October 10, 2014
Dodd-Frank Mortgage Rules Readiness Guide
The CFPB issued Version 3.0 of its 2014 CFPB Dodd-Frank Mortgage Rules Readiness Guide “to help financial institutions come into and maintain compliance with the new mortgage rules outlined in Part I of this Guide. . . .. This Guide summarizes the mortgage rules finalized by the CFPB as of August 1, 2014, but it is not a substitute for the rules.” (2)
The Guide provides a helpful overview of the Dodd-Frank rules that relate to the mortgage market, noting that they “amend several existing regulations, including Regulations Z, X, and B.” (3) The guide provides summaries of “rules required under Title XIV of the Dodd-Frank Act” and “the Integrated Mortgage Disclosures under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).” (3) These summaries include:
- Ability to Repay
- Qualified Mortgage
- TILA Escrow Requirements
- High-Cost Mortgage and Homeownership Counseling
- Mortgage Servicing
- ECOA Valuations for Loans Secured by a First Lien on a Dwelling
- TILA Appraisals for Higher-Priced Mortgage Loans
- Loan Originator Compensation Requirements
- TILA-RESPA Integrated Disclosure
While this Guide is directed at financial institutions to help them “come into and maintain compliance” with these rules, it also provides a useful overview for everyone else who is trying to understand what the current regulatory environment for the mortgage market looks like. (2)
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