Dodd-Frank News Center

Agencies adjust exemption threshold for higher-priced mortgage loans

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau, Federal Reserve Board, and Office of the Comptroller of the Currency are finalizing amendments to the official interpretations for their regulations that implement Section 129H of the Truth in Lending Act, which establishes special appraisal requirements for “higher-risk mortgages,” termed “higher-priced mortgage loans” or “HPMLs” in the agencies’ regulations.

These agencies, along with the Federal Deposit Insurance Corporation, National Credit Union Administration, and Federal Housing Finance Agency, issued joint final rules implementing these requirements, effective Jan. 18, 2014. These rules exempted, among other loan types, transactions of $25,000 or less and required that this loan amount be adjusted annually based on any annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Based on the CPI-W in effect as of June 1, 2019, the exemption threshold will increase from $26,700 to $27,200, effective Jan. 1, 2020.                          

 

CFPB updates HMDA and TILA asset-size exemption thresholds, FCRA maximum disclosure charges

This story appeared in Bank Digest.                                     

The Consumer Financial Protection Bureau has made annual inflation adjustments to asset-size thresholds set by its regulations that implement the Home Mortgage Disclosure Act and the Truth in Lending Act. All of the changes are applicable on Jan. 1, 2019. The HMDA asset-size threshold for exemptions from data collection requirements is adjusted to increase to $46 million from $45 million.

The TILA asset-size threshold for exemptions from the requirement to establish escrow accounts for higher-priced mortgage loans has been increased to $2.167 billion from $2.112 billion. This asset limit will also apply during a grace period, in certain circumstances, with respect to transactions with applications received before April 1 of 2020.

In addition, the Bureau has increased the ceiling on allowable charges consumer reporting agencies may issue to consumers for disclosures under the Fair Credit Reporting Act from $12.00 to $12.50, effective for 2019.                   

TILA threshold for exempt consumer credit transactions increased for 2019

This story appeared in Bank Digest.

The Consumer Financial Protection Bureau and Federal Reserve Board are amending the official interpretations and commentary for the agencies' regulations that implement the Truth in Lending Act to reflect the dollar threshold for exempt consumer credit transactions for 2019. The agencies said that the exemption threshold will increase from $55,800 to $57,200, effective Jan. 1, 2019.

The Dodd-Frank Act amended TILA by requiring that this threshold be adjusted annually by the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). If there is no annual percentage increase in the CPI-W, the Bureau and the Fed will not adjust this exemption threshold from the prior year.

CFPB updates small entity compliance guide and forms guide

This story appeared in Bank Digest.   

The Consumer Financial Protection Bureau has updated both versions of its Small Entity Compliance Guide and both versions of its related guide to forms to reflect the 2018 "TILA-RESPA Integrated Disclosure Rule." These May 2018 revisions include updates to both the "old" and the "new" versions of each of the guides to provide "implementation support during the optional compliance period for the 2017 TILA-RESPA Rule." 

 Accordingly, the CFPB has provided updates to versions 4.1 and 5.2 of the Small Entity Compliance Guide on the TILA-RESPA Integrated Disclosure Rule. Likewise, the Bureau has provided updates to versions 1.5 and 2.1 of the guide pertaining to the "Loan Estimate and Closing Disclosure forms" in connection with the rule. 

 The higher-numbered versions of each of the guides have been updated to reflect both the 2017 and 2018 TILA-RESPA rules, but the lower-numbered versions of the guides have only been updated to reflect the 2018 TILA-RESPA Rule. 

• TILA-RESPA Integrated Disclosure rule--Small entity compliance guide--Version 5.2 
• TILA-RESPA Integrated Disclosure rule--Small entity compliance guide--Version 4.1 
• TILA-RESPA Integrated Disclosure--Guide to the Loan Estimate and Closing Disclosure forms--Version 2.1 
• TILA-RESPA Integrated Disclosure--Guide to the Loan Estimate and Closing Disclosure forms--Version 1.5

 

CFPB updates RESPA and TILA examination procedures

This story appeared in Bank Digest.   

