Ability to Repay

CFPB, DOJ Sue Developer for Predatory Lending

smanas@imfpubs.com — Fri, 22 Dec 2023 15:06:00 -0500

The bureau and the Department of Justice sued a Texas land developer and a mortgage lender over an alleged predatory lending scheme.

CFPB Sues Installment Lender for Loan Churning

smanas@imfpubs.com — Tue, 05 Sep 2023 13:28:00 -0400

The bureau has accused South Carolina-based Heights Finance of targeting borrowers for their likelihood to refinance and using coercive practices to drive them into fee-laden refinancing cycles.

Mortgage Lenders Favor ATR Standards for PACE Loans

nbhatia@imfpubs.com — Mon, 07 Aug 2023 14:12:01 -0400

A CFPB proposal to set ability-to-repay requirements for PACE lending has support from mortgage lenders. However, PACE lenders and eight Republican state attorneys general have warned the proposal would lead to the end of PACE lending.

CFPB Proposes ATR Standards for PACE Loans

smanas@imfpubs.com — Mon, 15 May 2023 15:17:46 -0400

The proposed rule would require assessments of borrowers’ ability to repay and apply the Truth in Lending Act’s civil liability provision for violations.

Rulemaking Related to Nonbank Registration on CFPB Agenda

smanas@imfpubs.com — Mon, 09 Jan 2023 14:23:21 -0500

The CFPB’s latest regulatory agenda includes some pending priorities and some new ones. Two of the new items would require nonbanks to register with the bureau.

Bank Statement QMs Face Hurdles Due to Policy Change

smanas@imfpubs.com — Mon, 09 Jan 2023 14:19:23 -0500

For lenders trying to make bank statement loans that qualify as QMs, a little-noticed addition to a Regulation Z commentary could create uncertainty around whether they’ve properly verified the borrower’s income.

CFPB, NY Sue Auto Lender Over Unaffordable Loans

smanas@imfpubs.com — Mon, 09 Jan 2023 14:17:26 -0500

The bureau and the New York Office of the Attorney General are suing Michigan-based auto lender Credit Acceptance Corp. over violations of federal and state consumer protection laws.

CFPB Updates Regulation Z Threshold Later Than Usual

smanas@imfpubs.com — Mon, 09 Jan 2023 14:17:24 -0500

The CFPB is facing criticism from attorneys over its unusually late issuance of annually updated thresholds in Regulation Z’s provisions implementing various laws and rules.

Republicans Challenge Chopra Over CFPB's 'Lack of Transparency'

smanas@imfpubs.com — Mon, 19 Dec 2022 15:08:00 -0500

CFPB Director Rohit Chopra’s semi-annual reports to Congress last week offered only a few snippets of policy news but featured much verbal sparring with Republicans.

Mortgage Assumptions Require Unique Compliance Steps

smanas@imfpubs.com — Mon, 19 Dec 2022 15:03:00 -0500

State and federal regulations on assumable mortgages differ in some respects from those for new originations. And agency and investor guidelines have to be factored in too.

Lenders Keen to Discuss Updates on Forbearance, COVID-19 Lessons

smanas@imfpubs.com — Mon, 05 Dec 2022 16:09:00 -0500

In responses to the CFPB’s request for information on ways to streamline refis and make loss mitigation easier to access, industry groups expressed resistance to some new ideas floated by the bureau.

CFPB Considers Novel Concept: The ‘Auto-Refi’

smanas@imfpubs.com — Mon, 24 Oct 2022 15:31:42 -0400

In a recent RFI, the CFPB suggested that the development of automatic mortgage refinances could help borrowers.

FHFA Restrictions on GSEs’ Use of QM Patch Continue

bivey@imfpubs.com — Mon, 27 Sep 2021 14:26:00 -0400

The industry was hoping the FHFA and the Treasury Department would roll back the restriction placed on the GSEs’ use of the qualified mortgage patch.

Income Share Agreements Are Loans, Says CFPB

nbhatia@imfpubs.com — Mon, 27 Sep 2021 14:10:00 -0400

The CFPB has made it clear that it’s not buying income share agreement providers’ argument that their products are not loans and hence they don’t have to comply with consumer protection laws.

Texas Court Paves the Way for Payday Lending Rule

nbhatia@imfpubs.com — Mon, 13 Sep 2021 15:26:00 -0400

The payment provisions under the payday lending rule will become effective June 13, 2022. Attorneys suggest lenders with products covered under the small dollar rule begin revising policies and procedures.

