which new requirements apply to helocs? association of federal credit unions l which new...

National Association of Federal Credit Unions l www.nafcu.org

Which New Requirements Apply to HELOCs?

April 10, 2013 2:00 p.m. – 3:30 p.m. EST

Presented by:

Steve Van Beek, Esq., NCCO Director of Regulatory Compliance

National Association of Federal Credit Unions


Webcast Goals

• Which DON’T APPLY to HELOCs?

• Which Requirements Apply to HELOCs?

• What Action Steps Do You Need to Take? – Where to Find New Requirements

– Details of New Requirements

– Is your HELOC covered?

• Effective Dates of New Requirements

• Which Requirements Will Take the Most Resources? Headache Areas?


7 New Regulations

1. Escrow Requirements for HPMLs

2. Loan Originator Compensation & More

3. Mortgage Servicing (Reg Z & Reg X)

4. Qualified Mortgage/Ability-to-Repay

5. Requirements for High-Cost Mortgages

6. Appraisal Requirements for HPMLs

7. Appraisal Disclosure & Delivery


HELOCs EXCLUDED

1. Escrow Requirements for HPMLs

2. Appraisal Requirements for HPMLs

3. New Ability-to-Repay Requirements* and Qualified Mortgage Standards

4. 8 of 9 New Mortgage Servicing Requirements

5. MLO Compensation, Qualifications, Training & Disclosure Requirements


HELOCs COVERED

1. Prompt Payment Crediting

2. Payoff Statements

3. Prohibition on Mandatory Arbitration

4. Prohibition on Financing Single-Premium Credit Insurance

5. IF FIRST LIEN – Reg B Appraisal (and Written Valuation) Disclosure & Delivery

6. Homeownership Counseling Disclosure Requirement


HELOCs COVERED

7. High-Cost Mortgages

• Calculation

• Disclosures

• Requirements

• Prohibitions

8. Homeownership Pre-Loan Counseling Certification (for high-cost mortgages)


Definition of Dwelling

“Dwelling means a residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.”

12 CFR 1026.2(a)(19)

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=a868f36f0067b8219945d11d6f865c98&rgn=div8&view=text&node=12:8.0.2.10.18.1.1.2&idno=12


Definition of Dwelling

2(a)(19) Dwelling

1. Scope. A dwelling need not be the consumer’s principal dwelling to fit the definition, and thus a vacation or second home could be a dwelling. However, for purposes of the definition of residential mortgage transaction and the right to rescind, a dwelling must be the principal residence of the consumer. (See the commentary to §§ 1026.2(a)(24), 1026.15, and 1026.23.)

2. Use as a residence. Mobile homes, boats, and trailers are dwellings if they are in fact used as residences, just as are condominium and cooperative units. Recreational vehicles, campers, and the like not used as residences are not dwellings.


“Home Equity Plans”

1026.40 Requirements for home equity plans.

The requirements of this section apply to open-end credit plans secured by the consumer's dwelling.

Home-secured open-end loan (HELOC)

• Application Disclosures – 1026.40

• Account Opening Disclosures – 1026.6(a)

• Periodic Statements – 1026.7(a) or (b)

• Special Rules for HELOCs

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=a868f36f0067b8219945d11d6f865c98&rgn=div8&view=text&node=12:8.0.2.10.18.5.1.10&idno=12

http://www.ecfr.gov/cgi/t/text/text-idx?c=ecfr&SID=a868f36f0067b8219945d11d6f865c98&rgn=div8&view=text&node=12:8.0.2.10.18.2.1.2&idno=12






Loan Originator Compensation, Qualifications, Training, & Disclosures

And, More

Regulation Z

12 CFR 1026.36

http://www.ecfr.gov/cgi-bin/text-idx?SID=e6bff421a38a54e3b12c20927103808e&node=20130215y1.17


Loan Originator Rules & More

Effective Dates Vary by Section

June 1, 2013 • Prohibition on Mandatory Arbitration

– 12 CFR 1026.36(h)

• Prohibition on Financing Single-Premium Credit Insurance

– 12 CFR 1026.36(i)

January 10, 2014 • All other requirements (for closed-end credit)





New Requirements for Loan Originators*

• Loan Originator Compensation – .36(d)

• Qualifications & Training – .36(f)

• Disclosures on Loan Documents – .36(g)

DO NOT APPLY TO HELOCs

Differs from SAFE Act definition (which is inclusive of HELOCs). See CFPB’s Regulation G 12 CFR 1007.102 and Appendix A

