Legislative/Regulatory News

HUD WITHDRAWS MIP REDUCTION

One hour after Donald Trump became President, the Department of Housing and Urban Development announced it has withdrawn the reduction of Mortgage Insurance Premiums, which would have been effective with closing/disbursements on or after January 27, 2017. HUD will issue a subsequent Mortgagee Letter at a later date, should there be a policy change.

OHIO PASSES GOOD FUNDS LEGISLATION AND
BANS THE USE OF PLYWOOD IN WINDOW BOARDING

On the last night of the 2016 lame duck session of the Ohio Legislature, HB463 was passed. The bill contains clarifications of the changes to the sheriff sale process and the fast track foreclosure process found in HB390, which went into effect at the end of September.

HB463 also includes two new provisions in Ohio law, those being a good funds provision for escrow agents, and the banning of plywood in the window boarding process in property preservation.

For a copy of HB463 click HERE.
For a copy of the Legislative Service Commission’s summary, click HERE

OHIO LEGISLATURE PASSES FORECLOSURE REFORM BILL, INCLUDING A FAST-TRACK PROCESS FOR  VACANT AND ABANDONED PROPERTY

On May 25, 2016 the Ohio Legislature passed HB390, with included a 65 page amendment to reform and improve the foreclosure process. The legislation  provides for a fast-track foreclosure process for vacant and abandoned property, as well as improvements in the sheriff sale process. The bill was signed by the Governor and will become effective on September 28, 2016. The Ohio Mortgage Bankers Association worked on this amendment with other industry partners including the MBA,  Ohio Bankers League and The Ohio Bar Association;  as well as consumer advocacy groups, for nearly 2 years, bringing to an end a three year effort to pass legislation of this type.  To view a copy of the amendment click HERE.

CFPB ISSUES FINAL RULE ON
TRUTH IN LENDING (Regulation Z)
ANNUAL THRESHOLD ADJUSTMENTS

The Bureau of Consumer Financial Protection (Bureau) has issued a final rule amending the regulatory text and official interpretations for Regulation Z, which implements the Truth in Lending Act (TILA).  The Bureau is required to calculate annually the dollar amounts for several provisions in Regulation Z; this final rule revises, as applicable, the dollar amounts for provisions implementing amendments to TILA under the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), the Home Ownership and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).  In addition to adjusting these amounts, where appropriate, based on the annual percentage change reflected in the Consumer Price Index in effect on June 1, 2016, the Bureau is correcting a calculation error pertaining to the 2016 subsequent violation penalty safe harbor fee.

Click HERE for Final Rule