By: April N. Pinder, Esq.
In 2010, the Dodd-Frank Act amended provisions of RESPA (Real Estate Settlement Procedures Act, Regulation X) and TILA (Truth in Lending Act, Regulation Z). The Consumer Financial Protection Bureau (CFPB) issued rules to implement these amendments in 2013.
These rules fall into two general categories: loan origination and mortgage servicing. The dates vary for the loan origination rules, but most are in effect for all applications on or after January 18, 2014. The mortgage servicing rules are effective January 10, 2014.
Loan Origination Rules
- Ability to Pay/Qualified Mortgage Rule (TILA)
- 2013 HOEPA Rule (TILA and RESPA)
- Loan Originator Rule (TILA)
- ECOA Valuations (Regulation B)
- TILA HPML Appraisals
- Escrow Requirements under TILA
Mortgage Servicing Rules
The RESPA rules cover the following topics:
- Error resolution and information requests (§§ 1024.35 and 1024.36)
- Force-placed insurance (§ 1024.37)
- General servicing policies, procedures, and requirements (§ 1024.38)
- Early intervention with delinquent consumers (§ 1024.39)
- Continuity of contact with delinquent consumers (§ 1024.40)
- Loss mitigation (§ 1024.41)
The TILA rules cover the following topics:
- Interest rate adjustment notices for ARMs (§ 1026.20)
- Prompt crediting of mortgage payments and responses to requests for payoff amounts (§ 1026.36(c))
- Periodic statements for mortgage loans (§ 1026.41)
Some noteworthy changes made by the October 2013 Final Rule include:
- Clarification regarding activities prohibited during the first 120 days of delinquency
- Updates to Loss Mitigation Rules
- Outlines procedure for servicers where it is later discovered that a complete loss mitigation application submitted by a consumer is actually missing documentation
- Provides rights and protections to consumers who submit “facially complete” applications
- Short-term payment forbearance program
- Additional information on the interaction between the servicing rules, bankruptcy law and the Fair Debt Collections Practices Act (FDCPA)
Please contact our firm for more information and/or to schedule training on these topics. Additional resources regarding these rules can also be found on the CFPB website.