Wells Fargo and JPMorgan Chase posted strong gains in first-lien holdings during the first quarter, and they were the biggest jumbo mortgage originators during that period.
The CFPB earlier this month ordered Guarantee Mortgage Corp., an independently owned mortgage-brokerage firm and mortgage banker headquartered in San Rafael, CA, to pay a civil money penalty of $228,000 for allegedly violating the agency’s loan originator compensation rule. According to the notice of charges, the nonbank – which is in the process of liquidating – paid its LOs, in part, based on the interest rate of the loans they were bringing in. The payments took place between April 2011 and August 2012, the bureau said. The consumer regulator said the “compensation was funded by payments Guarantee made to marketing services entities owned in part by the company’s branch managers and other Guarantee loan originators.” During the relevant period, Guarantee Mortgage paid ...
“When someone tells you that the ATR rule is working, keep in mind it’s working because it actually stands on exemptions," said Rod Alba, senior regulatory counsel at the American Bankers Association.
RPM Mortgage of Alamo, CA, recently agreed to pay the CFPB $19 million to settle allegations that it incentivized loan officers to steer borrowers into higher cost mortgages by “illegally” paying bonuses to them. Overall, RPM wound up paying “millions of dollars” in such bonuses, the CFPB said. (In 2011, the bureau banned such incentive payments under its loan originator compensation rule.) According to a civil complaint filed in Federal District Court for the Northern District of California, the privately held nonbank allowed LOs to use expense accounts to pay for pricing incentives to close the loans. “From April 2011 through December 2013, RPM allowed loan originators to use their expense accounts to finance thousands of pricing concessions that enabled ...
The CFPB took an ominous administrative action against PHH Corp. earlier this month over its captive reinsurance activities. Industry critics cried foul and warned of a potentially ominous legal precedent that threatens long-standing legal interpretations that have shaped the mortgage lending landscape for years.“The CFPB is trying to rewrite the Real Estate Settlement Procedures Act retroactively. It is stunning,” said one long-time industry lobbyist. “If the CFPB can illegally rewrite RESPA, they can attempt to rewrite TILA and other laws they choose.” The crux of the dispute is the bureau’s assertion that PHH violated RESPA by illegally referring borrowers to mortgage insurance companies in exchange for kickbacks.Back in January 2014, the CFPB initiated an administrative proceeding against PHH ...
The changes allow eligible non-borrowing spouses with older Home-Equity Conversion Mortgages the potential to remain in their home following the death of the last surviving HECM borrower.
The VA maintained a sizeable lead in first-lien mortgage refinancing over FHA and private mortgage insurers in the first quarter of 2015 but yielded to both in purchase originations.
Originations of VA mortgages in the first quarter of 2015 increased by 5.8 percent compared with the previous quarter and were up 86.0 percent from the first quarter of 2014.
Deadline Extended for Submission of Due-and-Payable Request. On April 23, the FHA issued guidance to reverse-mortgage servicers on the types of loss mitigation options they may provide when a Home Equity Conversion Mortgage loan goes into default. If the default occurred before April 23, 2015, the guidance’s publication date, servicers have 180 days to submit a due-and-payable request if the borrower is unable to pay property charges and goes into default. Under the revised guidance, FHA is allowing a one-time extension through Oct. 20, 2015, for lender-servicers to submit the due-and-payable request. The FHA said the extension would ensure that the April 23 guidance is successfully implemented. Lenders Get First Look at FHAC Improvements. The FHA is providing an overview of the FHA Connection (FHAC) system enhancements to help lenders get ready before the ...
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