URLA Revisions - 2020 IBA Virtual Compliance Conference · 2016. 11. 28. · URLA Revisions •...
Transcript of URLA Revisions - 2020 IBA Virtual Compliance Conference · 2016. 11. 28. · URLA Revisions •...
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URLA Revisions
• Revised Uniform Residential Loan Application (URLA) • Now 7 pages in length w/ Spanish version available
• Interactive PDF w/ drop down boxes & calculation tools
• New “unmarried” addendum
• Incorporates HMDA 2018 revised applicant demographic info which must be collected starting Jan. 1, 2018
• Fannie provided sample purchase & refi app
• More info - https://www.fanniemae.com/singlefamily/uniform-residential-loan-application
https://www.fanniemae.com/singlefamily/uniform-residential-loan-applicationhttps://www.fanniemae.com/singlefamily/uniform-residential-loan-applicationhttps://www.fanniemae.com/singlefamily/uniform-residential-loan-applicationhttps://www.fanniemae.com/singlefamily/uniform-residential-loan-applicationhttps://www.fanniemae.com/singlefamily/uniform-residential-loan-applicationhttps://www.fanniemae.com/singlefamily/uniform-residential-loan-applicationhttps://www.fanniemae.com/singlefamily/uniform-residential-loan-application
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URLA Revisions • Approved by CFPB on Sept. 29th
• URLA deemed to be in compliance w/ Reg. B
• No plan to update Reg. B or OSC
• CFPB said creditors MAY as of Jan. 1, 2017:
• begin to use the form
• let borrowers self-select sub-aggregate ethnicity & race codes
• However, for 2017 HMDA reporting purposes, report aggregate ethnicity and race codes as they exist today
• Creditors may also wait until Jan. 1, 2018 to collect expanded data & use revised URLA
DOL Fiduciary Rule
• Effective – April 10, 2016
• Mandatory • April 10, 2017 – New definition of fiduciary
• January 1, 2018 – Best Interest Contract and Principal Transaction Exemption
• Intent: • Avoid Conflicts of Interest in providing investment advice
• Define/acknowledge “investment fiduciaries”
• Promote, educate and empower retirement investors when making retirement choices
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DOL Fiduciary Rule
• Fiduciary Advisor – person giving investment advice
• Covered Investment Advice
• Recommendation for fee or other compensation
• Advising customer to buy, hold, sell, exchange securities or other investment property
• Includes securities or property rolled over, transferred, or distributed from a plan or IRA
DOL Fiduciary Rule
• Not Investment Advice • Education – options available without customizing
• General Communication:
• Newsletters
• Commentary in publicly broadcast talk shows
• Speeches at conferences
• Research or news reports prepared for general distribution
• General marketing materials
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DOL Fiduciary Rule
• Exemptions
• Principal Transaction Exemption (Sales or Hire Me)
• Allows an exemption if selling own products
• Adhere to impartial conduct standards (best interest)
• Avoid misleading statements
• No compensation that is not in best interest
DOL Fiduciary Rule • Exemptions
• BICE – Best Interest Contract Exemption
• Requires bank to have best interest of customers in mind when providing investment advice
• Cannot steer investor to product based on compensation
• Avoid making misleading statements
• Contract required
– Acknowledges “fiduciary” status
– Full and fair disclosure of important information (material conflicts of interest, fees, charges, compensation, etc.)
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DOL Fiduciary Rule
• Impact of Rule
• Prohibited Transactions – if non-compliant
• Advertisements – more customized, greater possibility it becomes advice
• Sales Activities
• Initial Purchase
• Rollover, transfer, distribution
DOL Fiduciary Rule • Policies and Procedures
• Mitigate harmful impacts of conflicts of interest
• Basic info on any conflicts of interest
• Cost of advice
• Website
• Business Model
• Material Conflicts of Interest – third party arrangements
• Written description of policies and procedures that mitigate conflicts of interest
• Disclosure of compensation and incentive arrangements with advisors
• Etc.
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2016 Mortgage Servicing Rule
• Revisions applicable to ALL Servicers
• Successors in Interest • Persons to whom an ownership interest is transferred by
means detailed in rule including:
– Transfers resulting from the death of the borrower
– Transfers to the borrower’s spouse or children
– Transfers resulting from divorce
• Servicer must treat Successor in Interest as “borrower” for servicing purposes even if they are not obligated on debt
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2016 Mortgage Servicing Rule
• Revisions applicable to ALL Servicers
• Delinquency • A period of time during which a borrower’s mortgage loan
obligation is delinquent (unpaid)
• Delinquency period begins on the date a periodic payment sufficient to cover principal, interest, and (if applicable) escrow becomes due and unpaid, until such time as no periodic payment is past due and unpaid.
