The final Loan Originator Compensation Rule was released by the CFPB on January 20, 2013. The rule expands restrictions related to loan originator compensation, establishes additional licensing and registration requirements for some originators and the organizations that employ them, contains restrictions on contract provisions for dwelling-secured credits and prohibits the financing of single-premium credit insurance on dwelling-secured transactions. The final rule also requires policies and procedures to be established and expands record retention requirements. The majority of the requirements go into effect in January 2014, but some are effective in June of this year.
A final Appraisal Rule, also issued by the CFPB, amends The Equal Credit Opportunity Act (ECOA) by setting requirements to alert applicants of their right to receive a copy of any appraisal(s) and requirements for providing the appraisal(s) when a transaction is secured by a first lien on a dwelling. Don’t get confused, as this final rule is different than the joint final rule we announced last week in our blog. That final rule amends Regulation Z and applies to appraisals for higher-priced mortgage loans.
We are furiously digging into these and all of the recently issued final rules. We will provide more details via our newsletter, once we know more.