Tag Archives: Mortgage disclosure rules

Thursday’s Advocacy & Think Tank Round-Up

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  • The National Association of Realtors (NAR)’s Existing Home Sales (EHS) (completed transactions).  EHS fell  10.5% from October and 3.8% from last November.  NAR believes this precipitous decline is not due to any decrease in demand but, rather, tight inventory and the Industry’s having to adjust to new “Know Before You Owe” mortgage disclosure rules.
  • Seeking Alpha blog’s about the evolving receivership of Fannie Mae and Freddie Mac.

Tuesday’s Regulatory & Legislative Round-Up

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  • The Consumer Financial Protection Bureau has launched an Online Guide for Real Estate Professionals to understand their obligations under the new “Know Before You Owe” mortgage disclosure rules, which become effective October 3, 2015.  The Know Before You Owe mortgage initiative is designed to empower consumers with the information they need to make informed mortgage choices. It includes the implementation of the TILA-RESPA (Truth in Lending Act – Real Estate Settlement Procedures Act) Integrated Disclosure rule. The new rule primarily does two things, first it consolidates some of the disclosures that must be made unto fewer forms and second it changes the timing of certain activities in the mortgage lending process.
  • Fannie Mae and Freddie Mac have announced an auction of Non-Performing Loans (NPLs) in the amount of 1.2 billion and provided details for bidder pre-qualification and servicer requirements. The reasons for the program are fourfold: 1. reduce illiquid assets, 2. encourage broad investor participation; 3. consider borrower outcomes; 4. a well controlled transparent process.
  • The New York City Council has passed three Tenant Buyout Bills which were designed to protect tenants from landlords who want them out of rent stabilized apartments.
    • The Bills are: Intro 682 – buyout offered in a threatening manner are an act of harassment.  This includes untoward language, odd hour contact, frequent contact, and abusive contact.
    • Intro 700 – requirement of a writing to memorialize the buyout offer, this writing must include important facts including the tenant’s right to seek legal representation and the right to refuse.
    • Intro 757 – Bars repeated buyout offers by making such behavior a form of harassment when the tenant has indicated she/he is not interested.

Friday’s Government Reports

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  • Consumer Financial Protection Bureau (CFPB) recently released a report entitled A Closer Look a Reverse Mortgage Advertisements and Consumer Risks which discusses its findings regarding the failure of reverse mortgage ads to mention the considerable risks involved in reverse mortgage loans (while extolling their virtues).  The CFPB also released a consumer advisory to warn seniors about the potential pitfalls of reverse mortgages.
  • A new rule requiring a Three Day Review Period for Mortgage applications submitted after August 1st, 2015 will only apply if certain (3) changes are made before closing: 1. Changes in Annual Percentage Rate (APR); 2) Prepayment terms; 3) Basic loan product changes (i.e. from fixed at adjustable rate). The CFPB has released a factsheet detailing how the new rule functions.
  • The Federal Housing Finance Agency unveiled an interactive online map to help “in the money borrowers” identify the opportunity (those eligible for The Home Affordable Refinance Program aka HARP).

Tuesdays Regulatory & Legislative Round-Up

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