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Consumer Financial Protection Bureau Updates: HPML Appraisal Exemption and Debt Collection Final Rule

michaelchristians • November 21, 2020

One requirement in connection with originating a higher priced mortgage loan (HPML) is that the creditor must obtain a written appraisal of the subject property. However, there are exceptions when the creditor is permitted to rely upon an alternative method of valuation. One of these exceptions is when the extension of credit is equal to or less than a certain dollar amount.

The Consumer Financial Protection Bureau (CFPB) is required to adjust this dollar amount annually based on any changes to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). On November 18 ^th , the CFPB announced that this amount would remain unchanged at $27,200 through 2021.

On October 30 ^th , the CFPB issued a final rule to amend certain portions of the Fair Debt Collection Practices Act (FDCPA).

While the amendments are too exhaustive to fully detail in this blog post, generally speaking, the final rule:

Restates that the FDCPA only applies to those who regularly attempt to collect debts owed to another,
Clarifies that a debt collection communication under the FDCPA includes an electronic communication such as an e-mail, text message or social media post,
Provides that a debt collector who communicates with a borrower electronically must provide the borrower with a reasonable and simple method to opt-out of those communications (e.g. reply STOP to stop text messages to this number),
Identifies safe harbor procedures that a debt collector must follow in order to defend against an unintentional violation of the rule’s prohibition against third-party disclosures, and
Prohibits a debt collector from posting a debt collection message on the public facing portion of a borrower’s social media page.

To learn more about the final rule’s impact on the FDCPA’s requirements, please join me for the following – “An FDCPA for the 21 ^st Century”. I will be conducting one session for community banks on July 23, 2021 at 10:00am CDT and a second session for credit unions on August 12, 2021 at 10:00am CDT. More information is available at www.bankwebinars.com and www.cuwebinars.com.

The post Consumer Financial Protection Bureau Updates: HPML Appraisal Exemption and Debt Collection Final Rule appeared first on Michael Christians Consulting, LLC.

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