The compensation formula that will most likely be used by mortgage loan originators to comply with the Federal Reserve’s final rule is a percentage of the loan-funded balance with a minimum floor, according to the California Association of Mortgage Professionals. In an analysis of the rule, the CAMP said MLOs will most likely choose...

The Federal Reserve Board has issued a final rule and sought comment on a proposed rule to revise escrow requirements for first-lien jumbo mortgage loans and first-lien, higher-priced mortgages, respectively. The changes to Regulation Z, which implements...

House Republicans have voted, among other things, to slash initial funding for the Bureau of Consumer Financial Protection by nearly 60 percent in an effort to curb the new agency’s oversight powers over banks and nonbanks. By a vote of 235 to 180, the House passed a new continuing resolution (H.R. 1), the Full Year Continuing Appropriations Act, which would limit...

Federal regulators are deeply divided on the amount of fines and the scope of procedural changes that should be imposed against major mortgage servicers to settle state and federal claims of fraud and other improprieties in the home foreclosure process. While no settlement agreement has been reached...

CSBS. Registration of mortgage loan originators (MLOs) employed by federally supervised financial institutions is now in full swing. On Jan. 31, the Conference of State Bank Supervisors announced the opening of the Nationwide Mortgage Licensing System and Registry to registration applications from...

Department of Housing and Urban Development Final SAFE Act Rule to OMB. On Feb. 8, HUD sent a final rule under the Secure and Fair Enforcement for Mortgage Licensing Act to the Office of Management and Budget for review. The final rule would clarify and interpret...

House Republicans are vowing to place financial regulators under tight scrutiny to ensure that the objectives of the new finance reform bill are being met without harmful, unintended consequences. The House Financial Services Committee placed the Dodd-Frank Wall Street Reform and Consumer Protection Act under a stringent oversight plan that takes...

The Department of the Treasury is testing a new website for the Bureau of Consumer Financial Protection through which the new agency can communicate and solicit opinions and recommendations from the public on any new rulemaking or initiative in the weeks and months ahead. The site will also be a valuable tool in recruiting...

Most mortgage industry groups have expressed support for a proposal by the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) to require non-bank residential mortgage lenders and loan originators to establish anti-money laundering (AML) plans and report suspicious financial transactions. The groups, which represent...

The Small Business Administration has joined other stakeholders in asking the Federal Reserve Board to postpone the April 1 implementation date of its final rule on mortgage loan originator compensation. In a recent letter, the SBA’s Office of Advocacy said the compliance guidance for small businesses it had requested...