DOCSLIB.ORG

Alternative Mortgage Transaction Parity (Regulation D); Interim Final Rule

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Alternative Mortgage Transaction Parity (Regulation D); Interim Final Rule Vol. 76 Friday, No. 141 July 22, 2011 Part V Bureau of Consumer Financial Protection 12 CFR Part 1004 Alternative Mortgage Transaction Parity (Regulation D); Interim Final Rule VerDate Mar<15>2010 18:15 Jul 21, 2011 Jkt 223001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\22JYR2.SGM 22JYR2 srobinson on DSK4SPTVN1PROD with RULES2 44226 Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Rules and Regulations BUREAU OF CONSUMER FINANCIAL • Electronic: http:// Dodd-Frank Act amended AMTPA to PROTECTION www.regulations.gov. Follow the transfer rule-writing authority to the instructions for submitting comments. CFPB and to narrow the scope of federal 12 CFR Part 1004 • Mail or Hand Delivery/Courier in preemption. After July 21, the Dodd- [Docket No. CFPB–2011–0004] Lieu of Mail: Monica Jackson, Office of Frank Act provides that state housing the Executive Secretary, Consumer creditors may only make alternative RIN 3170–AA04 Financial Protection Bureau, 1801 L mortgage transactions under AMTPA if Street, NW., Washington, DC 20036. they comply with rules issued by the Alternative Mortgage Transaction All submissions must include the CFPB, even though the Dodd-Frank Act Parity (Regulation D) agency name and docket number or does not vest the CFPB with authority AGENCY: Bureau of Consumer Financial Regulatory Information Number (RIN) to issue such rules before that date. Protection. for this rulemaking. In general, all Accordingly, CFPB interim rules are comments received will be posted ACTION: Interim final rule with request needed immediately in order to avoid a without change to http:// for public comment. suspension in the operation of AMTPA, www.regulations.gov. In addition, which would prevent state housing SUMMARY: The Bureau of Consumer comments will be available for public creditors from making variable rate inspection and copying at 1801 L Street, Financial Protection (CFPB) is loans and other alternative mortgage NW., Washington, DC 20036, on official publishing for public comment an transactions in states where such loans business days between the hours of 10 interim final rule establishing are otherwise prohibited by state law. Regulation D (Alternative Mortgage a.m. and 5 p.m. Eastern Time. You can Transaction Parity) pursuant to the make an appointment to inspect the The CFPB does not believe that Alternative Mortgage Transaction Parity documents by telephoning (202) 435– Congress intended its amendments to Act (AMTPA) and the Truth in Lending 7275. AMTPA to create a regulatory gap that Act. The interim final rule is necessary All comments, including attachments would interrupt access to credit. As to avoid a regulatory gap created by the and other supporting materials, will discussed below in Section IV, the CFPB amendments to AMTPA in the Dodd- become part of the public record and finds that there is good cause to issue Frank Wall Street Reform and Consumer subject to public disclosure. Sensitive this interim final rule without notice Protection Act (Dodd-Frank Act). personal information, such as account and comment and effective immediately Without an interim final rule that takes numbers or social security numbers, in order to avoid the risk of disrupting immediate effect, state housing creditors should not be included. Comments will mortgage markets, placing state housing would no longer be able to make not be edited to remove any identifying creditors at an inappropriate variable rate mortgage loans and other or contact information. competitive disadvantage, and reducing alternative mortgage transactions FOR FURTHER INFORMATION CONTACT: consumers’ access to credit. In pursuant to AMTPA in states that Monica Jackson, Office of the Executive particular, the CFPB is concerned that prohibit such transactions, thus denying Secretary, Consumer Financial failure to issue an interim final rule consumers access to that form of credit. Protection Bureau, 1801 L Street, NW., addressing the modification of existing Until July 22, 2012, the interim final Washington, DC 20036, (202) 435–7275. AMTPA loans could create uncertainty rule applies only to state housing SUPPLEMENTARY INFORMATION: and discourage such modifications. In creditors