Skip to main content

Search

Mortgage Lending: § 206.53 Refinancing a HECM loan.

(a) General. Except as otherwise provided in this section, all requirements applicable to the insurance of HECMs under this part apply to the insurance of refinanced HECMs. FHA may, upon application by a mortgagee, insure any mortgage given to refinance an existing HECM insured under this part, including loans assigned to the Commissioner as described in § 206.107(a)(1) and § 206.121(b).

Mortgage Lending: § 206.55 Deferral of due and payable status for Eligible Non-Borrowing Spouses.

(a) Deferral Period. If the last surviving borrower predeceases an Eligible Non-Borrowing Spouse, and if the requirements of paragraph (d) of this section are satisfied, the due and payable status will be deferred for as long as the Eligible Non-Borrowing Spouse continues to meet the Qualifying Attributes in paragraph (c) of this section and the requirements of paragraphs (d) and (e) of this section.

(b) End of Deferral Period.

Mortgage Lending: § 206.57 Cure provision enabling reinstatement of Deferral Period.

(a) When the mortgagee is required by § 206.55(b)(2) to provide an Eligible Non-Borrowing Spouse with 30 days to cure the default, this section shall apply.

(b) If the default is cured within the 30-day timeframe, the Deferral Period shall be reinstated, unless:

(1) The mortgagee has reinstated the Deferral Period within the past two years immediately preceding the current notification to the Eligible Non-Borrowing Spouse that the mortgage is due and payable;

Mortgage Lending: § 206.59 Obligations of mortgagee.

(a) Certifications and disclosures at closing. At closing, the mortgagee shall obtain the appropriate certification from each borrower identified as married as well as from each identified Non-Borrowing Spouse. When a HECM borrower has identified an Ineligible Non-Borrowing Spouse, the mortgagee shall also disclose the amount of mortgage proceeds that would have been available under the HECM if he or she were an Eligible Non-Borrowing Spouse.

Consumer Class Actions: 17.2.1 Overview

This section outlines basic trial preparation and alternative trial structures for determining liability and damages. The trial structure and format may take many forms. The most basic form is trying both liability and damages in one trial, although other accepted techniques may include bifurcating liability and damages, resolving different causes of action in separate phases of the trial, or using other innovative trial structures. Whatever technique is adopted, however, early trial preparation is key in class action cases.

Consumer Class Actions: 17.3.1 Overview

Proving liability in a class trial may be no different than proving liability in an individual trial with one important exception—in the presentation of each piece of evidence, the case must focus on the defendants’ wrongdoing on a classwide basis. It is therefore important to introduce the defendant’s common course of conduct, policy, or practice early in the trial proceedings. Having a liability expert testify first is often the wisest strategy. That expert can then explain the business practice and whether it was common or uniform for all class members.

Consumer Class Actions: 17.3.2 Proof Through Class Representatives

Although liability may be proven solely through the testimony of the class representative and supporting documentary evidence, defense counsel will often attempt to impeach this testimony by eliciting admissions that the representative does not—and cannot—know how other persons reacted, or whether they were harmed in any way. Setting aside whether such questions are proper in a certified case, the better practice is to establish the defendant’s common course of conduct before the representative testifies.

Mortgage Lending: Introduction and Listing of Provisions

The Alternative Mortgage Transactions Parity Act of 1982 (AMTPA), 12 U.S.C. §§ 3801–3806, was enacted by Title VIII of the Depository Institutions Act of 1982, also known as the Garn-St Germain Act. See Pub. L. No. 97-320, 96 Stat. 1469 (1982). The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), Pub. L. No. 111-203, 124 Stat. 1376 (2010), significantly limited AMTPA’s scope for mortgage loans made on or after July 21, 2011.

