CFPB Update: FinCEN GTO now includes Palm Beach and Broward Counties

CFPB issues Notice of Proposed Rule Changes

Dear Members,

Two big things happened in the last 4 or 5 days that need to be brought to your attention.

First, FinCEN expanded the geographic area covered by the Government Targeting Order issued earlier this year. Broward and Palm Beach counties are now covered. You can find a copy of the GTO in PDF format here. You will be receiving more information from The Fund on this issue, but I wanted to make sure you were aware of this in case you have transactions in the covered counties. If you have pressing questions that cannot wait, please do not hesitate to contact me, Melissa Scaletta or an underwriting attorney with your questions.

Second, CFPB has issued the Notice of Proposed Rule Changes that we were all expecting. It is 293 pages. However, because I like you, here’s a quick heads up of the areas affected by the rule changes (this is NOT exhaustive). Note that revising the way in which title insurance premiums are disclosed is NOT on this list!

• Provide guidance on sharing disclosures with various parties involved in the mortgage origination process;
• affiliate charges;
• the calculating cash to close table;
• construction loans;
• decimal places and rounding;
• escrow account disclosures;
• escrow cancellation notices;
• expiration dates for the closing costs disclosed on the Loan Estimate;
• gift funds;
• the “In 5 Years” calculation;
• lender and seller credits;
• lenders’ and settlement agents’ respective responsibilities;
• the list of service providers;
• non-obligor consumers;
• payment ranges on the projected payments table;
• the payoffs and payments table;
• payoffs with a purchase loan;
• post-consummation fees;
• principal reduction (principal curtailment);
• disclosure and good faith determination of property taxes and property value;
• rate locks;
• recording fees;
• simultaneous second lien loans;
• the summaries of transactions table;
• the total interest percentage calculation;
• informational updates to the disclosures required by § 1026.19(e)(1)(i) (Loan Estimate).

We are beginning our review of all 293 pages and will provide input and guidance as best we can. CFPB has opened the comment period through October 18, 2016. We will be working with ALTA and other interested parties in the industry to formulate appropriate comments for consideration by CFPB.

As always, thank you for your support of The Fund.

Best Regards,

Melissa Jay Murphy
Senior Vice President and
General Counsel