Reg C Comment Call

CUNA
August 11, 2008 | COMMENTS

The Federal Reserve Board (Fed) is proposing to amend Regulation C, the Home Mortgage Disclosure Act, by revising the rules for reporting price information on higher-priced loans. These revisions will be identical to the definition of “higher-priced mortgage loan” that was approved by the Fed in the recent final rule that amends the Regulation Z requirements with regard to residential mortgage loans. 

Regulation C currently requires lenders to report the spread between the annual percentage rate (APR) on a loan and the yield on comparable Treasury securities if the spread is at least three percentage points for first-lien loans or five percentage points for subordinate-lien loans.   Under this proposal, a lender would report the spread if the loan APR exceeds an average of comparable prime mortgage rates by at least 1.5 percentage points for first-lien loans or 3.5 percentage points for subordinate lien loans. 

> View CUNA's full Regulatory Comment Call, which provides additional information and questions.