Legislation

Browse articles from all of our Newsletters related to Legislation.

July 25, 2014 - Inside Mortgage Trends

Black Knight Tech Adapts to the CFPB’s TRID

Black Knight Financial Services – with a little help from its friends at Wells Fargo Home Mortgage – has repurposed some of its existing technology and combined it with some fresh capabilities to help lenders cope with the Consumer Financial Protection Bureau’s TILA/RESPA integrated disclosure rule. It also will enable mortgage lenders to automate the numerous multi-party processes required to close a loan these days, the company said. The new ...


July 21, 2014 - Inside the CFPB

Worth Noting/Looking Ahead/Vendor Update

Bureau Moves to Ensure Equal Treatment for Same-Sex Marrieds. The CFPB is synchronizing its internal policies with the U.S. Supreme Court decision in United States v. Windsor, striking down as unconstitutional Section 3 of the Defense of Marriage Act, which holds that the word ‘marriage’ means only a legal union between one man and one woman. According to a staff memorandum from CFPB Director Richard Cordray, the CFPB will regard a person who is married under the laws of any jurisdiction to be married nationwide for purposes of the federal statutes and regulations under the bureau’s jurisdiction regardless of the person’s place of residency. However, consistent with other federal regulatory agencies, the bureau will not regard persons who are joined ...


July 21, 2014 - Inside the CFPB

Dodd-Frank at Four: $21 Billion in Compliance Costs – and Counting

As of July 21, 2014, the Dodd-Frank Wall Street Reform and Consumer Protection Act is now four years old and the CFPB three, after imposing more than $21 billion in costs and 60.7 million paperwork burden hours, according to a new study by American Action Forum, which identifies itself as a center-right policy institute. “As time passes, the law becomes more expensive as regulatory agencies like the CFPB and the Federal Housing Finance Agency grow with the mission to implement burdensome rules,” the report said. “Meanwhile, small financial services firms continue to struggle as the law restricts the availability of financial products. With about one-quarter of the law still left to implement, one can only expect the costs to continue ...


July 21, 2014 - Inside the CFPB

Bureau Still Eyeballing Expansion Of Consumer Complaint Database

The CFPB is now collecting consumer complaints about seven different segments of the financial services sector, and its latest cumulative report on the subject indicates the Dodd-Frank Act’s cop on the beat is only going to continue to expand its dragnet. So far, the CFPB is accepting complaints about credit cards (as of July 21, 2011), mortgages (Dec. 1, 2011), bank accounts and services (March 1, 2012), credit reporting (Oct. 22, 2012), money transfers (April 4, 2013), debt collection (July 10, 2013), and payday loans (Nov. 6, 2013). “The CFPB continues to work toward expanding its complaint handling to include other products and services under its authority, such as prepaid cards. Consumers may also contact the CFPB about other products ...


July 17, 2014 - Inside Mortgage Finance

The Dodd-Frank Act at Four: Helping to Prevent Mortgage Problems and Decreasing the Pool of Potential Borrowers

Mortgage industry participants suggest that the Dodd-Frank Act has helped to ensure that problems seen in the mortgage market in 2005 and beyond are unlikely to occur again. However, lenders suggest that the DFA has also limited access to credit for potential borrowers. Four years after the DFA was signed into law, a number of think tanks convened panels this week to analyze its impact. Predictably, consumer advocates are largely happy with the DFA while lenders have more mixed feelings about the law, which created the Consumer Financial Protection Bureau and a landslide of new mortgage regulations. “The mortgage market is...


July 11, 2014 - Inside MBS & ABS

SIFMA Urges Agencies to Band Together to Develop Common Diversity Rules for Financial Institutions

The Securities Industry and Financial Markets Association has called upon federal financial institutions and consumer protection regulators to form an interagency working group to establish joint, uniform diversity standards for the financial services industry. The standards would implement a requirement of the Dodd-Frank Act for consistent, uniform rules to assess the diversity policies and practices of financial institutions. The rules would also spell out criteria and procedures for determining whether a contractor or subcontractor has made a “good-faith effort” to include minorities and women in its workforce. Several of the agencies jointly proposed...


July 10, 2014 - Inside Mortgage Finance

Consumer Advocates See CFPB Allowing Cure for DTI Ratio Overages on QMs as Doing More Harm than Good

A number of consumer advocates strongly oppose a proposal from the Consumer Financial Protection Bureau that would allow lenders to cure mistakes regarding debt-to-income ratios on qualified mortgages. Lenders calling for the DTI ratio right-to-cure on QMs are making “Chicken Little” claims to support their arguments, according to the National Consumer Law Center and the National Association of Consumer Advocates. In April, the CFPB requested...


July 10, 2014 - Inside Mortgage Finance

To Avoid QM Landmines, Wholesalers Tread Carefully in Payments to Mortgage Brokers

Mortgage wholesalers are being extra careful these days on how much they pay loan brokers in a table-funding transaction to make sure they don’t run afoul of the points-and-fees cap on qualified mortgages set by the Consumer Financial Protection Bureau. According to interviews conducted by Inside Mortgage Finance over the past few weeks, table funders are capping those fees at anywhere from 2.20 percent to 2.75 percent. Some may go as low as 1.40 percent. The cap for qualified mortgage eligibility set by the CFPB under the Dodd-Frank Act is...


