Mortgage Reform Initiatives

To help compliance professionals keep abreast of developments on the mortgage reform efforts being developed by federal agencies and Congress, the Center for Regulatory Compliance is establishing a new Web Page to track mortgage reform initiatives.

Dodd-Frank Act developments are tagged .

Recent News
ABA Staff Analysis
CFPB's "Know Before You Owe Initiative"
The Basics
Legislative
Regulatory
Private Sector and Non-Profit Initiatives

 Breaking Legislative and Regulatory Items on Mortgage

Recent News

•  Amicus Filed in TILA Case (5/3/12)
•  Joint ABA-Industry letter to CFPB urging that the "qualified mortgage" (QM) designation under pending ability-to-repay rule be structured as a legal safe harbor (4/27/12)
•  ABA Comments on KBYO Mortgage Loan Initiative (4/16/12)
•  ABABJ Features Story on Mortgage Lending Challenges (3/29/12)
• ABA Policy Position on Mortgage Disclosure Reform (RESPA-TILA Merger)
• CFPB Issues SAFE Act Exam Procedures (3/7/12)
•  ABA Suggests Improvements to Prototype Mortgage Disclosure Forms (2/15/12)
•  CFPB Releases Sample Mortgage Statement (2/13/12)
• ABA Outlines 2012's Top 10 Mortgage-Reform Issues (1/12/12)
•  CFPB Publishes Mortgage Origination Examination Procedures (1/11/12)
• ABA Comment on the Federal Housing Agency's (FHFA) Alternative Mortgage Servicing Compensation Discussion Paper (12/20/11)
•  Compliance Advisory: TILA-Mortgage Loan Originator Compensation Rule (12/6/11)
•  CFPB Requests for Comments on Settlement Disclosure Form (11/8/11)
  • Hornbeam
  • Ironwood
•  CFPB Releases Exam Procedures for Mortgage Servicing (10/13/11)
• State Regulators Issue Mortgage Loan Originator Compensation Guidance (10/7/11)
• OCC Supervisory Guidance on Foreclosure Management (6/30/11)

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ABA Staff Anaysis

• ABA Staff Analysis: Final Rule on Rules for Higher-Price Mortgage Loans— Mandatory Escrow for Jumbo Loans (3/10/11)
• ABA Staff Analysis: Interim Rule Amending Regulation Z: Summary Information Regarding Interest Rates and Payment Changes (9/27/10)
• ABA Staff Analysis: Final TILA Rule on Compensation to Mortgage Loan Originators (9/9/10)
• ABA Staff Analysis: Secure and Fair Enforcement for Mortgage Licensing Act  (8/3/10)

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CFPB's "Know Before You Owe" Initiative

•  CFPB Fourth Feedback Round on Mortgage Disclosures (9/12/11)
•  ABA Comments on CFPB's New Mortgage Forms (8/10/11)
•  Round Three: Know Before You Owe Mortgage Disclosure Initiative (8/1/11)
  • Option 1: Camellia
  • Option 2: Azalea
•  Round Two: Know Before You Owe Mortgage Disclosure Initiative (6/27/11) 
  • Here are the latest two forms: Redbud Credit Union and Dogwood Credit Union. On this occasion the differences are on page two. 
•  ABA Comments on CFPB's Draft Mortgage Forms (5/27/11)
•  CFPB — Consumer Testing Guide and CFPB — Lender Testing Guide (5/25/11)
•  CFPB Unveils Two Draft Mortgage Disclosure Forms (5/18/11)
  • View draft disclosure form option No. 1.
  • View draft disclosure form option No. 2.
  • Provide feedback on the forms.
•  CFPB Seeks Feedback on New Mortgage Disclosures (5/18/11)
•  Mortgage Finance Blogs on ABA's DFA Tracker

