National Banker Teleconference Timely and Comprehensive Information from the FDIC Consumer Compliance-related Provisions of the Economic Growth, Regulatory Relief, and Consumer Protection Act October 25, 2018
Agenda Title I – Improving Consumer Access to Mortgage Credit Title II – Regulatory Relief and Protecting Consumer Credit Title III – Protections for Veterans, Consumers, and Homeowners Title IV – Protections for Student Borrowers Discussion of Resources Questions 2 FEDERAL DEPOSIT INSURANCE CORPORATION
Questions If you have any questions related to the topics being discussed today, please email them to: BankerTeleconference@fdic.gov Questions asking for statutory or regulatory interpretations will not be addressed during this call, as the primary interpretive authority for many of the statutes and regulations discussed today rests with other agencies. 3 FEDERAL DEPOSIT INSURANCE CORPORATION
activities conducted through third-party relationships as if the activity were handled within the institution Disclaimer The information contained in this presentation is for informational purposes only and is provided as a public service and in an effort to enhance understanding of the statutes and regulations administered by the FDIC. It expresses the views and opinions of FDIC staff and is not binding on the FDIC, its Board of Directors, or any board member, and any representation to the contrary is expressly disclaimed. 4 FEDERAL DEPOSIT INSURANCE CORPORATION
Title I Improving Consumer Access to Mortgage Credit
Title I – Section 101 Minimum Standards for Residential Mortgages Background • Ability to Repay (ATR) Requirement Must consider ability to repay a closed-end residential o mortgage loan according to its terms • Qualified Mortgage (QM) Presumed to meet ATR requirement o Flexibility for small creditors o FEDERAL DEPOSIT INSURANCE CORPORATION 6
Title I - Se Title I Sectio ction n 101 101 Mi Minimum nimum Stan Standa dards rds for R for Resid esiden enti tial Mo al Mortgag rtgages es New QM Category • Originated and retained in portfolio by IDI with <$10 billion in total consolidated assets • In compliance with respect to prepayment penalties • Total points and fees do not exceed 3 percent • No negative amortization or interest-only features • IDI considered & documented debt, income, and financial resources. 7 FEDERAL DEPOSIT INSURANCE CORPORATION
Title I Title I - Se Sectio ction n 10 102 2 Sa Safeg fegua uarding rding Acce Access to H ss to Hab abit itat at for Hu for Human manit ity H y Home omes s Appraisal Donation Provides that a fee appraiser’s voluntary donation of appraisal service to a tax-deductible eligible organization is considered customary and reasonable. 8 FEDERAL DEPOSIT INSURANCE CORPORATION
Title I - Se Title I Sectio ction n 10 103 3 Ex Exemp empti tion on for A for App ppraisals raisals in R in Rura ural l Ar Area eas s Property located in a rural area as described in 1026.35(b)(2)(iv)(A) Contacted at least 3 State certified appraisers Appraisal Not Documented that no State appraiser was available within 5 business days beyond customary and reasonable fee and timeliness standards Required if: Transaction value is less than $400,000 Oversight of a Federal financial institution regulatory agency 9 FEDERAL DEPOSIT INSURANCE CORPORATION
Title Title I I - Sec Section tion 104 104 Home Mor Home Mortga tgage ge Disc Disclosu losure e Act Act Partial Exemption Thresholds Closed-end mortgage loans: Open-end lines of credit: Fewer than 500 in each of the Fewer than 500 in each of the preceding two calendar years preceding two calendar years 10 FEDERAL DEPOSIT INSURANCE CORPORATION
Title Title I I - Se Sect ction ion 104 104 Home Home Mor Mortg tgag age e Disclos Disclosur ure e Act Act Partial Exemption Qualification Criteria Last two CRA Performance Last CRA Performance Evaluations: Evaluation: Rating cannot be Rating cannot be “needs to improve” “substantial noncompliance” 11 FEDERAL DEPOSIT INSURANCE CORPORATION
