Compliance

Browse articles from all of our Newsletters related to Compliance.

November 10, 2017 - Inside FHA/VA Lending

MBA Calls for Changes to LRS, Remedies for Lender Complaints

FHA lenders think the new Loan Review System is a “modern and streamlined system” that is less user-friendly than Neighborhood Watch, according to the Mortgage Bankers Association. In a letter to the Department of Housing and Urban Development, the MBA called on the FHA to continue its ongoing discussion with lenders and other industry stakeholders on how the improve the LRS and its response timelines. Implemented last May, the LRS is an electronic platform for monitoring and reviewing the quality of single-family mortgages that FHA has insured. It replaced the post-endorsement technical review performed by the FHA Connection/Underwriting Review System (URS), review functions for post-closing test cases submitted by direct endorsement lenders, and lender self-reporting functions in Neighborhood Watch. The LRS also includes a defect taxonomy, which features a list of ...


November 6, 2017 - Inside the CFPB

Other News in Brief/Provident, Ocwen, HMDA, Winter Park National

African-American and Hispanic Borrowers Allegedly Harmed by Provident Will Receive $9 Million in Compensation. Last week, Garden City Group, the settlement administrator for Provident Funding Associates, mailed out checks to African-American and Hispanic borrowers to compensate them for having been unlawfully charged higher interest or broker fees on their mortgages from Provident.... Ocwen Enters Into Agreement with Hawaii to Resolve Regulatory Action. Ocwen Financial settled some outstanding issues with regulatory authorities in Hawaii last week, continuing a streak the nonbank servicer has been on for the last two months or so....


November 6, 2017 - Inside the CFPB

CSBS Frets CFPB Rule Threatens Relationship Lending Model

The Conference of State Bank Supervisors recently told the CFPB it is concerned that a rule expected from the bureau could erode the relationship lending model that community banks use with small businesses. “The proposed new data collection requirements will require lenders to compile and report a variety of data points regarding small business applications and loans,” the state regulators said in a recent comment letter to the bureau. “At a minimum, these new data collection requirements will impose additional and disproportionate compliance costs on smaller financial institutions with limited resources and unnecessarily raise the cost of originating small business loans by all lenders.” According to the CSBS, community banks exercise a substantial amount of discretion and expertise in the ...


November 6, 2017 - Inside the CFPB

New HMDA Data Privacy Concerns Emerge in Wake of Data Breaches

The CFPB recently issued some proposed policy guidance for its Home Mortgage Disclosure Act rule that could help borrowers on the data privacy front, but it might not be enough, according to one compliance attorney. “On the heels of the Equifax data breach and continued cybersecurity threats, the CFPB’s guidance is a clear attempt to alleviate concerns regarding identity theft and information security,” Alexander Koskey, an associate in the Atlanta office of the Baker Donelson law firm, said in a recent client note. “However, significant privacy concerns persist that the increase in the amount of data that is being disclosed for the first time will make it easier to discover the identity of applicants and borrowers.” Additionally, given that the ...


November 6, 2017 - Inside the CFPB

Compliance Pro IDs Major Issues, Concerns With New HMDA Rule

During the recent annual meeting of the Mortgage Bankers Association, a top compliance expert highlighted some of the biggest issues and concerns the industry faces under the new data collection and reporting regime ushered in by the CFPB’s updated Home Mortgage Disclosure Act rule. The short list of the most significant considerations, of course, includes the fair lending implications of the new requirements. Mitch Kider, chairman and managing partner of the Weiner Brodsky Kider PC law firm in Washington, DC, told attendees at one break-out session that HMDA data accuracy (or errors) sets the tone for an entire CFPB examination. “Most of the new data fields companies already have,” he said. “Do you know what story your data currently tells ...


