Program Description:
Consumer mortgage lending is about to get a lot more interesting, thanks to the Federal Reserve and HUD. Both agencies have issued major proposals that would fundamentally change the regulatory structure of most mortgage loans. These proposals often cover common ground, yet contain significant differences as to timing and content. Will you be prepared? In the current environment, the likelihood of these proposals becoming final in their current form is higher than ever before. Learn what to prepare for, including changes in disclosures, processes, and advertising. Get a jump on understanding what you will have to do to get ready for the coming changes.
This two-hour course covers:
- Reg. Z Proposal:
- A new class of mortgages: “Higher-Priced Mortgage Loans” – what would this include?
- Guilty until proven innocent – presumption of pattern and practice
- Consideration of borrower’s ability to repay – what must be done and documented?
- Verifying income and assets – the end of “stated income” loans? Not necessarily
- Prepayment penalties – new limitations
- Required escrow accounts and opt-outs
- Limitations and disclosure of Yield Spread Premiums (YSPs)
- Appraiser independence requirements
- Servicing practice prohibitions – late fees, payoffs, and more
- New additional Early TIL disclosures for additional loan types
- Significant advertising revisions and restrictions – more required language
- RESPA Proposal:
- A new standardized good faith estimate – with more information than appears today, including page one with summary of the major aspects of the loan
- Mandated disclosure of lender payments to mortgage brokers, including YSPs
- Tolerances between GFE and HUD-1 disclosures
- New definitions for “application” events: “GFE application” and “mortgage application”
- New scripting requirements – settlement agents must read and provide a copy to borrowers at closing
- Comparison of the GFE and HUD-1, including modifications to allow borrowers to easily compare charges
- Pricing mechanism regulations to provide benefits to consumers, including volume-based discounts
- Changes to Mortgage Servicing Transfers disclosures – finally
Plus frequent question and answer sessions throughout this presentation.
Who Should Attend:
Real estate lenders, compliance officers, auditors, loan officers, mortgage brokers, closing agents, quality control, management, and anyone else involved in residential mortgage lending process with a need to understand what direction the Fed and HUD seek to take.
Presenter:
Carl Pry, J.D., Director of Fair Lending Compliance for KeyBank in Cleveland, Ohio. Mr. Pry provides a variety of regulatory compliance and financial performance services to financial institutions and other clients throughout the country. He has written extensively regarding consumer and commercial compliance, tax, audit, and financial institution legal issues. He has spoken at dozens of banking, compliance, and state bar associations, and has conducted training sessions for financial institutions across the country.
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