seeking to invoke federal advance of issuing this interim final I. Overview preemption of state law under AMTPA. rule, the CFPB issued a public bulletin The interim final rule will be in place The Bureau of Consumer Financial alerting state chartered and licensed as a temporary measure pending the Protection (CFPB) is publishing for lenders and other interested parties that: CFPB’s completion of a notice-and- public comment this interim final rule (1) the Dodd-Frank Act amendments to comment rulemaking to promulgate implementing amendments to the AMTPA take effect on July 21, 2011; permanent rules, including rules Alternative Mortgage Transaction Parity and (2) the amendments affect what governing alternative mortgage Act (AMTPA) 1 made by the Dodd-Frank laws apply to mortgage loans issued by transactions made by federally chartered Wall Street Reform and Consumer state chartered or licensed lenders after housing creditors. The CFPB seeks Protection Act (Dodd-Frank Act).2 that date by narrowing the statutory public comment in anticipation of that AMTPA authorizes state-licensed or definition of ‘‘alternative mortgage process. -chartered housing creditors (state transaction’’ and the scope of 3 preemption under AMTPA.4 In DATES: This interim final rule is housing creditors) to make alternative addition, the CFPB reached out to state effective July 22, 2011. mortgage transactions in compliance Mandatory compliance date: with federal rather than state law, in and federal regulators, trade Compliance with § 1004.4 of this order to establish parity and competitive associations, and consumer advocates to interim final rule is optional until July equality between state and federal urge planning for an orderly transition 22, 2012 for federal housing creditors lenders. Effective July 21, 2011, the process. The CFPB will continue its and for state housing creditors that are outreach and consultations while it not relying on preemption of state law 1 12 U.S.C. 3801 et seq. engages in a notice-and-comment 2 under § 1004.3. On July 22, 2012, Public Law 111–203, 124 Stat. 1376 (2010) rulemaking to more fully effectuate the (hereinafter ‘‘Pub. L. 111–203’’). Dodd-Frank Act amendments. The compliance with § 1004.4 is mandatory 3 Under 12 U.S.C. 3802(2), the term ‘‘housing CFPB is committed to beginning the for all creditors, except as provided in creditor’’ means: (1) A depository institution as § 1004.4(d). defined in 12 U.S.C. 1735f–7 note; (2) a lender notice-and-comment rulemaking Comments: Comments must be approved by the Secretary of Housing and Urban process as soon as possible after the received on or before September 22, Development for participation in any mortgage comment period closes on the interim insurance program under the National Housing Act; final rule. 2011. (3) a person who regularly makes loans, credit sales, ADDRESSES: or advances secured by an interest in residential You may submit comments, real property, dwellings, cooperatives or residential 4 Available at http://www.consumerfinance.gov/ identified by Docket No. CFPB–2011– manufactured homes; and (4) any transferee of a wp-content/uploads/2011/06/Amendments-to-the- 0004, by any of the following methods: person in the other three categories. Alternative-Mortgage-Transaction-Parity-Act.pdf. VerDate Mar<15>2010 18:15 Jul 21, 2011 Jkt 223001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\22JYR2.SGM 22JYR2 srobinson on DSK4SPTVN1PROD with RULES2 Federal Register / Vol. 76, No. 141 / Friday, July 22, 2011 / Rules and Regulations 44227 II. Summary of the Interim Final Rule prepayment penalties, interest-only mortgage transactions across the broader The interim final rule applies to an payment periods, and negative marketplace, and seeks comment in alternative mortgage transaction if the amortization are no longer preempted anticipation of that rulemaking. under AMTPA with respect to creditor received an application for that III. Background transaction on or after July 22, 2011. If alternative mortgage transactions. the creditor received the application Furthermore, state laws prohibiting A. AMTPA before July 22, 2011, the alternative unfair or deceptive acts and practices AMTPA was enacted by Congress in mortgage transaction is generally generally are not subject to preemption 1982 to stimulate consumer access to grandfathered and remains subject to under AMTPA. credit and increase parity between