On March 15, 2022, the Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) was signed into law, as Division U of the enactment of the Consolidated Appropriations Act of 2022. As the London Interbank Offered Rate (“LIBOR”) index is set to end on June 30, 2023, the LIBOR Act provides plans…
On June 28, 2021, the CFPB issued a final rule governing loss mitigation procedures and referrals to foreclosure following the COVID-19 pandemic (“COVID Servicing Rule”). The final rule amends the servicing rules under Regulation X, which implements the Real Estate Settlement Procedures Act of 1974 (“RESPA”). The rule adds live…
On April 27, 2021, the CFPB issued a final rule delaying the mandatory compliance date of the December 2020 amendments to the General QM rule (“Amended General QM Rule”), from July 1, 2021 to October 1, 2022. This rule is effective as of June 30, 2021. The final rule amends…
On April 5, 2021, the CFPB issued a proposed rule to amend the early intervention and loss mitigation requirements under the servicing rule of Regulation X. The proposed amendments are made in an attempt to prevent a wave of foreclosures as a result of the COVID-19 emergency. Comments to the…
On March 23, 2021, the Illinois Community Reinvestment Act (“ILCRA”), Senate Bill No. 1608, was signed into law, Public Act 101-0657, and became effective. The ILCRA imposes continuing and affirmative community investment obligations on covered financial institutions, which include non-depository mortgage lenders. This note reviews and comments on key provisions…
CFPB Clarifies that ECOA Prohibits Discrimination Based on Sexual Orientation and Gender Identity On March 9, 2021, the CFPB issued an interpretative rule clarifying that with respect to any aspect of credit transaction, the Equal Credit Opportunity Act’s (“ECOA”), and its implementing Regulation B’s, prohibition against sex discrimination encompasses sexual…
On March 3, 2021, the CFPB issued a proposed rule to delay the mandatory compliance date with the December 2020 amendments to the General QM rule (“Amended General QM Rule”), from July 1, 2021 to October 1, 2022. Comments on the proposed rule must be received on or before April…
On December 10, 2020, the CFPB issued two final rules amending the Qualified Mortgage (“QM”) rule, namely the “General QM Rule” and the “Seasoned QM Rule”. The new rules modify the General QM category, create a new category of Seasoned QM, and will cause the expiration of the Temporary GSE…
On October 29, 2020, five federal financial regulatory agencies, the FRB, CFPB, FDIC, NCUA and the OCC (the “Agencies”), jointly issued a proposed rule outlining and confirming the Agencies’ use of supervisory guidance for regulated institutions. The proposed rule intends to codify the Agencies’ Interagency Statement Clarifying the Role of…
On October 20, 2020, the CFPB issued a final rule extending the Temporary GSE QM Loan category (also known as the GSE Patch), which is the temporary qualified mortgage (QM) status enjoyed by residential mortgage loans that are eligible to be purchased by the GSEs, Fannie Mae and Freddie Mac,…