Sunday, February 05, 2012
Articles
Category

 
Consumer Financial Protection Bureau Issues Mortgage Origination Examination Procedures for Nonbank Mortgage Lenders and Brokers
  Published :  02/02/2012

The Consumer Financial Protection Bureau (CFPB) recently published its Mortgage Origination Examination Procedures, which it calls a key initial step in implementing its Nonbank Supervision program. These Procedures are a field guide for CFPB examiners looking at mortgage originators in both the bank and nonbank sectors of the industry.

Full Article and Downloads

 
Federal Agencies Issue Guidance on Junior Lien Loan Loss Allowances – January 31, 2012
  Published :  02/01/2012

The Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of the Currency (collectively the “agencies”) issued the attached supervisory guidance on allowance for loan and lease losses (ALLL) estimation practices associated with loans and lines of credit secured by junior liens on one- to four-family residential properties.

Full Article and Downloads

 
New Payoff Statement Rules Adopted by Texas Finance Commission
  Published :  12/30/2011

In the December 30, 2011 issue of the Texas Register (Vol. 36, No. 52) the Finance Commission of Texas (“Commission”) adopts the following Payoff Statement Rules (new 7 TAC Chapter 155) pursuant to the requirements of Section 343.106, Texas Finance Code, enacted by House Bill 558 in the 2011 regular session of the Texas Legislature (see our prior memorandums on House Bill 558 and the Commission’s proposed payoff statement rules dated August 15, 2011, and November 4, 2011, respectively). The Rules are effective January 8, 2012, except as noted on page 2 hereof:

Full Article and Downloads

 
Bureau of Consumer Financial Protection Issues New Regulations
  Published :  12/30/2011

In our December 16, 2011, memorandum we advised you that the Bureau of Consumer Financial Protection (CFPB) had begun the process of republishing the regulations implementing the consumer financial protection laws for which Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) had transferred rulemaking authority to the CFPB from seven Federal agencies (i.e., FRB, FDIC, FTC, NCUA, OCC, OTS, and HUD) as of July 21, 2011. The CFPB is continuing this process of republishing the regulations implementing those laws by publishing in the Federal Register (Vol. 76, Issues 243, 244, 245, 246, 248 and 250) the following additional interim final regulations, effective December 30, 2011:

Full Article and Downloads

 
FHA Extends Wavier of Property Flipping Rule in 24 CFR 203.37a(b)(2)
  Published :  12/28/2011

In today’s issue of the Federal Register (Vol. 76, No. 249, Pages 81363 - 81365) the Federal Housing Administration (FHA) published notice that it is extending the waiver of the FHA Regulation prohibiting property flipping in connection with FHA insured loans until December 31, 2012. The notice Summary (redacted for brevity) is republished below:

This notice announces that FHA is extending the availability of the temporary waiver of its regulation that prohibits the use of FHA financing to purchase single family properties that are being resold within 90 days of the previous acquisition, until December 31, 2012. This waiver, which was first issued in January 2010, took effect for all sales contracts executed on or after February 1, 2010, and was extended in February 2011. The waiver is set to expire on December 31, 2011, and therefore HUD is extending the waiver for another calendar year. Prior to the waiver, a mortgage was not eligible for FHA insurance if the contract of sale for the purchase of the property that is the subject of the mortgage is executed within 90 days of the prior acquisition by the seller and the seller does not come under any of the exemptions to this 90-day period that are specified in the regulation. The waiver is applicable to all single family properties being resold within the 90-day period after prior acquisition. Additionally, the waiver is subject to certain conditions, and eligible mortgages must meet these conditions to take advantage of the waiver [See pages 81364 - 81365 of the Notice]. The waiver is not applicable to mortgages insured under HUD’s Home Equity Conversion Mortgage (HECM) Program.

To read the complete Notice please visit http://www.gpo.gov/fdsys/pkg/FR-2011-12-28/pdf/2011-33411.pdf.

Full Article and Downloads

 
Federal Bank Regulatory Agencies Release Annual CRA Asset-Size Threshold Adjustments for Small and Intermediate Small Institutions
  Published :  12/20/2011

In a joint press release issued today, the Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, and Federal Deposit Insurance Corporation announced they are amending their respective Community Reinvestment Act (CRA) regulations to adjust the asset-size thresholds used to define “small bank” or “small savings association” and “intermediate small bank” or “intermediate small savings association.” The text of this joint press release is set out below:

Full Article and Downloads

 
Bureau of Consumer Financial Protection Issues New Regulations
  Published :  12/19/2011

Title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) transferred rulemaking authority for a number of consumer financial protection laws from seven Federal agencies (i.e., FRB, FDIC, FTC, NCUA, OCC, OTS, and HUD) to the Bureau of Consumer Financial Protection (CFPB) as of July 21, 2011. The CFPB has begun the process of republishing the regulations implementing those laws by publishing in today’s Federal Register the following interim final regulations, formerly under the authority of the FTC, effective December 30, 2011:

Full Article and Downloads

 
Bureau of Consumer Financial Protection Request for Suggestions for Streamlining Inherited Regulations (76 Federal Register No. 233)
  Published :  12/07/2011

In the December 5, 2011 issue of the Federal Register, the Bureau of Consumer Financial Protection (the Bureau) published notice that it is requesting specific suggestions from the public for streamlining regulations it recently inherited from other Federal agencies. It asks those interested to identify provisions of the inherited regulations that the Bureau should make the highest priority for updating, modifying, or eliminating because they are outdated, unduly burdensome, or unnecessary.

