VanEd - Real Estate School News

Finance Friday (Safety Edition): IRS Issues Urgent Warning to Beware IRS/FBI-Themed Ransomware Scam

WASHINGTON – The Internal Revenue Service this month warned people to avoid a new phishing scheme that impersonates the IRS and the FBI as part of a ransomware scam to take computer data hostage.

The scam email uses the emblems of both the IRS and the Federal Bureau of Investigation. It tries to entice users to select a “here” link to download a fake FBI questionnaire. Instead, the link downloads a certain type of malware called ransomware that prevents users from accessing data stored on their device unless they pay money to the scammers.

“This is a new twist on an old scheme,” said IRS Commissioner John Koskinen. “People should stay vigilant against email scams that try to impersonate the IRS and other agencies that try to lure you into clicking a link or opening an attachment. People with a tax issue won’t get their first contact from the IRS with a threatening email or phone call."

The IRS, state tax agencies and tax industries – working in partnership as the Security Summit – currently are conducting an awareness campaign called Don’t Take the Bait, that includes warning tax professionals about the various types of phishing scams, including ransomware. The IRS highlighted this issue in an Aug. 1 news release IR-2017-125 Don’t Take the Bait, Step 4: Defend against Ransomware.

Victims should not pay a ransom. Paying it further encourages the criminals, and frequently the scammers won’t provide the decryption key even after a ransom is paid.

Victims should immediately report any ransomware attempt or attack to the FBI at the Internet Crime Complaint Center, www.IC3.gov. Forward any IRS-themed scams to phishing@irs.gov.

The IRS does not use email, text messages or social media to discuss personal tax issues, such as those involving bills or refunds. For more information, visit the “Tax Scams and Consumer Alerts” page on IRS.gov. Additional information about tax scams is available on IRS social media sites, including YouTube videos.

Finance Friday: (Safety Edition) Don’t Take the Bait, Avoid Spear Phishing Emails

WASHINGTON — The IRS, state tax agencies and the tax industry warn professionals to beware of spear phishing emails, a common tactic used by cybercriminals to target practitioners.

Spear phishing emails, often tailored to individual practitioners, result in stolen taxpayer data and fraudulent tax returns filed in the names of individual and business clients.

Information about spear phishing kicks off a new “Don’t Take the Bait” awareness campaign aimed at tax professionals. This is the first of a special 10-part series that will run each week through mid-September.

“We are seeing repeated instances of cybercriminals targeting tax professionals and obtaining sensitive client information that can be used to file fraudulent tax returns. Spear phishing emails are a common way to target tax professionals,” said IRS Commissioner John Koskinen. “We urge practitioners to review this information and take steps to protect themselves and their clients.”

The IRS, state tax agencies and the tax industry, working together as the Security Summit, urge practitioners to learn to recognize and avoid spear phishing emails. See Protect Your Clients; Protect Yourself for more information.

Phishing emails target a broad group of users in hopes of catching a few victims. Spear phishing emails pose as familiar entities, and the cybercriminals have done extensive research and homework in order to target a specific audience. Tax professionals and taxpayers are among the groups that regularly receive phishing emails.

The security software firm Trend Micro reports that 91 percent of all cyberattacks and resulting data breaches begin with a spear phishing email. The email, disguised as being from a trusted source, may seek to have victims voluntarily disclose sensitive information such as passwords. Or, it may encourage people to open a link or attachment that actually downloads malware onto the computer.

Here’s an example of a spear phishing email that targeted a tax professional during the 2017 filing season. Note the use of “Tax return” in the subject line to bait the tax preparer as the sender impersonates a prospective client:

Note that the sender has done their research, obtaining the name and email address of the tax pro. And, the email is conversational but ungrammatical and oddly constructed: “hope your (sic) doing good (sic) and actively involved in the tax filing season.” This is potentially a sign that English is a second language. Finally, note the hyperlink using a “tiny” URL is used to mask the true destination – this is another red flag.

There are several other versions of spear phishing emails in which the criminal poses as a potential client. In one version, the prospective “client” directs the tax professional to open an attachment to see the 2016 tax information needed to prepare a return. However, the attachment in reality downloads malware that tracks each keystroke made by the tax professional so that the criminal can steal passwords and sensitive data.

Most spear phishing emails have a “call to action” as part of their tactics, an effort to encourage the receiver into opening a link or attachment. The example above asks the preparer to review their tax information and provide a cost estimate.