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The Basics

• Breaking Legislative and Regulatory Items on Mortgage
• ABA Policy Position on Mortgage Disclosure Reform (RESPA-TILA Merger)  
• ABA's MDIA/Truth in Lending Act FAQs
• ABA on Homeowner Affordability and Stability Plan
• ABA HMDA Topics page
• Fannie, Freddie to Align Servicing Standards for Delinquent Borrowers (4/28/11)
•  Fed Proposes Minimum Mortgage Underwriting Standards (4/19/11)
• Appeals Court Denies Request to Further Delay Loan Originator Compensation Rule (4/5/11)
• Loan Originator Compensation Rule Delayed (4/4/11)
• Revised Interagency Examination Procedures for Regulation Z (3/18/11)
  The Federal Reserve on March 18 issued revised interagency examination procedures for Regulation Z - Truth in Lending. These revised procedures supersede the Regulation Z interagency examination procedures transmitted with CA Letter 11-1. The revisions reflect recently issued final rules that prohibit certain practices related to loan originator compensation.
• Three State AGs Object to Proposed Mortgage Settlement (3/16/11)
• Agencies Announce Start of Initial Registration Period under MLO Provisions (1/31/11)
  The OCC, Federal Reserve Board, FDIC, OTS, FCA, and NCUA (the Agencies) are issuing a notice announcing that the initial registration period for Federal registrations required by the Secure and Fair Enforcement for Mortgage Licensing Act (the S.A.F.E. Act) is now open and will run from January 31,2011 through July 29, 2011. Following expiration of the 180-day initial registration period on July 29, 2011, any employee of an agency-regulated institution who is subject to the registration requirements will be prohibited from originating residential mortgage loans without first meeting these requirements. For questions, contact ABA's Rod Alba.
• ABA Victory: Fed Opts Not to Finalize Three Pending Reg Z Proposals (2/1/11)
• Agency Guidance on Registration of Residential Mortgage Loan Originators (1/4/11)
• ABA Asks Fed to Synchronize Mortgage Rulemakings (12/23/10)
• ABA, Trade Groups Support Reverse Mortgage Protection (12/22/10)
•  ABA: Harmonize Rules on Mortgage Lending (10/25/10)
• Agencies Adopt Rule Implementing Mortgage-Originators Registration System (7/28/10)
  The federal banking agencies adopted a final rule implementing a nationwide licensing and registration system mandated by the Secure and Fair Enforcement for Mortgage Licensing Act for mortgage loan originators. The rule requires employees of banks, savings association and certain other financial institutions who act as residential mortgage-loan originators to register with the Nationwide Mortgage Licensing System and Registry, maintain that registration, and obtain a unique identifier. Agency-regulated institutions also must adopt and follow written policies and procedures designed to assure compliance with those requirements. Although the draft rule that the agencies released lists an Oct. 1, 2010, effective date, the agencies make clear that there is no compliance obligation until the registry system is fully operable which will not be until at least January 2011.  The six-month initial compliance period will begin from that time. For more information, contact ABA's Rod Alba.
• HUD Final Rule: Strengthening Risk Management Through Responsible FHA-Approved Lenders (4/20/10)
• ABA Suggests Alternatives to Mandatory Escrow Requirements for Smaller Banks (3/12/10)
• FFIEC FAQs on S.A.F.E. Act (3/10/10)
• CSBS Federal Registrant Page
  At this time there is no action required in the Nationwide Mortgage Licensing System (NMLS) of any mortgage loan originator who is an employee of a federally insured depository institution or an owned and controlled subsidiary of such a depository institution that is federally regulated.
• Escrow Table (2010)
  New Reg Z rules under § 226.35(b)(3), effective on April 1, 2010 will require creditors to establish escrow accounts for taxes and insurance for certain High Priced Mortgage Loans. This chart is intended to assist lenders in determining mortgage escrow requirements  for any state in which the financial institution is making home-secured loans.
• HUD Proposal on SAFE Mortgage Licensing Act (12/15/09)
  • ABA's comment letter (3/5/10)
• ABA Analysis on SAFE Rule (12/3/09)
• ABA Joint Letter on FHA Loans And The New Regulation Z Threshold For Higher-Price
  Mortgage Loans (9/30/09)
  On September 23, ABA sent communication to the Federal Reserve Board and HUD, warning that the form of notes commonly used on FHA loans would permit what will be deemed an impermissible prepayment penalty under the Board's new "Higher Priced Mortgage Loan" (HPML) rule.  On September 29, 2009, the Board released an interpretive letter that resolves this difficulty by clarifying that the definition of prepayment penalty under the Board's regulations do not specifically cover interest charge methodologies employed under FHA programs.  This interpretation, solicited by ABA and industry partners, avoids a prohibition of FHA loans at HPML levels. Click here for a copy of ABA's inquiry, and the Board's response.
• Board Interim Rule on Sec. 404 of the Helping Families Save Their Homes Act (11/16/09)
• ABA to Fed: Reg Z Rules Having Detrimental Impact (11/4/09)
• Fed Publication Provides MDIA Q&As (10/28/09)
• GSE Requirements Regarding Safe Act Registry Verification (10/14/09)
  • Fannie Mae Guide on Mortgage Loan Data Requirements
• TILA Proposal/Board proposes significant changes to Regulation Z (7/23/09)
• S.A.F.E. Proposal (6/1/09)
• RESPA Final Rule (1/15/09)
• FRB Final Amendments to Regulation C on Higher-Priced Mortgage Loans (10/20/08) 
• ABA Summary of Regulation Z Amendments (7/14/08)
• Fed Adopts New Mortgage-Lending Rules (7/14/08)
• OTS Foreclosure Prevention Proposal (4/1/08)
• SEC Issues Guidance on Modifying Securitized Loans(1/8/08) 

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Legislative

• Legislative and Regulatory Items on RESPA, Reg Z, HMDA and S.A.F.E.
• Mortgage Cram Down Comparison Table (March 2009)
• ABA: Oppose H.R. 3609 (1/23/08)
• H.R. 3915, the Mortgage Reform and Anti-predatory Lending Act of 2007
  • Detailed section-by-section analysis

Regulatory

• OCC/OTS Mortgage Banking Program Exam Handbook (April 2011)
• Agencies Announce Pilot on Cooperative Oversight of Subprime Lenders (7/17/07)

Private Sector and Non-Profit Initiatives

• HOPE NOW – a foreclosure prevention initiative in cooperation with NeighborWorks America
• ABA Foundation Advice on Mortgages

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Questions?  Contact the Center for Regulatory Compliance.