– NCUA’s SAFE Act Page – Opinion 08-0843

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=3c540d0918dffca96195984e895dbd88&rgn=div8&view=text&node=12:8.0.2.10.6.0.1.2&idno=12

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=3c540d0918dffca96195984e895dbd88&rgn=div9&view=text&node=12:8.0.2.10.6.0.1.6.13&idno=12

http://www.ncua.gov/Resources/CUs/Pages/SAFE.aspx

http://www.ncua.gov/Legal/OpinionLetters/OL2008-0843.pdf





Prohibition on Mandatory Arbitration

12 CFR 1026.36(h)

Dodd-Frank prohibited mandatory arbitration clauses. Not common, but credit unions must review agreements.

Scope: Applies to closed-end mortgages secured by a dwelling. Also applies to HELOCs secured by principal dwelling.




Prohibition on Financing Single-Premium Credit Insurance

12 CFR 1026.36(i)

Dodd-Frank also prohibited the financing, directly or indirectly, of single-premium credit insurance. This is not common.

Note: This does not prohibit credit insurance where the premium or fees are calculated and paid in full on a monthly basis.





12 CFR 1026.36(i)

Scope: Applies to closed-end mortgages secured by a dwelling. Also applies to HELOCs secured by principal dwelling.





Calculated and Paid in Full on a Monthly Basis What about “decreasing premium” credit insurance?

– Premium decreases each month as balance decreases

– Premiums are added to the loan balance but are paid in full each month even though some interest is charged

Discussions with the CFPB to clean up the language and make it clear “decreasing premium” plans are still OK. • CFPB has agreed informally; hoping they put it in writing.


Mortgage Servicing

Regulation Z & Regulation X

12 CFR 1026 & 12 CFR 1024

Effective Date: January 10, 2014


Mortgage Servicing – Reg Z

Prompt Payment Crediting – 1026.36(c)(1)

Not Eligible for Small Servicer Exemption

Scope: Applies to consumer transactions secured by a member’s principal dwelling. This includes home equity-lines of credit (HELOCs).

Payoff Statements – 1026.36(c)(3)

Not Eligible for Small Servicer Exemption

Scope: Applies to consumer credit transactions secured by a member’s dwelling. Includes HELOCs.



Prompt Payment Crediting – 1026.36(c)(1) • Credit payment as of the date of receipt

– Credit union can process the payment on a later day so long as posted as of the date of receipt

• “Periodic payment” – principal, interest, and escrow (if any)

• Can still collect late fees – not a ban

• Pyramiding of late fees – still prohibited

• Partial payments – CUs can reject, put in suspense account or credit immediately



Payoff Statements – 1026.36(c)(3) • Applies to any dwelling – including HELOCs

• Applies to written requests for payoff amount

• Credit unions must send payoff statement within seven business days (limited exceptions for natural disasters; bankruptcies)

• State law may have timeline – but CFPB says that seven business days is maximum

• HIGH-COST LOANS – Within FIVE business days


Homeownership Counselor Disclosure

Included in the High-Cost Mortgage Regulation

Regulation X

12 CFR 1024.20


http://www.ecfr.gov/cgi-bin/text-idx?SID=cc7a7aea7945dc4e89483f9d09c4fc78&node=20130131y1.7


Counseling Disclosure

Homeownership Counselor Disclosure New requirement from Dodd-Frank that was included in high-cost final rule, but applies much broader. Implemented in 12 CFR 1024.20.

Scope: Applies broadly to “federally related mortgage loans” and open-end home equity lines of credit (HELOCs).

Excluded: Reverse mortgages; timeshares; construction loans; and loans secured by a dwelling that is considered personal property under State law.



Counseling Disclosure

Disclosure Requirements – 1024.20 Timing: Must be sent no later than three business days after the credit union receives an application.

– With Special Information Booklet for closed-end loans; or

– With HELOC disclosures for home equity lines of credit.

Content: A written list of homeownership counseling organizations in the loan applicant’s location. Credit unions must have obtained the list in the prior 30 days.

Creating List: CFPB will be developing a website portal that credit unions (and vendors) can use to populate the listings.



High-Cost Mortgages

Regulation Z

12 CFR 1026.32



High-Cost Mortgages

Dodd-Frank Expanded Scope

Historically, credit unions have not made high-cost mortgage loans. Dodd-Frank expanded the scope to include purchase loans and HELOCs.