November 6, 2017 - Inside the CFPB

Groups Push Congress to Loosen ATR Rule’s Points-and-Fees Cap

Multiple industry trade groups recently wrote to every member of the U.S. House of Representatives to enact legislation that would loosen up the points-and-fees cap under the CFPB’s ability-to-repay rule and its qualified mortgage standard. At issue is the bipartisan H.R. 1153, the Mortgage Choice Act (not to be confused with the far more comprehensive, and controversial, Financial CHOICE Act). H.R. 1153 was introduced in February by Reps. Bill Huizenga, R-MI, Ed Royce, R-CA, Steve Stivers, R-OH, and David Joyce, R-OH, along with Gregory Meeks, D-NY, David Scott, D-GA, and Mike Doyle, D-PA. H.R. 1153 would revise the Truth in Lending Act Section 103(bb)(4) definition of points and fees to foster greater consumer choice in mortgage and settlement services under ...


November 6, 2017 - Inside the CFPB

Ocwen Requests Oral Arguments in CFPB Case, Sans Trump DOJ

Ocwen Financial appears to be just as mystified as anyone else when it comes to understanding why the Department of Justice has not weighed in on the company’s dispute with the CFPB, as it had been invited to do. But that hasn’t kept the nonbank mortgage servicer from asking the court to proceed with oral arguments. Late last month, Ocwen filed a supplemental motion with the U.S. District Court, Southern District of Florida, West Palm Beach Division, in favor of its earlier motion to dismiss the bureau’s complaint against it. The purpose of the motion is “to clarify the position of the United States [government] on the issue of plaintiff CFPB’s structural unconstitutionality, in light of the inaction of the ...


October 27, 2017 - Inside FHA/VA Lending

Waters Introduces Legislation to Make FHA Loans More Affordable

Legislation was introduced this week to repeal the FHA’s life-of-loan requirement and reinstate a previous policy of requiring borrowers to pay premiums until the outstanding principal balance reaches 78 percent of the original home value. Rep. Maxine Waters, D-CA, ranking member of the House Financial Services Committee, introduced the Making FHA More Affordable Act so that families would not have to keep paying mortgage insurance premiums for the life of their FHA-insured loan. Up until June 3, 2013, FHA was aligned with the private mortgage insurance industry in charging premiums only until the outstanding principal balance reached 78 percent of the original home value. The FHA first announced its intention to require life-of-loan premium payments in January 2013, allowing the agency to collect more premium revenue to bolster its ailing Mutual Mortgage Insurance Fund. FHA’s life-of-loan policy ...


October 27, 2017 - Inside FHA/VA Lending

FHA, VA Post Lower Denial Rates, Minorities More Likely Users of FHA

Overall denial rates for nonconventional loan applications (FHA, VA and Rural Housing Service) fell slightly in 2016 to 13.4 percent from 13.9 percent in 2015, Home Mortgage Disclosure Act data showed. In the nonconventional refinancing segment, denial rates rose to 32.9 percent last year from 30.3 percent in the previous year. Approximately 23.9 percent of FHA loan applicants were denied last year while VA turned down 20.0 percent of borrowers who sought a VA loan. An estimated 14.3 percent of FHA purchase-loan applicants were turned down. VA denied 11.4 percent of its purchase-mortgage applicants although its total purchase-loan applications are far fewer compared to FHA. According to the Federal Reserve’s overview of the 2016 HMDA data, as in past years, blacks, Hispanics and “other minority” borrowers had notably higher denial rates overall compared to white borrowers. Denial rates for ...


October 27, 2017 - Inside FHA/VA Lending

Ginnie/VA Anti-Churning Task Force Mulls Longer Seasoning

A Ginnie Mae/VA anti-churning task force is looking at a number of options to solve the rapid prepayment problem, which could include extending the seasoning requirement for all refinanced loans and prohibiting access to custom pools. A Ginnie representative declined to provide further details, adding that the task force is not ready to announce changes yet. “But we will take additional action soon, which we can do through program changes like we did last year,” he said. Ginnie issued guidance last year to curb aggressive refinancing of VA loans that underlie Ginnie mortgage-backed securities. The rapid refis have resulted in rapid prepayments to the detriment of investors with no clear benefits to VA borrowers. The guidance required six consecutive monthly payments before delivering a streamlined refi loan into a standard Ginnie MBS. The measure succeeded in stopping the ...


