Two firms are helping lenders comply with new requirements under the Truth in Lending Act. Real estate agents and brokers recently warned the nation’s central banker about the negative impact to Federal Housing Administration borrowers from upcoming changes.
The National Association of REALTORS sent a letter last month to Federal Reserve Board Chairman Ben Bernanke asking for a delay in the enforcement of restrictions preventing lenders from making higher-priced FHA mortgages.
The restrictions arose out of amendments to the board’s TILA regulations that were set to become effective on Oct. 1, the letter indicated. The group said it was concerned over the practice of making FHA borrowers pay interest through the end of the month when they prepay their loans — which it likened to a prepayment penalty.
Mortgage Marvel said in September that the TILA’s Regulation Z changes require additional disclosures and more information in advertisements about how payments on adjustable-rate mortgages might increase given the fully indexed rate as of the prior 30 days. Mortgage Marvel claims its offering enables lenders to be fully compliant with the new regulatory changes.
Cypress Software Systems recently announced that its Mark IV series offerings enable lenders to be compliant with changes to the Reg Z, which impacts a new category of loans known as higher-priced.
Such loans require that the borrower be qualified utilizing written income verification based on the highest possible payment during the first seven years — and the Mark IV updates reportedly address these requirements.
