BREAKING NEWS: CFPB unveils eClosing initiative
The Consumer Financial Protection Bureau met with the public Wednesday to discuss the mortgage closing process. The agency announced that it will launch a new electronic closing pilot program in order to explore new avenues to make closings less complex for consumers. October Research, LLC is attending the forum at the CFPB’s headquarters in Washington, D.C. and speaking with those in the industry about the bureau’s new program.
QM solutions: CFPB examinations
The Consumer Financial Protection Bureau has said it does not expect perfection in its initial reviews for ability-to-repay/qualified mortgage rule compliance. So what can industry participants expect when it comes to ATR/QM rule examinations? Read on to learn what Richard Andreano, a partner at Ballard Spahr, had to say about the issue during a recent October Research, LLC webinar.
QM solutions: Affiliates and the Bank Holding Company Act
The ability-to-repay/qualified mortgage rule establishes a 3 percent points and fees cap for QMs and provides that any third-party charge retained by the creditor, loan originator or an affiliate of either must be included in points and fees. However, the rule relies on the definition of “affiliate” established under the Bank Holding Company Act. Paul Schieber, a shareholder at Stevens & Lee, says the BHC Act test that is used to determine whether a person or group has control over an entity is somewhat subjective.
QM solutions: Discount point rate reductions and ‘established industry practices’
The Consumer Financial Protection Bureau’s ability-to-repay/qualified mortgage rule provides that up to two “bona fide discount points” may be excluded from the QM points and fees calculation. The rule also provides that these discount points must result in a rate reduction consistent with “established industry practices.” Industry participants have struggled with this requirement. Read on to learn what Richard Andreano, a partner at Ballard Spahr, said about the issue during a recent October Research, LLC webinar.
Mortgage rules will restrict credit availability, bankers say
More than 80 percent of banks expect new mortgage regulations to reduce mortgage credit availability, according to survey results released by the American Bankers Association. The ABA’s 21st annual Real Estate Lending Survey revealed that more than one-third of respondents will only make qualified mortgage loans, while another one-third will also make non-qualified mortgage loans, but only to targeted markets or products. Read on to learn what issues topped the list of banker concerns.
Responsible conduct: Some firms wary of self-reporting to CFPB
Last year, the Consumer Financial Protection Bureau released a bulletin explaining that firms that self-report potential and engage in other “responsible conduct” may receive favorable treatment when the agency considers potential enforcement actions or civil penalties. CFPB Deputy Director Steven Antonakes highlighted the bulletin’s potential for enhancing regulatory compliance during the Consumer Bankers Association’s recent CBA Live conference in Washington, D.C.