Fed Issues Final Rule Affecting Mortgages
Yesterday, the Federal Reserve Board approved a final rule aimed at ending certain abusive practices by home mortgage lenders. You can read the Fed's announcement here. I would read this Fed overview before diving into the final rule itself, because the final rule is more than 400 pages in length. The long, draft Federal Register notice can be found here.
Compliance with the rule is October 1, 2009. (One provision relating to escrows takes effect one year later.)
Word of warning: this rule contains some provisions that affects credit unions that offer high-priced mortgages (as defined by HOEPA) AND some provision that affect ALL closed-end home-secured mortgages. The bottom line is this: if your credit union offers mortgage lending, this is a must read.