On January 10, 2013, the Consumer Finance Protection Bureau (CFPB) issued three final rules implementing various sections of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). These rules will be effective one year from the date of issuance, so they will take effect on January 10, 2014. The following is a brief summary of each rule and links to the CFPB webpages where you can go to read the rules or get more information.
Ability to Repay and Qualified Mortgage Standards Under the Truth in Lending Act (Regulation Z)
This rule requires creditors to make a reasonable, good faith determination of a consumers ability to repay any consumer credit transaction secured by a dwelling (excluding an open-end credit plan, timeshare plan, reverse mortgage, or temporary loan) and establishes protections from liabilities for loans that qualify as “qualified mortgages.”
For more information visit:
Escrow Requirements Under the Truth in Lending Act (Regulation Z)
This rule implements changes required by Dodd-Frank to lengthen the time for which a mandatory escrow account must be established and maintained for higher-priced mortgages as defined by Regulation Z.
For more information visit:
High-Cost Mortgage and Homeownership Counseling Amendments to TILA (Regulation Z) and Homeownership Counseling Amendments to RESPA (Regulation X)
This rule expands the types of mortgages that are subject to the Home Ownership and Equity Protection Act (HOEPA), it revises the tests for coverage under HOEPA and imposes restrictions on HOEPA loans including a pre-loan counseling requirement. This rule also amends Reg Z and Reg X to require homeownership counseling information including a list of providers.
For more information visit:
DocuTech is reviewing these new rules to determine how these changes affect the ConformX software. We will be reviewing our findings with partners and clients and will release more information as soon as it is available to ensure you are ready for the January 10, 2014 effective date for these rules.