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Mortgage Servicing and Regulatory Compliance
by Margaret Wright, J.D.Mortgage servicing is becoming solidified as an area of major regulatory importance. The Consumer Financial Protection Bureau’s more recent entry into the mortgage servicing rulemaking arena has resulted in updated and new servicing regulatory requirements. Additionally, the current servicing market has shown that although delinquencies are down overall, servicing income and employment […]
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CFPB Releases ‘Know Before You Owe’ Toolkit
March 31, 2015 the Consumer Financial Protection Bureau (CFPB) released a new toolkit that guides consumers through the process of shopping for a mortgage and buying a house. Developed as part of the CFPB’s “Know Before You Owe” mortgage initiative, the toolkit was designed to help consumers take full advantage of the new Loan Estimate […]
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CFPB Issues Fair Debt Collection Report
March 26, 2015, the Consumer Financial Protection Bureau (CFPB) submitted to Congress its Fourth Annual Report summarizing activities to administer the Fair Debt Collections Practices Act (FDCPA). This year’s report describes activities conducted by the CFPB and the FTC during 2014 in relation to debt collection. The CFPB and the FTC work closely to coordinate […]
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Fannie Mae Clarifies Self Employed Income Policy
By Anna DeSimone March 24, 2015 Fannie Mae issued a Notice that clarified its recently-updated Self Employed Income Policy. On December 16, 2014, Fannie Mae issued Selling Guide Announcement SEL-2014-16, listing a number of topics that were updated in the Selling Guide, including Self Employed Income. The updates were originally to take effect April […]
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HUD Issues Trial Payment Plan as Loss Mitigation Option
March 18, 2015 the Department of Housing and Urban Development (HUD) issued Mortgagee Letter 2015-07, Trial Payment Plans Associated with HUD’s Loss Mitigation Loan Modification Options for Forward Mortgages. The purpose of the Mortgagee Letter is to communicate: • Requirements for plan duration, required signatures, and reporting for Trial Payment Plan (TPP) Agreements; and • […]
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Fannie Mae Issues Loan Level Pricing Adjustment Update
March 17, 2015 Fannie Mae released Selling Notice: LLPA Matrices Update. The information contained on the notice is provided below:On November 10, 2014, Fannie Mae released Announcement SEL-2014-13, Selling Guide Updates, and announced changes to the policy that pertains to how loan-level price adjustments (LLPAs) are applied to mortgage loans with more than one borrower, […]
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Freddie Mac Issues Servicing Changes for Loan Modifications
March 17, 2015 Freddie Mac issued Bulletin 2015-3, Modification Changes to Freddie Mac Servicers. Following is the information from the Bulletin:To further enhance Freddie Mac modification options, this Single-Family Seller/Servicer Guide (“Guide”) Bulletin updates the Guide to require Servicers to offer the Freddie Mac Streamlined Modification to Borrowers with Step-Rate Mortgages who become 60 days […]
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Wyoming Modifies Uniform Trust Code
by Paul McSheffrey, J.D.The Wyoming legislature has recently adopted changes to the Uniform Trust Code with Enrolled Act No. 59. Section 4-10-504(g) has been added to clarify that a discretionary distribution from a discretionary trust creates no property interest in the beneficiary. There is no property interest created, regardless of whether the discretionary distribution is […]
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CFPB Report Outlines Legal Violations Uncovered by Supervision
The CFPB has published Supervisory Highlights which summaries compliance violations uncovered by the bureau’s supervision. Please click on the link to view the full 20-page report. http://www.consumerfinance.gov/reports/supervisory-highlights-winter-2015/ Within the detailed section concerning mortgage origination, a key violation pertained to “an effective compliance management system.” A recommended component includes a compliance audit program. Bankers […]
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FHLB Updates Mortgage Partnership Finance Xtra Underwriting Guidelines
March 11, 2015, The Federal Home Loan Bank Mortgage Partnership Finance (MPF) program issued MPF Xtra® PFI Notice 2015-1. The notice was effective on March 11, 2015 unless otherwise noted and pertained to the PFI MPF® Program Management, Origination Management, and Underwriting Management. The Notice included the following statement: The MPF Xtra Manual and the […]
