Wednesday, August 27, 2014 - Article by: Justin Fitzhugh - Nations Lending Corporation -
Last week, the Consumer Financial Protection Bureau, CFPB, published the final rule on annual adjustments for HOEPA, and the Ability to Repay/Qualified Mortgage provisions of Dodd Frank. These adjustments become effective on January 1, 2015.
In accordance with The Ability to Repay and Qualified Mortgage rule, ATR / QM, the CFPB issued its annual adjustment of points and fees limits for a mortgage to qualify. The Bureau increased these limits as follows:
In accordance with the Homeownership and Equity Protection Act, HOEPA, the CFPB issued the annual adjustment of the dollar amount threshold used to determine whether a mortgage transaction falls under the High Cost Mortgage definition. The Bureau increased these limits as follows:1
Loans that meet these points and fees limits fall under the Qualified Mortgage definition, and loan originators/lender are granted safe harbor. This means that whenever a borrower defaults in his/her loan, Housing Agencies and Regulators presume the originator followed through the Ability to Repay checklist and only offered products the borrower could afford. When a mortgage is subject to points and fees amounts that exceed the limit thresholds,it is considered a High-Cost Mortgage, HCM. When issuing a HCM, the originator/lender is required to disclosed detailed information that explains to the borrower he/she is getting a HCM and get certification from a housing counselor that the borrower has received counseling about the particular HCM the lender offered.
We offer mortgage branch opportunities across the country. We are looking to partner with seasoned branch managers who want to focus on production. We are not a net branch company. Nations Lending Corporation allows you to broker deals for which we have no products. Better than net branch opportunities, NLC offers all government sponsored products.
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