Moody’s noted that if the provision becomes law, small banks won’t have to meet certain documentation requirements included in the CFPB’s ability-to-repay rule…
Legislation that would protect veterans from predatory lending that was passed by the Senate recently could have lasting impacts on the VA home-loan guaranty program, according to legal experts. S. 2155, the Economic Growth, Regulatory Relief and Consumer Protection Act, passed on March 14 by a vote of 67-31. Sixteen Democrats and one Independent joined all 50 Republicans in passing the bill. Primarily, the bill would loosen stringent rules in the 2010 Dodd-Frank Act designed to prevent the bad business practices that led to the 2008 financial crisis. A stand-alone bipartisan bill introduced by Sens. Thom Tillis, R-NC, and Elizabeth Warren, D-MA, in January was added to S. 2155 shortly before the Senate vote. The Tillis-Warren bill, Protecting Veterans from Predatory Lending Act of 2018, addresses the issue of serial refinancing, or loan churning, in which the victims are veterans. Churning refers to the ...
The U.S. Department of Agriculture’s Rural Housing Service has extended its two-tiered income limit pilot for the single-family housing programs as it works on a rulemaking change. Started in FY 2015, the pilot determines the area loan limits for USDA loans, using 80 percent of the FHA loan limits for forward single-family loans. Since FY 2003, RHS has set area loan limits using either one of two methods. The first method is based on the cost to construct a modest home as provided by a nationally recognized cost provider, plus the market value of an improved lot based on recent sales data. The second method uses loan limits by the state housing authority as long as the limits do not exceed 10 percent of the cost plus the market value of an improved lot. Regardless of the method used, the area loan limit may not exceed the FHA single-family mortgage limit. However, the FHA loan limits created a ...
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