The Federal Reserve Board (FRB) has issued an interim rule that revises the disclosure requirements for closed-end mortgage loans under Regulation Z (Truth-in-Lending). The interim rule implements provisions of the Mortgage Disclosure Improvement Act (MDIA) that require lenders to disclose how borrowers' regular mortgage payments can change over time.Read more

The Federal Reserve Board (FRB) has proposed enhanced consumer protections and disclosures for home mortgage transactions. The proposal includes significant changes to Regulation Z (Truth-in-Lending) and represents the second phase of the Board's comprehensive review and update of the mortgage lending rules in the regulation. The proposed changes reflect the results of consumer testing by the Board, which will begin accepting public comment. The latest proposal would:Read more

Today, the United States Senate will vote on an amendment offered by Sens. Jeff Merkley (D-OR) and Amy Klobuchar (D-MN) to S. 3217, the “Restoring American Financial Stability Act of 2010,” that, if passed, will put the mortgage broker out of business.Read more

In July 2008, the Federal Reserve Board approved a final rule, which amends Regulation Z (the Truth-in-Lending Act) and was adopted under the Homeownership and Equity Protection Act (HOEPA). The new rule addressed and defined “higher-priced mortgage loans” (HPML), a new category of mortgage loans, while also providing additional protection to consumers.¹ Most requirements of the rule were to be implemented on Oct. 1, 2009.
Four key protections were provided to consumers:Read more

The deadline for covered institutions to submit their 2009 Home Mortgage Disclosure Act (HMDA) data is March 1, 2010. There are four steps that can be taken to assure accuracy and timely submission of HMDA data. Control data quality (Step 1):

1) Periodically evaluate HMDA data to ensure that all relevant product lines are included and that the data include all loan applications that are originated, denied or withdrawn.Read more

MRG Document Technologies (MRG), a provider of mortgage compliance technology and services to banks, credit unions and other lenders nationwide, announced that it focused on developing strategic integrations and partnerships in 2009, increasing the number of lenders that access its compliant mortgage document preparation services.

Some of the key alliances include:

► Partnered with Kroll Factual Data to provide clients with access to three of Kroll’s risk assessment services through MRG’s MIRACLE Online compliance software, including a “Reg Flag Rules” plan.Read more

The National Association of Mortgage Brokers (NAMB) has submitted comments to the Federal Reserve Board (The Board) on the Proposed Rule amending Regulation Z. NAMB commends the Board for its efforts to fix problems that exist in the mortgage market, however certain aspects of the Proposed Rule will impede competition, fail to reflect the most current and authoritative research, and/or do not consider the most effective and least burdensome alternatives.Read more

The Center for Responsible Lending (CRL) has recommended that the Federal Reserve Board strengthen a proposal to ban routine kickbacks for steering borrowers into unnecessarily risky or expensive home loans. In recent years, these kickbacks (often called "yield-spread premiums") have cost consumers billions of dollars. If finalized as proposed, the kickback ban would apply to mortgage brokers, loan officers, and any party that originates mortgages for lenders who fund the loans.Read more

National organizations representing state financial regulators have registered their general support of the Federal Reserve Board's proposed changes to Regulation Z. In a comment letter sent Dec. 18, the Conference of State Bank Supervisors (CSBS), joined the American Association of Residential Mortgage Regulators (AARMR) and the National Association of Consumer Credit Administrators (NACCA), to weigh in on proposed changes dealing with closed-end mortgage transactions and HELOC (home equity line of credit) transactions.Read more

The Mortgage Bankers Association (MBA) has filed two comment letters with the Board of Governors of the Federal Reserve System, both relating to the proposed amendments to Regulation Z, the implementing regulation for the Truth-in-Lending Act (TILA). The first letter specifically addresses the proposed rules to revise consumer disclosures and compensation practices for closed-end credit transactions--a credit agreement in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date, such as your traditional 30-year fixed mortgage.Read more