Idaho Updates the Residential Mortgage Practices Act
By Julio Suarez, J.D.
Effective as of March 25, 2016 Idaho adopted provisions updating its Residential Mortgage Practices Act (the Act). These updates include federal law reincorporation and streamlined processes for lenders as well as brokers.
Provided Information
The amendments incorporated into the Act allow for temporal requirements to shift along with the regulations and laws. Previously, disclosures were to be provided within the time dictated in the Act, namely, three days. However, now the “three day” language has been mostly replaced with “after receipt of an application” allowing the Act to change along with the language of the referenced regulations and laws.
The following disclosures must be provided subsequent to the receipt of an application: (1) disclosures in compliance with the Truth-in-Lending Act and Regulation Z; (2) disclosures in compliance with the Real Estate Settlement Procedures Act and Regulation X; and (3) loan modification confirmation. Of special note, the latter most requirement still retains the previous temporal requirement for it to be provided (three business days).
Requirements Stricken
The Act also repealed several requirements to reduce redundancy. The following are requirements that have been repealed: (1) interest rate lock in agreement not entered; (2) lock in agreement entered; and (3) prepayment penalty disclosures.
Incorporated Federal Laws and Regulations
All of these amendments and repeals are part of a larger to create a streamlined process and ease for lenders and brokers. In order to omit redundancies the Act reincorporated several federal laws and regulations. The following are the aforementioned regulations and laws: (1) The Real Estate Settlement Procedures Act; (2) Regulation X; (3) The Truth in Lending Act; (4) Regulation Z; and (5) NMLS Policy Guidebook.
For a complete reading of the adopted provisions please follow the provided link: http://adminrules.idaho.gov/rules/current/12/0110.pdf
About the Author
Julio Suarez, J.D. is a Regulatory Compliance Consultant at Bankers Advisory. He is a graduate of the University of Central Florida and earned his Juris Doctor at the New England School of Law. Julio can be reached at julio.suarez@bankersadvisory.com
Comments are closed.