CFPB Revises Dollar Amount and Thresholds Under Federal High-Cost and Qualified Mortgage Provisions
The CFPB has issued a final rule revising certain dollar amount thresholds under the federal high-cost and qualified mortgage provisions which are subject to revision each year. These revised thresholds are effective January 1, 2015.
CFPB Revised Points and Fees Rule
The CFPB issued a final rule amending the points and fees provisions for qualified mortgages. Specifically, the amendment provides for limited circumstances under which a lender may refund fees in excess of the 3% limit so that a loan may still meet the legal requirements of a qualified mortgage.
CFPB Finalizes Annual Privacy Notice Rule
The CFPB finalized its rule allowing certain companies to post annual privacy notices under the Gramm-Leach-Bliley Act online rather than delivering them individually. The rule will be effective immediately upon publication in the Federal Register.
CFPB Servicing Transfer Bulletin
The CFPB has issued a compliance bulletin and policy guideline, Bulletin 2014-01, advising servicers of compliance requirements pursuant to the revised Regulation X, which took effect on January 10, 2014. The bulletin provides guidance regarding what CFPB examiners look for when determining servicer compliance with CFPB-enforced rules. In addition to outlining general requirements pursuant to the new servicing rule, the bulletin presents examples of policies and procedures that CFPB examiners will consider when determining whether servicers are complying with the new servicing rule.
FHA Final Rule – Look-back Period for ARM Loans
The Federal Housing Administration (FHA) issued a final rule regarding how to determine index values for adjustable rate mortgages. These changes are effective for forward mortgages originated on or after January 10, 2015.
The final rules revise the definition of “current index figure” to mean the most recent index figure available 45 days before the date of each interest rate adjustment. As such, the look-back period for determining interest rate adjustments will be 45 days for forward mortgages originated on or after January 10, 2015.
FHA Final Rule – Prepayments and Post Payment Interest Charges
The Federal Housing Administration (FHA) released a final rule revising current provisions which allow FHA-approved mortgagees to charge interest through the end of the month in which the mortgage is prepaid. These changes are effective January 21, 2015.
The final rule amends several provisions and permits mortgagees to charge interest only through the date the mortgage is paid.