Federal Agencies

Browse articles from all of our Newsletters related to Federal Agencies.

November 16, 2017 - Inside Mortgage Finance

After Months of Rumors, Cordray to Resign; For Mortgage Lenders, Enforcement is Now Key Issue

Big changes aren’t likely to take place at the Consumer Financial Protection Bureau in the after-math of Director Richard Cordray’s surprise departure at the end of this month, but industry observers expect a significant shift in enforcement and supervision when a new leader is in place.

November 10, 2017 - Inside MBS & ABS

When It Comes to Fed Balance Sheet Changes, Concern, Uncertainty and Caution Dominate

There are many unpredictable variables and economic factors outside the control of the Federal Reserve, which makes it hard to project the impact of winding down the U.S. central bank’s historic investment in agency MBS. But economic experts at Fannie Mae are cautiously expressed anticipating greater volatility, an inevitable financial shock and potential changes in the Fed’s strategy as markets evolve.

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

Special Counsel Clears Cordray of Election Law Violations

In response to allegations from Republicans that CFPB Director Richard Cordray may have violated federal election law by dipping his toes in the electoral waters of Ohio gubernatorial politics while still at the helm of the bureau, the U.S. Office of Special Counsel has investigated the nation’s top consumer regulator and cleared him of any wrongdoing. The disclosure was made in a letter sent last month by the special counsel to Cordray. “The U.S. Office of Special Counsel (OSC) completed its investigation into allegations that you violated the Hatch Act by being a candidate in the 2018 Ohio gubernatorial election while employed as the director of the CFPB,” said OSC Deputy Chief Erica Hamrick. “OSC found no evidence that you ...

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

Industry Presses Lawmakers to Pass TRID Improvement Bill

Nearly two dozen mortgage industry groups wrote to members of the U.S. House of Representatives recently, urging them to support a bipartisan measure that would tweak the CFPB’s integrated disclosure rule to enable title insurers to disclose available discounts and accurate title insurance premiums to homebuyers. Currently, the bureau does not permit title insurance companies to disclose available discounts for lender’s title insurance on the government mandated disclosure forms. “This creates inconsistencies in mortgage documents and causes confusion for consumers,” said the industry organizations... H.R. 3978, the TRID Improvement Act of 2017, introduced last month by Reps. French Hill, R-AK, and Ruben Kihuen, D-NV, would end this confusion by amending the Real Estate Settlement Procedures Act to require the CFPB ...

November 6, 2017 - Inside the CFPB

Rep. Hensarling to Retire; Where Next? FHFA? CFPB?

House Financial Services Committee Chairman Jeb Hensarling, R-TX, surprised some in the nation’s capital last week by announcing he would not seek re-election when his term expires in 2018. Hensarling was already slated to surrender his chairmanship of the committee due to term limits, but he certainly had enough seniority to lay claim to another powerful position within the GOP leadership in the House. Instead, he opted to depart elected office entirely, citing a desire to spend more time with his family. The news immediately prompted speculation inside the Washington, DC, beltway about Hensarling’s next destination: at the helm of the Federal Housing Financial Agency or perhaps the CFPB? Jaret Seiberg, an analyst with the Cowen Washington Research Group, ...

November 6, 2017 - Inside the CFPB

Industry Groups Celebrate Demise of CFPB Arbitration Rule

Industry representatives were pleased with the news that the Republican-controlled Congress and the Trump administration were able to cooperate and overturn the CFPB’s controversial rule banning mandatory arbitration clauses in most consumer financial services contracts. According to Consumer Bankers Association President and CEO Richard Hunt, “The CFPB’s rule was never about protecting consumers; rather, it was about protecting trial lawyers and their wallets,” he said. “The CFPB’s own study backs that up and proves trial lawyers would have been the real winners had this rule gone into effect.” Rob Nichols, president and CEO of the American Bankers Association, characterized the vote as a win for consumers. “As we and others made clear in our multiple comments to the CFPB, the ...

November 6, 2017 - Inside the CFPB

Trump, Congress Rebuke Cordray, Overturn CFPB Arbitration Rule

Republican efforts to repeal and replace the Patient Protection Affordable Care Act may have faltered, but a GOP-controlled White House, Senate and House were able to unite and achieve at least one major accomplishment: they deep-sixed the CFPB’s controversial rule banning mandatory arbitration clauses in most consumer financial services contracts. Last week, President Trump turned aside an unusual personal appeal from CFPB Director Richard Cordray and went ahead and signed into law the joint resolution under the Congressional Review Act that permanently overturns the bureau’s problematic rule. Under the act, not only is the bureau’s rule now rendered null and void, any successor to Cordray will be unable to push through another substantially similar measure. That means only Congress can ...

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 ...

November 3, 2017 - Inside MBS & ABS

Fed Holds Rates Steady, Balance Sheet Plan Continues Apace, Powell to Succeed Yellen

The news at the Federal Reserve this week can best be summarized by the term “status quo.” The U.S. central bank held interest rates unchanged, its plan to gradually unwind its massive portfolio continues unchanged, and President Trump nominated Fed governor Jerome Powell to succeed Janet Yellen, likely ensuring more of the same when it comes to the future of both interest rates and the balance sheet. When it came to rates, the Federal Reserve’s Open Market Committee ...

November 2, 2017 - Inside Mortgage Finance

CFPB Publishes Tool to Track Delinquencies, Initial Sample Finds Rates at Lowest Since Crisis

The Consumer Financial Protection Bureau this week rolled out a new online tool to track mortgage delinquency rates for all 50 states and the District of Columbia. The mechanism also illustrates the CFPB’s findings on the county and metro-area level with interactive charts and graphs, all based on information in the National Mortgage Database. The Mortgage Performance Trends tool measures loans 30 to 89 days late and those more than 90 days late. The interactive charts and maps ...