October 27, 2017 - Inside FHA/VA Lending

FHA Nominee Wants to Reevaluate Use of FCA as Enforcement Tool

Brian Montgomery, President Trump’s nominee for assistant secretary for housing and FHA commissioner, reiterated his commitment to fight fraud and misrepresentation in FHA lending but wondered whether the Department of Justice had gone too far in using the False Claims Act as an enforcement tool against lenders. Testifying during his confirmation hearing before the Senate Committee on Banking, Housing and Urban Affairs, Montgomery expressed concern whether the DOJ and the Department of Housing and Urban Development had been adversarial towards lenders in their efforts to stem taxpayer losses and protect the FHA insurance fund. In prepared testimony, the nominee said the government must do better in providing clarity to encourage lenders to make FHA-insured loans and entice those that have exited for fear of exposure and liability to return to the ...


October 27, 2017 - Inside FHA/VA Lending

Carson Announces Plan to Review Cert Process, Defect Taxonomy

The Department of Housing and Urban Development will review its current lender-certification process and defect taxonomy to address industry concerns about costly penalties and settlements arising out of False Claims Act lawsuits. In remarks at the Mortgage Bankers Association’s annual convention in Denver this week, HUD Secretary Ben Carson said the review would benefit greatly from feedback by lenders and other stakeholders in response to President Trump’s directive to all federal agencies to eliminate burdensome and duplicative regulations. Carson said HUD’s immediate concern is bringing back lenders that have exited the FHA single-family program or limited participation because of the undue risks they face from FCA enforcement. Lenders need clarity in what HUD expects from them in terms of lending and reduced exposure to outsized liability from immaterial errors, the ...


October 23, 2017 - Inside the CFPB

Other News in Brief:

Republicans Take Issue With Fannie/Freddie QM Exemption. Some Congressional Republicans recently expressed concerns about the special treatment that loans eligible for sale to the government-sponsored enterprises currently enjoy under the CFPB’s qualified mortgage standards.... CFPB Updates HMDA Implementation Materials, Filing Instructions Guide. As part of its effort to support the industry’s adoption of the CFPB’s recently issued 2017 Home Mortgage Disclosure Act final rule, the bureau has updated the chart titled: Collection and Reporting of HMDA Information about Ethnicity and Race.... Other Federal Regulators Issue Designated Key HMDA Data Fields List. The Federal Reserve, the Federal Deposit Insurance Corp., and the Office of the Comptroller of the Currency last week jointly issued ...


October 23, 2017 - Inside the CFPB

Mortgage Complaints Fall Broadly As the Market Continues to Heal

Complaints consumers made to the CFPB about their mortgages fell in every single category tracked during the third quarter of 2017, according to a new analysis and ranking by Inside the CFPB, further evidence of the recovery underway in the market. In fact, the sole category that saw an increase on a year-over-year basis was the loan application/ origination grouping, which was still at elevated levels after a surge in the first quarter, possibly due to issues associated with the implementation of the integrated disclosure rule. Total criticisms fell by 21.2 percent from the second quarter to the third, and by 27.7 percent from the third quarter of 2016 to the third quarter of 2017. [With exclusive data] ...


October 23, 2017 - Inside the CFPB

Reverse Mortgages: More Disclosures Forthcoming?

