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Inside the CFPB

April 11, 2011

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Lenders Note Pitfalls in Agency QRM Proposal

Mortgage lenders and compliance experts are deeply concerned about the recently published risk-retention proposal and its impact on the availability of credit for eligible borrowers as well as the potential fair lending issues it may raise. Industry trade groups are especially worried about... Read More

Agencies’ Consent Terms Seen as Weak

The consent decree which certain mortgage servicers have reportedly agreed to draws heavily from an earlier draft of comprehensive measures developed by federal banking regulators to improve foreclosure policies and practices. The provisions in the draft, which had been ready as early as February, compel servicers to... Read More

Banks, Credit Unions Echo GOP Views on Commission-Led BCFP

Federally regulated banks and credit unions favor Republican-backed legislation that would install a commission, instead of a single director, to call the shots at the Consumer Financial Protection Bureau. The majority of witnesses at a recent hearing called by the House Financial Services Subcommittee on Financial Institutions and Consumer Credit expressed their support for... Read More

Business Pact Between FCU, Lender May Trip RESPA Trigger

A conflict of interest exists if an employee of a federal credit union disapproves member loans and then refers them to a mortgage banker that pays for such referrals, according to the National Credit Union Administration. Not only would there be a potential violation of the NCUA’s lending policy but the referral arrangements may also violate... Read More

Warehouse Financing with Repo Clauses Also Subject to RESPA

Warehouse financing arrangements with repurchase agreements will be analyzed the same way as other warehousing programs for possible exemption from Real Estate Settlement Procedures Act requirements, according to the Department of Housing and Urban Development. The clarification was made in response to... Read More

Court Lifts Stay on LO Pay Rule, Brokers Vow to Continue Fight

The Federal Reserve Board’s loan originator compensation rule is finally in effect after lawsuits filed by mortgage broker trade groups failed to stop the rule in its tracks. In a terse, one-page decision, the U.S. District Court of Appeals for the District of Columbia Circuit lifted a temporary stay order against... Read More

State Roundup

Illinois. The Division of Banking has been receiving inquiries regarding a number of mortgage companies that are still in the process of renewing their Illinois residential mortgage licenses for calendar year 2011 through the Nationwide Mortgage Licensing System and Registry. The issue is that... Read More

Federal Roundup

Federal Financial Institutions Examination Council. Revised Interagency Exam Procedures for Regulation Z (TILA). Notwithstanding court petitions seeking to stop the implementation of a new loan originator compensation rule, the Federal Reserve Board announced revised examination procedures that will ensure... Read More

Worth Noting

  • The Department of Housing and Urban Affairs has declared April Fair Housing Month as it launched a nationwide media campaign to commemorate the Fair Housing Act. The Fair Housing Act was enacted 43 years ago this April to protect minorities and other groups from housing discrimination. The FHAct prohibits... Read More

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