Temporary operating authority for loan officers moving from one state to another is now the law of the land. However, origination firms need to pay attention to potential compliance risks, investor appetite, and state-specific requirements.
A district judge in Wisconsin ordered two now-defunct mortgage relief firms and their principals to pay $59 million over foreclosure abuses. The payment includes $21.7 million in consumer restitution and a $37.3 million fine.
The bureau issued an interpretive rule that certain screening and training requirements under the Secure and Fair Enforcement for Mortgage Licensing Act do not apply to loan originators with temporary authority.
A recent study found that a substantial portion of lenders reduced interest rates to avoid being subject to the CFPB regulation regarding high-cost mortgages.
The CFPB recently published guidance to address the upcoming change in transitional licenses for mortgage loan originators who move between states or from banks to nonbanks.
A Florida federal judge termed a CFPB lawsuit against Ocwen Financial for widespread mortgage servicing failures as “shotgun pleading.” The court, however, allowed the CFPB to amend and refile the suit.
The third meeting this year between officials of the CFPB and the CMLA focused on the loan originator compensation rule. The trade group noted that bureau Director Kathy Kraninger is open to industry feedback.
The Federal Deposit Insurance Corp. voted unanimously to approve a rule that would expand the universe of non-agency mortgages that don’t require an appraisal. Consumer groups are angry that CFPB supports it.
The Government Accountability Office has recommended the CFPB inform the credit reporting agencies its supervisory expectations to help them better comply with the law. Efforts to reform the current credit reporting system continue in Congress.
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