Scope: Loan secured by a member’s principal dwelling that meets one of three tests.

Excluded: Loans to finance the initial construction of a dwelling and loans originated through the Section 502 Direct Loan Program (USDA).


High-Cost Mortgages

Three Tests of High-Cost Mortgages

1. APR versus APOR Determination

As with higher-priced mortgage loans, compare against the APOR tables on FFIEC’s website. Four different thresholds:

– First liens (Real Property): 6.5 percentage points above APOR

– First liens (Personal Property > $50,000): 6.5 points above APOR

– First liens (Personal Property < $50,000): 8.5 points above APOR

– All Subordinate Liens: 8.5 percentage points above APOR

2. Points & Fees Test

3. Prepayment Penalty Test

– Not applicable to FCUs as the Federal Credit Union Act prohibits already. Recouped closing costs are not penalty.


High-Cost Mortgages

Points & Fees Test

There are two different thresholds depending on the loan amount:

1. For loans of $20,000 or greater, the loan will be a high-cost mortgage if points and fees exceed 5 percent of the total transaction amount.

2. For loans below $20,000, the loan will be a high-cost mortgage if points and fees exceed 8 percent of the total transaction or exceed $1,000 (adjusted annually for inflation)


High-Cost Mortgages

HELOC Calculations – At Account Opening

• APR versus APOR

• Which APR? – Comments to 32(a)(3)

2. Open-end credit. The annual percentage rate for an open-end credit plan must be determined in accordance with § 1026.32(a)(3), regardless of whether there is an advance of funds at account opening. Section 1026.32(a)(3) does not require the calculation of the annual percentage rate for any extensions of credit subsequent to account opening. Any draw on the credit line subsequent to account opening is not treated as a separate transaction for purposes of determining annual percentage rate threshold coverage.



High-Cost Mortgages


Which APR? – 12 CFR 1026.32(a)(3)

(3) Determination of annual percentage rate. For purposes of paragraph (a)(1)(i) of this section, a creditor shall determine the annual percentage rate for a closed- or open-end credit transaction based on the following:

(i) For a transaction in which the annual percentage rate will not vary during the term of the loan or credit plan, the interest rate in effect as of the date the interest rate for the transaction is set;



High-Cost Mortgages


Which APR? – 12 CFR 1026.32(a)(3)

(ii) For a transaction in which the interest rate may vary during the term of the loan or credit plan in accordance with an index, the interest rate that results from adding the maximum margin permitted at any time during the term of the loan or credit plan to the value of the index rate in effect as of the date the interest rate for the transaction is set, or the introductory interest rate, whichever is greater; and



High-Cost Mortgages


Which APR? – 12 CFR 1026.32(a)(3)

(iii) For a transaction in which the interest rate may or will vary during the term of the loan or credit plan, other than a transaction described in paragraph (a)(3)(ii) of this section, the maximum interest rate that may be imposed during the term of the loan or credit plan.



High-Cost Mortgages

Variable-Rate HELOC

Example in Staff Commentary – Comment 32(a)(3)-3

C. Assume that the terms of an open-end credit agreement with a five-year draw period and a five-year repayment period provide for a fixed, initial interest rate of 2 percent for the first year of the repayment period, after which the interest rate will adjust annually pursuant to a publicly-available index outside the creditor's control, in accordance with the limitations applicable to open-end credit plans in § 1026.40(f). Also assume that, pursuant to the terms of the open-end credit agreement, a margin of 2 percent applies because the consumer is employed by the creditor, but that the margin will increase to 4 percent if the consumer's employment with the creditor ends…





High-Cost Mortgages

Variable-Rate HELOC


…Finally, assume that the applicable index rate is 3.5 percent as of the date the interest rate for the transaction is set, and a lifetime interest rate cap of 15 percent applies to the transaction. Pursuant to § 1026.32(a)(3)(ii), for purposes of determining the annual percentage rate for § 1026.32(a)(1)(i), the interest rate for the transaction is 7.5 percent (3.5 percent index rate plus 4 percent maximum margin).





High-Cost Mortgages

Fixed-Rate and Term-Rate HELOCs


5. Fixed-rate and -term payment options. If an open-end credit plan has only a fixed rate during the draw period, a creditor must use the interest rate applicable to that feature to determine the annual percentage rate, as required by § 1026.32(a)(3)(i). However, if an open-end credit plan has a variable rate, but also offers a fixed-rate and -term payment option during the draw period, § 1026.32(a)(3) requires a creditor to use the terms applicable to the variable-rate feature for determining the annual percentage rate, as described in § 1026.32(a)(3)(ii).





