The U.S. House of Representatives this week passed five regulatory relief bills that help community banks. The bills are: Helping Expand Lending Practices . . .
Sole Proprietors Face Hurdles Obtaining QM Loans
Self-employed individuals and small-business owners may not meet the requirements of new mortgage rules that went into effect Friday and could face hurdles obtaining new home loans.
CFPB to Revisit Qualified Mortgage Exemption?
According to Richard Cordray,The Consumer Financial Protection Bureau’s agency director, the CFPB could consider expanding exemptions for small lenders from its qualified mortgage rule after it goes into effect on Friday. Mr. Cordray asked for input from community bankers, credit unions, and other lenders to let the CFPB know if they “got the line right.”
Increases in Dollar Thresholds in Regulations Z & M for Exempt Consumer Credit & Lease Transactions
The FRB and the CFPB today announced they are increasing the dollar thresholds in Regulation Z (Truth in Lending) and Regulation M (Consumer Leasing) for exempt consumer credit and lease transactions. Transactions at or below the thresholds are subject to the protections of the regulations.
Federal Regulators Provide Guidance on Qualified Mortgage Fair Lending Risks
Five federal regulatory agencies today issued a statement to address industry questions about fair lending risks associated with offering only Qualified Mortgages. Creditors have asked for clarity regarding whether the disparate impact doctrine of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B, allows them to originate only Qualified Mortgages. For the reasons described in the statement, the five agencies do not anticipate that a creditor’s decision to offer only Qualified Mortgages would, absent other factors, elevate a supervised institution’s fair lending risk.