July 22, 2013 last day to respond to CFPB new proposed mortgage rules!!!!!

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Today the Consumer Financial Protection Bureau (CFPB) proposed clarifications and some narrow revisions to its January 2013 mortgage rules. The proposal issued today would resolve questions that have been identified during the implementation process and would help the rules deliver their intended value for consumers. “When we published our mortgage rules, we pledged to be attentive to issues that arose through the implementation process,” said CFPB Director Richard Cordray. “Today’s proposal revises and clarifies certain aspects of our rules to ease implementation and to pave the way for more effective consumer protections in the marketplace.”
  Jun 24 2013 CFPB issues proposed modifications tomortgage rules  Proposal Would Resolve Implementation Issues and Clear Way for Better Consumer Protections   WASHINGTON, D.C. — Today the Consumer Financial Protection Bureau (CFPB) proposedclarifications and some narrow revisions to its January 2013 mortgage rules. The proposal issuedtoday would resolve questions that have been identified during the implementation process andwould help the rules deliver their intended value for consumers.“When we published our mortgage rules, we pledged to be attentive to issues that arose throughthe implementation process,” said CFPB Director Richard Cordray. “Today’s proposal revisesand clarifies certain aspects of our rules to ease implementation and to pave the way for moreeffective consumer protections in the marketplace.”The CFPB finalized several mortgage rules in January 2013 that are addressed by today’sproposal. The Ability-to-Repay rule protects consumers from irresponsible mortgage lending byrequiring that lenders make a reasonable, good-faith determination that prospective borrowershave the ability to repay their loans. The mortgage servicing rules established strong protectionsfor homeowners facing foreclosure, and the loan srcinator compensation rules address certainpractices that incentivized steering borrowers into risky and/or high-cost loans. The CFPB alsofinalized rules that strengthened consumer protections for high-cost mortgages, and instituted arequirement that escrow accounts be established for a minimum of five years for certain higher-priced mortgage loans.The proposal issued today involves clarifications and some narrow revisions to those mortgagerules. Among other things, today’s proposal would: ã   Outline procedures for obtaining follow-up information on loss-mitigationapplications: According to the CFPB’s servicing rule, within five days of receipt of aloss mitigation application, a servicer must acknowledge receipt of the application andinform the borrower whether it deems the application complete or incomplete. If incomplete, the servicer must identify for the borrower what is needed to complete it. Theproposal would outline procedures for servicers to follow, if, after conducting an initialreview and sending the notice to the borrower, they discover that they do not have theinformation needed to complete an assessment. o   The proposal clarifies that servicers are required to seek the additionalinformation from the borrower if they cannot complete the assessment without it. o   The proposal also requires that servicers ensure that the borrower does not losecertain protections under the rule, such as a foreclosure ban during the first 120  days of delinquency, until the borrower has had a reasonable time to supply theneeded documents or information. ã   Facilitate servicers’ offering of short-term forbearance plans: The proposal wouldmake it easier for servicers to offer short-term forbearance plans for delinquent borrowerswho need only temporary relief without going through a full loss mitigation evaluationprocess. For example, under the proposal, a servicer could provide a two-monthforbearance to a borrower who is suffering a short-term hardship. ã   Facilitate lending in rural or underserved areas: Some of the Bureau’s mortgage rulescontain provisions applicable to certain small creditors that operate predominantly in“rural” or “underserved” areas. The Bureau recently announced that it would reexaminethe definitions of rural or underserved over the next two years. Today’s proposal wouldclarify how existing definitions may apply while that reexamination process is underwayfor purposes of two exceptions under the existing rules. o   The proposal would extend an exception to a ban on high-cost mortgagesfeaturing balloon payments – large, lump sum payments usually due at the end of the loan – to small creditors that do not operate predominantly in rural orunderserved counties so long as the loans meet certain restrictions. o   The proposal would revise an exemption from a requirement to maintain escrowson certain higher-priced mortgage loans for small creditors who operatepredominantly in rural or underserved areas and that also meet other criteria. Toprevent creditors from losing eligibility for the exemption in 2014 due to changesin which counties are defined as rural, the proposal would extend availability tosmall