Other spear phishing emails impersonate the IRS, such as the IRS e-Services tools for tax professionals, or in some instances a private-sector tax software provider. In those examples, preparers are warned that they must immediately update their account information or suffer some consequence. The link may go to a website that has been disguised by the thieves to look like the login pages for IRS e-Services or a tax software provider.

Cybercriminals are endlessly creative. This year, some identity thieves hacked individuals’ emails accounts. Noticing that the individuals had been in email contact with tax preparers, the criminals used the individual’s email address to send a note to their preparer asking that the direct deposit refund account number be changed. The scam prompted an IRS alert to preparers about last-minute refund changes. See IR-2017-64.

Protecting Your Clients and Your Business from Spear Phishing

There is no one action to protect your clients or your business from spear phishing. It requires a series of defensive steps. Tax professionals should consider these basic steps:

1. Educate all employees about phishing in general and spear phishing in particular.
2. Use strong, unique passwords. Better yet, use a phrase instead of a word. Use different passwords for each account. Use a mix of letters, numbers and special characters.
3. Never take an email from a familiar source at face value; example: an email from “IRS e-Services.” If it asks you to open a link or attachment, or includes a threat to close your account, think twice. Visit the e-Services website for confirmation.
4. If an email contains a link, hover your cursor over the link to see the web address (URL) destination. If it’s not a URL you recognize or if it’s an abbreviated URL, don’t open it.
5. Consider a verbal confirmation by phone if you receive an email from a new client sending you tax information or a client requesting last-minute changes to their refund destination.
6. Use security software to help defend against malware, viruses and known phishing sites and update the software automatically.
7. Use the security options that come with your tax preparation software.
8. Send suspicious tax-related phishing emails to phishing@irs.gov.

Finance Friday: CFPB makes temporary changes to HMDA final reporting rules.

Ed Note: The Home Mortgage Disclosure Act (HMDA) was enacted in 2015. The rules require community banks and credit unions to report mortgage data at certain thresholds, which the new temporary rule amends. This weeks rule also clarifies certain requirements to help companies comply.

 

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) this week issued a rule amending the 2015 updates to the Home Mortgage Disclosure Act (HMDA) rule. The Bureau has temporarily changed reporting requirements for banks and credit unions that issue home-equity lines of credit, and clarified the information that financial institutions are required to collect and report about their mortgage lending. 

"The Home Mortgage Disclosure Act is a vital source of information on the health and fairness of the mortgage market," said CFPB Director Richard Cordray. "Today’s amendments show that the Consumer Bureau is committed to ensuring that financial institutions are able to comply with the rule, and to promoting transparency across the largest consumer financial market in the world.”

The Home Mortgage Disclosure Act—originally enacted in 1975—requires most lenders to report information about the home loans that they originate or purchase, as well as applications received. Banking regulators and the public can use this data to monitor whether financial institutions are serving the housing needs of their communities, to assist in distributing public-sector investment in order to attract private investment to areas where it is needed, and to identify possible discriminatory lending patterns.

As directed by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB updated the HMDA regulation in 2015 to improve the quality and type of data reported by financial institutions. Most of the updated requirements take effect in January 2018, and the industry is working to bring operations into compliance.

Reporting Threshold
Under rules that are scheduled to take effect in January 2018, financial institutions would have been required under the Home Mortgage Disclosure Act to report home-equity lines of credit if they made 100 such loans in each of the last two years. Today’s final rule has increased that threshold to 500 loans through calendar years 2018 and 2019 so that the Bureau can consider whether to make a permanent adjustment. This change was initially proposed in July 2017.

This temporary increase in the threshold will provide time for the Bureau to consider whether to initiate another rulemaking to address the appropriate level for the threshold for data collected beginning January 1, 2020.

Clarifications and Technical Corrections
Today’s final rule contains a number of clarifications, technical corrections, and minor changes to the HMDA regulation. These include clarifying certain key terms, such as “temporary financing” and “automated underwriting system.” The changes finalized today will also, for example, establish transition rules for reporting certain loans purchased by financial institutions. Another change will facilitate reporting the census tract of a property, using a geocoding tool that will be provided on the Bureau’s website. These changes were initially proposed in April 2017.

The CFPB is committed to well-tailored and effective regulations and has sought to carefully calibrate its efforts to ensure consistency with respect to consumer financial protections across the financial services marketplace.