state The interim final rule also provides the AMTPA provisions and regulations and federal creditors during an era of standards governing alternative in effect at the time of application. unusually high interest rates. In Senate mortgage transactions made by state Thus, a consistent set of requirements hearings held in 1981, mortgage bankers housing creditors pursuant to AMTPA. will apply from application to testified that laws in 26 states either The rule generally requires that completion of an alternative mortgage barred state housing creditors from adjustable rate mortgages utilize a originating alternative mortgage loans or transaction. The rule also clarifies that publicly available index that is beyond modifications, renewals, or extensions imposed significantly greater the creditor’s control. In the alternative, restrictions on such loans than those of alternative mortgage transactions do a closed-end mortgage may use a
Load more

Recommended publications
  • Website Content on RE Financing Terms
    CUTTING THROUGH THE JARGON: A Basic Primer on Commonly Used Terms in Commercial Real Estate Mortgage Transactions. Similar to may other industries, the world of commercial real estate has a language all its own, including some strange and confusing often bandied about in the course of a transaction. Getting a handle on these terms may help to level the playing field with the brokers, bankers, attorneys and other professionals who frequently resort to the trade lingo. To that end we have provided a list of some of commonly used vernacular and simple accompanying explanations. While this list is by no means exhaustive, we thought that this list should provide the reader with a basic introduction to the dialogue and hopefully take some of the seeming complexity of the world of commercial mortgages. Adjustable Rate Loan (also called a floating rate loan or a variable rate loan) refers to a loan that does not have a fixed rate of interest over the life of the loan. Such a loan typically uses an index and some base rate for establishing the interest rate for each relevant period. One of the most common rates to use as the basis for applying interest rates is the London Inter-bank Offered Rate, or LIBOR (the rates at which large banks lend to each other). Bad Boy Carve-outs (to non-recourse loans) are exceptions within the loan documents that result in full-recourse liability to the borrower and the guarantor when certain "bad-boy" behaviors exist. Examples of these "bad-boy" behaviors are (i) fraud or intentional misrepresentation by the borrower;
    [Show full text]
  • July 22, 2011 Jennifer J. Johnson Secretary Board of Governors of The
    National Association of Federal Credit Unions 3 1 3 8 10th Street North Arlington, V A 2 2 2 0 1 - 2 1 4 9 July 22, 2011 Jennifer J. Johnson Secretary Board of Governors of the Federal Reserve System 20th Street and Constitution Avenue, N W. Washington, DC 2 0 5 5 1 RE: Docket No. R-1417 and RIN No. AD 7100-AD75 Dear Ms. Johnson: On behalf of the National Association of Federal Credit Unions (NAFCU), the only trade association that exclusively represents the nation's federal credit unions, I am writing to provide NAFCU's comments on the Federal Reserve Board's (the Board) proposed changes to Regulation Z that impose standards on mortgage lenders to ensure that consumers have the ability to repay their mortgage. NAFCU is supportive of the Board's efforts to ensure that consumers are not placed in mortgage loans that they cannot afford. Indeed, credit unions and virtually any other responsible lender already comply with most - if not all - of the requirements the Board proposes for "qualified mortgages." NAFCU does remain concerned about the regulatory burden this proposal will create. In regards to this proposal NAFCU believes: • Credit unions that make qualified mortgages should have a clear safe harbor under the rule • Disclosure of compensation arrangements are counterproductive to providing consumers with meaningful information • The proposed rule is overly complex in many areas. In addition, NAFCU would like to note that some of our members operate quite successful, narrowly tailored loan programs with little or no verification of income. Many aspects of this rule will require such institutions to make a sea change in how they operate their lending programs, when there will be little benefit to credit union members.
