WELCOME to the MMLA's e-Learning Center!

This page is designed to be your one-stop resource for educational needs for the Mortgage Lending Industry! Why search multiple websites when you can find all newsworthy events here in one place! Check this page often for latest industry news regarding changes that will affect the way you take and process mortgages. We will post notices from the various agencies, noteworthy articles, and helpful tools as provided by our members.

Remember that the MMLA provides its members live seminars, webinars as well as breakfast and luncheon events on relevant subjects from time to time. Check the online calendar listing for information on upcoming events.


Click on the links below for the latest published notices:

MMLA VIRTUAL EDUCATION SERIES OF WEBINARS  - Members can access free recordings here.

IRS is changing the forms for ordering tax transcripts and the old forms will not be available for use effective 3/1/2021.

The IRS has released the new version of the 4506-T form which will now be the 4506-C form (version September 2020). We strongly recommend implementing these changes as soon as possible to mitigate potential issues, as the IRS will only accept the form 4506-C starting March 1st, 2021.

Consumer Financial Protection Bureau ISSUES FINAL RULE EXTENDING THE GSE PATCH

WASHINGTON, D.C. – 10/20/2020  The Consumer Financial Protection Bureau (Bureau) today issued a final rule to extend the Government-Sponsored Enterprise (GSE) Patch until the mandatory compliance date of a final rule amending the General Qualified Mortgage (QM) loan definition in Regulation Z.  The GSE Patch was scheduled to expire on January 10, 2021.  The Bureau is not amending the provision in Regulation Z stating that the GSE Patch will expire if the GSEs (Fannie Mae and Freddie Mac) exit conservatorship.

In releasing the final rule, the Bureau is taking steps to ensure a smooth and orderly transition away from the GSE Patch and to maintain access to responsible, affordable mortgage credit upon its expiration.  Further, the Bureau is taking this action to ensure that responsible, affordable credit remains available to consumers who may be affected if the GSE Patch expires before the mandatory compliance date of a final rule amending the General QM loan definition.  The Bureau issued a proposal to amend the General QM loan definition on June 22, 2020, the same day it issued a proposal to extend the GSE Patch.  The Bureau is currently developing a final rule amending the General QM loan definition and is planning to issue it at a later date.

The Dodd-Frank Act amended the Truth in Lending Act (TILA) to establish ability-to-repay requirements for most residential mortgage loans.  TILA identifies factors a creditor must consider in making a reasonable and good faith assessment of a consumer's ability to repay.  TILA also defines a category of loans called QMs, which are presumed to comply with the ability-to-repay requirements.  In 2013, the Bureau issued the Ability-to-Repay/Qualified Mortgage (ATR/QM) rule, which established a general QM standard for loans where the consumer's debt-to-income (DTI) ratio is 43 percent or less and that meet various other requirements. 

The ATR/QM Rule also created the GSE Patch as a temporary QM definition.  The GSE Patch provides QM status to certain mortgage loans eligible for purchase or guarantee by either of the GSEs.  GSE Patch loans are eligible for QM status even if the DTI ratio exceeds 43 percent.  Last year, the Bureau released an assessment of the ATR/QM Rule and found that GSE Patch loans represent a large and persistent share of mortgage originations.  As noted above, the GSE Patch is scheduled to expire soon, and absent regulatory action the Bureau estimates that approximately 957,000 mortgage loans would be affected by the expiration of the GSE Patch.  The Bureau estimates that, after the GSE Patch expires, some of these loans would either not be made or would be made but at a higher price.    

On August 18, 2020 the Bureau also issued a proposed rule related to the ATR/QM Rule to create a new category of QMs (Seasoned QMs).  The Bureau is planning to issue a final rule in connection with this proposal at a later date.

To read the final rule click here: files.consumerfinance.gov/f/documents/....


Supreme Court declares CFPB unconstitutional!  The Supreme Court has held that the Consumer Financial Protection Bureau’s (CFPB) single-director, for-cause removal structure is unconstitutional because it violates the separation of powers.  However, the court found that the structure can be saved by striking out the for-cause termination provision. View the complete announcement here

MBA Statement on the Supreme Court Ruling in Seila v. CFPB

To review the full ruling, click here.

CFPB Takes steps to address GSE Patch

MBA Statement on CFPB’s Proposed Changes to the QM Rule and Extension of the GSE Patch   

  To read the NPRM on the General QM loan definition, click here: files.consumerfinance.gov/f/documents/....

  To read the NPRM on the proposed extension of the QM Patch, click here: files.consumerfinance.gov/f/documents/....


  The list of rural and underserved counties, using the HMDA data described in the interpretive rule, can be found on the Bureau's website at https://www.consumerfinance.gov/policy-compliance/guidance/mortgage-resources/rural-and-underserved-counties-list/

   The interpretive rule can be found here: files.consumerfinance.gov/f/documents/....


   Click here to learn about mortgage and housing assistance during the pandemic: https://www.cfpb.gov/housing

   CLICK HERE TO READ THE IFR: files.consumerfinance.gov/f/documents/...

Disclaimer:  Please note that resources posted on this page is provided for informational use only and should not be considers legal advice.  We encourage you to consult with your company's professionals for their advice.