Full Article and Downloads

 
2011 Legislative Update from 82nd Regular Session of the Texas Legislature - Bills Effective On and After January 1, 2012
  Published :  12/01/2011

This is the final legislative update prepared by this firm for the 2011 legislative session of the Texas Legislature. It summarizes constitutional amendment SJR 14 approved by the voters on November 8, 2011, and 8 bills effective on and after January 1, 2012, that we consider are of interest to our clients.

Full Article and Downloads

 
Residential Mortgage Loan Originator Licensing and Regulation Rules
  Published :  11/25/2011

In the November 4, 2011 issue of the Texas Register (Vol. 36, No. 44), the Finance Commission of Texas (the Commission) published changes to the rules in the Texas Administrative Code (TAC) concerning Texas Residential Mortgage Loan Originator Regulations (7 TAC Chapter 80) and Mortgage Banker Registration and Residential Mortgage Loan Officer Licensing (7 TAC Chapter 81). The Commission made these changes in order to (i) implement the provisions of Senate Bill 1124 passed by the 2011 Texas legislative session (see our November 15, 2011 legislative update), (ii) conform the rules to the current practices of the Texas Department of Savings and Mortgage Lending (the Department), (iii) reconcile language in the rules to statutory language, and (iv) add clarification where needed. These administrative rules changes are effective as of November 13, 2011.

Full Article and Downloads

 
2011 Legislative Update – Senate Bill 1124 (Residential Mortgage Loan Originator Licensing and Regulation) Effective September 1, 2011
  Published :  11/15/2011

This legislative update for the 2011 legislative session of the Texas Legislature summarizes Senate Bill 1124, which amends Chapters 156 (Mortgage Brokers), 157 (Registration of Mortgage Bankers), and 180 (Texas SAFE Act) of the Texas Finance Code. The federal Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (Federal SAFE Act) required all states to enact a system for licensing and registering loan originators that meets its the requirements. To be in compliance with the Federal SAFE Act the Texas Legislature, in the 2009 legislative session, enacted Chapter 180 and amended Chapters 156 and 157. A number of provisions in Chapters 156, 157, and 180, however, still need to be reconciled due to the differences in definitions, powers and terminology that exist in these Chapters. Senate Bill 1124 reconciles these differences, harmonizes the text, where applicable, and conforms the terminology of these Chapters to that used in the Federal SAFE Act. In addition, Senate Bill 1124 makes other amendments to these Chapters.

Full Article and Downloads

 
Payoff Statement – Texas Finance Commission Proposes Payoff Statement Form and Administrative Rules to Implement Section 343.106, Finance Code.
  Published :  11/04/2011

In today’s issue of the Texas Register (Volume 36, Number 44) the Finance Commission of Texas (the Commission) proposes new Administrative Rules under 7 TAC Chapter 155, §§155.1 - 155.3, concerning Payoff Statements to implement the new statutory provisions of Section 343.106 of the Texas Finance Code.

Full Article and Downloads

 
Mortgage Servicer Enforcement Action by Federal Reserve Board
  Published :  11/04/2011

The Federal Reserve Board published the following press release yesterday regarding potential mortgage foreclosure irregularities by four mortgage servicers:

The Federal Reserve Board on Tuesday announced that borrowers who believe they were financially harmed during the mortgage foreclosure process by four institutions in 2009 and 2010 can now request an independent review and potentially receive compensation.

Four large mortgage servicers supervised by the Board [names deleted] are required to conduct this program as part of their compliance with enforcement actions issued by the Board in April 2011. Under these actions, servicers are required to compensate borrowers for financial injury resulting from deficiencies in their foreclosure processes. A number of servicers supervised by the Office of the Comptroller of the Currency must also conduct the program.
 

Full Article and Downloads

 
Department of Veterans Affairs Uniform Appraisal Dataset Appraisal Reports
  Published :  10/21/2011

For clients who originate or purchase VA loans, below is the text of the October 21, 2011, VA memorandum by Gloria H. Pointer, Valuation Officer in the Houston Regional Loan Center, announcing the adoption of Uniform Appraisal Dataset (UAD) compliant appraisal reports for VA Loan Guaranty Programs.

Full Article and Downloads

 
Consumer Financial Protection Bureau Supervision and Examination Manual
  Published :  10/14/2011

Today, the Consumer Financial Protection Bureau (“CFPB”) released its Supervision and Examination Manual (the “Manual”), which may be found at CFPB Supervision and Examination Manual. The following is taken from the CFPB Notice of the Manual’s release, posted on its website at http://www.consumerfinance.gov/, and the Manual’s Introduction.

Full Article and Downloads

Page:   of 10