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1. Credit Union Update – May 2013
Stay informed on the latest changes with a few of our free resources.
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Webinars
What’s On the Horizon in Compliance? – Our Quarterly Look Ahead
Live - Wednesday, June 19, 2013 - 10:00 to 11:30 AM Central
Join us for our complimentary quarterly regulatory update. In this live 90-
minute presentation, our team of Wolters Kluwer Financial Services’
attorneys will work through the compliance calendar highlighting the status of
current proposed and final regulations with information about compliance
changes and mandatory effective dates. From lending to mortgage to IRA/
Deposit to financial intelligence, this session will help ensure your compliance
staff is abreast of the regulatory landscape and its impact on your
organization. As always, we’ll have time for a Q&A period to discuss those
issues that are important to you. Register today – it’s free!
Articles
The Ability to Repay and the Qualified Mortgage
In the wake of the mortgage meltdown, there was a concern in Congress that
some creditors had been making loans to consumers without properly
considering the borrower’s ability to repay the loan. When Congress passed
the Dodd Frank Wall Street Reform and Consumer Protect Act of 2010 (the
“Dodd Frank Act”), it addressed this concern by amending the Truth in
Lending Act to add a new “ability to repay” requirement: A creditor shall not
make a mortgage loan unless the creditor makes a reasonable and good faith
determination at or before consummation that the consumer will have a
reasonable ability to repay the loan according to its terms.
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2. Articles
Homeownership Counseling/High-Cost Mortgage Rules
Lenders historically avoided making high-cost loans due to many restrictions on loan terms, special requirements,
and greater remedies that are available to consumers. Purchasers and assignees of high-cost loans are also exposed
to greater liability, making these loans less attractive on the secondary market. Even though creditors typically
avoided making high-cost loans prior to the amendment, many institutions may ultimately engage in this type of
lending due to expanded coverage. Numerous restrictions and requirements – both new and revised - apply to high-
cost mortgages.
White Papers
e-Disclosure: Answering Challenges Faced by Today’s Mortgage Lenders
The rise in use of online, phone and mobile marketing channels to develop sales has successfully brought about ad-
ditional opportunities for financial institutions. These innovative channels offer lenders ways to originate loans that
are less labor-intensive than the established methods of face-to-face sessions with loan officers, but they also bring
challenges in compliance and profitability. Borrower rate shopping is a growing problem for lenders seeking effi-
ciency through these channels, resulting in lower pull-through rates and increased processing costs at a time when
lenders are struggling to control costs.
Additionally, lenders have been falling short on consumers’ higher expectations for immediate response times, as
well as on compliance regulations for maintaining the safety and security of sensitive information when transmit-
ting personal data. Fortunately, e-Disclosure offers a viable alternative for accelerating the loan process, discour-
aging rate shopping by offering immediate response in disclosure fulfillment, and ensuring data security. Properly
conceived and implemented, this technology can dramatically improve pull-through rates, reduce costs per loan,
and offer high scalability and security with minimal investment required.
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