New Mortgage Rules Effective Friday (1/10/14)

Friday morning is a turning point for mortgage lending professionals, as January 10, 2014 is the effective day for the Qualified Mortgage/Ability-to-Repay Rules. All mortgages will need to adhere to the extensive rules promulgated by the Consumer Financial Protection Bureau (“CFPB”) last January and updated on multiple occasions during 2013. Underwriting guidelines must be updated, and financial institutions’ compliance management systems must reflect the rulemaking requirements. For organizations that support the mortgage underwriting or origination process, additional requirements need to be implemented.

The CFPB issued a Mortgage Rules Readiness Guide in December 2013 that provides invaluable guidance to financial institutions and their compliance efforts. Mortgage professionals and compliance officers should review this guide, other CFPB materials available on its website, and this blog or other resources to assist with updates.

Should your financial institution have questions or need assistance with the new mortgage rules before or after January 10, please contact Spilman or other knowledgeable counsel.

———-

by R. Scott Adams

R. Scott Adams

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: