As July came and went we saw the midpoint of 2013 flash quickly before our eyes. While we had hoped for a slowdown in the regulatory arena, our hopes were dashed with continued proposed rules accompanied by requests for comment as well as final rules and amendments.
Of particular importance, on July 10, the CFPB issued final rules amending the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (RESPA/Regulation X) and the Truth in Lending Act (TILA/Regulation Z). The final rule amends some of the final mortgage rules issued by the CFPB in January of 2013. These amendments clarify, correct, or amend provisions on the relation to State law of RESPA’s servicing provisions; implementation dates for adjustable-rate mortgage loans; the small servicer exemption from certain servicing rules; the use of government-sponsored enterprise and Federal agency purchase, guarantee or insurance eligibility for determining qualified mortgage status; and the determination of debt and income for purposes of originating qualified mortgages. The final rule can be found here.
The constant amendments to final rules, such as this, are continuing to cause confusion and unnecessary regulatory burden as well as growing uncertainty for credit unions as the January effective date for most of the final rules looms ahead. As the rules continue to change this close to the effective date, credit unions will struggle to meet the deadlines as we wait for the CFPB to finalize amendments to the final rules.