The U.S. Supreme Court this week dealt a heavy blow to the mortgage industry, holding that the Department of Labor’s most recent regulatory interpretation is valid, meaning mortgage loan officers are eligible for overtime pay. The DOL went back and forth, through formal rulemaking and regulator interpretations, on whether loan officers should be exempt. At one point, it said lenders did not have to pay LOs overtime because they fit in the so-called administrative exemption. But in its most recent position, a 2010 opinion letter, the agency said loan officers are not exempt from the protections of the Fair Labor Standards Act, including overtime pay. The Mortgage Bankers Association challenged...
Industry participants continue to call for changes to how the Consumer Financial Protection Bureau operates its consumer complaint database. A proposal in December to renew the CFPB’s Consumer Response Intake Form drew criticism from the Mortgage Bankers Association and others. “CFPB and industry data both show that a small fraction of consumer complaints warrant any action beyond an explanation,” Stephen O’Connor, a senior vice president of public policy and industry relations at the MBA, said in a comment letter to the CFPB. The Office of Management and Budget approved...
HUD is seeking authority for the FHA to require, in certain instances, institutions with less expertise in servicing to hand off that function to a specialized servicer...
Most people who are not in straight-jackets believe the chances of GSE reform by 2016 are pretty much zero. Just in case you were wondering and needed a reminder…
Bills are expected to include provisions such as providing “qualified mortgage” status for many portfolio loans, with a much broader impact than the CFPB’s recent proposal.
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