It looks like the CFPB might be contemplating new disclosures for Home Equity Conversion Mortgages, otherwise known as reverse mortgages. The agenda for the Nov. 2 meeting of the bureau’s Consumer Advisory Board, which was posted online recently, indicates the panel “will discuss Know Before You Owe: Reverse Mortgages, financial well-being, trends and themes, and payday, vehicle title, and certain high-cost installment loans.” The use of the phrase “Know Before You Owe” suggests a new disclosure regime for reverse mortgages could be in the offing. The CAB meeting announcement also indicates that written comments will be accepted from interested members of the public. They should be sent to CFPB_CABandCouncilsEvents@cfpb.gov at least seven days before the meeting. “The comments will be ...


October 23, 2017 - Inside the CFPB

CFPB Updates HMDA Rule Small-Entity Compliance Guide

The CFPB has come out with the second version of its Home Mortgage Disclosure Act (Regulation C) small-entity compliance guide. This iteration reflects a variety of changes to the bureau’s HMDA rule that were issued in August 2017 and published on Sept. 13, 2017. The HMDA rule changes the types of financial institutions that are subject to Regulation C; the types of transactions that are subject to the regulation; the data that financial institutions are required to collect, record and report; and the processes for reporting and disclosing HMDA data. According to Richard Andreano, a partner in the Washington, DC, office of the Ballard Spahr law firm, “One of the main changes incorporated in the revised guide is the temporary ...


October 23, 2017 - Inside the CFPB

Bureau Issues Revised TRID Small-Entity Compliance Guide

The CFPB recently published an updated iteration of its small-entity compliance guide for the integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act, or TRID. The bureau updates this guide periodically to reflect finalized clarifications to the rule which affect guide content, as well as administrative updates. This latest version reflects the final rule that was issued July 7, 2017, and published Aug. 11, 2017. Among the revisions incorporated is the change regarding disclosure of specific seller credits (Section 13.10). There are also numerous updates to incorporate changes and clarifications from the July 7, 2017 amendments to the TILA-RESPA final rule, including: requirements and guidance on current requirements for tolerances in the good ...


October 23, 2017 - Inside the CFPB

New Strategic Plan Indicates CFPB to Use Tech, Data to Supervise

The CFPB recently issued its strategic plan for fiscal years 2018-2022, with a heavy reliance on technology and data to make sure the industry is complying with its various rules and regulations. The document articulates a handful of the bureau’s goals for the next five years, and then breaks out the various objectives by which it intends to reach those goals, along with strategies to attain those objectives. The CFPB’s most relevant goal for lenders, from a supervisory and compliance point of view, is to prevent financial harm to consumers while promoting good practices that work for consumers, responsible providers, and the economy as a whole. One objective the agency plans to pursue is to supervise institutions to foster compliance ...


October 23, 2017 - Inside the CFPB

Ocwen Settles With Four More States Over Servicing Practices

Ocwen Financial revealed last week that it has settled with four more jurisdictions – Arkansas, the District of Columbia, Tennessee and Texas – resolving regulatory actions brought against the nonbank over some of its mortgage lending and servicing practices, as well as financial reporting issues. That brings to 21 the number of jurisdictions the firm has made peace with. “We continue to work cooperatively with the remaining 10 state regulatory agencies and two state attorneys general to reach acceptable resolutions,” spokesman John Lovallo said. Terms of the settlements with Arkansas, DC and Texas are virtually identical to those previously announced and reported by Inside the CFPB. One of the most significant provisions is that Ocwen will not acquire any new mortgage servicing ...


October 23, 2017 - Inside the CFPB

CFPB Enforcement Chief Alexis to Depart at a Time to be Determined

In a development likely to further fuel speculation that his boss is on his way out the door, Anthony Alexis, the head of enforcement at the CFPB, will leave the agency for parts unknown after more than five years at the bureau. The exact date of his departure is to be determined, as he plans to remain until his successor is chosen. No official announcement was made, but a bureau official confirmed the news. CFPB Director Richard Cordray noted: “As our chief of enforcement, Tony has been my strong right arm, just as he was to Kent Markus who preceded him in that role. Together, they have earned the respect and admiration of many – including me – for their fierce integrity ...