High-Cost Mortgages


• Make the calculation once – at account opening – rather than each time a member draws on the line.

• Compare versus APOR? Which APOR?

– Most closely-comparable closed-end loan – huh?

– CFPB “does not at this time adopt a separate methodology for determining the average prime offer rate for HELOCs.”

– Use existing APOR tables for HELOCs

– Comment 32(a)(1)(i)-2





High-Cost Mortgages

Comment 32(a)(1)(i)-2 2. Comparable transaction. Guidance for determining a comparable transaction is set forth in comments 35(a)(1)-1 and 35(a)(2)-2 and -3, which direct creditors to published tables of average prime offer rates for fixed- and variable-rate closed-end credit transactions. Creditors opening open-end credit plans must compare the annual percentage rate for the plan to the average prime offer rate for the most closely comparable closed-end transaction. To identify the most closely comparable closed-end transaction, the creditor should identify whether the credit plan is fixed- or variable-rate; if the plan is fixed-rate, the term of the plan to maturity; if the plan is variable-rate, the duration of any initial, fixed-rate period; and the date the interest rate for the plan is set…





High-Cost Mortgages

Comment 32(a)(1)(i)-2 …If a fixed-rate plan has no definite plan length, a creditor must use the average prime offer rate for a 30-year fixed-rate loan. If a variable-rate plan has an optional, fixed-rate feature, a creditor must use the rate table for variable-rate transactions. If a variable-rate plan has an initial, fixed-rate period that is not in whole years, a creditor must identify the most closely-comparable transaction by using the number of whole years closest to the actual fixed-rate period. For example, if a variable-rate plan has an initial fixed-rate period of 20 months, a creditor must use the average prime offer rate for a two-year adjustable-rate loan…





High-Cost Mortgages

Comment 32(a)(1)(i)-2 If a variable-rate plan has no initial fixed-rate period, or if it has an initial fixed-rate period of less than one year, a creditor must use the average prime offer rate for a one-year adjustable-rate loan. Thus, for example, if the initial fixed-rate period is six months, a creditor must use the average prime offer rate for a one-year adjustable-rate loan.





High-Cost Mortgages


Total Loan Amount – Points & Fees Test

12 CFR 1026.32(b)(4)(ii)

(4) * * *

(ii) Open-end credit. The total loan amount for an open-end credit plan is the credit limit for the plan when the account is opened.



High-Cost Mortgages

If you have a HELOC that is high-cost:

• Additional disclosures

• Additional requirements – Ability-to-Repay

– New counseling requirement

• Additional prohibitions

Review 12 CFR 1026.32 & .34

http://www.ecfr.gov/cgi/t/text/text-idx?c=ecfr&SID=da045dd92843316ed07694a882b1217d&rgn=div8&view=text&node=12:8.0.2.10.18.5.1.2&idno=12

http://www.ecfr.gov/cgi/t/text/text-idx?c=ecfr&SID=da045dd92843316ed07694a882b1217d&rgn=div8&view=text&node=12:8.0.2.10.18.5.1.5&idno=12


High-Cost Mortgages

New Prohibitions – Effective January 10, 2014

• Late fees are capped at 4% of payment (and 15-day courtesy period for all high-cost mortgages);

• Fees for payoff statement are prohibited;

• Modification/Deferral (including skip-a-pay) fees are prohibited;

• Prepayment penalties are prohibited;

• Financing of points and fees is prohibited;

• Balloon payments are banned (except in limited situations); and

• Creditors cannot recommend default.


Homeownership Counseling for High-Cost Mortgage Loans

Regulation Z

12 CFR 1026.34(a)(5)




High-Cost Mortgages

Pre-loan Counseling Requirement – 1026.34(a)(5) Must obtain written certification that consumer has obtained counseling on the advisability of the high-cost mortgage from an approved counselor. Includes HELOCs if high-cost.

Timing of counseling: After consumer receives GFE or disclosures required by 1026.40 for home equity lines of credit.

