WASHINGTON (1/2/13)--Many mortgage regulations that the Federal Reserve and the Consumer Financial Protection Bureau (CFPB) have proposed over the last two years are scheduled to be finalized in early 2013, setting up a busy year for both regulators and the regulated, the Credit Union National Association (CUNA) notes.
Among the biggest items on the CFPB's docket are ability-to-repay/qualified mortgage regulations, which will need to be finalized by Jan. 21. Under the Dodd-Frank Wall Street Reform Act, no creditor may make a residential mortgage loan unless the creditor makes a reasonable and good faith determination based on verified and documented information that, at the time the loan is consummated, the consumer has a reasonable ability to repay the loan. If the loan is a qualified mortgage, the creditor may presume that the ability to repay test has been met.
This rule has the ability to reshape the mortgage industry in the years to come, and many have argued that this is the most important rule under consideration by the CFPB at present, CUNA has noted.
Other items that are scheduled to be finalized by Jan. 21 include:
- Loan originator compensation regulations;
- Home Owner's Equity Protection Act regulations;
- Mortgage servicing rulemakings that impact Regulation Z and Regulation X; and
- Higher-risk mortgage appraisal regulations.
New escrow disclosure and waiver requirements are also expected to be finalized by the CFPB early this year. A final version of integrated Truth in Lending Act/Real Estate Settlement and Procedures Act disclosures, and accompanying rules, should be finalized by mid-2013, CUNA adds.
CUNA continues to meet with the CFPB and urge improvements in all of these proposals and will keep credit unions posted as the new rules are issued, CUNA Deputy General Counsel Mary Dunn said.
For more on these CFPB changes, use the resource link. A more comprehensive look at what regulatory changes credit unions can look out for in 2013 will be released in the coming days.