/Regulation E (Remittance Rules)

Summary:  The CFPB published in the Federal Register on February 7, 2012, a final rule to implement section 1073 of the Dodd-Frank Act, which added a new section 919 to the Electronic Fund Transfer Act (EFTA).  The CFPB published a related concurrent proposed rule in the Federal Register on February 7, 2012. The proposed rule requests comment on two technical changes to the final rule, including: (1) Under what circumstances a person may be providing remittance transfer services in the “normal course of business” to be considered a “remittance transfer provider” subject to compliance with the final rule, and (2) how the final rule should be applied to remittance transfers scheduled in advance of when the transfer is made.

Action:  Final Rule

Date:  08/00/12

 

Law/Regulation:  Truth in Lending/Regulation Z (Other Mortgage Amendments)

Summary:  On September 24, 2010, the Board proposed certain amendments to Regulation Z, and the staff commentary to the regulation, as part of a comprehensive review of TILA’s rules for home-secured credit. The Board’s proposal addressed (a) revising the rules for the consumer’s right to rescind certain open-end and closed-end loans secured by the consumer’s principal dwelling; (b) revising the rules for determining when a modification of an existing closed-end mortgage loan secured by real property or a dwelling is a new transaction requiring new disclosures; and (c) amending the disclosure rules for open- and closed-end reverse mortgages.

Action:  CFPB expects further action

Date:  Undetermined date

 

Law/Regulation:  Equal Credit Opportunity Act/Regulation B (Business Lending Data)

Summary:  The amendments made by the Dodd-Frank Act require that certain data be collected and maintained under ECOA, including the number and date the application was received, the type and purpose of loan applied for, the amount of credit applied for and approved, the type of action taken with regard to each application and the date of such action, the census tract of the principal place of business, the gross annual revenue, and the race, sex, and ethnicity of the principal owners of the business.

Action:  CFPB expects further action

Date:  06/00/13

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