Title Title I I - Se Sect ction ion 104 104 Home Mor Home Mortg tgag age e Disclos Disclosur ure e Act Act Data Fields Covered by the Economic Growth Act’s Partial Exemptions Universal Loan Identifier Loan Term Property Address Introductory Rate Period Rate Spread Non-Amortizing features Credit Score Property Value Reasons for Denial Manufactured Home Secured Property Type Total Loan Costs or Total Points and Fees Manufactured Home Land Property Interest Origination Charges Multifamily Affordable Units Discount Points Application Channel Lender Credits Mortgage Loan Originator Identifier Interest Rate Automated Underwriting System Prepayment Penalty Term Reverse Mortgage Flag Debt-to-Income Ratio Open-End Line of Credit Flag Combined Loan-to-Value Ratio Business or Commercial Purpose Flag 12 FEDERAL DEPOSIT INSURANCE CORPORATION
Title I Title I - Se Section ction 104 104 Ho Home me Mo Mortga tgage ge Dis Disclos losur ure e Ac Act t Data Fields Not Covered by the Partial Exemptions Application Date Ethnicity Loan Type Race Loan Purpose Sex Preapproval Age Construction Method Income Occupancy Type Type of Purchaser Loan Amount HOEPA Status Action Taken Lien Status Action Taken Date Number of Units State Legal Entity Identifier County Census Tract 13 FEDERAL DEPOSIT INSURANCE CORPORATION
Title Title I I -Se Sect ction ion 104 104 Home Home Mor Mortg tgag age e Disclos Disclosur ure e Act Act Resources o FFIEC Filing Instructions Guide for HMDA Data Collected in 2019 (October 2018) o FIL-58-2018, HMDA: Bureau Interpretive Rule on Partial Exemptions o FFIEC Filing Instructions Guide for HMDA Data Collected in 2018 (August 2018) o FIL-36-2017, HMDA Examiner Transaction Testing Guidelines o FIL-51-2017, FDIC Releases Interagency Designated Key HMDA Data Fields List o FIL-36-2018, Home Mortgage Disclosure Act: Statement on the Implementation of the Economic Growth, Regulatory Relief, and Consumer Protection Act Amendments o FIL-63-2017 , Home Mortgage Disclosure Act: Statement on Institutions’ Good Faith Compliance Efforts 14 FEDERAL DEPOSIT INSURANCE CORPORATION
Title I - Se Title I Sectio ction n 106 106 Elimi Elimina nati ting ng B Barriers arriers to to Jo Jobs bs for L for Loa oan n Or Originato iginators rs Temporary Authority to Originate Loans Loan originators moving from a State-licensed loan originators depository institution to a non- moving interstate depository institution 15 FEDERAL DEPOSIT INSURANCE CORPORATION
Title I Title I - Se Sect ction ion 107 107 Pro Prote tect cting ing Acc Acces ess s to to Manu Manufact factur ured ed Home Homes s Retailer or Manufacturer of Manufactured Homes Does not Does not receive negotiate compensation Discloses directly with greater than a affiliations consumer or cash lender on transaction credit terms 16 FEDERAL DEPOSIT INSURANCE CORPORATION
Title Title I I - Se Sect ction ion 108 108 Escrow Escrow R Req equireme uirements nts Relating elating to to Certa ertain in Con onsumer sumer Cred redit it Tran Transaction sactions s Small Institution Exemption Criteria (to be implemented by regulation) $10 Billion or less in assets Originated 1,000 or fewer loans secured by a first lien on a principal dwelling during the preceding calendar year Other criteria: extend credit secured by a first lien on property in a rural or underserved area; Except for specified escrow accounts, do not maintain” escrow accounts for any credit extension secured by real “ property at consummation; and Transaction not subject to transfer or sale to any person not eligible for the rural and underserved exemption under current criteria 17 FEDERAL DEPOSIT INSURANCE CORPORATION
Title Title I I - Se Sect ction ion 10 109(a 9(a) ) No No Wait Wait for Lo for Lower wer Mor Mortg tgag age e Rat Rates es Timing Requirements and Waiting Periods TILA Section 128(b) o Mortgage Disclosure Improvement Act TILA Section 129(b) o Home Ownership and Equity Protection Act 18 FEDERAL DEPOSIT INSURANCE CORPORATION
Title II Regulatory Relief and Protecting Consumer Access to Credit
Title Title II II - Se Sect ction ion 208 208 Exped Exp edited ited Fu Fund nds s Ava Avail ilab abil ility ity Act Act Extended Geographies • Amends the Expedited Funds Availability Act (EFAA) • EFAA expanded to include American Samoa, Guam and the Northern Mariana Islands. 20 FEDERAL DEPOSIT INSURANCE CORPORATION
Title Title II II - Se Sect ction ion 213 213 Mak Making Onli ing Online ne B Ban anking king I Initi nitiation ation L Leg egal al an and d Ea Easy sy Use of Scanned ID to Open Accounts Preempts state law regarding scanned IDs to the extent of any conflict 21 FEDERAL DEPOSIT INSURANCE CORPORATION
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