Mortgage Lending
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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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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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Taxpayer First Act
The Taxpayer First Act, signed into law on July 1, 2019, contains a provision stating that persons receiving tax return information must obtain express permission from taxpayers before disclosing that information to a third party. This provision of the Act is effective as of December 28, 2019.
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CFPB Updates TRID FAQs for Loan Estimate
The Consumer Financial Protection Bureau has updated its TILA-RESPA Integrated Disclosure frequently asked questions to include items regarding provision of the Loan Estimate to consumers.
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CFPB Proposed HMDA Rule Includes Changes to Thresholds for Reporting
On May 2, 2019, the Consumer Financial Protection Bureau published a proposed rule to amend Regulation C, which implements the Home Mortgage Disclosure Act. Below are key points related to this latest HMDA happening.
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FHA issues Mortgagee Letter 2019-06 related to Borrower’s Minimum Required Investment
On April 18, 2019, the Federal Housing Administration (FHA) issued Mortgagee Letter 2019-06 which clarifies source requirements for a borrower’s Minimum Required Investment (MRI).
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Fannie Mae Updates Selling Guide
On April 3, 2019, Fannie Mae announced changes to the Selling Guide sections covering HomeReady ® mortgage loans, the self-report process, and additional topics.