1. Dodd-Frank Wall Street Reform and Consumer Protection Act

2. Title XIV – Mortgage Reform and Anti-Predatory Lending Act New duties are placed on mortgage originators to act in the best interest of consumers, to ensure that consumers will be able to repay mortgage loans Implementation: Title XIV and regulations to be issued by the Federal Reserve Board will be “designated laws” under the jurisdiction of the new consumer financial protection bureau Title XIV creates: Two new federal causes of action against originators and lenders; At least one new (and interesting) investment opportunity

3. Title XIV – Mortgage Reform and Anti-Predatory Lending Act Specific Provisions: New residential mortgage loan origination standards, through amendments to the Truth in Lending Act Increased civil penalties under the Truth in Lending Act: Civil money penalties are doubled Statute of limitations extended to 3 years Yield spread premiums are eliminated in most cases

4. Title XIV – Mortgage Reform and Anti-Predatory Lending Act Specific Provisions: (cont.) Federal Reserve regulations will prohibit originators from placing consumers in a mortgage loan when: The consumer lacks a reasonable ability to repay, or the loan has certain predatory characteristics; The mortgage loan is not a “qualified mortgage” or involves certain abusive practices, or involves certain abusive practices that promote credit disparities The new “qualified mortgage” – plain vanilla mortgage without any bells and whistles Provides a safe harbor – a presumption of compliance with mortgage requirements

5. Title XIV – Mortgage Reform and Anti-Predatory Lending Act Specific Provisions: (cont.) New cause of action for failing to comply with new requirements: Liability not exceeding the greater of Actual Damages or 3 times the total compensation received by the originator, plus costs and attorneys fees New cause of action to a Consumer in Default Consumer may assert violations of the ability to repay standard, or the prohibition against steering, as a defense to a foreclosure action Consumer may seek recoupment or set-off of the damages for such violations

6. Title XIV – Mortgage Reform and Anti-Predatory Lending Act New Investment Opportunity: The HUD Secretary must publish materials informing potential home buyers of the availability and importance of obtaining a home inspection Property Appraisal Requirements; Independence New Appraisal subcommittee of the Federal Financial Institution Examination Council Supervision of 3 rd party providers of appraisal management service Supervision of state oversight by appraisal subcommittee Comptroller general study on appraisal process National appraisal complaint hotline