October 23, 2017 - Inside the CFPB

House Panel Votes to Exempt Most Lenders from New HMDA Mandates

The House Financial Services Committee recently passed a handful of mortgage-related bills, including H.R. 2954, the Home Mortgage Disclosure Adjustment Act, introduced in June by Rep. Tom Emmer, R-MN. His measure would exempt all but the top 10 percent of mortgage lenders from some pending data collection and reporting requirements under the Home Mortgage Disclosure Act, according to an analysis by Inside the CFPB. Starting with 2017 data (to be submitted to the CFPB in early 2018), the volume threshold for HMDA respondents is a minimum of 25 originated mortgage loans in each of the last two years (i.e., 25 loans in 2015 and 25 loans in 2016). This volume threshold only applies to depositories in 2017, then applies to ...


October 23, 2017 - Inside the CFPB

Industry Endorses Fixes to TRID’s Black Hole, With Some Tweaks

Leading trade groups that represent various segments of the mortgage and real estate industry generally support the changes the CFPB recently proposed to close the so-called black hole it inadvertently created when it drafted the integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. “The proposal recognizes that unexpected events occur regularly and cause closings to be delayed. Those delays should not prevent closings or increase costs for other consumers who are able to close on time,” the Mortgage Bankers Association said. “Amending the integrated-disclosure requirements to address the black hole will resolve these issues, and the remaining limitations on when tolerances may be reset will afford sufficient protections for consumers.” Other industry ...


October 23, 2017 - Inside the CFPB

CFPB Must Provide TRID Cures, Resolve Liability Issues: Chase

JPMorgan Chase exhorted the CFPB to address some fundamental flaws in the integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act – namely, an insufficient capability for lenders to “cure” the inevitable errors that occur and the significant legal liability lenders and assignees face. As the lender spelled out in its public comments to the CFPB regarding its proposed solution to the TRID “black hole” (see following story), these are two significant hurdles that are keeping private capital from returning in full force to the mortgage market. Chase urged the bureau to address a number of unresolved concerns the industry has brought up since the rule was adopted, in order to foster stability and ...


October 13, 2017 - Inside FHA/VA Lending

HUD Dumps Lender Insight for New Loan Review Summary Report

The Department of Housing and Urban Development is discontinuing its quarterly newsletter, Lender Insight, with the implementation of FHA’s Loan Review System. The change is aimed at improving both FHA’s and lenders’ quality-control and risk-management operations. HUD will be publishing a quarterly Loan Review Summary Report to provide a snapshot of the results of FHA’s quality-control review of mortgage originations over the preceding 12 months. According to HUD, the report will include only underwritten loans that were subject to a post-endorsement technical review. It does not include the results of lenders’ self-reports or any other loans that were reviewed as part of a lender examination, the agency said. The report will show the initial rating of all loans, the updated rating six months from the end of the review period, and a final rating. The “final” rating is subject to change as long as ...


October 13, 2017 - Inside FHA/VA Lending

FHA Eases Occupancy Rule for Properties with H4P Financing

The FHA has updated its guidelines for Home Equity Conversion Mortgage for Purchase (H4P) loans to allow lenders to accept loan applications from borrowers without requiring a certificate of occupancy, as well as prior to completion of HECM counseling. The change follows the Sept. 19 effective date of the HECM final rule, which the Department of Housing and Urban Development released earlier this year. The final rule codifies the many policies that are now in place for originating and servicing reverse mortgages, including H4P requirements. According to the revised guideline, an FHA lender may take an initial HECM loan application either prior to or after the completion of HECM counseling. Also, previously, H4P properties were eligible for FHA insurance only when construction was completed and when the local jurisdiction issued a certificate of occupancy or its equivalent, confirming the ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie Mae, VA Announce Joint Task Force to Stop Improper Refis

