Federal Mortgage Regulations
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CFPB and Prudential Regulators Issue Joint Guidance on Loan Servicing Practices
by Anna DeSimone President and Founder Guidance Highlights Protections for Military Homeowners On June 21, 2012 the Consumer Financial Protection Bureau (CFPB) along with the following prudential regulators: the Board of Governors of the Federal Reserve System; the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Office of the Comptroller of […]
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How to Prepare for a Fair Lending Examination: Part III – Examination Results and Self-Assessment
by Margaret Wright, Esq. Assistant Vice President & Senior Counsel A lender’s understanding of the examination procedures established under the Interagency Fair Lending Examination Procedures is vital in establishing a valuable fair lending self assessment program. Following the same steps for self assessment as in a regulated fair lending examination is key to ensuring fair lending […]
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How to Prepare for a Fair Lending Examination: Part II – The Examination
by Margaret Wright, Esq.Assistant Vice President & Senior Counsel A lender’s understanding of the examination procedures established under the Interagency Fair Lending Examination Procedures is vital in establishing a valuable fair lending self assessment program. Following the same steps for self assessment as in a regulated fair lending examination is key to ensuring fair lending […]
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How to Prepare for a Fair Lending Examination: Part I – Examination Scope
Dear Reader, This newsletter article is the first of a three-part series on How to Prepare for a Fair Lending Examination. You’ll learn what to expect from an examiner and ways to complete a self assessment steps. Margaret carefully explains the rules published in August 2009 by the OTC, FDIC, Federal Reserve Board, OTS […]
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CFPB Considers Proposals Affecting Originator Compensation and Qualification
by Marissa Aquila Blundell, Esq.Sr. VP & General Counsel The Consumer Financial Protection Bureau (CFPB) has begun to publish press releases highlighting policies under consideration in advance of its issuing proposed rules. Based on the timelines mentioned by the CFPB in these press releases, it appears that the industry should expect the rule-making process, consisting of […]
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CFPB to Pursue Discriminatory Lenders
by Anna DeSimonePresident & Founder On April 18, 2012, the Consumer Financial Protection Bureau (CFPB) issued Bulletin 2012 -04 to provide guidance regarding compliance with the fair lending requirements of the Equal Credit Opportunity Act (ECOA). The CFPB stated it will use all available legal avenues, including disparate impact, to pursue lenders whose practices discriminate […]
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CFPB Proposes New Mortgage Servicing Rules
by Anna De SimonePresident & Founder On April 9, 2012 the Consumer Financial Protection Bureau (CFPB) released an outline of rules under consideration to help protect mortgage borrowers from being hit by costly surprises or getting the runaround from their mortgage servicer. The CFPB plans to formally propose rules this summer and finalize them in […]
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CFPB Addresses Payments to Loan Originators’ Qualified Plans
by Marissa Aquila Blundell, Esq. Senior Vice President & General Counsel On April 2, 2012, the Consumer Financial Protection Bureau (CFPB) issued Bulletin 2012-02, which presents guidance regarding loan originator compensation and qualified profit sharing. The specific question covered is whether and how the current loan originator compensation restrictions affect employer contributions to qualified profit sharing, […]
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Best Practices for Borrower Ability to Repay Rules
by Anna DeSimonePresident & Founder About one year ago, I published an article entitled Borrower Repayment Ability on the Radar. The article highlighted the “ability-to-repay” requirement of the Qualified Mortgage (QM) under Dodd-Frank. The article included a matrix of all U.S. states as of that had passed legislation requiring mortgage lenders to determine the borrower’s […]
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Consumer Financial Protection Bureau Finalizes Mortgage Origination Examination Procedures
by Marissa Aquila Blundell, Esq.Senior Vice President & General Counsel On January 11, 2012, the CFPB updated its Supervision and Examination Manual to include its Mortgage Origination Examination Procedures. Previously, the CFPB released its general examination procedures for large depository institutions and non-bank financial services providers which stressed the importance of an effective compliance management […]