HousingWire – The Ticker
The Consumer Financial Protection Bureau released three guides, outlining the Home Ownership and Equity Protection Act, the Equal Credit Opportunity Act and the Truth in Lending act Thursday. The final rule of HOEPA was created to address abusive practices in refinancing and home-equity mortgage loans with high interest rates or high fees. The new final rule expands the universe of loans potentially covered by the act. The CFPB also outlined the ECOA, which covers requirements for furnishing copies of appraisals and other written valuations to applicants for first-lien loans secured by a dwelling. Additionally, the CFPB issued TILA guidelines to ensure that full interior appraisals are conducted when consumers take out higher-priced (subprime) mortgage loans. Plus, the term "higher-risk mortgage" has been replaced with HPML since the definitions are very familiar.