Tag Archives: purchase

New Mortgage Loan Regulations

The Consumer Financial Protection Bureau issued two regulations that expand the types of mortgage loans subject to federal protections and require creditors to provide loan applicants with written appraisals.  You can access the regulations here.

One of the regulations expands the types of mortgage loans subject to the protections of the Home Ownership and Equity Protections Act HOEPA, which was enacted to address abusive refinancing practices and equity loans with high interest rates or high fees.  HOEPA was amended through the Dodd-Frank Wall Street Reform and Consumer Protection Act to add protections for high-cost mortgages.

Among the changes, the regulation requires borrowers to receive home ownership counseling before obtaining a high-cost mortgage.

The regulation also adds exemptions for three types of loans the CFPB does not believe are as risky: loans to finance initial construction of a house, loans originated and financed by housing finance agencies, and loans from the U.S. Department of Agricultures Rural Housing Service loan program.

The CFPB also issued a rule that would require creditors to provide applicants with free copies of all appraisals and other written valuations and requiring creditors to notify applicants in writing.

The rule is consistent with an amendment to the Equal Credit Opportunity Act. Previously, creditors only had to provide copies of appraisals when applicants requested them.

Creditors are prohibited from charging applicants for copies of appraisals, but may charge for appraisals and other written valuations.

Both rules become effective January 18, 2014.

via Courthouse News Service.

Leave a comment

Filed under civil rights, regulations

Online Retailer and Personal Information

If you have bought anything online, you are aware that the online retailer keeps information that you provide.  For example, your name, your credit card, your address, your phone number.  The question decided in California regarded the anti fraud statute.  Can online retailers require you to provide this information?

The California Supreme Court held in Apple Inc. v. Superior Court of Los Angeles County, et al., (Feb 4, 2013) that Apple could require personal information from customers who make downloadable purchases on iTunes.

The plaintiffs alleged Apple violated the Song-Beverly Credit Card Act, section 1747.08(d), by requiring this information from customers.

The California Supreme Court rejected this claim because:

Unlike a brick-and-mortar retailer, an online retailer cannot visually inspect the credit card, the signature on the back of the card, or the customer’s photo identification.

Thus, section 1747.08(d) – the key anti fraud mechanism in the statutory scheme – has no practical application to online transactions involving electronically downloadable products.  We cannot conclude that if the Legislature in 1990 had been prescient enough to anticipate online transactions involving electronically downloadable products, it would have intended section 1747.08(a)’s prohibitions to apply to such transactions despite the unavailability of section 1747.08(d)’s safeguards.

 

via Courthouse News Service.

Leave a comment

Filed under civil rights, legal decision, Privacy Rights