    [Show full text]
  • Predatory Mortgage Loans
    CONSUMER Information for Advocates Representing Older Adults CONCERNS National Consumer Law Center® Helping Elderly Homeowners Victimized by Predatory Mortgage Loans Equity-rich, cash poor, elderly homeowners are an attractive target for unscrupulous mortgage lenders. Many elderly homeowners are on fixed or limited incomes, yet need access to credit to pay for home repairs, medical care, property or municipal taxes, and other expenses. The equity they have amassed in their home may be their primary or only financial asset. Predatory lenders seek to capitalize on elders’ need for cash by offer- ing “easy” credit and loans packed with high interest rates, excessive fees and costs, credit insurance, balloon payments and other outrageous terms. Deceptive lending practices, including those attributable to home improvement scams, are among the most frequent problems experienced by financially distressed elderly Americans seeking legal assistance. This is particularly true of minority homeowners who lack access to traditional banking services and rely disproportionately on finance compa- nies and other less regulated lenders. But there are steps advocates can take to assist vic- tims of predatory mortgage loans. • A Few Examples One 70 year old woman obtained a 15-year mortgage in the amount of $54,000 at a rate of 12.85%. Paying $596 a month, she will still be left with a final balloon payment of nearly $48,000 in 2011, when she will be 83 years old. Another 68 year old woman took out a mortgage on her home in the amount of $20,334 in the early 1990s. Her loan was refinanced six times in as many years, bringing the final loan amount to nearly $55,000.
    [Show full text]
  • Anatomy of a Residential Mortgage Loan
    Anatomy of a Residential Mortgage Loan Jay L. Hack, Esq. Gallet Dreyer & Berkey, LLP [email protected] Supporting Materials 1. Seminar Outline 2. Shopping for a mortgage? What can you expect under federal rules? Consumer Financial Protection Bureau 3. Uniform Residential Loan Application Fannie Mae Form 1003 4. Commitment Disclosures and Procedures ‐ Part 38.4 of the General Regulations of the Superintendent of Financial Services 5. Note ‐ New York Fixed Rate – Fannie Mae Form 3233 6. Note ‐ Multistate Adjustable Rate – ARM 5‐1 – Fannie Mae Form 3501 7. Mortgage ‐ New York Single Family Fannie Mae/Freddie Mac Form 3033 8. Multistate Condominium Rider Fannie Mae/Freddie Mac Form 3140 ANATOMY OF A RESIDENTIAL MORTGAGE LOAN 1) INTRODUCTION a) What is a Residential Mortgage Loan? b) The note is the obligation c) The mortgage is the collateral for the note i) Lenders own NOTES that are collateralized by mortgages. ii) Whoever owns the NOTE owns the loan. d) Source of law i) Federal – applies generally to all residential lenders (1) Truth in Lending Act (2) Equal Credit Opportunity Act (3) Real Estate Settlement Procedures Act (4) Many other federal statutes of less significance ii) State – apples to lenders in NY except those benefitted by federal pre‐emption (national banks, federal savings banks, federal savings and loans, federal credit unions) (1) State licensing if not a bank or insurance company (Banking Law Article 12‐D) (2) Part 38 of the General Regulations of the Superintendent of Financial Services 2) WHO ARE THE LENDERS? a) Banks b) Insurance companies c) Subsidiaries of the above d) “Mortgage Bankers” – state licensed e) Private lenders f) Mortgage brokers (1) They don’t make loans (2) They can’t issue contractual promises (commitments) to make loans (a) More about commitments later.
