Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

CFPB issues implementation date guidance to mortgage servicing rule

Along with technical corrections

The Consumer Financial Protection Bureau released updated guidance along with two technical corrections to the final mortgage servicing rule that is set to go into effect on Oct. 19.

The bureau released two documents that relate to the 2016 Amendments to the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z), collectively dubbed the 2016 Mortgage Servicing Final Rule.

While they are small changes, the first document addresses two typographical errors, the authority citation for Regulation Z, and several amendatory instructions relating to certain official commentary to apply the correct effective date.

Since there is minimal, if any, basis for substantive disagreement on the technical errors, the bureau stated that there is good cause to publish these corrections without seeking public comment.

The technical explanations start on page three, and include simple corrections such as fixing the word “contract” instead of “contact.”

Meanwhile, the second document is slightly more notable and addresses concerns raised by some industry participants.

Although it is a non-binding policy, the CFPB issued guidance relating to the implementation date of the servicing rule.  As it stands, the rule is set to go into effect on Thursday, Oct. 19.

“The Bureau has heard concerns that these midweek effective dates for the 2016 Mortgage Servicing Final Rule could create operational challenges for servicers. The Bureau understands that, for many servicers, the Thursday effective dates could afford less than a full day—from the close of business overnight on each of the preceding Wednesdays—to update and test systems in order to be compliant with the 2016 amendments. If servicers do not have sufficient time to complete these tasks, their systems may be more likely to produce errors, which could expose servicers and consumers to risk,” the CFPB document stated.

So to help, the CFPB said that it does not intend to take supervisory or enforcement action for violations of existing Regulation X or Regulation Z resulting from a servicer’s compliance with the 2016 Mortgage Servicing Final Rule occurring up to three days before the applicable effective dates.

This means, in essence, that servicers can start implementing the servicing rule a few days early without fear of a supervisory or enforcement action for violations from the bureau.

Mike Jones, director with Navigant, added, “While the substance of the policy guidance does not appear to have a lot of operational impact, it does send a clear signal that the bureau does not intend to extend the effective dates of the rule changes. In fact, the policy guidance encourages servicers to implement the rule changes over the weekend before the mid-week effective dates.”

“It’s also a good reminder that servicers don’t have a lot of time to spare as the deadlines approach,” said Jones. “There’s a lot to do to get ready.”

Most Popular Articles

FHFA: Government to back mortgages up to $970,800 in 2022

The FHFA today announced the baseline conforming loan limit for 2022 will be $647,200, an increase of 18%. In high-cost areas, the new ceiling loan limit will be $970,800.

Nov 30, 2021 By

Latest Articles

What Omicron, bond market and jobs mean for housing

We often have two to three job reports per year that miss estimates badly. However, remember that we have over 10 million job openings.

Dec 03, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please