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All in Regulation Z
In this Compliance Clip (video), Adam answers the question on whether or not a rescission is required on a bridge loan. Specifically, the question is about purchasing a new home that is secured by a current home, and if the right of rescission will apply. A transcript of this video is now available.
In this Compliance Clip (video), Adam answers the question on whether or not you are required to provide the consumer with a corrected Closing Disclosure within three business days if there is a change to the initial Closing Disclosure. The answer to this question comes from Regulation Z. A transcript of this vide is now available.
In this Compliance Clip (video), Adam goes into a little bit of a deep dive to explain the Total of Payments disclosure on the Closing Disclosure. This a TRID and lending topic, which is especially helpful for lenders or somebody who's responsible for the loan department. A transcript of this video is now available.
On December 23, 2021, the CFPB announced the annual adjustment to the asset size threshold for certain creditors to qualify for an exemption to the requirement to establish an escrow account for a higher-priced mortgage loan under Regulation Z. For 2022, , the exemption threshold for creditors and their affiliates that regularly extended covered transactions secured by first liens is adjusted to $2.336 billion from $2.230 billion while for certain insured depository institutions and insured credit unions with assets of $10 billion or less (adjusted annually for inflation), the exemption threshold is adjusted to $10.473 billion from $10 billion.
On 11/30/2021, the CFPB issued a number of thresholds for 2022 under Regulation Z, as well as a threshold under Regulation M. First, the CFPB announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2021 will increase from the 2021 amount of $27,200 to $28,500 for 2022.
On 11/10/21, the joint agencies (Federal Reserve, FDIC, CFPB, NCUA, OCC, and state financial regulators) issued a joint statement to communicate to mortgage servicers the agencies’ supervisory and enforcement approach as risks associated with the Coronavirus Disease (COVID-19) pandemic continue to change. In short, the agencies explain that the flexibilities outlined in their prior joint statement issued on April 3, 2020 are no longer necessary, and, therefore, those flexibilities no longer apply.
On 8/5/2021, the CFPB issued an interpretive rule to assist the mortgage industry in determining whether to treat June 19, 2021, as a federal holiday or a business day for purposes of compliance with certain time-sensitive borrower protections.
On 6/18/2021, CFPB Acting Director, Dave Uegio, issued a statement on the impact of the new Juneteenth Holiday on residential mortgage closings. As a background, President Biden signed into law the Juneteenth National Independence Day Act on June 17, 2021, just two days before the actual new holiday of June 19, 2021. As this new holiday is a Federal Holiday, Financial Institutions immediately had concerns regarding implementation of the new Juneteenth Federal Holiday, particularly as it relates to mortgage compliance under Regulation Z and the Truth in Lending Act.
On 5/14/2021, the CFPB published a set of 5 new TRID FAQs on their website. These FAQs relate to housing assistance loans and are the first TRID FAQs to be released in nearly a year. The new TRID FAQs answer the following questions:
On 4/29/2021, the OCC released Bulletin 2021-22 to announce they had issued a revised “Credit Card Lending” booklet of the Comptroller’s Handbook, which is prepared for use by OCC examiners in connection with the examination and supervision of national banks, federal savings associations, and federal branches and agencies of foreign banking organizations (collectively, banks).