creditors that qualified in any of the previous three calendar years. ã   Make clarifications about financing of credit insurance premiums: The Dodd-Frank Act prohibition on creditors financing credit insurance premiums in connection withcertain mortgage transactions was adopted in the Bureau’s loan srcinator compensationrule. Questions have arisen during the regulatory implementation process concerning theapplication of that prohibition. Today’s proposal seeks to answer those questions. o   The proposal would clarify what constitutes financing of credit insurancepremiums by a creditor – particularly as the rule applies to “level” or “levelized”premiums, where the monthly premium is the same each month rather thandecreasing along with the loan balance. o   The proposal would provide guidance on when credit insurance premiums areconsidered to be calculated and paid on a monthly basis for purposes of anexclusion from the statutory prohibition. ã   Clarify the definition of a loan srcinator: Under the CFPB’s new rules, personsclassified as loan srcinators are required to meet qualification requirements, and are alsosubject to certain restrictions on compensation practices. Creditors and loan srcinatorshave expressed concern that tellers or other administrative staff could be unintentionallyclassified as loan srcinators for engaging in routine customer service activities. Today’sproposal would clarify the circumstances under which a loan srcinator’s or creditor’sadministrative staff acts as loan srcinators.  ã   Clarify the points and fees thresholds for manufactured housing employees: Forretailers of manufactured homes and their employees, the proposal would clarify whatcompensation must be counted toward certain thresholds for points and fees under theability-to-repay and high-cost mortgage rules. ã   Revise effective dates of Loan Originator rule and ban on financing of creditinsurance: Currently, the 2013 Loan Originator Compensation Final Rule is scheduled totake effect on January 10, 2014. o   The CFPB is seeking comment on whether to change the effective date to January1, 2014 for portions of the loan srcinator rule. The Bureau believes that havingthe rule take effect at the beginning of a calendar year may help compliance sincecompensation plans, training, and licensing and registration are often structuredon an annual basis. o   The Bureau is also seeking comment on whether to adjust the effective date forthe ban on financing credit insurance. The Bureau had previously delayed thatdate in order to provide additional guidance on the issues discussed above, and isnow seeking comment on whether the rule should take effect on January 10, 2014,or earlier in light of how much time creditors would need to adjust billingpractices.The CFPB is committed to assisting with the mortgage industry’s compliance with the newconsumer protections. Throughout 2013, the CFPB has been working for a smooth transition. Inaddition to clarifying critical questions about the new mortgage rules, the Bureau has alsopublished plain-language guides for each rule and some interim examination procedures. TheCFPB also plans to educate the public about their protections under the rules.The Bureau recently published a new Regulatory Implementation web page, which consolidatesall of the new 2013 mortgage rules and related implementation materials, and can be found here:http://www.consumerfinance.gov/regulatory-implementation Comments on today’s proposal must be received on or before July 22, 2013.  BILLING CODE: 4810-AM-PBUREAU OF CONSUMER FINANCIAL PROTECTION12 CFR Parts 1002, 1024, and 1026   Docket No. CFPB-2013-0018RIN 3170-AA37Amendments to the 2013 Mortgage Rules under the Equal Credit Opportunity Act(Regulation B), Real Estate Settlement Procedures Act (Regulation X), and the Truth inLending Act (Regulation Z)AGENCY: Bureau of    Consumer Financial Protection. ACTION: Proposed rule with request for public comment. SUMMARY: This rule proposes amendments to certain mortgage rules issued by the Bureau of Consumer Financial Protection (Bureau) in January 2013. These proposed amendments focus primarily on clarifying, revising, or amending provisions on: (1) loss mitigation proceduresunder Regulation X’s servicing provisions; (2) amounts counted as loan srcinator compensationto retailers of manufactured homes and their employees for purposes of applying points and feesthresholds under the Home Ownership and Equity Protection Act and the qualified mortgagerules in Regulation Z; (3) exemptions available to creditors that operate predominantly in “ruralor underserved” areas for various purposes under the mortgage regulations; (4) application of theloan srcinator compensation rules to bank tellers and similar staff; and (5) the prohibition oncreditor-financed credit insurance. The Bureau also is proposing to adjust the effective dates for certain provisions of the loan srcinator compensation rules. In addition, the Bureau is proposingtechnical and wording changes for clarification purposes to Regulations B, X, and Z. DATES: Comments must be received on or before July 22, 2013.  
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