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Home Equity Lending

Texas has one of the most regulated Home Equity lending laws in the country.  Here is a simplified break-down of what is constitutionally required of lenders making Home Equity loans in Texas.

This is a useful chart showing the Home Equity loan process from application to post-closing.

Consumer Financial Protection Bureau Rules

The Consumer Financial Protection Bureau (CFPB) now oversees all of the consumer regulations affecting Residential Mortgage lending.  The following are some of the most significant CFPB rules.

ATR and QM are the new touchstones of residential lending.  It is critical that all residential lenders know and understand the new rules.

Applies generally to first lien, higher-priced mortgage loans secured by consumer’s principal dwelling.

Applies to higher-priced, first or subordinate-lien closed end loans secured by consumer’s principal dwelling

Applies to residential mortgage loan originators and covers compensation, qualification, identification and written policies and procedures.

Applies to residential mortgage servicing with extensive new requirements in all ares of servicing.  The “small servicer exemption” provides some relief for small servicers.

Applies to closed-end and open-end loans secured by a first lien on a dwelling, including consumer and business loans