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Friday, August 16, 2013

CFPB Releases Revised Mortgage Exam Procedures

The Consumer Financial Protection Bureau (CFPB) yesterday issued revised examination procedures to accompany its new rules on ability-to-repay, points and fees, servicing disclosures and personnel, dual-tracking, and appraiser credentials that were issued in January 2013. There are no substantive changes that will impact ABIA members included in the revised exaqmination procedures.

The updates apply to the exam manuals for the Truth in Lending Act and the Real Estate Settlement Procedures Act.  The Bureau said that it is coordinating its procedures with other federal banking regulators to promote a consistent regulatory experience.

In regards to the points and fees issue in Qualified Mortgages, the CFPB's press release states:
"Both the rule on Ability-to-Repay and the rule on high-cost mortgages ban or limit certain points, fees, and risky features. Under the Ability-to-Repay rule, a Qualified Mortgage is subject to limitations on points and fees and cannot have loan features such as terms that exceed 30 years or interest-only payments. Under the high-cost mortgages rule, balloon payments and fees for modifying loans are generally banned."

Learn more from the CFPB.