By the Division of Banks


Final Amended Regulations - 209 CMR 53.00: Documentation and Determination of Borrower’s Interest

The Division of Banks has filed final amendments to 209 CMR 53.00: Documentation and Determination of Borrower’s Interest to establish an additional “safe harbor” for any home loan that meets the definition of a “Qualified Mortgage” under the regulations of the Consumer Financial Protection Bureau (CFPB).  The CFPB’s Qualified Mortgage regulations restrict certain loan features, set maximum point and fee limitations, and impose certain underwriting requirements.  A Qualified Mortgage would be deemed to be in the borrower’s interest under the regulation.  The amendments also clarify that the exemption under the Borrower’s Interest regulation applies to all Qualified Mortgages which are eligible for safe harbor consideration under the Truth in Lending Act, including the small creditor exemption, provided that the Qualified Mortgage is not higher cost.  The amendments will become effective on July 18, 2014.