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HUD Announces Lower Mortgage Insurance Premiums for FHA Loans
On February 22, 2023, the Department of Housing and Urban Development (HUD), through the Federal Housing Administration (FHA), announced a significant reduction in annual mortgage insurance premiums for newly originated FHA loans.
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With Interest Rates Soaring, Borrowers Turn to Buydown Agreements
As interest rates and property values remain at a steady high, borrowers are trending towards 2-1 temporary buydown agreements to keep their initial mortgage payments down. These borrowers are hopeful that they will be able to refinance in the future to bring their payments down permanently.
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Virginia Modifies Real Estate Provisions
The state of Virginia has amended several of its real estate provisions, including those relating to mortgage brokers, the misuse of the power of attorney, and residential property disclosures. These updates are effective as of July 1, 2022.
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Implications of 2022 Juneteenth Holiday on Residential Mortgage Transactions
In June of 2021 President Biden amended 5 U.S.C. 6103(a) to add “Juneteenth National Independence Day, June 19” to the list of Federal legal public holidays. Many regulatory provisions reference this list of holidays, including Regulation Z’s specific business day definition. However Regulation Z includes two definitions of “business day,” (specific and general) that apply to different disclosures.
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Sunset on the LIBOR Index
The Bureau of Consumer Financial Protection has issued a final rule that amends Regulation Z in anticipation of the discontinuation of the use of the London Interbank Offered Rate (LIBOR) based indices in consumer transactions.
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New York Enacts Provisions Regarding Home Loan Modifications
The state of New York has recently added a section to its banking law regarding delinquent home loan modifications. These provisions are effective on January 2, 2022.
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Revised Qualified Mortgage Rule
In December of 2020, the Consumer Finance Protection Board (CFPB) issued a new General Qualified Mortgage (QM) final rule. Although the new final rule took effect on June 30, 2021, the required compliance date of July 1, 2021 was pushed back to October 1, 2022.
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CFPB Amends Mortgage Servicing Rule
The Consumer Financial Protection Bureau (CFPB) has issued a final rule amending Regulation X to provide relief to borrowers facing financial hardship amid the COVID-19 emergency. The final rule was effective as of August 31, 2021.
The final rule consists of five amendments to Regulation X intended to encourage borrowers and servicers to work collaboratively on foreclosure avoidance options.
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Wisconsin Enacts Provisions Regarding Financial Institutions
The state of Wisconsin has recently enacted provisions regarding financial institutions, which include temporary authority to act as a mortgage loan originator while a license application is pending. Provisions in this bill range from effective immediately to effective on May 2, 2021.
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New Jersey Issues Bulletin Regarding 2020 High-Cost Home Loan Dollar Adjustment
The New Jersey Department of Banking and Insurance has issued a bulletin setting out the maximum principal amount for loans that may be considered “high-cost home loans” under the New Jersey Home Ownership Security Act of 2002. The adjusted dollar amount is effective for loan applications received on or after January 1, 2020.