– Regardless of whether or not a late fee will be assessed
2016 Mortgage Servicing Rule
• Delinquency Example • Borrower’s loan requires payments on the
1st each month
• A late fee will not be assess if payment is made by the 15th of the month
• Borrower fails to make the Jan. 1st payment, the period of delinquency begins on Jan. 2nd, not Jan. 16th
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2016 Mortgage Servicing Rule • Rolling Delinquencies
• If a servicer applies a borrower’s payment to the oldest outstanding periodic payment, must advance the date that the delinquency began
• Example
• Payment due 1st of each month & borrower doesn’t pay
• On Jan. 31, borrower is 30 days past due
• On Feb. 3 borrower makes payment and servicer applies to Jan. 1 payment
• On Feb. 4, borrower is 3 days past due
2016 Mortgage Servicing Rule
• Delinquency under other mortgage provisions
• E.g., failure to maintain insurance or pay taxes
• NOT covered by this servicing rule
• Servicer may act based on rights outlined in mortgage loan contract and applicable state law
• Servicer may “accelerate” loan for these defaults according to mortgage loan contract
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2016 Mortgage Servicing Rule
• CFPB Resource
• Factsheet on Delinquency & 2016 Mortgage Servicing Rule
• http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/
• 8 pages
2016 Mortgage Servicing Rule • Revisions applicable to ALL Servicers
• Loss Mitigation
• Reg. X prohibits “first notice of filing” for foreclosure until borrower is more than 120 days past due
• Iowa cure notice is NOT “first notice of filing”
• New exception to rule: servicer may join either a superior or subordinate lienholder's foreclosure action even if borrower is NOT delinquent w/ servicer
– Previously, only permitted on subordinate lien
http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/
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2016 Mortgage Servicing Rule
• Revisions applicable to ALL Servicers
• Force-Placed (FP) Hazard Insurance
• Reg. X requires servicer to have “reasonable basis” to believe borrower failed to maintain property insurance before charging for FP policy
• Requires initial and reminder notice
• Rule revises disclosures & model forms to cover situations where insurance is insufficient
• Permits loan number on FP notices
2016 Mortgage Servicing Rule • Revisions applicable to ALL Servicers
• Prompt Payment Crediting
• Existing general rule: Credit payments as of date of receipt, unless delay in crediting does not result in additional charge to consumer or negative reporting to CRA
• Revisions: Payments made during mitigation program must continue to be credited according to loan contract
– Payments made per a permanent modification, must be credited under the terms of the permanent agreement
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2016 Mortgage Servicing Rule
• Definition of Small Servicer • A servicer that, together with any affiliates, services 5,000 or
fewer mortgage loans for which the servicer (or an affiliate) is the creditor or assignee
• New clarification:
• Exclude from 5,000 count seller-financed transactions and mortgage loans voluntarily serviced at no charge for a non-affiliate, even if the non-affiliate is not a creditor or assignee
2016 Mortgage Servicing Rule
Small Servicer are exempt from:
• Periodic statement
requirements
• Prohibition on force-placing
when escrow account exists
• General servicing policies,
procedures & requirements
• Early intervention provisions
• Continuity of contact provisions
for early foreclosure
intervention
• Some loss mitigation
provisions
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2016 Mortgage Servicing Rule
• Additional LARGE SERVICER Changes • Reg. X Loss Mitigation provision changes
• Servicers could have to meet loss mitigation requirements more than once if borrower is past due, then current, etc.
• Conditions under which foreclosure judgment can be pursued
• Required responses to complete loss mitigation applications
• Periodic Statement changes
• Modified statements for borrowers in bankruptcy
• Not statements for charged off loans if no additional fees or interest will be charged
2016 Mortgage Servicing
• CFPB Mortgage Servicing Website Resources
• http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/
• Executive Summary
• Small Servicer Key Provisions
• Effective Dates
• Most provisions - Oct. 19, 2017
• Successor in Interest & Periodic Stmts – April 19, 2018
http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/http://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/mortserv/
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And don’t forget…
MLO NMLS Annual Renewal • Nov. 1 – Dec. 31 • See NMLS Resource Center for
details • http://mortgage.nationwidelicen
singsystem.org/slr/common/renewals/Pages/default.aspx
Before we go…
Updated IBA ON-DEMAND webinars
• MLO/LO Annual Training • 2017 Annual Training Requirements - Lending • 2017 Annual Training Requirements - Deposit
http://www.iowabankers.com/aspx/iba/education.aspx?snid=39
http://mortgage.nationwidelicensingsystem.org/slr/common/renewals/Pages/default.aspxhttp://mortgage.nationwidelicensingsystem.org/slr/common/renewals/Pages/default.aspxhttp://mortgage.nationwidelicensingsystem.org/slr/common/renewals/Pages/default.aspxhttp://www.iowabankers.com/aspx/iba/education.aspx?snid=39
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Send your Compliance questions to:
Or call: 844-734-7411
(844-REGS-411)
Julie Gliha, MBA, CRCM [email protected] Ronette Schlatter, CRCM [email protected]
mailto:[email protected]:[email protected]:[email protected]