Mortgage lenders are worried that a recent proposal by the Consumer Financial Protection Bureau to expand its consumer complaint database with “narratives” from borrowers will leave companies vulnerable to being smeared by unproven rumors and false accusations. They also fear that a few legitimate complaints will be blown out of proportion. Others are apprehensive about maintaining the privacy of consumer personal data – and about expanding their legal liability. The Financial Services Roundtable has initiated...
The FHA will no longer allow lenders to charge interest payments previously owed beyond the date the FHA mortgage was paid in full – a policy change that could help borrowers save some money. Currently, lenders can charge interest on FHA loans through the end of the month when they are paid off. The new rule is effective for loans paid off on or after Jan. 21, 2015. The policy change responds...
The Federal Housing Finance Agency last week proposed increasing some of the benchmark levels for Fannie Mae’s and Freddie Mac’s affordable housing goals through 2017, while also establishing new housing subgoals for low-income multifamily properties. The proposed rule – which requests public comment – presents three alternatives for determining whether a government-sponsored enterprise has met the congressionally mandated single-family housing goals for 2015-2017. The first option would keep...
The FHFA IG job candidate must be able to withstand "moderate to arduous physical exertion involving walking and standing, use of firearms, and exposure to inclement weather."
“The new guys are quickly gaining on the traditional players,” said Ginnie president Ted Tozer. “Some have grown from zero to $5 billion to $10 billion overnight. We’re concerned about their infrastructure and capital.”
The CFPB remains quite concerned about the risks consumers face from the sustained high volume of mortgage servicing transfers and issued new guidance that highlights what its examiners will pay keen attention to going forward. “The CFPB advises mortgage servicers that its examiners will be carefully reviewing servicers’ compliance with federal consumer financial laws applicable to servicing transfers,” the new guidance stated. These will include Regulation X under the Real Estate Settlement Procedures Act, Regulation Z under the Truth in Lending Act, Regulation V under the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, and the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibitions on unfair, deceptive, or abusive acts or practices (UDAAPs). At the top of ...
The CFPB recently fined auto finance company First Investors Financial Services Group Inc. $2.75 million for allegedly failing to fix known flaws in a computer system that was providing inaccurate information to credit reporting agencies. The bureau also ordered the Houston-based company to fix its errors and change its business practices. The CFPB said its investigation found that First Investors furnished inaccurate information about its customers to credit reporting agencies for at least three years. “When First Investors discovered the problem in April 2011, it notified the vendor but did nothing more,” the CFPB said. “The company did not replace the system or take any steps to correct the inaccurate information it had supplied. “It continued for years to use ...
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