Ability to Repay and Qualified Mortgage Requirements
Click here to view product matrices for each of the potential mortgage types. The matrices have been compiled by IBAT's Regulatory Compliance Manager, Kelly Goulart, to help you prepare for the upcoming January deadlines. Each matrix covers the potential civil liability risk, the mortgage requirements and prohibitions by type, and minimum underwriting criteria.
CFPB Mortgage Compliance Guides
CFPB Downloadable compliance guides: The CFPB prepared the below plain-language compliance guides to the new mortgage rules in a FAQ format with the stated purpose of making the content more accessible for industry constituents, especially smaller businesses with limited legal and compliance staff:
- TILA-RESPA Integrated Disclosure Rule Small Entity Compliance Guide (September 2014)
Ability-to-Repay - Qualified Mortgage Rule (Jan. 2014) | CFPB Video | Chart Comparing Ability-to-Repay and Qualified Mortgage Rules
Chart Comparing Ability-to-Repay and Qualified Mortgages - See more at: http://www.ibat.org/cfpb-residential-mortgage-rules#sthash.e8N86maO.dpuf
- 2013 HOEPA Rule (Jan. 2014) | CFPB Video
- 2013 Loan Originator Rule (Jan. 2014) | CFPB Video
- ECOA Valuations Rule (Jan. 2014) | CFPB Video
- HPML Appraisals Rule (Jan. 2014) | CFPB Video
- TILA Escrow Rule (Jan. 2014) | CFPB Video
- 2013 Servicing Final Rule (Jan. 2014)| CFPB Video
CFPB Mortgage Rule Clarification Series
In order to provide additional clarification on the recently issued CFPB mortgage reforms, IBAT Regulatory Compliance Manager Kelly Goulart is releasing a series of white papers addressing each change contained in the seven major mortgage lending initiatives.
The seventh and final part of the series, focused on mortgage loan originator compensation, is now online.
Previous documents in the series can be found here:
- Mortgage Loan Servicing Requirements
- Expansion of High Cost and High Fee (HOEPA) Mortgages
- Equal Credit Opportunity Act (ECOA) and Higher Priced Mortgage Loan (HPML) Rules
- Ability to Repay (ATR) and Qualified Mortgage Rules (amended version)
- Escrow requirements for HPMLs
- Regulation Z - Prohibited Acts or Practices
FAQs on Dodd-Frank Act Mortgage Rules
On February 21, 2013, IBAT General Counsel Karen Neeley presented the webinar above on the CFPB residential mortgage rules. The webinar was followed by a lively question and answer session. Ms. Neeley compiled those questions and answers, plus others, into an FAQ on the CFPB’s Residential Mortgage Rules that IBAT is making available to its members.
CFPB Designates "Rural and Underserved" Counties
|Final 2018 Lists|
Rural or Underserved Counties
Some entities that do business in rural or underserved counties are exempt from certain regulatory requirements of the Truth in Lending Act.
In addition to these lists, lenders should also use the CFPB’s Rural or Underserved Areas Tool to provide a safe harbor determination that a property is located in a rural or underserved area as defined in 12 CFR 1026.35(b)(2)(iv)(A) and (B). The tool is more comprehensive than the lists because the lists reflect rural status only at the county level; the tool includes both locations that are rural because they lie in rural (non-urban) census blocks and locations that are rural because they lie in rural counties.
These lists include the following U.S. territories as rural areas in their entireties: Guam, the Commonwealth of the Northern Mariana Islands, American Samoa, and the U.S. Virgin Islands. These territories comprise areas that the U.S. Census Bureau treats as counties and that are neither metropolitan statistical areas or micropolitan statistical areas adjacent to metropolitan statistical areas.
Historical lists can be found here.
CFPB Mortgage Reform Exemption Analysis
It is certain that the new mortgage lending compliance requirements issued by the CFPB will have a considerable impact upon community banks across Texas. Of the seven major mortgage lending compliance initiatives required under Dodd-Frank, six have been finalized. Three of the four have an exemption either finalized or proposed targeting small, rural lenders. This single page handout is intended to help you understand the practical considerations of the exemption qualifications in general and what specifically is being exempted.
Regulators Offer Help with Mortgage-related Final Rules
The CFPB published a Small Entity Compliance Guide for the Ability-to-Repay and Qualified Mortgage Rule to provide a rule summary in a plain language and FAQ format. The CFPB also issued a chart comparing Ability-to-Repay with Qualified Mortgages.
- TRID Questions Index
- TILA-RESPA Integrated Disclosure Calendar
- Mortgage Rules Readiness Guide
- Ability-to-Repay Product Matrices
- CFPB Mortgage Rules Webinar Slides
- Dodd-Frank Act Mortgage Rules FAQs
- Texas Rural Counties Map
- CFPB Mortgage Reform Exemption Analysis
- CFPB Rural Exemption Memo
- Ability to Repay Summary
- Ability to Repay Fact Sheet
- CFPB Ability-to-Repay and Qualified Mortgage Rule
- Chart Comparing Ability-to-Repay and Qualified Mortgages