The Consumer Financial Protection Bureau has updated its Real Estate Settlement Procedures Act and Truth in Lending Act examination procedures to reflect amendments to Regulations X and Z. The updates reflect the Amendments Relating to Small Creditors and Rural or Underserved Areas under TILA (Rural-Small Rule), the Amendments to the 2013 Mortgage Rules under RESPA (Regulation X) and TILA (Regulation Z) (the 2016 Servicing Rule) final rules, and the October 2017 Mortgage Servicing interim final rule. The updates also include corrections and clarifications to existing text.               

CFPB approves final redesigned Uniform Residential Loan Application

This story appeared in Bank Digest. 

The Consumer Financial Protection Bureau has issued an official approval of the final redesigned Uniform Residential Loan Application, which is a form many consumers complete when they apply for a mortgage, according to a Bureau blog post. The redesigned form will include a question about mortgage applicants' language preference starting as early as July 2019.

The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to add this question to the URLA, the post said, and the CFPB's official approval "confirms that financial institutions' use of the URLA, including the question identifying a mortgage applicant's language preference, does not violate specific provisions of Regulation B, which implements the Equal Credit Opportunity Act."

 

CFPB issues updated small entity compliance guide for TILA-RESPA Integrated Disclosure rule

This story appeared in Bank Digest.                                  

The Consumer Financial Protection Bureau has issued an updated small entity compliance guide for its TILA-RESPA Integrated Disclosure rule, which integrated the mortgage loan disclosures under the Real Estate Settlement Procedures Act (Reg. X) and the Truth in Lending Act (Reg. Z). The guide has been updated to reflect amendments issued on July 7, 2017, and published in the Federal Register on Aug. 11, 2017.                                   

The 2017 amendments were effective on Oct. 10, 2017, but compliance is generally only mandatory for transactions for which a creditor or mortgage broker receives an application on or after Oct. 1, 2018.

CFPB releases support material for 2017 TILA-RESPA Rule

This story appeared in Bank Digest. 

In connection with its July 2017 final rule updating its "Know Before You Owe" mortgage disclosure rule, the Consumer Financial Protection Bureau has released support material to assist stakeholders in implementing the final rule. The CFPB's final rule, dubbed the "2017 TILA-RESPA Rule," modified the mortgage disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act that are implemented in Reg. Z.

The support material, entitled "2017 TILA-RESPA Rule: Detailed Summary of Changes and Clarifications," provides a comprehensive summary of the 2017 TILA-RESPA Rule, as well as examples of how to apply the final rule's provisions. The Bureau stressed that the support material "is not a substitute for reviewing the 2017 TILA-RESPA Rule" and that "the 2017 TILA-RESPA Rule is the definitive source regarding its requirements."

 

CFPB issues annual dollar amount adjustments under Reg. Z

This story appeared in Bank Digest.                                  

The Consumer Financial Protection Bureau is amending the official interpretations for Reg. Z, which implements the Truth in Lending Act, to revise the dollar amounts for provisions implementing TILA and amendments to TILA, including amendments under the Credit Card Accountability Responsibility and Disclosure Act of 2009, the Home Ownership and Equity Protection Act of 1994, and the Dodd-Frank Act. The Bureau is adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index in effect on June 1, 2017.                                  

The CFPB is required to calculate annually the dollar amounts for several provisions in Reg. Z. The final rule implementing the changes takes effect Jan. 1, 2018.

FTC reports to CFPB on 2016 enforcement activity

This story appeared in Bank Digest.                         

In 2016, the Federal Trade Commission initiated or continued litigating a number of enforcement activities related to compliance with the Truth in Lending Act and Reg. Z, the Consumer Leasing Act and Reg. M, and the Electronic Fund Transfer Act and Reg. E, as well as engaged in research and consumer education. The FTC detailed its regulatory actions in a report to the Consumer Financial Protection Bureau, which requested the information for its use in preparing its 2016 Annual Report to Congress.

Under the Dodd-Frank Act, the FTC has the authority to enforce TILA and Reg. Z, the CLA and Reg. M, and the EFTA and Reg. E. In addition, the Act gives the Commission the authority to enforce any CFPB rules applicable to entities within the FTC's jurisdiction.