    [Show full text]
  • The LOAN Procedure This Document Is an Individual Chapter from SAS/ETS® 13.2 User’S Guide
    SAS/ETS® 13.2 User’s Guide The LOAN Procedure This document is an individual chapter from SAS/ETS® 13.2 User’s Guide. The correct bibliographic citation for the complete manual is as follows: SAS Institute Inc. 2014. SAS/ETS® 13.2 User’s Guide. Cary, NC: SAS Institute Inc. Copyright © 2014, SAS Institute Inc., Cary, NC, USA All rights reserved. Produced in the United States of America. For a hard-copy book: No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, or otherwise, without the prior written permission of the publisher, SAS Institute Inc. For a Web download or e-book: Your use of this publication shall be governed by the terms established by the vendor at the time you acquire this publication. The scanning, uploading, and distribution of this book via the Internet or any other means without the permission of the publisher is illegal and punishable by law. Please purchase only authorized electronic editions and do not participate in or encourage electronic piracy of copyrighted materials. Your support of others’ rights is appreciated. U.S. Government License Rights; Restricted Rights: The Software and its documentation is commercial computer software developed at private expense and is provided with RESTRICTED RIGHTS to the United States Government. Use, duplication or disclosure of the Software by the United States Government is subject to the license terms of this Agreement pursuant to, as applicable, FAR 12.212, DFAR 227.7202-1(a), DFAR 227.7202-3(a) and DFAR 227.7202-4 and, to the extent required under U.S.
    [Show full text]
  • Balloon Payment Mortgage Modification
    Balloon Payment Mortgage Modification what.Acronymic Glum Butch Sasha unmould: usually equiponderating he dissects his raffia some overpoweringly mainspring or hatchelledand prettily. vectorially. Brush-fire Antonio concretizing But then doctor told authorities there was free balloon man at main end roll it. Balloon Payment Clauses Boston Real Estate Lawyer Pulgini. If you want a home affordable due after your options months that establishes minimum residual value it? Loan modifications that result in monthly mortgage payments that borrowers can. Extend beyond legal maturity date of entire loan by jury than six months. Balloon Mortgage Definition Investopedia. Can you refinance a savings with rainbow balloon payment? It files for a written evidence regarding a balloon mortgage since it off and more usual fees and we may be a balloon payment. What just a 5-Year Balloon Payment HomeLoans. Are those articles, approved to punish a case be current browser is a counseling. Once you must cure and subsequent oral agreements and even if you may need defense and demand letter is used and are still have its directives. Here's but Really Happens After a Forbearance The Mr. Are signed and information provided. According to edge data HAMP lowers mortgage payments by a median of. During such term of a neat mortgage at loan works like 15- or 30-year fixed-rate financing. Senator lugu hoga georgia m inn state governments have at historic lows and looking for only be tdrs or you can educate you. Higher interest rates and possibly a huge balloon payment set the end. Loan Modifications Due to COVID-19 Pandemic FDIC.
    [Show full text]
  • Practice Final Examination
    Practice Final Examination This is a two-part exam. Allow yourself 1 hour and 45 minutes to complete the General Portion and 1 hour and 15 minutes to complete the State Portion. 4/09 General Examination 1. The four unities of title, time, interest and possession normally would be found in which of the following: A. tenancy in common C. mortgage or trust deed B. partnership D. joint tenancy 2. In 1994, Fred built a building that had six stories. Several years later, a zoning ordinance was passed banning any building six stories or higher in the area. This is an example of: A. a nonconforming use B. a situation in which the building would have to be demolished C. a situation in which the top floor would have to be closed D. a variance 3. A rectangular piece of land was sold for $6,400 at 40 cents per square foot. The land had a depth of 200 feet. What price did the buyer pay per front foot? A. $16 B. $80 C. $40 D. none of these 4. A life tenant may do which of the following? A. commit economic waste of a property C. lease the property to another B. encumber the reversionary interest D. convey the life estate interest by a will 5. For a property that borders a navigable waterway, which of the following statements is true as it relates to riparian water rights? A. the boundary line for the subject property extends to the high watermark B. the boundary line for the subject property is characterized by reaching to the edge of the water C.
