United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2013_register executive 2013-02-15 article Part II Rules and Regulations D09002ee1c7fbd810 D09002ee1c7fbd932 United States Bureau of Consumer Financial Protection originator org United States Government Agency or Subagency The Bureau of Consumer Financial Protection (Bureau) is amending Regulation Z to implement amendments to the Truth in Lending Act (TILA) made by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The final rule implements requirements and restrictions imposed by the Dodd-Frank Act concerning loan originator compensation; qualifications of, and registration or licensing of loan originators; compliance procedures for depository institutions; mandatory arbitration; and the financing of single- premium credit insurance. The final rule revises or provides additional commentary on Regulation Z's restrictions on loan originator compensation, including application of these restrictions to prohibitions on dual compensation and compensation based on a term of a transaction or a proxy for a term of a transaction, and to recordkeeping requirements. The final rule also establishes tests for when loan originators can be compensated through certain profits-based compensation arrangements. At this time, the Bureau is not prohibiting payments to and receipt of payments by loan originators when a consumer pays upfront points or fees in the mortgage transaction. Instead the Bureau will first study how points and fees function in the market and the impact of this and other mortgage-related rulemakings on consumers' understanding of and choices with respect to points and fees. This final rule is designed primarily to protect consumers by reducing incentives for loan originators to steer consumers into loans with particular terms and by ensuring that loan originators are adequately qualified. 78 FR 11280 https://www.govinfo.gov/app/details/FR-2013-02-15/2013-01503 2013-01503 fr15fe13-12 RIN 3170-AA13 4810-AM-P Docket No. CFPB-2012-0037 https://www.govinfo.gov/app/details/FR-2013-02-15/2013-01503 https://www.govinfo.gov/content/pkg/FR-2013-02-15/html/2013-01503.htm https://www.govinfo.gov/content/pkg/FR-2013-02-15/pdf/2013-01503.pdf Advertising Consumer Protection Credit Credit Unions Mortgages National Banks Reporting and Recordkeeping Requirements Savings Associations Truth in Lending 148 p. 11280 11427 78 FR 11280 Title 12 Part 1026 12 CFR Part 1026 RIN 3170-AA13 Loan Originator Compensation Requirements Under the Truth in Lending Act (Regulation Z); Federal Register Vol. 78, Issue RULE 2013-01503 II BUREAU OF CONSUMER FINANCIAL PROTECTION 2013-06-01 Docket No. CFPB-2012-0037 4810-AM-P 2013-01503 Final rule; official interpretations.

The Bureau of Consumer Financial Protection (Bureau) is amending Regulation Z to implement amendments to the Truth in Lending Act (TILA) made by the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The final rule implements requirements and restrictions imposed by the Dodd-Frank Act concerning loan originator compensation; qualifications of, and registration or licensing of loan originators; compliance procedures for depository institutions; mandatory arbitration; and the financing of single- premium credit insurance. The final rule revises or provides additional commentary on Regulation Z's restrictions on loan originator compensation, including application of these restrictions to prohibitions on dual compensation and compensation based on a term of a transaction or a proxy for a term of a transaction, and to recordkeeping requirements. The final rule also establishes tests for when loan originators can be compensated through certain profits-based compensation arrangements. At this time, the Bureau is not prohibiting payments to and receipt of payments by loan originators when a consumer pays upfront points or fees in the mortgage transaction. Instead the Bureau will first study how points and fees function in the market and the impact of this and other mortgage-related rulemakings on consumers' understanding of and choices with respect to points and fees. This final rule is designed primarily to protect consumers by reducing incentives for loan originators to steer consumers into loans with particular terms and by ensuring that loan originators are adequately qualified.