The final rule is available at: http://files.consumerfinance.gov/f/documents/201708_cfpb_final-rule_home-mortgage-disclosure_regulation-c.pdf

The CFPB is also releasing today an executive summary of the final rule, updates to technical filing instructions, and other implementation materials. The CFPB hopes that these materials will help financial institutions understand and implement the changes adopted in the final rule.

The regulatory implementation materials are available here: https://www.consumerfinance.gov/policy-compliance/guidance/implementation-guidance/hmda-implementation/

The technical instructions are available here: https://www.consumerfinance.gov/data-research/hmda/for-filers

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Finance Friday: (Video) Don't Be an Online Victim: How to Guard Against Internet Thieves and Electronic Scams

Identity theft continues to be one of the fastest growing crimes in the United States and has ranked as one of the top consumer concerns for the past several years. The Federal Deposit Insurance Corporation (FDIC) has produced a multimedia presentation to help consumers protect themselves from identity theft. The presentation provides information on steps consumers should take to secure their computer and protect themselves from identity theft, as well as actions consumers should take if they become a victim of identity theft. Financial institutions are encouraged to make the link available to their customers from their websites. This presentation is hosted by Vodium.

 

Fannie Mae updates increase Debt-to-Income Ratios for some Borrowers

FNMA has implemented an update to its Desktop Underwriter® (DU®) effective at the end of July that will enable FNMA customers to better serve creditworthy borrowers. Specifically, the update will allow more loans with debt-to-income (DTI) ratios between 45 and 50 percent to receive a DU Approve/Eligible recommendation.

Updates to DU are carefully considered and influenced by over two decades of automated underwriting and experience with millions of mortgage loans – including many with high DTI ratios. This enables loan-level risk analysis based on a comprehensive set of criteria that reflects the complexity of predicting whether borrowers will repay their loans. To better understand the impact of the comprehensive criteria, it is important to consider the relationships among factors versus any one factor.

Debt-to-Income (DTI) ratio in context

The DTI ratio is a mainstay of mortgage loan underwriting. Desktop Underwriter considers DTI ratio as one factor, among many, in performing a comprehensive loan-level risk assessment. Fannie Mae regularly monitors and fine-tunes the DU risk model, with careful consideration given to “risk layering.” We define risk layering as combining multiple risk factors on a particular loan. 

The maximum DTI ratio DU will accept on a specific loan depends on DU’s evaluation of the overall loan file, including risk layering analysis. For example, we allow as little as a 3 percent down payment, credit scores as low as 620, and credit for borrowers without credit scores who can document nontraditional credit histories. We can offer these and other flexibilities with DU because it assesses and manages the risk layers on a single loan.

Expected outcomes  

We expect the DU update will result in more loans with DTI ratios between 45 and 50 percent receiving an Approve/Eligible recommendation from DU: approximately three to four percent of recent applications did not receive an Approve/Eligible recommendation but would receive one in DU 10.1 with these changes. That means they are eligible for sale and delivery to Fannie Mae (subject to any identified conditions on the loan-level DU Findings Report).

To illustrate the potential impact of the updated risk assessment, consider this example of three illustrative loans that present roughly equivalent risk – all three borrowers are buying a 1-unit principal residence at the same price using a 30-year fixed-rate mortgage. They have the same monthly income but their debts vary, so their DTI ratios also vary, along with their months of available reserves and credit profiles:

All three of these illustrative loans would receive a DU Approve/Eligible recommendation in DU 10.1. But note that Jane, with the highest DTI ratio at 48%, also has a stronger credit history and the most reserves.

Here are some key things to know:

• Under limited circumstances, FNMA has been acquiring loans in the past four years with DTI ratios up to 50 percent, and that maximum is not changing.
• Borrowers with high DTI ratios must have a strong credit history to get a DU Approve/Eligible recommendation. DU’s analysis of credit report data, for example, looks favorably on a track record of repaying installment debts and revolving credit on time, with few or no delinquencies or defaults (for details, see the DU Credit Report Analysis).
• A maximum 50 percent DTI ratio as part of a comprehensive risk evaluation aligns with other investors in the industry. The DU risk evaluation considers a number of factors including credit history, equity and LTV ratio, liquid reserves, and loan purpose and term (view Risk Factors Evaluated by DU in the Selling Guide).
• This change aligns with FNMAs longstanding commitment to affordable lending and sustainable homeownership for creditworthy borrowers.

