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.
CBA Live coverage: CFPB deputy says exam program is maturing
Banks and nonbanks subject to Consumer Financial Protection Bureau oversight frequently complain that the bureau’s supervision program leaves much to be desired. However, Steve Antonakes, the agency’s second-in-command, says the program continues to grow and mature. Dodd Frank Update was on hand at the Consumer Bankers Association’s CBA Live conference in Washington, D.C., as Antonakes discussed industry concerns.
CBA Live coverage: No rest for the CFPB
The Consumer Financial Protection Bureau has been extremely busy since opening its doors in July 2011, and the agency is showing no sign of slowing. Dodd Frank Update was on hand at the Consumer Bankers Association’s CBA Live conference in Washington, D.C., as industry watchers discussed likely CFPB priorities.
State AG alleges lender violated Dodd-Frank abusive practices ban
The Illinois attorney general has sued a short-term lender for alleged violations of Dodd-Frank’s ban on abusive practices. State AG Lisa Madigan said the Chicago-area firm offers a loan product designed to sidestep state predatory lending laws and trap unwitting borrowers in an inescapable cycle of debt. Read on to learn about the AG’s Dodd-Frank claims.