The rule affirms the terms under which state attorneys general can pursue claims under the Consumer Financial Protection Act, reflecting the bureau director’s desire to collaborate more closely with state authorities.
Attorneys believe the bureau categorizing some enforcement cases as fair lending-related, even without violations of the Equal Credit Opportunity Act, suggests a shift in its approach on the issue.
The advice from attorneys at the law firm Venable centered around understanding enforcement entities’ motivations and circumstances for bringing the claims.
The bureau reminded lenders that the Equal Credit Opportunity Act prohibits lenders from discriminating against borrowers during the application process, as well as after they receive credit.
A new law will make it easier for Georgia mortgage lenders and brokers to hire former felons for work on out-of-state loans as long as the employee is located outside the state.
CFPB promotes consistent enforcement; memo on false FDIC claims; Florida appeals court rules on attorney’s fee collection letters; CFPB releases sample disclosures in Spanish; Treasury weighs in on loan status of earned wage access; CFPB announces finalizes enforcement action against debt relief firm; CFPB discusses older mobile home residents.
As retail and correspondent loan sales to the agencies fell by 20%, lenders became visibly less discerning about credit quality, with credit scores dropping and DTI/LTV ratios rising. (Includes two data charts.)
Rising interest rates helped to push up income tied to mortgage servicing rights more than they reduced income from originations among a group of publicly-traded nonbanks. Results varied to some extent, with one large mortgage company even taking a loss in the quarter. (Includes data chart.)
If projections by the MBA are correct, interest rates for mortgages are levelling off, which should relieve some of the pressure lenders are facing on originations and profit margins.