The following table provides an update of the changes we are making to our documents in order to comply with the forthcoming January 2014 CFPB regulations. Those readers who have not read our previous updates and legal analysis concerning these new regulations are encouraged to view these before reviewing this table (these are available by clicking here for the initial announcements here for the last update). Changes are listed according to citation:
|
CFPB Rule |
Regulatory Citation |
Status Update |
ConformX ID Number (if applicable) |
|
Revised ECOA and TILA Appraisal Notices |
12 CFR §§ 1002.14 & 1026.35(c) |
These new documents, which will replace Cx6, have been completed and pushed to Stage for client testing. |
Cx17903 (ECOA) and Cx17904 (TILA) |
|
New List of Homeownership Counseling Organizations |
12 CFR § 1024.20 |
We have pushed a sample version of this list to Stage for client review, pending the CFPB’s publication of their counseling website. The CFPB finally published the website on November 8th, with guidance on how to formulate these lists, so we are revising Cx17874 to comply with this guidance. |
Cx17874 |
|
New Transfer of Servicing Disclosure |
12 CFR § 1024.21(d) |
This document has passed internal testing and is awaiting Compliance review before being pushed to Stage for client testing |
Cx17905 |
|
Revisions to Federal Initial ARM Disclosure |
12 CFR § 1026.19(b)(2)(xi) and 12 CFR Pt. 1026, Supp. I, Paragraph (b)(2)(xi) |
The revisions to the interest rate adjustment notice in our generic ARM disclosures have been completed and will print on the documents in Stage. We are still working with investors to get their versions of these disclosures updated. |
Cx13457 & 14089 |
|
New 210-Day Change to Interest Rate and Payment Form |
12 CFR § 1026.20(d) |
This document has passed internal testing and is awaiting Compliance review before being pushed to Stage for client testing |
Cx17906 |
|
Prepayment Penalty Alternative Offer Certification |
12 CFR §§ 1026.23(a)(3)(ii) & 1026.43(g) |
This document has passed internal testing and is awaiting Compliance review before being pushed to Stage for client testing |
Cx17949 |
|
New High-Cost Loan Disclosures |
12 CFR § 1026.32(c) |
One of these new documents (the closed-end version), which will replace Cx2790, has been completed and pushed to Stage for client testing. The other version (the open-end one) is still under development. |
Cx17901 & 17902 |
|
Inclusion of name and NMLS Unique Identifier of loan originators and their companies on all promissory notes and security instruments |
12 CFR § 1026.36(g) |
We are still including the name and NMLS Unique Identifier of mortgage brokers, mortgage lenders, and their originators (up to four entities) on our promissory notes and security instruments. 22 documents have been sent to Stage for client testing (listed below this table), while others are in various stages of development. |
Approximately 660 documents
|
|
Revisions to state-specific disclosures due to the new prohibitions against the funding of credit insurance premiums |
12 CFR § 1026.36(i) |
We have received mixed feedback from most state agencies concerning changes which will be necessary to certain state-specific disclosures in order for these not to conflict with the new prohibitions against the funding of credit insurance premiums under Regulation Z. The general consensus is that the legally-prescribed language of these documents will need to remain the same, but a separate disclaimer should be provided informing borrowers of the Federal prohibition. We are still consulting on this to determine the best course of action. |
Cx1027, 3324, 3715, & 3745
|
|
New ATR/QM Worksheets |
12 CFR § 1026.43 |
These documents are based upon the required worksheets developed by Wells Fargo, as published by them on October 10, 2013. We are in the process of determining which fields and software enhancements may need to be made to create these documents, before submitting them for creation. |
Cx18122 (Income and Debt Worksheet) & 18123 (Fee Details Form) |
|
Revisions to the California-specific version of the ECOA Appraisal Notice |
Cal. Bus. & Prof. Code § 11423 |
No substantial feedback has been received by any California agency on this document, so we are proceeding to “split-out” the California-specific version of Cx6 into a new document. The document has passed internal testing and is awaiting Compliance review before being pushed to Stage for client testing. |
Cx18023 |
|
Revisions to the California Automated Valuation Model Notice |
Cal. Fin. Code § 22317.2 |
Inclusion of a disclaimer in this form has been completed and it will print on the document in Stage. |
Cx11978 |
|
New replacement form for our generic Appraisal Independence Requirements (AIR) documents |
N/A |
Drafts of a document to replace our generic Cx14078 & 15224 have been completed and are in the process of being polished before being submitted for creation. |
To Be Determined |
The documents pushed to Stage which include the names and NMLS unique identifiers for loan originators and their companies are:
- 320 HI Mortgage
- 321 IA Mortgage
- 328 MA Mortgage
- 329 MD Deed of Trust
- 331 MI Mortgage
- 354 VA Deed of Trust
- 367 CT Mortgage FHA
- 368 DC Deed of Trust FHA
- 373 HI Mortgage FHA
- 378 KS Mortgage FHA
- 380 LA Mortgage FHA
- 381 MA Mortgage FHA
- 382 MD Deed of Trust FHA
- 384 MI Mortgage FHA
- 390 ND Mortgage FHA
- 399 OR Deed of Trust FHA
- 401 RI Mortgage FHA
- 407 VA Deed of Trust FHA
- 467 AK Deed of Trust Second
- 512 VA Deed of Trust Second
- 516 WV Deed of Trust Second
- 1075 TX Fixed Rate Note Second
In regards to the List of Homeownership Counselors, the CFPB finally released their instructions for constructing these types of lists (click here for details), so we are working diligently to get our Cx17874 revised to properly generate the data provided by the CFPB and HUD. Much of this data will need to be passed to us from LOS’ and we will be working with them on this matter.
We hope to have this document operational by January 10th but, if this is not possible, we will be printing on Cx17874 the substitute, prescribed language by the CFPB in the Bulletin provided in their announcement (available through the link above), which may be used until the list of counselors is operational.
Please note that documents which are available for testing in Stage must have appropriate information included in fields for the documents and/or new language of the documents to print. This is particularly true in regards to the application and closing dates. The documents and/or language will not print unless the application date is set to January 10, 2014 (January 18, 2014 for the new appraisal notices) or later and the closing dates should also be subsequent to January 10th.
Once each set of documents is completed for each requirement and sent to Stage for client testing, we will send an announcement about this, which will also contain details about the new documents. In the interim, if any clients wish to obtain templates of these documents before they are submitted to Stage, they should contact their Account Manager or Client Support at 1.800.497.3584, who should be able to provide them with such templates.