Industry Not Fazed by Expiration of QM Patch

news@imfpubs.com — Mon, 19 Jul 2021 14:52:28 -0400

Mortgage industry participants have a ho-hum reaction to expiration of the GSE patch for QMs. One compliance officer says the industry will do just fine without it.

Compliance Could Get Tougher for Mortgage Firms in 2021

news@imfpubs.com — Mon, 04 Jan 2021 15:00:00 -0500

One of the biggest issues mortgage lenders will face is implementing changes to the general qualified-mortgage rule, which has a mandatory compliance date of July 2021.

CFPB Rules May Have Driven Small Banks Out of Mortgages

news@imfpubs.com — Mon, 04 Jan 2021 14:00:00 -0500

The FDIC’s community bank study shows that an unusually high percentage of small community banks reduced their residential holdings after the 2008 financial crisis. Reason: high compliance costs due to the large volume of new mortgage rules.

Other News in Brief

news@imfpubs.com — Mon, 04 Jan 2021 13:00:00 -0500

The CFPB grants compliance assistance sandbox to two companies; QM rules to take effect March 1.

Final QM Rules: Good, but Missing Key Elements

news@imfpubs.com — Mon, 21 Dec 2020 16:00:00 -0500

The CFPB finalized its qualified-mortgage revisions to replace the 43% debt-to-income ratio with a pricing threshold. Meanwhile, the agency also finalized its “seasoned” QM rule allowing certain non-agency loans to become QMs if they meet performance requirements.

Biden’s CFPB to Focus on QM Rule, Servicer Compliance

news@imfpubs.com — Mon, 23 Nov 2020 15:30:00 -0500

Much of the conversation over the past few weeks following the election of Joe Biden to the White House has focused on the bureau’s mortgage-related actions.

CFPB Extends Temporary QM ‘Patch’ for GSE loans

news@imfpubs.com — Mon, 26 Oct 2020 16:45:00 -0400

The new expiration date will be tied to the mandatory compliance date for the revised general QM rule, or when the GSEs exit conservatorships, whichever comes first.

Consumer Advocates Raise Red Flags on Seasoned QMs

news@imfpubs.com — Mon, 12 Oct 2020 14:26:00 -0400

While lenders have recommended that a wider population of loans be eligible under the new QM category, consumer advocacy groups urged the CFPB to withdraw the proposal.

Other News in Brief

news@imfpubs.com — Mon, 12 Oct 2020 12:44:00 -0400

Significant structural changes at the CFPB under the Trump administration; CSBS allows consumer gripes on its examination platform; Ed Pinto complains about the QM patch.

Industry Supports QM Proposal, But Seeks Tweaks

news@imfpubs.com — Mon, 14 Sep 2020 15:00:00 -0400

Many participants have suggested the CFPB increase the safe harbor qualified-mortgage threshold to ensure borrowers are not arbitrarily left with only FHA-insured options.

Seasoned QM Proposal to Boost Banks' Non-QM Lending

news@imfpubs.com — Mon, 31 Aug 2020 10:45:00 -0400

The proposed seasoned QM category is designed to encourage non-QM lending with additional legal certainty. But the eligibility requirements will make banks, thrifts and credit unions the main beneficiaries, or so it appears.

GSE Refi Fee May Impact Mortgage Disclosures

news@imfpubs.com — Mon, 31 Aug 2020 10:12:00 -0400

The GSE refi fee, albeit delayed, ultimately will be passed to consumers, impacting loan pricing. Compliance and disclosure implications? Indeed.

Industry Groups Call for Further Extension of GSE ‘Patch’

news@imfpubs.com — Mon, 17 Aug 2020 16:00:00 -0400

Mortgage industry groups want a transition period between the expiration of the GSE “patch” and the implementation of a revised general QM definition to minimize market disruption.

QM Proposal May Introduce Underwriting Flexibility

news@imfpubs.com — Mon, 03 Aug 2020 14:00:00 -0400

The idea behind the proposed pricing approach is to prevent market disruption and extend mortgage credit to consumers who are currently excluded due to strict underwriting requirements.

CFPB Rushing to Clear Rulemaking Agenda

news@imfpubs.com — Mon, 06 Jul 2020 16:00:00 -0400

The CFPB is rushing to get certain rulemakings done this year as the presidential election looms. Most items on the CFPB’s to-do list have deadlines in the fall.