Spring 2023 Federal Highlights

CFPB Updates HELOC Brochure

On December 16, 2022, the Consumer Financial Protection Bureau (“CFPB”) announced an updated version of “What You Should Know about Home Equity Lines of Credit,” required under Regulation Z, for immediate use. The publication, also known as the “HELOC Booklet” or “HELOC Brochure,” was updated in an effort to make it more concise and improve readability and usability.

Revised Dollar Amount and Thresholds Under Federal High-Cost and Qualified Mortgage Provisions

The Consumer Financial Protection Bureau (“CFPB”) issued a final rule amending the high-cost mortgage thresholds and the qualified mortgage thresholds in Regulation Z. The amendments are effective January 1, 2023.

CFPB’s Proposed Rule Requires Registration of Agency and Court Orders

On December 12, 2022, the Consumer Financial Protection Bureau (“Bureau”) issued a rule proposing to require registry of nonbank covered persons subject to certain agency and court orders (“Proposed Rule”). Specifically, the Proposed Rule would require nonbank covered person entities to register with the Bureau upon being subject to a public written order or judgment imposing obligations based on violations of certain consumer protection laws. The entity would be required to register and update the registry, which would be published on the Bureau’s website.

According to the Bureau, the main focus of the registry is to monitor for risks to consumers related to repeat offenders of consumer protection law. The registry will also “shed light on how laws are being enforced across consumer protection laws, jurisdictions, and markets, and help identify trends and potential gaps in enforcement.” Certain supervised nonbank will be required to designate an executive to submit a written statement annually regarding the company’s compliance with any outstanding registered order.

CFPB Adjusts Asset-Size Threshold for Exemption from Escrow Account Requirements for Higher-Priced Mortgage Loans

The Consumer Financial Protection Bureau (“CFPB”) adjusted the asset-size threshold for an exemption from the Truth in Lending Act’s (“TILA’s”) escrow account requirements for higher-priced mortgage loans.

For 2023, the threshold will be $2.537 billion. This is increased from 2022, when the threshold was $2.336 billion. Therefore, creditors with assets (including assets of certain affiliates) of less than $2.537 billion as of December 31, 2022 may qualify for an exemption from the escrow account requirements for higher-priced mortgage loans. This threshold will also apply in certain circumstances during a grace period, with respect to loans consummated in 2024 with applications received before April 1, 2024. Please note there are other requirements that the creditor must meet to take advantage of the exemption.

Posted in Federal Highlights, Newsletters


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