Sorry to dominate the thread today, but as I stated in another post, my head is spinning.
On 10/1/09, 226.34(a)(4)(ii)(B) will be amended to state, "Notwithstanding paragraph (a)(4)(ii)(A), a creditor has not violated paragraph (a)(4)(ii) if the amounts of income and assets that the creditor relied upon in determining repayment ability are not materially greater than the amounts of the consumer's income or assets that the creditor could have verified . . . . at the time the loan is consummated." New 226.35(b)(1) will read, "Repayment ability. A creditor shall not extend credit based on the value of the consumer's collateral without regard to the consumer's repayment ability as of consummation as provided in Sec. 226.34(a)(4)."
Do these subsections mean income and asset data must be reverified just prior to the closing? Notwithstanding DU's normal requirement that income must be reverified if docs used at underwriting are dated more than 30 days prior to closing, if yes, within how many days prior to closing must income and assets be reverified?

I would not disrupt your normal underwriting processes - there is no guidance as to how may days prior to closing this happens.

So, Randy, are you inferring that reverification of income and assets is required prior to closing?

You are required to verify income. There is no guidance as to when in the application process this verification process occurs.

Maybe I'm reading too much into this but my questions regarding reverification of income and assets stem from the following:

On 10/1/09, 226.34(a)(4)(ii)(B) will be amended to state, "Notwithstanding paragraph (a)(4)(ii)(A), a creditor has not violated paragraph (a)(4)(ii) if the amounts of income and assets that the creditor relied upon in determining repayment ability (this, to me, would be when the application is initially underwritten and approved)

are not materially greater than the amounts of the consumer's income or assets that the creditor could have verified . . . . at the time the loan is consummated." (COULD

New 226.35(b)(1) will read, "Repayment ability. A creditor shall not extend credit based on the value of the consumer's collateral without regard to the consumer's repayment ability as of consummation as provided in Sec. 226.34(a)(4)."

IGNORE THE PREVIOUS POST. HAPPY FINGERS HIT WRONG KEYS!

Maybe I'm reading too much into this but my questions regarding reverification of income and assets stem from the following:

On 10/1/09, 226.34(a)(4)(ii)(B) will be amended to state, "Notwithstanding paragraph (a)(4)(ii)(A), a creditor has not violated paragraph (a)(4)(ii) if the amounts of income and assets that the creditor relied upon in determining repayment ability (this, to me, would be when the application is initially underwritten and approved)

are not materially greater than the amounts of the consumer's income or assets that the creditor could have verified . . . . at the time the loan is consummated." (The terminology "COULD HAVE VERIFIED" and "AT THE TIME THE LOAN IS CONSUMMATED" [which to me means closed] us what leads me to believe reverification is required.)

New 226.35(b)(1) will read, "Repayment ability. A creditor shall not extend credit based on the value of the consumer's collateral without regard to the consumer's repayment ability as of consummation as provided in Sec. 226.34(a)(4)." (Again stating "AS OF CONSUMMATION" leading me to the same conclusion.)

What say the experts?

As I previously stated, there is no guidance. The closer to consummation the better, if you ever have to defend yourself in court. 30 days would appear to be a reasonable expectation, but only a court or your regulators can draw a line in the sand.

Thanks for the clarification Randy.