CFPB Final Rule Amendments to Ability to Repay and QM Rule
May 29, the CFPB issued a final rule amending its ability-to-repay and qualified mortgage (QM) rule. The amendments, effective in conjunction with the ability-to-repay rule on January 10, 2014, (i) exempt certain nonprofit and community-based lenders from the rule; (ii) facilitate lending by small creditors, including certain community banks and credit unions, by making changes to qualified mortgage status for loans issued by small creditors; and (iii) establish the calculation method for loan origination compensation. CFPB Release. CFPB Final Rule Amendments.
Extension of Loan Modification Programs
On May 30, Treasury and HUD announced an extension of the Making Home Affordable Modification Program (HAMP) through December 31, 2015. In addition, on May 30, the FHFA announced that it has directed Fannie Mae and Freddie Mac to extend the HAMP modification program and the streamlined modification initiative through year-end 2015. HAMP eligibility was originally scheduled to sunset in December 2013, and the streamlined modification initiative was originally expected to end in August 2015. Treasury Release. FHFA Release.
Freddie Mac $1 Billion Performing Modified Loan Securitization
On May 23, Freddie Mac announced that it has begun securitizing certain performing modified mortgage loans held in its portfolio. These loans have been current for at least six consecutive months. Freddie Mac Release.
FinCEN Guidance on Virtual Currency Regulation
On March 18, the Financial Crimes Enforcement Network (FinCEN) issued interpretive guidance clarifying the applicability of regulations implementing the Bank Secrecy Act to persons creating, obtaining, distributing, exchanging, accepting or transmitting virtual currencies. FinCEN Guidance.