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.
The Senate this week approved by unanimous consent a narrow bill to reverse hefty pay hikes for the chief executive officers of Fannie Mae and Freddie Mac. A similar bill cleared the House Financial Services Committee this summer with heavy bipartisan support, and the White House has signaled it has no objections to the measure. But the Senate steered clear of more controversial proposals regarding the two government-sponsored enterprises, including language sought by Sen. Bob Corker, R-TN, barring the Department of Treasury from selling its senior preferred stock in the GSEs without approval from Capitol Hill. According to reports, Sen. Sherrod Brown, D-OH, put...
The real estate finance industry is not opposed to more simplified mortgage disclosures for consumers. But the Consumer Financial Protection Bureau’s integrated disclosure rule as it’s now written will cost the industry billions of dollars every year, one industry official warned. The rule, intended to harmonize and integrate the disclosures required under the Truth in Lending Act and the Real Estate Settlement Procedures Act, is slated to become effective on Oct. 3, 2015, a scant two weeks away. “If left and implemented as is, TRID will require...
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...
"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.
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