    [Show full text]
  • Lending Rates (How Determined/How to Get Lower) What It Is: the Interest Rate Is the Cost of Borrowing Money and Is Usually Expressed As a Percentage
    Lending Rates (how determined/how to get lower) What it is: The interest rate is the cost of borrowing money and is usually expressed as a percentage. Interest rates will fluctuate with market conditions and consumer interest rates are closely linked to the interest rates set by the Federal Reserve. The annual percentage rate, APR, will include the interest rate as well as points, broker fees, and certain other credit charges that you may be required to pay that will impact mortgage payments. How it works: According to the Consumer Financial Protection Bureau there are seven factors that can influence the interest you would pay on a home loan: 1. Credit Score - If you are planning to buy a home check your credit report a year or six months prior to the purchase to correct any errors and look for ways to improve your credit score. If there is anything negative on your report, call the creditor and work out a payment plan. Also consider paying down credit card balances. 2. Home location – Mortgage interest rates can vary from state largely due to regulations that impact the cost of doing business. 3. Home Price and Loan Amount – It’s important to know how much home you can afford and to calculate the monthly payment – including taxes and insurance. 4. Down Payment and Loan Term – A twenty percent down payment will get a better interest rate than a 15% or 10% down payment. A larger deposit indicates to the lender that you are willing to take some risk yourself. Also, compare the monthly payments of a fifteen year mortgage versus a 30 year mortgage.
    [Show full text]
  • Analysis of Impediments to Fair Housing
    CITY OF APPLETON: ANALYSIS OF IMPEDIMENTS TO FAIR HOUSING 2019 Table of Contents Executive Summary 5 About the Authors & the Report 10 Demographic Summary 14 Disparities in Access to Opportunities 22 Publicly Supported Housing Inventory and Analysis 35 Housing Problems 39 Summary and Status of Appleton Analysis of Impediments 2013 46 Recommendations Community Participation 49 Fair Housing Analysis 53 Segregation & Integration 53 Disability & Access Analysis 59 Disparities in Mortgage Lending 64 Fair Housing Enforcement 67 Impediments to Fair Housing 69 Fair Housing Goals and Strategies 72 Appendices 1 | P a g e Figures PAGE Figure 1 Federal and State Protected Classes 14 Figure 2 Appleton 2016 Demographics 15 Figure 3 Appleton Race and Ethnicity 1990 – 2016 16 Figure 4 Appleton Foreign-Born Residents 17 Figure 5 Appleton English-Proficiency 18 Figure 6 Appleton Disability by Type 19 Figure 7 Appleton Household Median Income by Race and Ethnicity 20 Figure 8 Appleton Income and Poverty 21 Figure 9 Appleton Area School District Demographics 23 Figure 10 Appleton Private School Race and Ethnicity 23 Figure 11 Appleton Educational Attainment by Race and Ethnicity 24 Figure 12 Appleton Area School Proficiency with Race and Ethnicity 27 Figure 13 Student Homelessness by Race and Ethnicity 28 Figure 14 Appleton Area Child Poverty Rate 29 Figure 15 Appleton Unemployment by Race and Ethnicity 30 Figure 16 Appleton Methods of Getting to Work 31 Figure 17 Transportation by Race and Ethnicity 33 Figure 18 Appleton Publicly Supported Housing 35 Figure
    [Show full text]
  • An Introduction to Business Ethics, Fifth Edition
    AN INTRODUCTION TO BUSINESS ETHICS Fifth Edition Joseph DesJardins College of St. Benedict/St. John’s University TM des38324_fm_i-xiv.indd i 1/17/13 4:21 PM TM AN INTRODUCTION TO BUSINESS ETHICS, FIFTH EDITION Published by McGraw-Hill/Irwin, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY, 10020. Copyright © 2014 by The McGraw-Hill Compa- nies, Inc. All rights reserved. Printed in the United States of America. Previous editions © 2011, 2009 and 2006. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. Some ancillaries, including electronic and print components, may not be available to customers outside the United States. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOC/DOC 1 0 9 8 7 6 5 4 3 ISBN 978-0-07-803832-7 MHID 0-07-803832-4 Senior Vice President, Products & Markets: Kurt L. Strand Vice President, General Manager, Products & Markets: Michael Ryan Vice President, Content Production & Technology Services: Kimberly Meriwether David Managing Director: William Glass Executive Director of Development: Lisa Pinto Brand Manager : Laura Wilk Managing Development Editor: Sara Jaeger Marketing Specialist: Alexandra Schultz Editorial Coordinator: Adina Lonn Director, Content Production: Terri Schiesl Project Manager: Erin Melloy Buyer: Jennifer Pickel Cover Designer: Studio Montage, St.
