Consumer Financial Protection Bureau. Comments Wanted on Mortgage-Related Rules. The Consumer Financial Protection Bureau is asking for public comment on currently approved information collections associated with certain recently published interim final rules having to do with mortgage lending. One such rule has to do with the Secure and Fair Enforcement for Mortgage Licensing Act (Regulation G) 12 CFR Part 1007.“The information collection will improve the flow of information to and between regulators; provide accountability and ...

California. In Balderas v. Countrywide Bank, N.A., the U.S. Court of Appeals for the Ninth Circuit recently ruled that the Truth In Lending Act’s delivery obligation requires borrowers be permitted to keep written copies of the right-to-rescind notice. The court noted that to “deliver” the notice as per TILA requires a “permanent physical transfer from one party to another,” as opposed to momentary delivery. Illinois. Earlier this month, the Department of Financial and Professional Regulations published amendments to the state’s mortgage originator licensing requirements. One change ...

In Marr v. Bank of America, N.A., the U.S. Court of Appeals for the Seventh Circuit has affirmed that borrower testimony alone can overcome the Truth in Lending Act’s “rebuttable presumption” that a borrower has received two notices of his right to rescind a refinance transaction, despite a written acknowledgement by the borrower to the contrary. In this case, the borrower argued that he wasn’t given two right-to-rescind notices as required under TILA, even though he had signed a document indicating he had. He said he had filed away and left undisturbed the documents he received when ...

The U.S. Court of Appeals for the Sixth Circuit recently took on Molosky v. Washington Mutual Inc., which addressed the preemption of certain state law claims under the federal Home Owners Loan Act. The plaintiffs in this case alleged that certain fees charged by their loan servicer in connection with the prepayment of their mortgage violated both the Michigan Usury Act and their mortgage contract.The lower court had previously rejected the suit on the basis of HOLA preemption, prompting the borrowers to appeal. The Sixth Circuit basically split the difference. On the one hand, the ...

The Democratic and Republican state attorneys general are scheduled to meet separately Monday, Jan. 23, to discuss the foreclosure practices settlement terms sent out last week, amidst varying criticism that the agreement will be either a shakedown for banks or an inadequate answer to homeowner woes. Monday’s meetings come after Housing and Urban Development Secretary Shaun Donovan announced last week that the pending settlement was “very close” and would benefit about 1 million families through principal reduction for homeowners and, in some cases, direct compensation for people wrongfully ...

It’s not just federal regulators and lawmakers that are complicating the business of mortgage servicing while the industry continues digging itself out of a housing market collapse of near-biblical proportions. States have become increasingly active and aggressive, and there’s little sign that’s about to end any time soon. “Three years ago, servicers were just beginning to understand the extent to which state legislative efforts could complicate, extend and expand the cost of the foreclosure process,” said Nanci Weissgold and Morey Barnes Yost, attorneys in the consumer financial services practice ...

Regulatory burden will be the biggest issue for mortgage originators in 2012, according to recruiting firm Hammerhouse’s second annual survey of originator opinions. of the 400 active mortgage loan originators surveyed, 51 percent cited further oversight and regulation as a top concern for originators in 2012. Twenty-nine percent said that finding a committed and stable mortgage lender to work with is still one of the areas of utmost concern. Product flexibility and raising interest rates were identified as top concerns by 12 percent and 8 percent, respectively ...

The Supreme Court of the United States plans to hear oral arguments late next month in Freeman v. Quicken Loans, a case that could have wide-ranging implications for lenders subject to the Real Estate Settlement Procedures Act. The issue before the high court is whether RESPA Section 8(b) 12 USC 2607(b) prohibits a real estate settlement services provider from charging an unearned fee only if the fee is split between two or more parties.The language of that provision of the statute states that no person “shall give and no person shall accept any portion, split or ...

Two independent mortgage firms have made key changes to their operations to provide better subservicing solutions to FHA and VA lenders as well as reverse mortgage originators. Gateway Mortgage Group, a privately held mortgage bank based in Tulsa, OK, recently announced a new in-house subservicing unit dedicated solely to specialty and default servicing of FHA and VA loans. The decision to set up a subservicing shop became necessary due to the more stringent government loan requirements and increased oversight by regulators, according to Kevin Osuna, vice president of default services. Community bank servicers and smaller institutions were struggling ...

MetLife Home Loans (MHL), one of the top FHA-approved mortgage lenders and FHA servicers, has quit the loan origination business and stopped accepting new applications for forward mortgages. A residential mortgage arm of MetLife Bank, MHL said it is shutting down its various residential and construction loan programs and continuing its reverse mortgage program. The home loan division will honor all contractual commitments for loans in process and expects the majority of loans to close in 90 days. MHL began originating traditional, jumbo and reverse mortgages in 2008. However, dwindling revenues prompted ...