Illinois bankers have been madly preparing for the onslaught of new CFPB mortgage rules . . . and most of them go into effect January 10! The IBA also has been working hard to keep our members’ compliance professionals up-to-date on the thousands of pages of these rules . . . and today we are presenting our special IBA Compliance Connection™ update! Take a look at our new Topic Pages, a raft of compliance Questions and Answers, and much more on the new mortgage rules!
“The CFPB keeps amending its mortgage rules, and we’re chasing a moving target. Where can I find the latest versions of the new rules?”
The IBA has created separate Topic Pages for each of the new rules. We have hyperlinks to the text of each new rule, with links to all subsequent amendments — including the most recent amendments from December 26.
Also, the Topic Pages are packed with information on the rules. At the top of each page, you will find information on the rule’s effective date(s) and on what types of loan each rule covers (each rule covers different types of loans!). Here are the TOPIC PAGES for:
- Ability to Repay (ATR) and Qualified Mortgages (QM) (main topic page)
- TILA and RESPA Mortgage Servicing Rules (main topic page)
- HOEPA Changes (main topic page)
- Appraisals for Higher-Priced Mortgage Loans (main topic page)
- Copies of Appraisals and Valuations under ECOA (main topic page)
- Loan Originator Compensation (main topic page)
“When do all of these rules go into effect?”
- Ability to Repay (ATR) and Qualified Mortgages (QM) . . . January 10
- TILA and RESPA Mortgage Servicing Rules . . . January 10
- HOEPA Changes . . . January 10
- Appraisals for Higher-Priced Mortgage Loans . . . NEXT WEEK! (January 18)
- Copies of Appraisals and Valuations under ECOA . . . NEXT WEEK! (January 18)
- Loan Originator Compensation . . . 3 Effective Dates! (January 1 & 20, 2014, & June 1, 2013)
“Yikes! What other rules go into effect this year?”
Our Compliance Calendar can help! It charts out the effective dates for all of the upcoming laws, rules, deadlines, and more!
“I keep getting emails from the CFPB and other agencies about the new mortgage rules. How can I keep track of all these agencies and their publications?”
We’ve created a one stop shop for each of the new mortgage rules, with official agency guidances, FAQs, charts, videos, small entity compliance guides, and lots more! Here are the RESOURCE PAGES for these rules (hint – you also can find these resources on our Topic Pages):
- Ability to Repay (ATR) and Qualified Mortgages (QM) (resource page)
- TILA and RESPA Mortgage Servicing Rules (resource page)
- HOEPA Changes (resource page)
- Appraisals for Higher-Priced Mortgage Loans (resource page)
- Copies of Appraisals and Valuations under ECOA (resource page)
- Loan Originator Compensation (resource page)
“I have an urgent question about the new CFPB mortgage rules!”
Okay! We’re here to help! Click Got Compliance? to send us a question, or call us at 800-GO-TO-IBA, or email us at [email protected]! You also can post a question for your peers to answer on our Compliance Forum!
We already have responded to many questions on the CFPB rules! Just a few of the questions are below — take a look at them, and browse through the CFPB Topic Pages for even more!
- Q&A — If a high cost loan has a rate of 6.2% above the Average Prime Rate Offer for a first lien mortgage, would it be considered a “high risk” loan in Illinois? What are the differences between the Illinois law and the federal regulations?
- Q&A — As a small creditor, can we renew short-term balloon loans with terms of less than five years? Will these be considered qualified mortgages?
- Q&A — Do we have to consider the rate ceiling for our HELOCs to determine whether they are considered “high-cost” mortgage loans under the new CFPB HOEPA rules? Our HELOCs have rates that vary according to an index, but the maximum interest rate on the loans is very high.
- Q&A — In the CFPB’s upcoming ATR rules, does the threshold for a “higher-priced” balloon loan include a different threshold for jumbo loans?
- Q&A — Can we add a provision to our junior lien mortgage agreements that would allow us to recoup any third party fees that we paid at closing, in the event that the customer pays off the loan shortly after closing (i.e., within two or three years)?
- Q&A — What is the correct way to pay out an escrow account when a borrower terminates a mortgage loan? Is it taken off of the loan principal or is it refunded directly to the borrower?