    [Show full text]
  • Shopping for a Mortgage? What You Can Expect Under Federal Rules
    JANUARY 2014 Shopping for a mortgage? What you can expect under federal rules You’ll be offered a mortgage that’s set up to be affordable. When you apply for a mortgage, you may struggle to understand how big a monthly payment you can afford. You might assume that lenders and mortgage brokers will not make you a loan that you cannot afford. In the years leading up to the recent financial crisis, some mortgages looked affordable at first, but were set up with big increases in the payments. Lenders too often made mortgages to consumers who could not pay them back. As a result, many consumers ended up in delinquency and foreclosure. Under federal mortgage rules, before a lender makes a mortgage loan, it must look at your financial information and make a determination that you can repay the loan. The ability to repay rule applies to mortgage loans made by most lenders. (It excludes certain types of loans, like home equity lines of credit, timeshare plans, reverse mortgages, and temporary loans.) There is also a category of loans, called “qualified mortgages,” that have more tightly controlled terms and features. The rules help make sure that you get a mortgage loan you can afford. The rules also help make sure that responsible lenders aren’t forced to compete with reckless lenders engaged in risky practices. Although the rules provide you with protections, it’s important to do your own analysis. Focus on what loan amount is affordable for you given your other priorities, not how much you qualify for.
    [Show full text]
  • 6. in Supplement I to Part 1026—Official Interpretations: A. Under
    6. In Supplement I to Part 1026—Official Interpretations: A. Under Section 1026.25—Record Retention: i. Under 25(a) General rule, paragraph 2 is revised. ii. 25(c) Records related to certain requirements for mortgage loans, 25(c)(3) Records related to minimum standards for transactions secured by a dwelling, and paragraphs 1 and 2 are added. B. Under Section 1026.32—Requirements for Certain Closed-End Home Mortgages, the heading is revised. C. Under revised Section 1026.32—Requirements for High-Cost Mortgages: i. Under 32(b) Definitions: a. Paragraph 32(b)(1) and paragraph 1are added. b. Under Paragraph 32(b)(1)(i), paragraph 1 is revised. c. Paragraph 32(b)(1)(i)(B) and paragraph 1 are added. d. Paragraph 32(b)(1)(i)(C) and paragraphs 1 and 2 are added. e. Paragraph 32(b)(1)(i)(D) and paragraphs 1, 2, 3, and 4 are added. f. Paragraph 32(b)(1)(i)(E) and paragraphs 1, 2, and 3 are added. g. Paragraph 32(b)(1)(i)(F) and paragraphs 1 and 2 are added. h. Under Paragraph 32(b)(1)(ii), paragraphs 1 and 2 are revised and paragraphs 3 and 4 are added. i. Paragraph 32(b)(1)(iii) and paragraph 1 are added. j. Under Paragraph 32(b)(1)(iv), paragraph 1 is revised and paragraphs 2 and 3 are added. 1 k. 32(b)(3) Bona fide discount point, 32(b)(3)(i) Closed-end credit, and paragraph 1 are added. l. 32(b)(4) Total loan amount, 32(b)(4)(i) Closed-end credit, and paragraph 1 are added.
    [Show full text]