DOCSLIB.ORG

Bureau of Consumer Financial Protection

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Bureau of Consumer Financial Protection Vol. 78 Wednesday, No. 113 June 12, 2013 Part III Bureau of Consumer Financial Protection 12 CFR Part 1026 Ability-to-Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z); Final Rule VerDate Mar<15>2010 18:16 Jun 11, 2013 Jkt 229001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\12JNR3.SGM 12JNR3 mstockstill on DSK4VPTVN1PROD with RULES3 35430 Federal Register / Vol. 78, No. 113 / Wednesday, June 12, 2013 / Rules and Regulations BUREAU OF CONSUMER FINANCIAL final rule (the 2013 ATR Final Rule) to included in points and fees as loan PROTECTION implement these ability-to-repay originator compensation paid by the requirements and qualified mortgage consumer or the creditor to the mortgage 12 CFR Part 1026 provisions. See 78 FR 6407 (Jan. 30, broker. [Docket No. CFPB–2013–0002] 2013). At the same time, the Bureau The final rule excludes from points issued a proposed rule (the 2013 ATR and fees compensation paid by a RIN 3170–AA34 Proposed Rule or Bureau’s proposal) creditor to its loan officers. The Bureau related to certain proposed exemptions, concluded that there were significant Ability-to-Repay and Qualified modifications, and clarifications to the operational challenges to calculating Mortgage Standards Under the Truth in ability-to-repay requirements. See 78 FR individual employee compensation Lending Act (Regulation Z) 6621 (Jan. 30, 2013). This final rule accurately early in the loan origination AGENCY: Bureau of Consumer Financial addresses the issues put forth for public process, and that those challenges Protection. comment in the 2013 ATR Proposed would lead to anomalous results for consumers. In addition, the Bureau ACTION: Final rule; official Rule. See part II.B below and part II.B– concluded that structural differences interpretations. F of the 2013 ATR Final Rule for a complete discussion of the statutory and between the retail and wholesale SUMMARY: The Bureau of Consumer regulatory background to the ability-to- channels lessened risks to consumers. Financial Protection (Bureau) is repay requirements. The Bureau will continue to monitor the amending Regulation Z, which market to determine if additional implements the Truth in Lending Act Loan Originator Compensation and the protections are necessary and evaluate (TILA). Regulation Z generally prohibits Points and Fees Calculation whether there are different approaches a creditor from making a mortgage loan The Dodd-Frank Act generally for calculating retail loan officer unless the creditor determines that the provides that points and fees on a compensation consistent with the consumer will have the ability to repay qualified mortgage may not exceed 3 purposes of the statute. the loan. The final rule provides an percent of the loan balance and that The final rule retains an ‘‘additive’’ exemption to these requirements for points and fees in excess of 5 percent approach for calculating loan originator creditors with certain designations, will trigger the protections for high-cost compensation paid by a creditor to a loans pursuant to certain programs, mortgages under the Home Ownership loan originator other than an employee certain nonprofit creditors, and and Equity Protection Act (HOEPA).1 of creditor. Under the additive mortgage loans made in connection with The Dodd-Frank Act also included a approach, § 1026.32(b)(1)(ii) requires certain Federal emergency economic provision requiring that loan originator that a creditor include in points and fees stabilization programs. The final rule compensation be counted toward these compensation paid by the creditor to a also provides an additional definition of thresholds, even if it is not paid up-front mortgage broker, in addition to up-front a qualified mortgage for certain loans by the consumer directly to the loan charges paid by the consumer to the made and held in portfolio by small originator. creditor that are included in points and creditors and a temporary definition of The Bureau had solicited comment on fees under § 1026.32(b)(1)(i). a qualified mortgage for balloon loans. how to apply the statutory requirements Exemptions for Certain Creditors and Finally, the final rule modifies the in situations in which payments pass Lending Programs requirements regarding the inclusion of from one party to another over the Certain creditors and nonprofits. The loan originator compensation in the course of a mortgage transaction. The final rule provides an exemption from points and fees calculation. Bureau was particularly concerned the ability-to-repay requirements for DATES: This rule is effective January 10, about situations in which the creditor extensions of credit made by certain 2014. pays compensation to a mortgage broker types of creditors. Creditors designated FOR FURTHER INFORMATION CONTACT: or its own loan originator employees by the U.S. Department of the Treasury Jennifer B. Kozma or Eamonn K. Moran, because there is no simple way to as Community Development Financial