Content of certification: Consumer’s name; counseling date(s); name and address of counselor; statement that consumer received counseling on the advisability of the mortgage; statement that counselor verified consumer required disclosures.


http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=234bcc0bbd1d6f9712fe3236137ce809&rgn=div8&view=text&node=12:8.0.2.10.18.5.1.10&idno=12


Appraisal Disclosure

& Delivery Requirements

Regulation B – 12 CFR 1002.14


http://www.ecfr.gov/cgi-bin/text-idx?SID=ec7d95a4ff177241db9264609a16b1c1&node=20130131y1.54


Current Appraisal Requirements

NCUA Regulation Section 701.31(c)(5):

“(5) Each Federal credit union shall make available, to any requesting member/applicant, a copy of the appraisal used in connection with that member's real estate-related loan application. The appraisal shall be available for a period of 25 months after the applicant has received notice from the Federal credit union of the action taken by the Federal credit union on the real estate-related loan application.”

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=6c3c9c3af566d28ae38f9905fd24e138&rgn=div8&view=text&node=12:7.0.2.3.2.0.1.20&idno=12


Appraisal Disclosures & Delivery

New Appraisal/Valuation Requirements Historically, FCUs were exempt from Regulation B’s requirement for copies of appraisals. The Dodd-Frank Act changed this and all credit unions will now need to follow all the new Regulation B requirements.

Scope: The new Regulation B requirements apply to first lien mortgage loans secured by a dwelling.

Note: This is not limited to closed-end loans. Thus, a home equity line of credit (HELOC) would be included if secured by a first lien. Subordinate liens would be excluded from this requirement.


Appraisal Disclosures – Reg B

New Appraisal Disclosure Requirement

Requirement: Credit Unions must provide a disclosure regarding a member’s right to obtain any and all appraisals or other written valuations developed in connection with the application.

Timing: Within three business days of receiving an application for a mortgage loan (secured by a first lien on a dwelling). If – at a time after application – the credit union determines the loan will be a first lien secured by a dwelling, the credit union must provide the disclosure within three business days.


Appraisal Disclosures – Reg B

New Appraisal Disclosure Requirement

Model Form – C-9 from Regulation B:

“We may order an appraisal to determine the property’s value and charge you for this appraisal. We will promptly provide you a copy of any appraisal, even if your loan does not close.

You can pay for an additional appraisal for your own use at your own cost.”


Reg B – Requirements

• Provide copy of appraisals and valuations developed in connection with application for credit (first lien, secured by dwelling)

– Note that this is not a requirement to obtain an appraisal; the requirement is to provide copies of appraisals/valuations obtained or developed

• Disclosures – provide notice to applicant of right to receive copies of appraisals and valuations


Valuations

• Definition of Valuation, 1002.14(b)(3):

– “The term “valuation” means any estimate of the value of a dwelling developed in connection with an application for credit.”

• See official commentary for examples of valuations, which include (but are not limited to):

– A report prepared by an appraiser (whether or not licensed or certified) including the appraiser's estimate or opinion of the property's value.

– A document prepared by the creditor's staff that assigns value to the property.




Valuations

• Not all documents that discuss or restate a valuation of an applicant's property constitute a “valuation” for purposes of § 1002.14(b)(3)

• Examples from the Commentary of what are NOT considered valuations, including: – Internal documents that merely restate the estimated

value of the dwelling contained in an appraisal or written valuation being provided to the applicant.

– Publicly-available lists of valuations (such as published sales prices or mortgage amounts, tax assessments, and retail price ranges).


Reg B – Additional Requirements

• Cannot charge the member for the copy of the appraisal

– No charge for postage, photocopying, etc.

• CAN charge member for actual cost of the appraisal, unless otherwise prohibited by law (e.g., property flipping situation)

– But cannot increase cost of the appraisal to cover cost of providing the copy

• See, 1002.14(b)(3) and commentary

http://www.ecfr.gov/cgi-bin/text-idx?SID=7dc085320e9690f33ebd0f8d5bbdaa72&node=20130131y1.54

http://www.ecfr.gov/cgi-bin/text-idx?SID=7dc085320e9690f33ebd0f8d5bbdaa72&node=20130131y1.56


Effective Dates for HELOCs

June 1, 2013

• Prohibition on Mandatory Arbitration

• Prohibition on Financing of Single-Premium Credit Insurance

January 10, 2014

• Prompt Payment Crediting & Payoff Statements

• New Requirements for High-Cost Mortgages

• New Disclosure for Homeownership Counseling Disclosure

January 18, 2014

• New Appraisal Requirements under Regulation B


Proposed Rule from 2009

Proposed by Federal Reserve – 07/23/2009

• Authority for the proposal transferred to the CFPB on July 21, 2011

• CFPB could finalize the rule without issuing another proposed rule

• CFPB is more likely to repropose the rule in order to “make it their own”

• Either way, there are future changes ahead for HELOC disclosures

• Highlights of Proposed Changes (see page 2)

http://www.federalreserve.gov/newsevents/press/bcreg/20090723a.htm

http://www.federalreserve.gov/newsevents/press/bcreg/bcreg20090723a1.pdf


Headache Areas

• Scope & Applicability

• Reviewing your current practices

• Amending procedures & training staff

• Reg Z versus Reg X

• Determining High-Cost Status

• If you have a high-cost HELOC…..