July 3, 2014 - Inside FHA Lending

FHA Requests Feedback on Handbook Sections

The FHA is seeking comment on two new sections of a proposed single-family handbook for mortgage lenders. The handbook is in development. Once completed, it will serve as the centralized source of current and future FHA policies. Agency staff is collating policies from several handbooks, rules, mortgagee letters, notices and other sources to incorporate into the handbook. The FHA is publishing two new sections, “Doing Business with FHA – FHA Lenders and Mortgagees” and “Quality Control, Oversight and Compliance,” for comment. The “Doing Business” section lays out the requirements for FHA lender approval, including eligibility requirements, application processes, operating requirements and post-approval changes. The section also contains the recertification process as well as processes for applying for ...


July 3, 2014 - Inside Mortgage Finance

The Basics Still Count in RESPA Compliance, Even As the CFPB Pursues Some Creative Legal Theories

Any respite the mortgage industry had from enforcement actions under the Real Estate Settlement Procedures Act is over. If there’s one overarching theme about the Consumer Financial Protection Bureau’s vigorous RESPA activity of late, it’s that the basics still count when it comes to compliance, even as the bureau pushes the theoretical envelope in some instances, top industry attorneys say. “RESPA Section 8 enforcement is back. It was in abeyance during the transition of RESPA enforcement from the Department of Housing and Urban Development to the CFPB over the last few years,” said attorney Angela Kleine, an associate in the San Francisco office of the Morrison & Foerster law firm. “But the CFPB is picking up where HUD left off, and then some.” Kleine said...


June 27, 2014 - Inside The GSEs

Enterprise Endnotes

DC Circuit Latest Court to Reject GSE Tax Collection Effort by Municipalities. A three-judge panel of the DC Circuit Court recently upheld a lower court ruling against Kay County in Oklahoma, which has been trying to collect real estate transfer taxes from Fannie Mae and Freddie Mac. In rejecting Kay County’s bid to get the GSEs to pay a 1 percent “documentary stamp tax,” the DC court’s finding became the latest in a growing number of…


June 26, 2014 - Inside Mortgage Finance

Will Your Bank be Ready for the CFPB’s New TILA/RESPA Integrated Mortgage Disclosures?

There’s still more than a year left before the Consumer Financial Protection Bureau’s integrated mortgage disclosure final rule takes effect. But top industry representatives are urging lenders to begin preparations now, if they haven’t already done so, because of the depth and breadth of the new regulation – and the central role it will play in the origination process. During a general session of the American Bankers Association’s annual regulatory compliance conference, held in New Orleans earlier this month, Rod Alba, senior regulatory counsel for the trade group, said that the CFPB’s TILA/RESPA integrated disclosure – known as TRID – is a massive project. “We cannot take it lightly,” Alba said. He also emphasized...


June 23, 2014 - Inside the CFPB

House Panel Passes Multiple CFPB Bills; Prospects Dicey in the Senate

The House Financial Services Committee passed a handful of CFPB-related bills earlier this month, after a previously scheduled markup had been delayed by the death of the mother of Rep. Maxine Waters, D-CA, the ranking member on the committee. H.R. 3770, the CFPB-IG Act of 2013, introduced by Rep. Steve Stivers, R-OH, was approved 39-20. The bill would create a separate, independent inspector general for the CFPB. The CFPB currently shares an inspector general with the Federal Reserve System. H.R. 4262, the Bureau Advisory Commission Transparency Act, introduced by Rep. Sean Duffy, R-WI, was approved by voice vote. H.R. 4262 would open up CFPB advisory board meetings to the public. H.R. 4383, the Bureau of Consumer Financial Protection Small Business ...


June 23, 2014 - Inside the CFPB

Regulatory Environment Will Need 10 Years to Stabilize, ABA Rep Says

Rod Alba, senior regulatory counsel for the American Bankers Association, told attendees at this year’s ABA regulatory compliance conference it will take the mortgage industry roughly 10 years for all the new rulemakings issued and still pending at the CFPB and elsewhere to reach a point of finality, stability and certainty. “I’ve said that it would take us possibly a full decade to get through all the rulemaking we have with mortgages. We’ve started about two or three years ago with the first being proposed and now at the beginning of this year with some of the rules [taking effect],” he said. Why a decade? “Well, not all the rules are done yet. As you know, we still have the ...


June 23, 2014 - Inside the CFPB

CFPB Slams NJ Title Company Over Alleged RESPA Kickbacks

The CFPB recently ordered a New Jersey company, Stonebridge Title Services Inc., to pay a $30,000 civil penalty to the bureau for allegedly paying illegal kickbacks for referrals. According to the CFPB, Stonebridge paid commissions to more than 20 independent sales representatives who referred title insurance business to Stonebridge. Stonebridge solicited people to provide it with referrals of title insurance business, offering to pay commissions of up to 40 percent of the title insurance premiums Stonebridge itself received, the bureau alleged. “These practices violated Section 8 of the Real Estate Settlement Procedures Act, which prohibits kickbacks and payment of unearned fees in the context of residential real estate transactions,” the CFPB said. Paying commissions for referrals is allowed under RESPA ...


June 13, 2014 - Inside The GSEs

Urban Institute: GSE Denial Rates Higher for Weaker Credit Profiles

A new analysis by the Urban Institute released last week found that GSE denial rates for weaker credit profile applicants, including many minority applicants, were much higher than denial rates for all applicants. The UI’s analysis of Home Mortgage Disclosure Act data found at least 16 percent of applicants were denied Fannie Mae or Freddie Mac loans for purchase of an owner-occupied property in 2012. However, when compared to CoreLogic’s data, the UI also found the denial rate for low credit GSE applicants was at least 54 percent.


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Home-equity lending is beginning to show new life. My company (pick one):

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