Last week, the CFPB issued new proposed policy guidance spelling out how it intends to disclose the loan-level data that financial institutions will report under the Home Mortgage Disclosure Act. The guidance would apply to HMDA data to be reported under Regulation C as of Jan. 1, 2018. The bureau intends to make this data available to the public starting in 2019. “Public disclosure of mortgage data is central to the achievement of HMDA’s goals,” the agency said. “The bureau has considered whether and how HMDA data should be modified prior to its disclosure to the public, in order to protect applicant and borrower privacy while also fulfilling HMDA’s public disclosure purposes.” First, the CFPB is proposing to exclude from ...
It Looks Like New HMDA Requirements Will Proceed. Earlier this year, the mortgage industry made a concerted push for either the CFPB, or failing that, Congress, to delay implementing all the new data collection and reporting requirements lenders will face under the Home Mortgage Disclosure Act regime.... Feds to Amend CRA Regs to Conform to CFPB’s HMDA Changes. The Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency on Wednesday issued a joint notice of proposed rulemaking to amend their respective Community Reinvestment Act regulations, mostly to conform to the changes the CFPB made to Regulation C, which implements the Home Mortgage Disclosure Act....
The CFPB’s much-criticized arbitration rule issued earlier this year took effect last week, as a successful vote in the Republican-controlled House of Representatives to overturn it failed to generate enough interest and support for a comparable move in the Senate. It’s likely that the massive Equifax data breach and the company’s seeming attempt to manipulate affected individuals to waive their rights to arbitration in order to sign up for free credit-monitoring services effectively killed what little interest senators may have had in following up on the House’s success. The failure is another blow to a political party that ostensibly controls the Senate, the House and the White House but is struggling to accomplish much legislatively, thanks in part to the ...
An industry switch to digital mortgage lending may be costly upfront, but it would have saved the industry a ton of money and aggravation had it been adopted a decade ago, and can help resolve investor anxiety about legal liability and ensure greater regulatory compliance going forward, according to industry experts.In a webinar last week sponsored by Inside Mortgage Finance, Tim Anderson, director of eServices for DocMagic, pointed out that, when it comes to complying with the CFPB’s TILA/RESPA integrated disclosure rule, proof of delivery can be a big issue with investors, and e-closings/e-mortgages can be a huge help in resolving the anxiety that stems from the use of paper documents. “Three-day delivery is a big deal, [including] acknowledgement ...
The CFPB got a split verdict in a recent ruling from the U.S. District Court for the Northern District of California in its legal tussle with Nationwide Biweekly Administration, of Greene County, OH, which stood accused of engaging in deceptive practices by misleading consumers through its Interest Minimizer mortgage payment program. The bureau won a $7.9 million civil penalty from the defendants, but lost on $74 million in sought-after restitution. “After carefully considering the sufficiency, weight and credibility of the testimony of the witnesses, their demeanor on the stand, the documentary evidence admitted at trial, and the post-trial submissions of the parties, the court finds that CFPB has adequately shown that some, but not all, of defendants’ challenged marketing statements ...
The CFPB has frequently failed to provide the mortgage industry with enough guidance to ensure proper compliance with its substantial outpouring of new rules and regulations, resulting in “regulation by enforcement” far too often, according to a new white paper issued by the Mortgage Bankers Association.“Director Richard Cordray has argued that the bureau’s enforcement regime provides ‘detailed guidance for compliance officers’ and that it ‘would be compliance malpractice for the industry not to take careful bearings from [consent] orders about how to comply with the law,’” the white paper pointed out. “Unfortunately, the reality is that the bureau’s enforcement program offers only fragmentary glimpses of how the bureau interprets the laws and regulations it enforces.” Instead of giving the ...
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