Counsels; Thomas J. Kearney or Mark determine whether the compensation is Institutions and creditors designated by Morelli, Senior Counsels; or Stephen paid from money the creditor collected the U.S. Department of Housing and Shin, Managing Counsel, Office of from up-front charges to the consumer Urban Development as either a Regulations, at (202) 435–7700. (which would already be counted Community Housing Development against the points and fees thresholds) SUPPLEMENTARY INFORMATION: Organization or a Downpayment or from the interest rate on the loan Assistance Provider of Secondary I. Summary of the Final Rule (which would not be counted toward Financing are exempt from the ability- The Bureau is issuing this final rule the thresholds). to-repay requirements, under certain to adopt certain exemptions, The final rule excludes from points conditions. The final rule also generally modifications, and clarifications to and fees loan originator compensation exempts creditors designated as TILA’s ability-to-repay requirements. paid by a consumer to a mortgage broker nonprofit organizations under section TILA section 129C, as added by sections when that payment has already been 501(c)(3) of the Internal Revenue Code 1411, 1412, and 1414 of the Dodd-Frank counted toward the points and fees of 1986 (26 U.S.C. 501(c)(3)) that extend Wall Street Reform and Consumer thresholds as part of the finance charge credit no more than 200 times annually, Protection Act (Dodd-Frank Act), under § 1026.32(b)(1)(i). The final rule provide credit only to low-to-moderate generally requires creditors to make a also excludes from points and fees income consumers, and follow their reasonable, good faith determination of compensation paid by a mortgage broker own written procedures to determine a consumer’s ability to repay a mortgage to an employee of the mortgage broker that consumers have a reasonable ability loan and creates a presumption of because that compensation is already to repay their loans. compliance with these ability-to-repay Credit extended pursuant to certain 1 See title I subtitle B of the Riegle Community requirements for certain loans Development and Regulatory Improvement Act of lending programs. The final rule designated as ‘‘qualified mortgages.’’ On 1994, Public Law 103–325, 108 Stat. 2160 (Jan. 25, provides an exemption from the ability- January 10, 2013, the Bureau issued a 1994). to-repay requirements for extensions of VerDate Mar<15>2010 18:16 Jun 11, 2013 Jkt 229001 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\12JNR3.SGM 12JNR3 mstockstill on DSK4VPTVN1PROD with RULES3 Federal Register / Vol. 78, No. 113 / Wednesday, June 12, 2013 / Rules and Regulations 35431 credit made pursuant to programs intends to study whether the definitions began to decline in 2005, however, administered by a housing finance of ‘‘rural’’ or ‘‘underserved’’ should be refinancing became more difficult and agency and for an extension of credit adjusted and to work with small delinquency rates on subprime and Alt- made pursuant to an Emergency creditors to transition to other types of A products increased dramatically.4 By Economic Stabilization Act program, products, such as adjustable-rate the summer of 2006, 1.5 percent of loans such as extensions of credit made mortgages, that satisfy other qualified less than a year old were in default, and pursuant to a State Hardest Hit Fund mortgage definitions. this figure peaked at 2.5 percent in late program. The ability-to-repay rules as revised 2007.5 As the economy worsened, the by this final rule will take effect on rates of serious delinquency (90 or more Small Creditor Portfolio and Balloon- January 10, 2014, along with various days past due or in foreclosure) for the Payment Qualified Mortgages other rules implementing new mortgage subprime and Alt-A products began a The final rule contains several protections under the Dodd-Frank Act. steep increase from approximately 10 provisions that are designed to facilitate II. Background percent in 2006, to 20 percent in 2007, compliance and preserve access to to over 40 percent in 2010.6 Although credit from small creditors, which are A. Mortgage Market Background the mortgage market is recovering, defined as creditors with no more than The mortgage market is the single consumers today continue to feel the $2 billion in assets that (along with largest market for consumer financial effects of the financial crisis. affiliates) originate no more than 500 products and services in the United Community-Focused Lending Programs first-lien mortgages covered under the States. In 2007 and 2008 this market ability-to-repay rules per year. The collapsed, greatly diminishing the While governmental and nonprofit Bureau had previously exercised wealth of millions of American programs have always been an authority under the Dodd-Frank Act to consumers and sending the economy important source of assistance for low- allow certain balloon-payment into a severe recession.
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]
  • 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.
    [Show full text]