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Inside the CFPB

August 17, 2009

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Experts Find RESPA FAQs ‘Disappointing’

Long-anticipated guidance on the implementation of the new Real Estate Settlement Procedures Act rule issued last week by the Department of Housing and Urban Development is getting bad reviews from mortgage compliance experts. Those already gearing up for the rule’s final implementation may be disappointed because many of the “frequently asked questions” or FAQs merely... Read More

FFIEC Updates Fair Lending Exam Methods

The Federal Financial Institutions Examination Council has revised its interagency fair lending examination procedures to reflect significant changes in credit markets, loan products, and credit practices. The agency also underscored the importance of using specialized exam techniques to support fair lending exams. Developed by the FFIEC’s Task Force on Consumer Compliance... Read More

Fed Opinion Sought on Impact of MDIA on TBW’s Unfunded Loans

Mortgage lenders and their mortgage broker partners are closely watching developments in the Taylor, Bean & Whitaker case as they grow more concerned about the required waiting periods under newly revised Truth in Lending Act regulations and their effect on the unfunded loans left in TBW’s pipeline. The National Association of Mortgage Brokers urged the Federal Reserve to clarify the... Read More

Colonial Falls Amid Scrutiny

Regional bank Colonial BancGroup, facing a host of federal investigations into accounting irregularities and capital-raising activities, will be acquired by BB&T Corp. after regulators closed the bank last week and a federal judge froze its assets. The sale of Colonial ended weeks of speculation about its ability to survive since a $300 million deal aimed at propping up the ailing Alabama... Read More

FFIEC Urges Servicers to Modify Loans Regardless of Lien Position

Mortgage servicers should simply modify a first-lien or subordinate-lien mortgage and not be concerned about the modification’s effect on the associated sub-lien or first mortgage, respectively, as long as it doesn’t violate the terms of the contract and achieves the best recovery for the investor, according to the Federal Financial Institutions Examination Council. In a recent... Read More

Mandatory Servicer Licensing Could Hinder HAMP Progress

The Department of Housing and Urban Development could effectively halt or slow down foreclosure prevention efforts under the Home Affordable Modification Program if it threatens to require state licensure of loan servicer employees engaged in loss mitigation, according to industry attorneys. The Obama administration’s goal to speed up the pace of loan modifications under... Read More

States Ready with SAFE Act

Since the passage of the Secure and Fair Enforcement for Mortgage Licensing Act in July last year, states have moved aggressively during the one-year grace period to pass legislation implementing the SAFE Act. As of the July 30 deadline date, 49 states and the District of Columbia have enacted or introduced legislation requiring the licensure of mortgage loan originators according to... Read More

Illinois AG Sues Wells Fargo for Alleged Fair Lending Violations

Despite the collapse of the subprime mortgage market, lenders are still feeling the backlash of years of reckless subprime lending practices as states continue their pursuit of creditors that allegedly steered minority borrowers to bad high-cost mortgage loans. On July 31, Illinois Attorney General Lisa Madigan sued Wells Fargo and its bank and non-bank affiliates in state court alleging... Read More

GAO Report Critical of Agencies’ Enforcement of Fair Lending Laws

Lack of Home Mortgage Disclosure Act data is making it harder for federal regulators to assess lender compliance with fair lending laws, according to a new report by the Government Accountability Office. The GAO report also blamed non-bank lenders and the fragmented financial regulatory restructure for the difficulties in overseeing and enforcing fair lending laws... Read More

State Roundup

Illinois. Gov. Pat Quinn, D, signed two bills, HB 3863 and HB 153, on July 31 to amend state law in connection with... North Carolina. On July 27, Gov. Beverly Perdue, D, signed SB 1017 to provide more protections to victims of identity... Oregon. Gov. Ted Kulongoski, D, signed a legislative package into law to provide more protections and rights to... Read More

Federal Roundup

OCC/FRB/FDIC/OTS: Guidance on Tenant Protections. Federal thrift and banking regulators will review lenders for compliance... Office of the Comptroller of the Currency: New and Revised Exam Procedures. The OCC has recently revised the electronic version of the... Federal Financial Institutions Examination Council: New Reg Z Exam Procedures. The FFIEC’s task force on consumer compliance has... Read More

Worth Noting …

Proposed legislation in the Senate would require lawmakers to disclose the terms of their first... Freddie Mac said one or more of its mortgage insurance counterparties could be found incapable... A Minnesota federal court recently dismissed most of the claims brought by Fair Isaac Corp. in... The Mortgage Insurance Companies of America has announced a “second look” program for distressed... Read More

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