Other DU updates effective now

Also with the release of DU Version 10.1, lenders and borrowers will benefit from several other policy simplifications:

• Maximum loan-to-value ratios for adjustable-rate and fixed-rate mortgages aligned at 95 percent.
• Less tax return income documentation to be required for many self-employed borrowers.
• Simplified approach to handling disputed tradelines.

Summary

DU’s evaluation is fair and objective, applying the same criteria to every mortgage application it considers. The DTI change and the other updates in DU Version 10.1 leverage the power of DU to make it even easier for lenders to expand homeownership opportunities.

Finance Friday: Q&A ~ "When can I get a home loan after bankruptcy?"

A common question from our pre-license students is "When can a person get a home loan after bankruptcy or foreclosure?" and the answer is always "it depends" for several reasons.  

An example we use with our students is that a bankruptcy is different from a foreclosure and they, and many subsets of each, are treated differently by lenders and underwriters.  An example of this is that a Chapter 7 bankruptcy filer and a Chapter 13 filer will have different timelines set forth from the discharge or dismissal of their case, and the timeline is a result of the choices made at the time of filing.

Foreclosure and short sale can also be easily confused so real estate professionals are always cautioned to first recommend competent tax and legal advice and second the real estate licensee should suggest that the client or customer also start their home-buying process by visiting with a knowledgeable lender who can guide them through the process.

For those looking for information they can share on the probable or likely timeline,we found the infographic below on Credit Karma and thought that this would be a helpful starting point for any discussion related to these issues that a real estate professional might have with any client or customer.

 

Finance Friday: For Mortgages Shoppers - Tips on How to Negotiate Your Best Deal

Your home could be the biggest single purchase you'll ever make, and shopping for a mortgage to finance that home or to borrow money by taking out a "reverse mortgage" on your house can be overwhelming.

There are many questions to ask, including: How do I get a good interest rate? What costs will I have to pay for a mortgage? Can I negotiate? If I want to buy a house, can I afford to buy the kind of house I'm interested in?

To help answer these kinds of questions, FDIC Consumer News recommends taking the following steps.

Get a copy of your credit reports at least six months before you plan to apply for a mortgage. Doing so will give you time to fix any errors and, in turn, possibly help you qualify for a better, cheaper mortgage. Lenders use your credit reports to help determine if you qualify for a loan and at what interest rate. The higher your credit score, the better the loan terms you may get. You are entitled to a free credit report once a year from each of the three nationwide credit bureaus. Go to AnnualCreditReport.com, the official site to help consumers obtain free credit reports, or call 1-877-322-8228. The Federal Trade Commission offers suggestions on how to fix errors on credit reports.

For advice on buying a home, consider talking to a housing counselor certified by the U.S. Department of Housing and Urban Development (HUD). To find a HUD-approved housing counseling agency near you, go to the HUD website or call 1-800-569-4287. These counseling agencies can offer independent advice, often at little or no cost to you.

Consider the best type of mortgage for you. There are basically two kinds of financing.

Fixed-rate mortgages feature a set interest rate for the entire loan term and predictable monthly payments. These are generally a good option for buyers who plan to stay in their home for a long time or just prefer the predictability of set monthly payments.

Adjustable-rate mortgages (ARMs) may start with a low introductory interest rate that changes periodically in relation to an index rate. Potential borrowers should be prepared for the likelihood that the initial low rate will go up, and that future rate increases sometimes can be sharp and dramatic, greatly increasing the monthly payment. During the term of the loan the interest rate can go as high as the lifetime cap. Many new ARM borrowers assume that their financial situations will improve before there are significant rate increases, but if not, the result can be a financial strain. For these reasons, ARMs are typically best for buyers who plan to live in their home for a limited number of years or expect to pay the mortgage off early. For more information about ARMs, see the article in our Summer 2013 issue.

Contact several lenders. You can shop for a mortgage online, by phone or in person. Many websites have calculation tools that can help you answer questions on what kind of home you can afford and how much your monthly payment will be under different scenarios. HUD's maximum financing calculator is a good place to start.

