Compliance experts are urging FHA lenders to express their concerns about a potential new enforcement regime the Department of Housing and Urban Development has proposed that could raise the risks of doing business with the FHA. The HUD proposal, which was published as a notice in the Federal Register with a comment deadline of Sept. 9, seeks comment on measures that would further enhance quality assurance in origination, underwriting and servicing. HUD has routinely used quality assurance methods, including routine and targeted audits, post-endorsement loan reviews and monitoring of early default and claim rates to evaluate lender compliance. Attorneys with K&L Gates cautioned...
The Consumer Financial Protection Bureau may have over-reached by extending its new bulls-eyes on debt collectors to mortgage servicers, according to some top mortgage industry attorneys. The CFPB last week warned all companies under its jurisdiction that they will be held accountable for unlawful conduct in collecting a consumer’s debts, citing its authority under the Dodd‐Frank Act, which prohibits “unfair, deceptive, or abusive” acts or practices (UDAAPs). Attorney Alan Kaplinsky, a practice leader in the Philadelphia office of the Ballard Spahr law firm, said it’s particularly significant that the bulletins not only address the conduct of debt collectors and debt buyers, but also are directed at creditors and servicers. CFPB Bulletin 2013‐07 makes...
The audience for the marketing of private-placement securities is set to increase due to changes approved last week by the Securities and Exchange Commission. Separately, the Financial Industry Regulatory Authority voted to increase transparency for consumer ABS private placements, prompting some to suggest that FINRA could also increase transparency for private-placement non-agency MBS. The SEC voted 4-1 to adopt a new rule to implement a JOBS Act requirement to lift the ban on general solicitation or general advertising for certain private securities offerings offered under Rule 506. The SEC also amended Rule 144A, which covers private placements of non-agency MBS and other securities. Under the new rule, offers of 144A securities can be made...
The MBA believes that the Treasury Department – despite being the GSEs’ single biggest shareholder – has been absent on Fannie/Freddie reform since early 2011.
The numbers suggest that after seven quarters of complaints being received by the CFPB, mortgage lenders are getting a better handle on complaint resolution.
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