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Inside the CFPB

March 8, 2010

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Use of Prequalification, Worksheet Slammed

Federal housing regulators have warned major mortgage lenders against using pre-qualifications and worksheets on undecided borrowers as a way to avoid providing the good faith estimate as required by new Real Estate Settlement Procedures Act regulations.In a Feb.18 RESPA workshop conducted by the Department of Housing and Urban Development, agency officials said some lenders... Read More

Industry Nixes Licensing of Mod Specialists

Requiring mortgage servicers and loss mitigation specialists to be licensed as if they were loan originators would be counterproductive and likely impair foreclosure prevention efforts, according to industry trade groups and state regulators. Groups responded with a resounding “no” to a proposal by the Department of Housing and Urban Development in December to require the licensing of... Read More

Revamped RESPA Rule Increases Litigation Risk, Attorney Warns

The revamped Real Estate Settlement Procedures Act regulations create more compliance risks and potential pitfalls that could result in more litigation, according to Rebecca Redmond, a closing attorney and a partner with Sirote & Permutt. The revised RESPA rule comes with a host of questions, which the Department of Housing and Urban Development is trying to... Read More

Risk Retention Concerns Remain High Despite Focus on CFPA

Lobbying for changes to the risk-retention requirements embedded in Sen. Chris Dodd’s draft regulatory reform legislation continues despite the bigger focus on where consumer protection will end up in the final legislative package. Industry groups have been lobbying quietly on Capitol Hill to soften or eliminate risk-retention requirements, despite speculation that a... Read More

Senate Negotiators Continue Talks On Consumer Protection Location

Senate lawmakers continued to negotiate after efforts to craft an alternative to an independent Consumer Financial Protection Agency hit another brick wall last week. A proposal drafted by Sens Christopher Dodd, D-CT, and Bob Corker, R-TN, was spurned by Democrats and Republicans in both the House and the Senate, further slowing progress to get a consensus bill... Read More

HUD Sends Proposed ‘Required Use’ Rule to OMB for Clearance

The Office of Management and Budget is reviewing a proposed rule from the Department of Housing and Urban Development addressing the revised definition of “required use.” Submitted Feb. 26, the proposed rule is expected to show a more streamlined definition of “required use” that would allow settlement service providers, possibly including home builders, to offer incentives to... Read More

AIG Subs Settle with FFETF to Resolve Biased Lending Charges

Two subsidiaries of American International Group have agreed to pay $6.1 million to the government to settle allegations of discriminatory pricing against African American borrowers. AIG Federal Savings Bank and Wilmington Finance, Inc. allegedly violated the Fair Housing Act and the Equal Credit Opportunity Act by allowing wholesale mortgage brokers to charge black borrowers... Read More

State Roundup

CSBS/AARMR. The Multistate Mortgage Committee of the Conference of State Bank Supervisors... Illinois. State Attorney General Lisa Madigan sued two mortgage brokers for their... Florida. Administrative charges were filed against unlicensed providers of loan... New York. The Manhattan District Attorney’s Office has announced the establishment of the... Read More

Federal Roundup

Revised HMDA Exam Procedures. The OCC has changed its Home Mortgage Disclosure Act examination... Loan Correspondent Renewal. The Federal Housing Administration is extending the deadline... HARP Extended. The Home Affordable Refinance Program, a government refinancing initiative... Data Collection to Preclude Property Flipping. HUD has sent a proposal to the Office of Management... Read More

Worth Noting …

CitiMortgage, as manager for the California Public Employees Retirement System (CalPERS) Member Home... Ted Tozer was sworn in Feb. 24 as president of Ginnie Mae. Prior to his new position... The Mortgage Bankers Association has proposed a new forbearance program that would... Federal thrift and banking agencies, the Federal Trade Commission, and other government... Read More

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