You might also use a mortgage broker who will arrange for you to get a loan. However, keep in mind that lenders usually pay brokers a fee for their help bringing in new customers, and some lenders may pay brokers more for their services if a borrower agrees to pay a higher interest rate than what the lender itself may be charging for the same loan. When contacting mortgage brokers you should ask how they will be compensated and compare their fees. Also see our Fall 2013 issue to learn about rules intended to protect consumers from being steered into costly or inappropriate mortgages.

Obtain all cost information. Knowing the monthly payment and the interest rate are not enough. You need to understand all of the mortgage costs. By law, lenders are obligated to provide you with a three-page “Loan Estimate” that provides a loan terms summary, estimated loan and closing costs, and additional application information. You can use the Loan Estimate to compare different loans and lenders.

“You should be able to depend on the cost disclosures in the Loan Estimate as the final amounts you’ll pay, because lenders face steep penalties if they charge you more at closing,” said Sandra Barker, an FDIC senior policy analyst. “And ask for an explanation of any fee you do not understand.”

Negotiate for the best possible deal. Once you know what each lender or broker has to offer, ask if they can give better terms than the original ones they quoted or than those you have found elsewhere. “Try to negotiate a waiver on charges such as application fees or a break on some of your closing costs,” Barker added.

Lock in a loan offer you like. If you are satisfied with the negotiated terms from a lender or mortgage broker, consider obtaining a written “lock-in.” It should include the rate agreed upon, the period the lock-in lasts, and the number of “points” (fees) to be paid to the lender or broker for the loan. (Usually, the more points you pay, the lower the interest rate.) A fee also may be charged for locking in the loan rate, but sometimes it may be refundable at closing.

If you're considering borrowing money using a reverse mortgage, take precautions before you agree to anything. Reverse mortgages allow homeowners over age 62 to borrow against their home’s “equity” (the current market value minus the outstanding mortgage balance) and don’t need to be repaid until the borrower dies, moves or no longer lives in the property. A reverse mortgage can be a good option for individuals near or in retirement because it typically offers monthly, lump-sum and other payout options. But, a reverse mortgage can be complicated and it might not be right for you. One big reason a reverse mortgage might not fit your needs is that the loan balance and the interest owed will increase over time, so you and your heirs might have to refinance or sell the house to have enough money to pay off the loan.

If you want to shop for a reverse mortgage, we suggest you consider the following:

• Ask a reputable housing counselor for an unbiased opinion about your suitability for a reverse mortgage, including the financial and tax implications.
• Consider a Home Equity Conversion Mortgage (HECM), which is generally a less expensive reverse mortgage, partly because the federal government insures it. In addition, HUD requires borrowers to receive counseling and undergo a financial review before getting a HECM. You also may find attractive reverse mortgage alternatives offered by state and local government agencies, nonprofit organizations and other lenders.
• Take your time. A reverse mortgage isn’t something to rush into. You should stop and check with a counselor or someone else you trust before you sign anything, and if you don’t understand the cost or features of a reverse mortgage or you feel pressure or urgency to complete the deal, walk away.

To learn more about shopping for a mortgage, read Looking for the Best Mortgage, tips published by the FDIC and other federal government agencies. The FDIC also has published an online Affordable Mortgage Lending Guide that is primarily designed for bankers but provides helpful information about mortgage programs for low- and moderate-income people and communities.

For more information about reverse mortgages, see the article in the FDIC Summer 2015 issue.

Finance Friday: IRS Summertime Tax Tip Program

WASHINGTON — More than 719,000 taxpayers received plain-language Tax Tips directly to their email inbox during this past tax filing season and got the information they needed to help them file their taxes.

Because taxes are year-round for many taxpayers, and many taxable situations arise during the summer months, the Internal Revenue Service offers a Summertime Tax Tip program that begins July 3. The IRS is encouraging taxpayers to sign up now for this email service to help them get a jump-start on their taxes and learn about the tax implications of events that often occur during the summer months.

The Summertime Tax Tip series, which offers helpful consumer tips written in plain language, covers a wide range of important subjects.

Some of the 2017 Summertime Tax Tip topics include:

• Tax scams don’t take vacation; what’s out there now
• Teens and summer jobs
• Vacation home rentals – tax implications
• Getting married? Tax implications you need to know
• IRS notices – What you could receive in the mail from the IRS

The IRS Tax Tips email service is available in English and Spanish. It provides new IRS Tax Tips via e-mail three times a week during the months of July and August. Subscribers will also receive a Tax Tip each day of the week during the tax filing season and Special Edition Tax Tips that are issued for “hot topics” that arise throughout the year.