Ginnie Mae and the VA this week officially announced a joint-agency task force to deal with the loan-churning problem that is triggering faster prepayments in Ginnie mortgage-backed securities pools. Specifically, the task force will scrutinize aggressive and misleading refinancing offers and address loan churning and repeated refinancings. It will also examine critical issues, data and lender behaviors related to refinancing loans, as well as determine the kind of policy and program changes agencies should make to ensure VA refi loans do not pose an undue risk or burden to vets and taxpayers. Both the VA and Ginnie Mae programs work best when market participants use them to provide a benefit to VA borrowers and, ultimately, lower vet’s costs, officials said. The task force has begun examining data and information to ensure refi loans provide net tangible benefits to veteran-borrowers. In addition, the ...


October 13, 2017 - Inside FHA/VA Lending

Ginnie MBS Issuance Rolled To Year’s High Mark in 3Q17

Ginnie Mae issuers rode a wave of purchase-mortgage lending to deliver $120.46 billion of forward mortgages during the third quarter of 2017, the highest three-month volume for the year, according to a new analysis and ranking by Inside FHA/VA Lending. Third-quarter volume was up 9.6 percent from the April-June cycle. The data excluded FHA reverse mortgages and loan amounts are truncated in Ginnie’s mortgage-backed securities disclosures. Without those limitations, total Ginnie MBS issuance rose 9.5 percent to $123.37 billion in the third quarter. Purchase mortgages were the engine behind the growth. Ginnie issuers securitized $85.35 billion of purchase loans in the third quarter, falling just short of the record $85.41 billion set in the third quarter of last year. Although most Ginnie purchase loans (58.7 percent) were FHA loans, the biggest increase was in such loans guaranteed by the ... [Charts]


October 9, 2017 - Inside the CFPB

Other News in Brief

Did DoJ Opine on Ocwen v. CFPB? No One’s Talking. Earlier this year, Ocwen Financial asked Judge Kenneth Marra of the U.S. District Court for the Southern District of Florida, West Palm Beach Division, to invite the U.S. attorney general to appear and participate in the company’s challenge to the constitutionality of the CFPB.... Last Call for Public Comments on TRID ‘Black Hole’ Proposal. The industry has until 11:59 p.m. Oct. 10, 2017, to submit comments to the CFPB regarding its proposal to close the “black hole” associated with the bureau’s integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act....


October 9, 2017 - Inside the CFPB

Industry Groups Sue to Overturn Controversial Arbitration Rule

Organizations representing a variety of financial and business interests have jointly filed suit in a bid to deep-six the controversial arbitration rule issued earlier this year by the CFPB. The litigation was filed by the U.S. Chamber of Commerce, along with the American Bankers Association, the American Financial Services Association, the Consumer Bankers Association, the Financial Services Roundtable, the Texas Association of Business, the Texas Bankers Association, and a coalition of chambers of commerce throughout Texas. The groups are challenging the constitutionality and legality of the CFPB’s rule. Their basic position is that the rule effectively precludes the use of arbitration agreements in disputes between consumers and providers of consumer financial products and services, and instead renders class-action litigation the ...


October 9, 2017 - Inside the CFPB

Bureau Delivers Payday Lending Rule. Is This Cordray’s Swan Song?

The CFPB made a big splash last week – perhaps the last of Richard Cordray’s career at the helm – by issuing its long-awaited payday lending final rule. Many observers watching the director for signs he will resign to run for governor of Ohio have speculated he has been hanging on at the bureau until this rule was formally promulgated. Now that it has been issued, the Cordray departure watch will resume. Under the new rule, there’s a full-payment test. Lenders are required to determine whether the borrower can afford the loan payments and still meet basic living expenses and major financial obligations. For payday and auto title loans that are due in one lump sum, full payment means “being able to ...


