In January 2013, the Consumer Financial Protection Bureau (CFPB) issued 8 distinct final rules that apply to consumer mortgage transactions. The rules amend several existing regulations, including Regulations Z, X and B. The rules implement the:

  • High-Cost Mortgage and Homeownership Counseling Amendments to the Truth in Lending Act;
  • Homeownership Counseling Amendments to the Real Estate Settlement Procedures Act;
  • Escrow Requirements under the Truth in Lending Act;
  • Ability to Repay and Qualified Mortgage Standards under the Truth in Lending Act;
  • Mortgage Servicing Provisions under the Real Estate Settlement Procedures Act and the Truth in Lending Act;
  • Appraisal Requirements for Higher-Priced Mortgage Loans under the Truth in Lending Act;
  • Appraisal Requirements under the Equal Credit Opportunity Act; and
  • Loan Originator Compensation Requirements under the Truth in Lending Act.

The scope of each of the rules varies considerably. For example, some rules apply to only closed-end credit transactions. Others apply to both closed-end and open-end transactions. Some apply only to transactions secured by the consumer's principal dwelling, while others apply to any consumer dwelling. Moreover, some apply to only dwellings secured by real property, while others also apply to personal property used as a dwelling. The attached charts lay out which rules apply to different types of transactions. The first chart is an overview, followed by charts covering the CFPB mortgage rules that apply to:

  • Consumer-purpose home equity lines of credit secured by a principal dwelling;
  • Consumer-purpose home equity lines of credit secured by a non-principal dwelling;
  • Consumer-purpose closed-end loans secured by a principal dwelling (real property);
  • Consumer-purpose closed-end loans secured by a principal dwelling (personal property); and
  • Consumer-purpose closed-end loans secured by a non-principal dwelling

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Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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