One of the top concerns among compliance professionals is the seeming inevitable conflict that the CFPB’s amendments to its mortgage servicing rules will have with various state laws – in particular, the possibility that compliance with one may put the servicer out of compliance with the other. That was one of the key takeaways from a break-out session early last week at the American Bankers Association’s annual regulatory compliance conference in Orlando. “One issue that comes up fairly frequently has to do with what a servicer should do when there is a conflict between state and federal law. We’ve seen this come up especially when it comes to the various early intervention notices that servicers have to send to delinquent borrowers,” ...
Industry compliance officers, trade group representatives and legal experts at the American Bankers Association’s regulatory compliance conference, held in Orlando last week, expressed mixed sentiments about whether the CFPB ought to delay the effective date of the new requirements it is ushering in under the Home Mortgage Disclosure Act. They were responding to the suggestion of such a delay made by the Treasury Department in its recent report as per President Trump’s Executive Order 13772. “Obviously, a delay has to be for at least a year because the nature of HMDA is such that you can’t delay for six months,” Rodrigo Alba, the ABA’s senior vice president and senior regulatory counsel for mortgage finance, told an audience during a working ...
More than 68 percent of mortgage defects reported in 2016 involved TRID-related and/or loan package documentation issues, according to the latest mortgage quality control industry trends report from ACES Risk Management (ARMCO). “In 2016, the entire lending industry was impacted by the enhanced regulatory oversight of the CFPB as the long-awaited implementation of TRID was fully realized,” the report noted. “Many lenders spent the better part of the first quarter addressing the multitude of mistakes associated with TRID.” In some instances, this produced loans that could not be sold on the secondary market. “A wave of corrective action followed, and soon the sheer amount of resources directed at solving these issues became overwhelming for many lenders,” ARMCO added. The top...
House Fires Shot Across CFPB’s Bow, Passes Financial CHOICE Act. The GOP-controlled House of Representatives followed through on the majority’s often expressed intention to largely eviscerate the CFPB, passing H.R. 10, the Financial CHOICE Act, the Republican alternative to the Dodd-Frank Act. The measure passed on a vote of 233-186. All eyes now turn to the Senate Banking, Housing and Urban Affairs Committee, where Mike Crapo, R-ID, will play a pivotal role in Republican efforts to roll back the bureau. “Today’s passage of the Financial CHOICE Act is a significant and thoughtful effort to improve our financial regulatory system,” Crapo said after the vote. “Many of the provisions in this legislation are responses to the failures and consequences of Dodd-...
Third-party oversight is becoming more of a focus of regulators these days, according to some top compliance professionals, and one of the most important emerging themes is an increasing regulatory emphasis on staff expertise. “This is something that [all the regulators] are thinking about,” Krista Shonk, vice president and senior regulatory counsel at the American Bankers Association, said during a presentation early last week at the ABA’s annual regulatory compliance conference in Orlando. Staff expertise includes things such as the ability to perform proper due diligence analysis and contract management and oversight.But personnel also need to avoid any attempts to transfer their institution’s inherent responsibility for compliance with laws and regulations. On the other hand, lenders should not put ...
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