Dodd-Frank Act Requirements for Escrow Accounts, High-Cost Mortgages, Homeownership Counseling, and Appraisal Requirements Take Shape

• Published in: The Business Lawyer 2014-02, Vol.69 (2), p.563-571
• Main Authors: Brown, Laura Hobson, Greco, Laura, Savoie, Robert
• Format: Article
• Language: English
• Subjects: Amortization; Calendars; Certification; Collateral; Commercial law; Condominiums; Consumer loans; Consumer protection; Consumers; Counseling; Credit; Creditors; Decision-making; Escrow; Escrow accounts; Financial transactions; Foreclosure; Home ownership; Interest rates; Laws, regulations and rules; Liens; Lines of credit; Loans; Mortgage companies; Mortgage loans; Mortgages; Prepayments; Property taxes; Real estate business; Regulation; Regulation X; Regulation Z; Regulatory reform; Reverse mortgages; Secured creditors; Statistical data; Survey—Consumer Financial Services; Value appraisal; Wall Street; Wall Street Reform & Consumer Protection Act 2010-US
• ISSN: 0007-6899; 2164-1838

The Bureau of Consumer Financial Protection has published final rules implementing changes in the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act)to the escrow account requirements for higher-priced mortgage loans under the Truth in Lending Act. In addition, the new rules mandate requiring a borrower to obtain homeownership counseling before entering into a high-cost mortgage or, for a first-time borrower, negative amortization loan, and providing all applicants for mortgage Loans subject to the Real Estate Settlement Procedures Act with information about the availability of homeownership counseling. The CFPB has also adopted a new appraisal disclosure rule under the Equal Credit Opportunity Act and new appraisal rules for HPMLs under TILA. The major changes effected by these final rules are summarized in this article. Adapted from the source document.