PHH Mortgage – which handles originations for a number of financial firms on a private-label basis – was the largest IO lender in the nation with $7.19 billion funded during the first half.
Despite strong earnings from the MI sector the past year, regulatory scrutiny remains, particularly in efforts by an NAIC working group to develop risk-based capital standards...
Lender compensation of loan originators has become a whole new world now that the Consumer Financial Protection Bureau has taken over enforcement for many lenders. During an Inside Mortgage Finance webinar this week, three top legal experts spelled out multiple lessons lenders should learn if they wish to avoid the fate that has befallen some of their peers at the hands of the CFPB. Kristie Kully, a partner with the K&L Gates law firm, drew a number of key take-aways from the first such enforcement action brought by the bureau, which occurred in November 2013, when the CFPB accused Castle & Cook and two of its executives of paying illegal bonuses for steering consumers into costlier mortgages. More specifically, the bureau alleged...
Under the new policy, corporations must provide the DOJ with all relevant facts about individuals involved in corporate misconduct if they hope to get leniency or credit for cooperation in the investigation.
"For the CFPB to act on its own in such a bullish manner without concern for the confusion this will cause, along with additional costs for consumers, is unconscionable,” said NAIHP chief Marc Savitt.
Paul Hindman of Grid Origination Services noted that any public company CEO who does not deliver on performance mandates “is at risk, more so than ever in today’s market.”
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