Hope You Like Plain Vanilla! Mortgage Reform and Anti-Predatory Lending Act (Title XIV)
By: Kristie D. Kully, Laurence E. Platt
The Mortgage Reform Act and Anti-Predatory Lending Act, part of the comprehensive Dodd-Frank Wall Street Reform package under final Hill consideration, will likely melt any hopes for other than plain vanilla residential mortgage loans. Makers of "strawberry" or "rocky road" loans will likely face enhanced scrutiny, and may face increased damages, extended exposure to borrower claims, and risk retention requirements. In this client alert, we summarize the hefty provisions in the Mortgage Reform Act that would require creditors to consider a borrower’s ability to repay; the safe harbor for plain vanilla loans; the restructuring of mortgage originator compensation; and other amendments to TILA, HOEPA, FCRA, HMDA, and the S.A.F.E. Act. In the end, as consumers, the industry, and the federal regulatory agencies work to implement these changes, Supreme Court Justice Breyer may be the final authority on plain vanilla mortgages and the Mortgage Reform Act’s other ambiguous provisions.
To view the complete alert online, click here.
This client alert is part of a series of alerts focused on monitoring financial regulatory reform. Below is a list of other alerts in the series:
Consumer Financial Services Industry, Meet Your New Regulator - July 7, 2010
New Executive Compensation and Governance Requirements in Financial Reform Legislation - July 7, 2010
Financial Regulatory Reform - The Next Chapter: Unprecedented Rulemaking and Congressional Activity - July 7, 2010
Investor Protection Provisions of Dodd-Frank - July 1, 2010
Senate Financial Reform Bill Would Dramatically Step Up Regulation of U.S. and Non-U.S. Private Fund Advisers - June 8, 2010
Approaching the Home Stretch: Senate Passes “Restoring American Financial Stability Act of 2010” - June 8, 2010
