Public Comments on the Mortgage Closing Process are Due Feb. 7. Early in January, the CFPB solicited consumer comments on the mortgage closing process, specifically asking consumers to identify the key “pain points” associated with mortgage closing and how they might by addressed by market innovations and technology. The bureau specifically said it wanted comments on how to increase the use of technology and promote inventions that encourage a more streamlined mortgage closing process while also improving consumer knowledge. The CFPB...
The qualified mortgage is here, and while the rotation of the earth has yet to slow, there are still several areas of the regulation that are not crystal clear to much of the industry, including some questions having to do with Fannie Mae and Freddie Mac purchases of mortgages being originated under the new regime. For instance, “If lenders bake the loan-level price adjustments into the interest rate, are they allowed to show those adjustments to the originator? If they show them, will the CFPB count them into the points and fees?” asked Tammy...
As mortgage lenders begin preparing for the new mortgage disclosure regime being instituted by the CFPB’s final rule, they should revisit lessons learned during their previous adventures with the Truth in Lending Act and the Real Estate Settlement Procedures Act. “RESPA reform from January 1, 2010, is still close in many of our minds, and we remember back to ’09 being a year that we spent a massive amount of time implementing that new regulation,” said Amy Thoreson Long, senior counsel in the consumer lending division at Wells Fargo. Then in 2010...
With the recent data breach at the Target national retail chain and the disclosures about the National Security Administration by whistleblower Edward Snowden still fresh in mind, House Republicans are pressing the CFPB over the integrity and security of its various database initiatives. Rep. Ed Royce, R-CA, took issue in particular with the national mortgage database project the CFPB is engaged in, along with the Federal Housing Finance Agency, the regulator of housing finance giants Fannie Mae and Freddie Mac. “I think you...
The CFPB last week initiated an administrative action against PHH Mortgage, accusing the firm of participating in a multi-million-dollar kickback scheme involving captive mortgage insurance reinsurance. The regulator said an investigation it conducted showed “that when PHH originated mortgages, it referred consumers to mortgage insurers with which it partnered. In exchange for this referral, these insurers purchased ‘reinsurance’ from PHH’s subsidiaries.” The bureau continued, “PHH took the reinsurance fees as kickbacks, in violation...
An industry source said lenders in the Riverside-San Bernardino-Ontario housing market are gearing up to petition HUD to recalculate the FHA loan limits in those areas.
New Penn Financial accounted for almost 81 percent of mortgages included in the jumbo deal. In the past, the lender’s originations have been securitized by the affiliated Shellpoint Partners.
American Advisors Group, whose spokesman is former U.S. Sen. Fred Thompson, R-TN, led with $1.05 billion in reverse mortgage originations and a 9 percent market share.
VA Lenders’ Compliance with CFPB’s Ability-to-Repay and Qualified Mortgage Rules. Until the Department of Veterans Affairs’ rule on ATR/QM is in place, all VA lenders must comply with the requirements of the Truth in Lending Act, as established by the Consumer Financial Protection Bureau’s ATR/QM rule, according to a recent agency guideline. VA will continue to guarantee all loans made in compliance with existing VA requirements, regardless of their QM status, the agency clarified. It urged lenders to refer to the CFPB guidance to ensure all their VA loans are ...
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