WASHINGTON (7/9/13)--Credit unions and other mortgage lenders got some help recently as they work to meet all the Consumer Financial Protection Bureau's new mortgage rules. The bureau on Monday released the first edition of its 2013 Dodd-Frank Mortgage Rules Readiness Guide, developed to help institutions of all sizes evaluate their readiness for the impending mortgage rule changes.
The guide provides high level topics that institutions should consider as they implement these rule changes, the CFPB added.
Topics covered in the document include key areas that may be closely examined during a review, and compliance management elements that may warrant review, modification, or other enhancement.
The CFPB said it plans to update the readiness guide as rule clarifications and amendments are finalized and new issues are identified.
Amendments to portions of the 2013 Mortgage Rules Under the Equal Credit Opportunity Act (Regulation B), Real Estate Settlement Procedures Act (Regulation X), and the Truth in Lending Act (Regulation Z) were published in the Federal Register last week, and the Credit Union National Association has asked credit unions for their thoughts on the changes in a new comment call.
Under the proposed amendments, the CFPB would move the effective date of certain portions of the final mortgage loan originator compensation rule forward to Jan. 1, 2014 from Jan. 10, 2014. Specifically, the record retention, definitions, scope, compensation, anti-steering, qualifications, and compliance policies and procedures sections of the final rule would be subject to the new effective date.
The amendments also would make it easier for mortgage servicers to offer short-term forbearance plans for delinquent borrowers without going through a full loss mitigation evaluation process. Small creditors that do not operate predominantly in rural or underserved counties would also be permitted to make high-cost mortgages with balloon payments as long as the loans meet certain restrictions.
In the CUNA call, credit unions can comment on whether or not they agree with the accelerated effective date, and can detail why they may or may not support the proposed changes to the loss mitigation requirements, points and fees definition revisions, and other changes and clarifications.
For the full CUNA comment call and the CFPB release, use the resource links.