California Assembly Bill 278: “Homeowner Bill of Rights”
A new California law became effective on January 1, 2013. You could incur penalties up to $7,500 per mortgage if you don’t review documentation and have “competent and reliable evidence” to prove it.
The California Assembly Bill 278, commonly referred to as the “Homeowner Bill of Rights” calls for documents recorded by or on behalf of a mortgage servicer in connection with a foreclosure, including a declaration, notice of default or sale, assignment of a deed of trust or a substitution of trustee, must be accurate and complete and supported by competent and reliable evidence.
Before recording any such documents, mortgage servicers must ensure they have reviewed competent and reliable evidence to substantiate the borrower’s default and the right to foreclose.
You may read the bill in its entirety here.
Compliance Update- Effective Dates of Recently Issued Final Rules
To keep our clients informed, here are some important dates regarding recently issued final rules.
The following are important effective dates and the Final Rules to which they apply:
June 1, 2013- effective date for:
- Escrow Rule: Requires creditors to establish and maintain escrow accounts for at least 12 months after originating a higher-priced mortgage loan secured by a first lien on a principal residence among other requirements. Learn more.
January 10 2014– effective date for:
- High-Cost Mortgage: Modifies the definition of a high-cost mortgage, including the rate and fee thresholds, and expands the scope of loans to be held to the HOEPA requirements to include all purchase transactions and home equity lines of credit. Learn more.
- Ability to Repay/Qualified Mortgage: Establishes parameters for classifying loans as “qualified mortgages.” The rule sets for the documentation and underwriting requirements that must be met to provide lenders with additional legal protections in the event of a lawsuit. Learn more.
- CFPB Servicing: Establishes consistent standards for mortgage loan servicers, aimed at ensuring borrowers receive clear information about their mortgages. Learn more.
January 18, 2014– effective date for:
- Appraisal Delivery: Outlines the requirements for appraisal delivery to soncumers for QM. Learn more.
- Appraisal Standards for Higher Risk Mortgages: Outlines the requirements for appraisal delivery to soncumers for higher risk mortgages. Learn more.
Recent CFPB Updates- Mortgage Loan Disclosure Forms.
The Consumer Financial Protection Bureau has issued a notice and request for comments regarding its proposal titled "Quantitative Testing of Integrated Mortgage Loan Disclosure Forms." The comment period will end on March 7, 2013.
The Consumer Financial Protection Bureau has issued a notice and request for comments regarding its proposal titled “Quantitative Testing of Integrated Mortgage Loan Disclosure Forms.” The comment period will end on March 7, 2013. Learn more.