TILA
By Krista Franks | 09/20/2011
The Consumer Financial Protection Bureau (CFPB) is working alongside other federal agencies to create "common-sense national servicing standards," according to the Treasury's advisor on the bureau Raj Date. One of the issues Date plans to address through national servicing standards is what he says has been a lack of incentive for originators and others involved in the front end of the lending process to ensure a borrower has the ability to repay their loan.
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By Carrie Bay | 05/18/2011
The new Consumer Financial Protection Bureau (CFPB) aims to avert at least one hitch in the home loan process that some market experts say started a whirlwind of mortgage delinquencies - ensuring consumers have a clear understanding of the cost associated with their mortgage. CFPB unveiled two prototypes for a new regulatory disclosure form Wednesday that the agency will begin testing this week. Each of the prototypes combines the two-page TILA disclosure and the three-page RESPA disclosure into a single, abbreviated form.
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By Carrie Bay | 04/19/2011
The Federal Reserve Board on Tuesday requested public comment on a proposed rule under Regulation Z that would require lenders to determine a borrower's ability to repay a mortgage before making the loan and would establish minimum mortgage underwriting standards.
The revisions to the regulation, which implements the Truth in Lending Act (TILA), are in response to new consumer protection directives laid out by the Dodd-Frank Reform Act. The proposal provides four options for complying with the ability-to-repay requirement.
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By Carrie Bay | 02/02/2011
The Federal Reserve said this week that it "does not expect" to finalize three pending rule changes under TILA that would have mandated new consumer disclosure requirements for mortgage loans. The Fed began crafting the new regulations more than a year ago in response to claims that borrowers did not understand the terms of the loans they were signing. However, rulemaking authority for TILA and jurisdiction over consumer disclosures is scheduled to transfer to the new Consumer Financial Protection Bureau within a few months.
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By Carrie Bay | 01/28/2011
Heeding pleas from industry groups across the country, the Federal Reserve has issued additional guidance to help smaller mortgage lenders and loan brokers comply with new compensation rules that take effect April 1, 2011.
Pay structures in which brokers and loan officers are compensated based on the interest rate have been blamed for pushing consumers into unsustainable mortgages and contributing to rising delinquencies. The new rule prohibits this practice to ensure consumers are not steered into loans they can't afford.
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By Carrie Bay | 01/17/2011
Consumer advocacy groups have been joined by federal lawmakers in their campaign against a mortgage lending rule change proposed by the Federal Reserve. The Fed has recommended revising a stipulation that allows homeowners to stop a foreclosure on the grounds that the lender violated disclosure requirements outlined in the Truth-in-Lending Act (TILA). With consumers' rights at the forefront of regulatory reform, the Fed's decision is attracting criticism. A group of senators is calling the proposal "unfortunate and unnecessary."
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By Carrie Bay | 12/22/2010
The Federal Reserve Board on Wednesday approved an interim rule amending Regulation Z, which implements the Truth in Lending Act (TILA). The board is issuing this interim rule, in response to public comments, to clarify certain aspects of a September 24th interim rule. The September rule implements provisions of the Mortgage Disclosure Improvement Act (MDIA), which amended TILA to require mortgage lenders to disclose examples of how a loan's interest rate or monthly payments can change.
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By Joy Leopold | 11/09/2010
The Mortgage Bankers Association and six other industry groups sent a letter to Federal Reserve Chairman Ben Bernanke Monday, voicing their concern that the Fed, which has jurisdiction over the Truth in Lending Act (TILA), and HUD, which oversees the Real Estate Settlement Procedures Act (RESPA), will create regulatory rules that overlap. The Dodd-Frank Act created the Consumer Financial Protection Bureau, which will be overseen by yet another agency, the Treasury, and will have regulatory authority over consumer disclosures.
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By Heather Hill Cernoch | 10/05/2010
Wolters Kluwer Financial Services will begin providing customizable mortgage application and processing kits to lenders. The two kits, which are available in English and Spanish, are designed to educate borrowers on the mortgage process, helping them improve their financial literacy. The company says the kits can also assist lenders in expediting the application process to close more loans, ensuring disclosures are compliant and provided to borrowers as required, and making sure marketing activities are consistent across branches.
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By Carrie Bay | 08/16/2010
The U.S. Federal Reserve on Monday published a long list of rules outlining new requirements that will govern compensation to mortgage professionals and disclosures to borrowers regarding their home loans.
Among the new regulations are a ban on controversial yield spread premiums, and a stipulation that requires lenders to provide borrowers with a payment table, which includes a "worst case" scenario showing the maximum interest rate and mortgage payment they might see over the life of the loan.
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