October 9, 2017 - Inside the CFPB

CFPB Mortgage Rules Still Driving Some Small Banks from Market

A greater percentage of community banks are making mortgages this year than the year before, but the mortgage regulations from the CFPB continue to cause some smaller institutions to ditch that line of business, according to a new survey conducted by the Conference of State Bank Supervisors and the Federal Reserve System. Mortgage lending is still a prominent activity among the more than 600 community banks surveyed, with 1-4 family, fixed-rate lending identified by more than 80 percent of respondents as a product currently offered that would continue to be provided. “This is higher than the 76 percent reported last year and contrasts, to some extent, with the five percent of banks that last year planned to exit from or ...


October 9, 2017 - Inside the CFPB

Meridian Title Fined $1.25 Million Over Allegations of Steering

The CFPB recently ordered Meridian Title Corp., a real estate settlement agent and title insurance agency in South Bend, IN, to pay up to $1.25 million in redress to consumers who were allegedly steered to a title insurer owned partly by several of Meridian’s executives without disclosing the affiliation. According to the bureau’s consent order, Meridian issues title-insurance policies, provides mortgage loan settlement servicers, and conducts loan closings in connection with residential real estate transactions. In its role as title policy issuing agent, the company procures policy orders from borrowers and lenders and issues title commitments, final policies and related endorsements. As a settlement agency, Meridian facilitates the real property and mortgage loan settlement services required to close the mortgage ...


October 9, 2017 - Inside the CFPB

Ocwen Financial Settles Mortgage-Related Disputes With 15 States

Ocwen Financial, the once high-flying non-bank mortgage servicer, has brought to 15 the number of states it has reached settlements with to resolve allegations its compliance with laws and regulations related to its mortgage servicing and lending activities was deficient. Last week, Ocwen settled with New Mexico, Virginia and West Virginia. Late last month, it entered into agreements with 10 other states: Georgia, Idaho, Illinois, Maine, Michigan, Mississippi, Montana, Rhode Island, South Carolina and Wisconsin. Nevada and Indiana previously either withdrew or allowed their respective cease-and-desist orders to expire. Per the settlements, Ocwen will not acquire any new residential mortgage servicing rights until April 30, 2018. Also, the nonbank will develop a plan of action and milestones regarding its transition ...


October 9, 2017 - Inside the CFPB

Bureau Proposes More Certainty For Providing Periodic Statements

The CFPB issued a proposed rule last week to provide more certainty for mortgage servicers about when to provide periodic statements to consumers in connection with their bankruptcy cases. The consumer bureau said it is proposing amendments to certain mortgage servicing rules issued in 2016 under Regulation Z (which implements the Real Estate Settlement Procedures Act) relating to the timing for servicers to transition to providing modified or unmodified periodic statements and coupon books in connection with a borrower’s bankruptcy case. Among other things, the 2016 mortgage servicing final rule addresses Reg Z’s periodic statement and coupon book requirements when a person is a debtor in bankruptcy. It includes a single-billing-cycle exemption from the requirement to provide a periodic statement ...


October 9, 2017 - Inside the CFPB

CFPB Gives Servicers More Flexibility to Deal With Foreclosure

The CFPB last week issued an interim final rule to give mortgage servicers more flexibility to communicate with homeowners at risk of foreclosure. “Today’s action should make it easier for mortgage borrowers to receive timely information from their mortgage servicers about available options for saving their home, even if they have submitted a request to cease communication,” said CFPB Director Richard Cordray. In 2016, the bureau made changes to its rules to require servicers to send modified early intervention notices to certain borrowers at risk of foreclosure who asked for an end to communication under the Fair Debt Collection Practices Act. Under the FDCPA, borrowers can tell their servicers to stop contacting them, with some limited exceptions. Once such borrowers ...


Poll

With originations expected to drop in 2018, will your shop turn to non-QM/non-prime mortgage products as a way to bolster volumes?

Yes, definitely. We’re planning a launch.
No. It’s still difficult compliance/regulatory-wise.
Maybe. It’s under consideration.
Not now. But things could change as 2018 progresses.

vote to see results