Right around December 1st of every year, the mortgage industry waits patiently to find out if the conforming loan limits will be adjusted.  For many years, this date was much less significant. That was the case up until last year when the loan limits increased for the first time since the economic crisis. This year we were prepared for the change as the Federal Housing Finance Agency (FHFA) announced increases in all but 71 counties.

As a part of the federal government’s Unified Agenda of Regulatory and Deregulatory Actions, the Consumer Financial Protection Bureau (CFPB) is required to publish a semi-annual update of their rulemaking agenda.  Below are the major initiatives that will be addressed this year in the mortgage industry:

The Consumer Protection Financial Bureau (CFPB) is reminding lenders that not accepting public assistance income is a violation of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B.  The Equal Credit Opportunity Act states that a creditor cannot discriminate against an applicant because of income from public assistance.  The lender is not allowed to exclude or refuse vouchers from the Section 8 Housing Choice Voucher (HCV) Homeownership program as a source of income when approving a borrower. 

H.R. 2121 has been introduced in the House of Representatives, and subsequently referred to the House Committee on Financial Services, to amend the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act). The proposed amendment, sponsored by Representative Steve Stivers (R-OH), would amend the S.A.F.E. Act to include an additional subsection referring to employment transition.  If passed, it would allow a Nationwide Mortgage Licensing System and Registry (NMLS) registered loan originator a temporary license, good for a 120-day period, for those moving between financial institutions or to another state.

The Department of Veterans Affairs (VA) has provided updates and clarification for the breakdown of credits and fees in the 200 series and the 800 series of the HUD-1 Settlement Statement in Circular 26-15-6.  Previously, lenders were only required to provide a breakdown of the charges in line 801 (along with the itemization of the title fees in line 1101).  The requirements have been updated to include itemization of the 200 series and the 800 series, with clarification that credits cannot be given in line 803 to offset any unallowable fees.