The amendments to Sec. 1026.36(h) and (i) are effective on June 1, 2013. All other provisions of the rule are effective on January 10, 2014. Daniel C. Brown, Nora Rigby, and Michael G. Silver, Counsels; Krista P. Ayoub, and R. Colgate Selden, Senior Counsels; Charles Honig, Managing Counsel; Office of Regulations, at (202) 435-7700. Advertising Consumer Protection Credit Credit Unions Mortgages National Banks Reporting and Recordkeeping Requirements Savings Associations Truth in Lending Loan Originator Compensation Requirements under Truth in Lending Act (Regulation Z) , CFPB_Public_PRA@cfpb.gov http://daon.com/prints http://files.consumerfinance.gov/f/201204_cfpb_LoanOriginatorCompensationBulletin.pdf http://files.consumerfinance.gov/f/201205_cfpb_MLO_SBREFA_Outline_of_Proposals.pdf http://files.consumerfinance.gov/f/201208_cfpb_LO_comp_SBREFA.pdf http://research.stlouisfed.org/publications/review/article/5019 http://works.bepress.com/karen_pence/5 http://ws1.ad.economics.harvard.edu/faculty/weitzman/files/IncentiveEffectsProfitSharing.pdf http://www.accuratebiometrics.com/index.asp http://www.bankrate.com/brm/news/mortgages/20070418_subprime_mortgage_morality_a1.asp http://www.dallasfed.org/assets/documents/banking/firm/fi/fi1201.pdf http://www.economy.com/default.asp http://www.eeoc.gov/eeoc/foia/letters/2010/titlevii-employer-creditck.html http://www.fas.org/sgp/crs/misc/97-589.pdf http://www.federalreserve.gov/boarddocs/SnLoanSurvey/default.htm http://www.federalreserve.gov/newsevents/press/enforcement/20110720a.htm http://www.federalreserve.gov/publications/other-reports/files/housing-white-paper-20120104.pdf http://www.federalreserve.gov/releases/z1/Current/z1.pdf http://www.fhfa.gov/webfiles/23344/StrategicPlanConservatorshipsFINAL.pdf http://www.fhfa.gov/webfiles/24549/ConservatorsReport2Q2012.pdf http://www.fieldprintfbi.com/FBISubPage_FullWidth.aspx?ChannelID=272 http://www.financialstabilityboard.org/publications/r_0904b.pdf http://www.freddiemac.com/sell/guide/bulletins/pdf/421indltr.pdf http://www.ftc.gov/os/2007/06/P025505MortgageDisclosureReport.pdf http://www.gpo.gov/fdsys/pkg/GPO-FCIC/pdf/GPO-FCIC.pdf http://www.huduser.org/publications/pdf/FHA_closing_cost.pdf http://www.irs.gov/pub/irs-pdf/i1099msc.pdf http://www.irs.gov/pub/irs-pdf/iw2w3.pdf http://www.irs.gov/uac/2013-Pension-Plan-Limitations http://www.lpsvcs.com/LPSCorporateInformation/CommunicationCenter/DataReports/Pages/Mortgage-Monitor.aspx http://www.merriam-webster.com/dictionary/arrange http://www.regulations.gov/#!documentDetail http://www.sba.gov/content/table-small-business-size-standards http://www.stanford.edu/∼rehall/DiagnosingConsumerConfusionJune2012 http://www.truestandings.com https://www.fanniemae.com/content/announcement/04-05.pdf Merriam-Webster.com www.huduser.org/Publications/pdf/MortgageRefinance03.pdf www.nmlsconsumeraccess.org Vol. 78, no. 32 Office of the Federal Register, National Archives and Records Administration 2013-02-15 continuing daily deposited born digital 471 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2013-02-15 P0b002ee183cefc59 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr15fe13 https://www.govinfo.gov/app/details/FR-2013-02-15 https://www.govinfo.gov/content/pkg/FR-2013-02-15/pdf/FR-2013-02-15.pdf https://www.govinfo.gov/content/pkg/FR-2013-02-15/xml/FR-2013-02-15.xml fdlp 11089 11550 DGPO 2013-02-15 2024-06-03 FR-2013-02-15 machine generated eng FR FR-2013-02-15 78 32