CFPB Director Richard Cordray seemed to suggest recently the bureau is open to tightening restrictions on the mortgage servicing industry’s practice of “dual tracking,” by which servicers move forward with foreclosure proceedings while simultaneously evaluating a homeowner for possible loss mitigation alternatives. Appearing before attendees at a recent National Consumer Law Center Conference, Cordray conceded that the bureau has received pointed criticism from consumer advocates about its mortgage...

The CFPB and the Federal Housing Finance Agency, the regulator and conservator of Fannie Mae and Freddie Mac, have agreed to work together on setting up a National Mortgage Database, something officials hope will be the first comprehensive repository of detailed mortgage loan information. The National Mortgage Database is to include information spanning the life of a mortgage loan from origination through servicing and incorporate a variety of borrower characteristics. Specifically, the database will feature...

Wells Fargo is contesting a complaint filed by the federal government that alleges the bank falsely certified loans under the FHA’s Direct Endorsement Lender Program in violation of the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act. The Department of Justice and the Department of Housing and Urban Development are asserting that from May 2001 through October 2005, Wells regularly and knowingly participated in the reckless origination and underwriting of FHA loans...

The CFPB has issued a new appeals process by which institutions under its supervision can contest certain adverse findings. However, industry attorneys are both skeptical and concerned. gThe bureau recently began issuing examination reports and supervisory letters to financial service providers that it supervises,h the bureau said in Bulletin 2012-07. gToday we are implementing a policy that would allow our supervised entities to appeal certain supervisory findings in those examination reports and supervisory letters.h...

The CFPB has come out with a report highlighting problems that the agencyfs examiners found during their reviews of nonbanks and banks with more than $10 billion in assets that were conducted from July 2011 through September 2012. The deficiencies they found included improper procedures related to credit line increases for credit card holders under the age of 21, inadequate training on fair credit reporting requirements, and violations of mortgage disclosure requirements...

The CFPB and the federal banking regulators have jointly written a key panel in the U.S. Senate to express their opposition to legislation that would permit the president to require all independent agencies to undertake numerous additional steps and analyses as part of the rulemaking process. Introduced by Sens. Mark Warner, D-VA, Rob Portman, R-OH, and Susan Collins, R-ME, S. 3468, the “Independent Agency Regulatory Analysis Act of 2012,” would authorize the president to require independent regulatory...

Four associations representing state financial regulators told the CFPB they generally support most of what the bureau is proposing in integrating the disclosures consumers receive when they shop for a mortgage. However, they emphasized the importance of proceeding cautiously as the bureau moves ahead with the proposed rules that would amend the mortgage disclosures under Regulation Z, which implements the Truth in Lending Act, and Regulation X, which implements the Real Estate Settlement Procedures Act...

The CFPB is widely expected to proceed as fast as possible with its heavy regulatory and rulemaking responsibilities, now that President Barack Obama has fended off his Republican challenger for the White House, Mitt Romney, and Democrats have strengthened their control of the U.S. Senate. Created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has a single director, a limitless funding stream via the Federal Reserve, and little congressional oversight as compared to the other agencies...

Well-informed sources in Washington, DC, are suggesting that Richard Cordray, head of the CFPB, is interested in moving on before the end of his term, despite the fact that the election results strengthen the hand of the agency he’s running. Under the Dodd-Frank Act, the director of the bureau is appointed to a five-year term by the president, with the advice and consent of the Senate. Cordray was nominated by President Obama, but was not confirmed by the U.S. Senate. He therefore may serve as a recess appointee until...

GSEs, Private MIs Agree to Drop Pre-Approval Requirements. Fannie Mae and Freddie Mac and the private mortgage insurance industry have agreed to eliminate pre-approval requirements for foreclosure alternatives, such as short sales and deeds-in-lieu of foreclosure. The separate agreements with MIs should help distressed homeowners avoid foreclosure by doing away with costly, time-consuming MI reviews that delay foreclosure-prevention transactions, according to the government-sponsored enterprises. WIMC Fully Acquires Reverse Mortgage Solutions. Walter Investment Management Corp. has completed its $120 million acquisition of ...