Mortgage Servicing
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HUD Clarifies Loss Mitigation During Foreclosure Process
by: Anna DeSimoneNovember 1, 2013 HUD issued Mortgagee Letter 2013-40 to clarify the Department’s requirements delineated in 24 CFR 203.502 and to communicate expectations for servicers who are engaging in loss mitigation during the foreclosure process. Mortgagees must implement the requirements in this Mortgagee Letter by January 1, 2014.The policies set forth in the Mortgagee […]
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Oregon Enacts Short Sale Provisions Involving Nonprofits in Context of Foreclosure
by: Paul McSheffreyOregon has enacted new provisions regarding residential foreclosures with House Bill 3389. The Act amends Oregon statutes ORS 86.705 and 86.735. One of the amendments regards transactions where a nonprofit entity purchases property subject to a residential trust deed or purchases a note from a beneficiary that secures a grantor’s obligation. In these […]
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CFPB Issues New Guidance on Mortgage Servicing Rules
by: Anna DeSimoneIn June 2013, the CFPB issued a Small Entity Compliance Guide for Mortgage Servicing Final Rules. The guide was published with the notice that the CFPB proposes to amend the final rules issued January 17, 2013, which are set to take effect on January 10, 2014. The CFPB is amending Regulation X, which […]
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Michigan Enacts Provisions Regarding Federal Loss Mitigation Procedures
by: Zachary Pearlstein Michigan has enacted a bill that requires lenders to comply with federal loss mitigation procedures, effective immediately. The revised bill applies to loss mitigation procedures prior to foreclosure, where the following conditions exist: a) The mortgaged property is claimed as a principal residence exempt from tax under section 7cc of […]
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Changes and Additions to Vermont’s Foreclosure Mediation Program
by: Emily Ross, Esq.With House Bill 431, the Vermont Legislature recently made changes to the Vermont mediation program established in 2010 to comply with the mediation requirement of HAMP. HAMP, or the Home Affordable Modification Program is a federal program set up as a result of the mortgage crisis that allows homeowners having trouble paying […]
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CFPB Monitors Mortgage Servicing Transfer Activity
by: Anna DeSimoneCFPB warns bank and nonbank servicers about legal protections for consumers when transferring loans The Consumer Financial Protection Bureau (CFPB) issued a bulletin in February 2013 advising mortgage companies about their legal obligations that protect consumers during loan transfers between mortgage servicers. The bureau advises, when handing over the processing of loans, mortgage […]
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Record Retention as Risk Management
by: Gregory R. Wilson, Esq.Proper record retention mitigates operational and compliance risk presented to any institution conducting business in this ever-changing regulatory environment. A well-established record retention program maintains records in an appropriate manner and for an appropriate duration thereby ensuring compliance, and providing for easier substantiation of compliance to auditors and examiners. In addition, […]
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CFPB Finalizes Mortgage Servicing Rules under RESPA and TILA
by: Gregory R. Wilson, Esq.On January 17, the Consumer Finance Protection Bureau (“CFPB”) finalized rules governing how mortgage loan servicers communicate with consumers, offer loss mitigation and foreclosure avoidance options, and conduct the foreclosure processes. The rules, which are effective January 10, 2014, are promulgated under the Real Estate Settlement Procedures ACT and the Truth […]
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MERS Annual Compliance Requirements
Special Announcement MERS Annual Quality Assurance Standards Compliance Report Summary of Requirements 1. All residential mortgage lenders who are registered MERS Members are required to comply with the MERS Quality Assurance Requirements. 2. Each Member must submit a Quality Assurance Plan by December 31, 2012 utilizing the proper template provided by MERSCORP […]
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Consumer Financial Protection Bureau Proposes Loan Servicing Rules
by Anna DeSimonePresident On August 9, 2012 the Consumer Financial Protection Bureau (CFPB) today proposed two notices containing rules concerning mortgage servicing. The Dodd-Frank Wall Street Reform and Consumer Protection Act addresses some of these problems and imposes certain requirements on servicers, which the CFPB is implementing and refining. The new rules will be finalized […]