They're on the website, along with others!

What??? Only 804 pages??? What am I going to do the rest of this weekend.

Just for good measure they threw in Escrow Requirements for 116 pages and High-Cost Mortgages and Counseling Requirements for 431 pages.

Oh, and Escrow is effective June 1st.

Yeah!

It won't let me open the final rule and my IT person is out...does that mean I don't have to follow it

Specifically, it must be proven that, at the time of consummation, based on the information available to the creditor, the consumer’s income, debt obligations,
alimony, child support, and the consumer’s monthly payment (including mortgage-related obligations) on the covered transaction and on any simultaneous loans of which the creditor was aware at consummation would leave the consumer with insufficient residual income or assets other than the value of the dwelling (including any real property attached to the dwelling) that secures the loan with which to meet living expenses, including any recurring and material nondebt obligations of which the creditor was aware at the time of consummation, and that the creditor thereby did not make a reasonable and good faith determination of the consumer’s
repayment ability. For example, a consumer may rebut the presumption with evidence demonstrating that the consumer’s residual income was insufficient to meet living expenses,
such as food, clothing, gasoline, and health care, including the payment of recurring medical expenses of which the creditor was aware at the time of consummation....

Looks like we are going to have to ask about all their other living expenses besides debt payments to come up with "residual income"

Rural or underserved - I think we can live with this definition.

Pursuant to § 1026.35(b)(2)(iv), a county is considered to be rural if it is neither in a metropolitan statistical area, nor a micropolitan statistical area adjacent to a metropolitan statistical area, as those terms are defined by the U.S.
Office of Management and Budget. A county is considered to be underserved if no more than two creditors extend covered transactions secured by a first lien five or more times in that county during a calendar year

The final rules are now available on the CFPB site. You'll find links on our Top Stories page.

The new phone book's here! The new phone book's here!

[I decided it worked better here than in the Movie Quotes thread]

OMG - Final Rules = 804 pages
Concurrent proposal = 185 pages
I'm dizzy already!!!

804 pages for the ability to repay final rule and then another 185 pages for the concurrent proposal.

You also have 431 pages for the HOEPA/homeownership counseling final rules and 116 pages for the escrow requirements final rule.

Happy reading everyone!!!

So where does one go to see the actual list of counties that meet the "rural" definition? I guess the OMB has its own website?

Nicely played, Ted!

Just because the CFPB has 958 employees making salaries in the $100,000 to $200,000+ range writing this effluence doesn't mean community banks have similar manpower and leisure to digest it. That's 1536 pages in one fell swoop!!! Dodd-Frank itself was only (yes, I actually wrote "only") 2319 pages!

(4) Offer of rate discounts and other favorable terms. A creditor making a covered transaction under this paragraph (d) may offer to the consumer rate discounts and terms that are the same as, or better than, the rate discounts and terms that the creditor offers to new consumers, consistent with the creditor’s documented underwriting practices and to the extent not prohibited by applicable State or Federal law.

Um, Fair Lending setup?

(f) Balloon-payment qualified mortgages made by certain creditors. (1) Exemption. Notwithstanding paragraph (e)(2) of this section, a qualified mortgage may provide for a balloon payment, provided:
(i) The loan satisfies the requirements for a qualified mortgage in paragraphs (e)(2)(i)(A), (e)(2)(ii), (e)(2)(iii), and (e)(2)(v) of this section, but without regard to the standards in appendix Q;
(ii) The creditor determines at or before consummation that the consumer can make all of the scheduled payments under the terms of the legal obligation, as described in paragraph (f)(1)(iv) of this section, together with the consumer’s monthly payments for all mortgage-related obligations and excluding the balloon payment, from the consumer’s current or reasonably expected income or assets other than the dwelling that secures the loan;
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(iii) The creditor considers at or before consummation the consumer’s monthly debt-to-income ratio or residual income and verifies the debt obligations and income used to determine that ratio in accordance with paragraph (c)(7) of this section, except that the calculation of the payment on the covered transaction for purposes of determining the consumer’s total monthly debt obligations in (c)(7)(i)(A) shall be determined in accordance with paragraph (f)(iv)(A) of this section, together with the consumer’s monthly payments for all mortgage-related obligations and excluding the balloon payment;
(iv) The legal obligation provides for:
(A) Scheduled payments that are substantially equal, calculated using an amortization period that does not exceed 30 years;
(B) An interest rate that does not increase over the term of the loan; and
(C) A loan term of five years or longer.
(v) The loan is not subject, at consummation, to a commitment to be acquired by another person, other than a person that satisfies the requirements of paragraph (f)(1)(vi) of this section; and
(vi) The creditor satisfies the requirements stated in § 1026.35(b)(2)(iii)(A), (B), and (C).
(2) Post-consummation transfer of balloon-payment qualified mortgage. A balloon-payment qualified mortgage, extended pursuant to paragraph (f)(1), immediately loses its status as a qualified mortgage under paragraph (f)(1) if legal title to the balloon-payment qualified mortgage is sold, assigned, or otherwise transferred to another person except when:
(i) The balloon-payment qualified mortgage is sold, assigned, or otherwise transferred to another person three years or more after consummation of the balloon-payment qualified mortgage;
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(ii) The balloon-payment qualified mortgage is sold, assigned, or otherwise transferred to a creditor that satisfies the requirements of paragraph (f)(1)(vi) of this section;
(iii) The balloon-payment qualified mortgage is sold, assigned, or otherwise transferred to another person pursuant to a capital restoration plan or other action under 12 U.S.C. 1831o, actions or instructions of any person acting as conservator, receiver or bankruptcy trustee, an order of a State or Federal governmental agency with jurisdiction to examine the creditor pursuant to State or Federal law, or an agreement between the creditor and such an agency; or
(iv) The balloon-payment qualified mortgage is sold, assigned, or otherwise transferred pursuant to a merger of the creditor with another person or acquisition of the creditor by another person or of another person by the creditor.

Does anyone else read this as saying that a balloon note can qualify as a QM?

5 years or more...

I believe that's from the section that describes banks serving rural, underserved areas. So i think the answer to your question is: yes, if you meet that exemption.

Finally, the
comment provides that the Bureau also publishes a list of only those counties that are rural but not also underserved, to facilitate compliance with § 1026.35(c).

This is actually from the escrow rules. The 'not' is throwing me off. Wouldn't it need to be both? Or either/or? That makes it sound like if you're rural AND underserved, you don't qualify? What am i reading wrong here?

Is there an actual list that says who is rural/underserved.

In reading further in the escrow rules it says: "As this final rule takes effect
on June 1, 2013, the Bureau expects to publish lists applicable for the current year within
approximately four to six weeks after publication of this final rule, but in any event before this
final rule takes effect."

scroll down, there are resources...

But that's for CRA, are they using the same 'Federally Designated Distressed or Underserved' designations?

It would be nice if they would clarify.

So how do you all digest this?

Will you read the entire thing electronically? Print it all up on paper? I like paper for highlighting and making notes but hate to print that many pages.

I'll probably read the whole thing electronically. That's what i'm doing on the escrow rules (i know they're shorter).

I will read it electronically, hate to waste so much paper. I've only started to skim.

If you have access to eCopy, you can highlight as you read, even make notes along the way. Then you can limit printing to the pages you really need.
I really dislike scrolling and reading, but I hate that much paper laying around even more.