Mortgage Loans & Home Ownership


Escrow Requirements
for Higher Priced Mortgages
​This rule intends to help ensure consumers with higher-priced mortgages set aside funds in an escrow account to pay their homeowners insurance, property taxes, or other related mortgage expenses. Creditors are required to collect monthly escrow payments for higher priced mortgages for the first five years. 
Effective: June 1, 2013.
Ability to Repay and Qualified Mortgages
This rule requires creditors to make a reasonable, good faith determination of a consumer’s ability to repay a mortgage loan and provides creditors with protections if the loan ends up in default.

Effective: January 10, 2014.
Mortgage Servicing ​A mortgage loan servicer is often a third party separate from the financial institution (credit union) that manages the day-to-day operations of a mortgage loan, like processing mortgage payments and managing the escrow account. This rule provides consumers with additional protections when dealing with mortgage servicers, requiring that they respond to borrower requests accurately and in a timely manner, provide periodic statements, take steps to correct errors or prevent losses to the consumer and lender, among other new requirements.

Effective: January 10, 2014.

High Cost Mortgage and Home Ownership Counseling ​This rule expands the types of mortgage loans subject to the protections of the Home Ownership and Equity Protections Act (HOEPA) and requires pre-loan counseling and disclosures about those financial institutions that provide homeownership counseling. The rule covers purchase-money mortgages, refinances, home equity loans and lines of credit.

Effective: January 10, 2014.

Equal Credit Opportunity Act (ECOA) Appraisals and Valuations ​This rule requires creditors to provide applicants with free copies of appraisals and other written valuations developed in connection with a mortgage loan application.

Effective: January 18, 2014.
Appraisals & Higher Priced Mortgages ​This rule requires creditors to obtain an appraisal meeting specific standards; provide applicants with advance notification regarding the use of the appraisals; and give applicants a copy of the written appraisals for higher-priced mortgage loans. The effective date of this rule is also January 18, 2014
Effective: January 18, 2014.
Loan Originator Compensations & Qualifications Rule ​This rule limits the compensation plans for mortgage loan originators. It also prohibits mandatory arbitration and non-judicial procedures to resolve consumer disputes involving mortgage loan agreements and the financing of credit insurance premiums.
The effective date for prohibition on mandatory arbitration clauses was June 1, 2013, and is January 10, 2014, for the remaining provisions.


Home Ownership & Mortgages –  What You Need to Know 

Home Ownership & Mortgages

Mortgages – Refinance or Modify?

Mortgages - Refinance or Modify?

Buying vs. Renting a Home

Buying vs. Renting a Home


Related Resources: 

• Mortgage Modifications
CFPB Mortgage Rule Implementation - Consumer Financial Protection Bureau
• High-Rate, High-Fee Home Loans - Federal Trade Commission 

(Updated 10/21/13)