Mortgage Lending: § 3802. Definitions

As used in this chapter—

(1) the term “alternative mortgage transaction” means a loan or credit sale secured by an interest in residential real property, a dwelling, all stock allocated to a dwelling unit in a residential cooperative housing corporation, or a residential manufactured home (as that term is defined in section 5402(6) of Title 42), in which the interest rate or finance charge may be adjusted or renegotiated, described and defined by applicable regulation; and

Mortgage Lending: § 3803. Alternative mortgage authority

(a) General authority; compliance by banks, credit unions and all other housing creditors with applicable regulations

In order to prevent discrimination against State-chartered depository institutions, and other nonfederally chartered housing creditors, with respect to making, purchasing, and enforcing alternative mortgage transactions, housing creditors may make, purchase, and enforce alternative mortgage transactions, except that this section shall apply—

Mortgage Lending: § 3804. Applicability of preemption provisions

(a) The provisions of section 3803 of this title shall not apply to any alternative mortgage transaction in any State made on or after the effective date (if such effective date occurs on or after October 15, 1982, and prior to a date three years after October 15, 1982) of a State law or a certification that the voters of such State have voted in favor of any provision, constitutional or otherwise, which states explicitly and by its terms that such State does not want the preemption provided in section 3803 of this title to apply with respect to altern

Mortgage Lending: J.2.1 Introduction

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) requires that state housing creditors opting to avoid state law follow regulations issued by the Consumer Financial Protection Bureau (CFPB), for mortgage loans made on or after July 21, 2011. Reprinted below is the CFPB’s interim final rule (Regulation D) and its official commentary, both effective July 22, 2011. 12 C.F.R. pt. 1004. See 76 Fed. Reg. 44,226 (July 22, 2011).

Mortgage Lending: Listing of Provisions

Title 12—Banks and Banking

Chapter X—Bureau of Consumer Financial Protection

Part 1004—Alternative Mortgage Transaction Parity (Regulation D)

Sec.

1004.1 Authority, purpose, and scope.

1004.2 Definitions.

1004.3 Preemption of State law.

1004.4 Requirements for alternative mortgage transactions.

AUTHORITY: 12 U.S.C. §§ 3802, 3803; 15 U.S.C. §§ 1604, 1639b; Pub. L. No. 111-203, 124 Stat. 1376 (2010).

Mortgage Lending: § 1004.1 Authority, purpose, and scope.

(a) Authority. This regulation, known as Regulation D, is issued by the Bureau of Consumer Financial Protection to implement the Alternative Mortgage Transaction Parity Act, 12 U.S.C. 3801 et seq., as amended by title X, Section 1083 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. 111-203, 124 Stat. 1376). Section 1004.4 is issued pursuant to the Alternative Mortgage Transaction Parity Act (as amended) and the Truth in Lending Act, 15 U.S.C. 1601 et seq.

Mortgage Lending: § 1004.2 Definitions.

For purposes of this part:

Alternative mortgage transaction means a loan, credit sale, or account:

(1) That is secured by an interest in a residential structure that contains one to four units, whether or not that structure is attached to real property, including an individual condominium unit, cooperative unit, mobile home, or trailer, if it is used as a residence;

(2) That is made primarily for personal, family, or household purposes; and

Mortgage Lending: § 1004.3 Preemption of State law.

Pursuant to 12 U.S.C. 3803, a State-chartered or -licensed housing creditor may make, purchase, and enforce alternative mortgage transactions in accordance with § 1004.4(a) through (c) of this part (as applicable), notwithstanding any provision of State law that restricts the ability of the housing creditor to adjust or renegotiate an interest rate or finance charge with respect to the transaction or to change the amount of interest or finance charges included in a regular periodic payment as a result of such an adjustment or renegotiation.

Mortgage Lending: § 1004.4 Requirements for alternative mortgage transactions.

[Editor’s Note: According to 76 Fed. Reg. 44,226 (July 22, 2011), section 1004.4 is effective as follows: “Mandatory compliance date: Compliance with § 1004.4 of this interim final rule is optional until July 22, 2012 for federal housing creditors and for state housing creditors that are not relying on preemption of state law under § 1004.3. On July 22, 2012, compliance with § 1004.4 is mandatory for all creditors, except as provided in § 1004.4(d).”]

Mortgage Lending: Listing of Provisions

Title 12—Banks and Banking

* * *

Chapter X—Bureau of Consumer Financial Protection

* * *

Part 1004—Alternative Mortgage Transaction Parity (Regulation D)

* * *

Appendix A to Part 1004—Official Commentary on Regulation D

AUTHORITY: 12 U.S.C. §§ 3802, 3803; 15 U.S.C. §§ 1604, 1639b; Pub. L. No. 111-203, 124 Stat. 1376 (2010).