HUD proposal aligns FHA, CFPB mortgage rules
May 8, 2014 – The Department of Housing and Urban Development wants to align the Federal Housing Administration’s interest rate and notification requirements for single-family, adjustable-rate mortgages with CFPB’s Truth in Lending Act requirements.
HUD is proposing two rule amendments. The first would require that an interest rate adjustment that changes a borrower’s monthly ARM payment “be based on the most recent index value available 45 days before the date of the rate adjustment.”
The second proposed amendment would require the provider of an FHA-insured ARM to comply with disclosure and notification requirements in CFPB’s revised TILA rules. These include at least 60 days, but no more than 120 days, advance notice of an adjustment to a borrower’s monthly payment.
Comments on this proposal will be accepted for 30 days after it is published in the Federal Register.