October 27, 2017 - Inside Nonconforming Markets

News Briefs

Investors in jumbo mortgage-backed securities face relatively low exposure to potential losses related to fires in California, according to an analysis by Moody’s Investors Service. The rating service said 2.9 percent of the outstanding mortgages in post-crisis jumbo MBS rated by Moody’s are in counties affected by the recent fires. And while some borrowers may suffer losses because of insufficient insurance coverage, Moody’s said hazard insurance and servicers’ ... [Includes two briefs]

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

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 20, 2017 - Inside MBS & ABS

Chase Urges CFPB to Provide TRID Cures, Resolve Liability Issues to Encourage Investors to Return

JPMorgan Chase, like most mortgage industry participants, endorses the solution that the Consumer Financial Protection Bureau has planned to resolve what’s known as the “black hole” in the bureau’s integrated disclosure rule. However, some big changes still need to be made if private capital is going to fully return to the mortgage market; namely, more cures for errors and greater clarity when it comes to legal liability. “Chase strongly supports the CFPB’s proposal to eliminate ...

October 19, 2017 - Inside Mortgage Finance

Most Servicing Amendments Kick in This Week, Even More Complexity Expected When States Act

Most of the final amendments the Consumer Financial Protection Bureau made to its mortgage servicing rules kicked in late this week, and the biggest challenge firms will have to contend with is the increased complexity. In an interview this week with Inside Mortgage Finance, Nanci Weissgold, a partner with the Alston & Bird law firm in Washington, DC, highlighted which provisions took effect this week and those coming on line next spring, and what they mean for ...

October 12, 2017 - Inside Mortgage Finance

GSEs Continue Adapting Seller Requirements To Conform With Pending HMDA Changes

Efforts by Congressional Republicans to expand exemptions to the Consumer Financial Protection Bureau’s new Home Mortgage Disclosure Act data collection and reporting requirements may or may not succeed. But any lender or aggregator seeking to sell eligible mortgages to the government-sponsored enterprises will still have to get with the program. Fannie Mae and Freddie Mac continue to tweak their systems and processes to accommodate the new mandates, scheduled to kick in Jan. 1 ...

October 12, 2017 - Inside Mortgage Finance

Industry Groups Generally Support CFPB’s Fix To TRID ‘Black Hole,’ Suggest Various Tweaks

Organizations representing different segments of the mortgage industry broadly support the Consumer Financial Protection Bureau’s plan to address the so-called black hole in the integrated disclosure rule under the Truth in Lending Act and Real Estate Settlement Procedures Act, or TRID. The black hole refers to situations in which a lender may not use a closing disclosure to reset fee tolerances. This causes closing delays due to fee changes that arise in the origination process ...

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

Consumer Complaints About Credit Reports Surged in Third Quarter

Consumer complaints to the CFPB about credit reports jumped in the third quarter, during which the massive Equifax data breach occurred, and year over year, according to a new analysis by Inside the CFPB. Gripes to the bureau leapt by 53.4 percent from the second quarter to the third, our analysis found, and skyrocketed 86.2 percent from year-ago levels. Criticisms about credit reports went from 12,830 in the first quarter of 2017 to 19,685 in the second, to 29,466 in the third. And it may get worse before it gets better, as the bad news about the Equifax hack makes its way further into the general population. Equifax-related complaints rose 131.2 percent during the period ending ... [With exclusive data]

October 9, 2017 - Inside the CFPB

Most Americans Support Bipartisan Commission for CFPB, Cato Finds

Nearly two-thirds of Americans, 63 percent, favor having a panel of Democrats and Republicans running the CFPB, not a single director, according to a recent survey on financial regulation by the libertarian Cato Institute. Surprisingly, support is stronger among Democrats (67 percent) than Republicans (64 percent) for such a commission. But there’s more of a split when it comes to the bureau’s finances. A slight majority (54 percent) indicated Congress should not set the CFPB’s budget and should only have limited oversight of the agency. “Given that only 7 percent of the country has confidence in Congress, these numbers are not surprising,” said Emily Ekins, a research fellow and director of polling at the Cato Institute and author of the ...

October 9, 2017 - Inside the CFPB

Bureau Needs to Do a Better Job Explaining the Purpose of its CIDs

The CFPB needs to improve the way it informs recipients of its civil investigative demands (CIDs) of the purpose of its investigations, according to a recent report from the bureau’s Office of Inspector General. At issue are the CFPB’s internal guidelines for crafting notifications of purpose associated with CIDs. The guidance calls for broad statements of purpose, to allow for flexibility, the OIG noted. However, “The guidance does not expressly remind enforcement attorneys of the need for statements of purpose to be compliant with relevant case law on notifications of purpose, including any developments in such case law, or remind them to revisit the statement of purpose in a revised opening memorandum if the purposes of the investigation evolve.” The ...

October 9, 2017 - Inside the CFPB

CFPB Pushed Examiners into the Field Before They Were Ready

A new report from the CFPB Office of Inspector General suggests the consumer bureau may have been in too much of a hurry to get more examiners into the field, compromising the quality of their training and their effectiveness. The CFPB’s Supervision Learning and Development (SL&D) unit has taken steps to enhance the Examiner Commissioning Program (ECP) since its implementation in October 2014, according to the report. However, there apparently were some pretty big holes left. For starters, the OIG found some examiners appeared to be pursuing parts of the examiner program before they were fully prepared, which limited their likelihood of success and affected employee morale. “Further, when examiners require multiple attempts to pass ECP components, they are not ...

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

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 ...


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.

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