The courses include an overview of Regulation Z as it pertains to federally regulated and closed-end mortgages
(3 hours of federal laws and regulations); a discussion of current mortgage fraud schemes (2 hours of ethics: fraud, consumer protection, and fair lending issues); and, 2 hours of training related to Fannie Mae's HomeReady Mortgages (nontraditional mortgage products).
A seventh guideline governing closed-end mortgages
, expected in October, will add even greater burden to a situation some lenders already find daunting.
It noted that the Dodd-Frank Wall Street Reform and Consumer Protection Act "prohibits any contractual requirement that would impose the use of nonjudicial foreclosure as the process for mortgages on principal dwellings and for closed-end mortgages
on secondary dwellings."
But before its recent deadline for feedback on amendments that would revise the disclosure rules for closed-end mortgages
, or mortgages that can't be paid off until they mature, the agency was deluged with nearly 4,000 comments.
In other Reg Z news, in late July the Fed proposed significant changes to Reg Z intended to improve the disclosures consumers receive in connection with closed-end mortgages
and home equity lines of credit (HELOCs).
These include second-mortgage production (both closed-end mortgages
and lines of credit) originated through LaSalle Bank and Standard Federal Bank, and these loans are closed in the name of the individual bank entity.
(Standard Federal Bank and LaSalle Bank figures include second-mortgage production--both closed-end mortgages
and lines of credit--originated through LaSalle Bank and Standard Federal Bank.