• Future changes to HELOCs


Key Takeaways

• Understand which requirements impact your HELOCs (and which ones don’t)

• Check your current agreements

• Review your current procedures – you may already be in compliance

• Homeownership counselor disclosure applies broadly to “federally related mortgage loans” and includes HELOCs.

• Do you have HELOCs in first lien position?


Key Takeaways

• What is the pricing of your current HELOCs?

• Do you offer fixed or variable-rate HELOCs?

• What is the maximum margin on your current HELOCs?

• Do you know where to find the APOR tables? – Tables: www.ffiec.gov/ratespread/aportables.htm

– Calculator: www.ffiec.gov/ratespread/newcalc.aspx

– Help: www.ffiec.gov/ratespread/newcalchelp.aspx

• Staff training, review procedures, staff training

http://www.ffiec.gov/ratespread/aportables.htm

http://www.ffiec.gov/ratespread/newcalc.aspx

http://www.ffiec.gov/ratespread/newcalchelp.aspx

http://www.ffiec.gov/ratespread/newcalchelp.aspx


Key Resources

• NAFCU’s Mortgage Rules Webpage

– www.nafcu.org/mortgagerules

• Download the PowerPoint

– Hyperlinks throughout

• Arbitration & Single-Premium Credit Insurance

– Regulatory Text: 12 CFR 1026.36

• Prompt Crediting & Payoff Statements

– Regulatory Text: 12 CFR 1026.36(c)

– Official Staff Commentary

http://www.nafcu.org/mortgagerules





Key Resources

• Homeownership Counselor Disclosure

– April Compliance Monitor article (log-in required)

– Regulatory Text: 12 CFR 1024.20

• High-Cost Mortgages

– Existing Regulatory Text: 1026.32 & 1026.34

– New Regulatory Text (Jan 1, 2014): 1026.32 & .34

– New Official Staff Commentary

• Homeownership Counseling Requirement

– For High-Cost (Jan 1, 2014): 12 CFR 1026.34(a)(5)

http://www.nafcu.org/Tertiary.aspx?id=31201





http://www.ecfr.gov/cgi-bin/text-idx?SID=8d45daa62d4425e0fd10fb25d20581f7&node=20130131y1.7

http://www.ecfr.gov/cgi/t/text/text-idx?c=ecfr&SID=7cc9850f52909ddfc0bead9d55d3ce31&rgn=div8&view=text&node=12:8.0.2.10.18.5.1.2&idno=12

http://www.ecfr.gov/cgi/t/text/text-idx?c=ecfr&SID=7cc9850f52909ddfc0bead9d55d3ce31&rgn=div8&view=text&node=12:8.0.2.10.18.5.1.5&idno=12






Key Resources

• Appraisal Disclosure & Delivery Requirement

– Existing Requirement: 12 CFR 701.31(c)(5)

– New Regulatory Text: 12 CFR 1002.14

– New Official Staff Commentary

– Remember, new requirements apply to HELOCs on dwellings that are in first lien position.

– For others, 12 CFR 701.31(c)(5)

• Proposed Rule on HELOCs

– Proposal – July 23, 2009

– Highlights – Page 2

http://www.ecfr.gov/cgi-bin/text-idx?c=ecfr&SID=c2744672ef26ec0072506a2229f48b34&rgn=div8&view=text&node=12:7.0.2.3.2.0.1.20&idno=12

http://www.ecfr.gov/cgi-bin/text-idx?SID=0834c81de4e585b9ee56b7819d371bbb&node=20130131y1.54

http://www.ecfr.gov/cgi-bin/text-idx?SID=0834c81de4e585b9ee56b7819d371bbb&node=20130131y1.56










Questions?

Contact Info:

Steve Van Beek, Esq., NCCO

Email: [email protected]

Direct Phone: 703.842.2266

[email protected]

www.nafcu.org/mortgagerules

www.nafcucomplianceblog.com

mailto:[email protected]

http://www.nafcu.org/mortgagerules

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