Taxpayers can sign up to receive IRS Tax Tips automatically for free on www.irs.gov. From the Subscriptions link on the top right of the IRS website, choose “IRS Tax Tips” on the drop-down menu, and then click on “Subscribe.” Click on “more,” on the drop-down menu, to subscribe to the IRS Tax Tips in Spanish.

The IRS also has a number of other e-subscriptions to which taxpayers, tax professionals and others may subscribe to receive tax information via email from the IRS during the tax-filing season and the rest of the year.

Finance Friday: CFPB Finalizes Updates to "Know Before You Owe" Mortgage Disclosure Rule

Washington, D.C. – The Consumer Financial Protection Bureau (CFPB) today finalized updates to its “Know Before You Owe” mortgage disclosure rule with amendments that are intended to formalize guidance in the rule, and provide greater clarity and certainty. The changes will facilitate implementation of the Know Before You Owe rule by the mortgage industry. The CFPB is also releasing a limited follow-up proposal to address an additional implementation issue.  

“A mortgage is one of the largest financial decisions a consumer will ever make, and CFPB’s rules help ensure consumers have the easy-to-understand information they need before making a decision that will significantly impact their financial lives,” said CFPB Director Richard Cordray. “Our updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process for lenders and consumers.” 

The Know Before You Owe mortgage disclosure rule took effect Oct. 3, 2015. The CFPB’s rule created new, streamlined forms that consumers receive when applying for and closing on a mortgage. In addition to clarifications and technical corrections, the amendments that the Bureau is finalizing today address a handful of other issues within the rule, including: 

• Tolerances for the total of payments: Before the Know Before You Owe mortgage disclosure rule, the total of payments disclosure was determined using the finance charge as part of the calculation. The Know Before You Owe mortgage disclosure rule changed the total of payments calculation so that it did not make specific use of the finance charge. The Bureau is now finalizing updates to include tolerance provisions for the total of payments that parallel the tolerances for the finance charge and disclosures affected by the finance charge. 
• Housing assistance lending: The Know Before You Owe mortgage disclosure rule gave a partial exemption from disclosure requirements to certain housing assistance loans, which are originated primarily by housing finance agencies. The Bureau’s update, as finalized, promotes housing assistance lending by clarifying that recording fees and transfer taxes may be charged in connection with those transactions without losing eligibility for the partial exemption. The update also excludes recording fees and transfer taxes from the exemption’s limits on costs. Through the update, more housing assistance loans will qualify for the partial exemption, which should encourage these loans. 
• Cooperatives: The Bureau is finalizing updates to extend the rule’s coverage to include all cooperative units. Currently, the rule only covers transactions secured by real property, as defined under state law. Cooperatives are sometimes treated as personal property under state law and sometimes as real property. By including all cooperatives in the rule, the Bureau is simplifying compliance and ensuring that more consumers benefit from the rule. 
• Privacy and sharing of information: The Know Before You Owe mortgage disclosure rule requires creditors to provide certain mortgage disclosures to the consumer. The Bureau has received many questions about sharing the disclosures provided to consumers with third parties to the transaction, including the seller and real estate brokers. The Bureau understands that it is usual, accepted, and appropriate for creditors and settlement agents to provide a Closing Disclosure to consumers, sellers, and their real estate brokers or other agents. The Bureau is finalizing additional commentary to clarify how a creditor may provide separate disclosure forms to the consumer and the seller. 

The finalized amendments are available at: http://files.consumerfinance.gov/f/documents/201707_cfpb_Final-Rule_Amendments-to-Federal-Mortgage-Disclosure-Requirements_TILA.pdf 

In addition to the final rule, the CFPB is issuing a proposal addressing when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance. Comments are due 60 days after the proposal’s publication in the Federal Register and will be weighed carefully before a final regulation is issued. 

The proposal is available at: http://files.consumerfinance.gov/f/documents/201707_cfpb_Proposed-Rule_Amendments-to-Federal-Mortgage-Disclosure-Requirements_TILA.pdf 

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Finance Friday: Mortgage Underwriting and Credit Report changes could increase potential borrower pool

CNBC's Diana Olick reported on the upcoming changes to mortgage underwriting that could help more people get loans. Note the key point that about 7% of individuals could also see a boost with the coming updates that will remove some liens and judgments from credit reports.