CFPB Updates Mortgage Rules Readiness Guide

The Consumer Financial Protection Bureau (the “CFPB”) recently issued the 2013 CFPB Dodd-Frank Mortgage Rules Readiness Guide, Version 2.0. The guide updates the original version, published in July 2013, and summarizes the seven new mortgage rules finalized by the CFPB in 2013:

• Ability-to-Repay and Qualified Mortgage Standards (Regulation Z)
• Escrow Requirements under Truth in Lending Act (Regulation Z)
• High-Cost Mortgage and Homeownership Counseling (Regulations Z and X)
• Mortgage Servicing Rules under RESPA and TILA (Regulations Z and X)
• ECOA Valuations for Loans Secured by a First Lien on a Dwelling (Regulation B)
• TILA Appraisals for Higher-Priced Mortgage Loans (Regulation Z)
• Loan Originator Compensation Requirements (Regulation Z)

Also included in the guide are a readiness questionnaire, frequently asked questions, and available compliance tools. The guide is designed to help both bank and non-bank financial institutions of all sizes comply with the new mortgage rules, many of which become effective on January 10, 2014.