The Federal Reserve Board recently finalized comprehensive new mortgage rules under the Truth in Lending Act (TILA) and the Home Ownership and Equity Protection Act (HOEPA). These sweeping changes extend to all originators and servicers, regardless of how the company is regulated. Note: your systems must be updated very soon to submit HMDA data in January 2009.

CHAPTER 1: Section-by-Section Explanation of the Final Rule
Prohibited practices for subprime/higher-priced loans; the rate and payment lenders must use; debt-to-income ratio and residual income; verification of income assets; prepayment penalties; escrow accounts; appraiser coercion; servicing abuses; new advertising rules; timing of disclosures; and more.

CHAPTER 2: Analysis and Impact of the Final Rule
What does the new rule mean for the industry? How will it affect lending practices? What are the implementation issues? What are the potential liabilities for lenders and servicers?

CHAPTER 3: Regulatory History
Breakdown of major changes from the original proposal including yield-spread premiums, servicing fee schedule,“pattern or practice,” APR spread/Treasury Security Index for higher-priced loans, and prepayment penalties.

CHAPTER 4: Key Comments from the Industry
Summary and analysis of comments on the proposed rule from key lawmakers, consumer advocates and industry groups.

CHAPTER 5: Where Do We Go From Here
How the final rule will intersect with other regulatory and legislative efforts such as HUD’s RESPA rulemaking, TILA revisions from the Federal Reserve and future Congressional action.