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Category Archives: Mortgages

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House Financial Services Committee passes CFPB-related bills including bill creating TRID Rule hold harmless period

Posted in Auto Finance, CFPB Exams, Mortgages

Yesterday, the following four CFPB-related bills were passed by the House Financial Services Committee: H.R. 3192, the “Homebuyers Assistance Act”: The bill would provide a hold harmless period for the TILA/RESPA Integrated Disclosure (TRID) rule that is scheduled to go into effect on October 3, 2015.  Although the CFPB recently delayed the effective date of… More >

Director Cordray appears before Senate Banking Committee

Posted in Arbitration, CFPB General, Military Issues, Mortgages, Payday Lending

On Wednesday, July 15, CFPB Director Richard Cordray appeared before the Senate Committee on Banking, Housing, & Urban Affairs to answer questions regarding the Bureau’s Semi-Annual Report to Congress and the President, which it published on June 15, 2015. Dir. Cordray observed that during the six month period covered by the report, from October 2014 through… More >

FDIC revises examination procedures to incorporate TILA/RESPA integrated disclosures

Posted in Mortgages, TILA / RESPA

The FDIC has revised its interagency examination procedures to reflect the requirements of the TILA/RESPA integrated disclosures (TRID) rule.  The CFPB has issued a proposal to postpone the TRID rule’s effective date from August 1 to October 3, 2015. The revised procedures also reflect the following amendments to other provisions of TILA Regulation Z and… More >

BREAKING NEWS: U.S. Supreme Court rules disparate impact claims are cognizable under the FHA

Posted in Fair Credit, Mortgages

The U.S. Supreme Court ruled this morning that disparate impact claims are cognizable under the Fair Housing Act.  Justice Kennedy wrote the majority opinion in Texas Department of Housing and Community Affairs v. The Inclusive Communities Project, Inc., in which Justices Ginsburg, Breyer, Sotomayer and Kagan joined.  Justice Alito wrote a dissenting opinion, in which Chief… More >

CFPB blinks on TRID rule effective date

Posted in Mortgages

CFPB Director Cordray issued a statement yesterday afternoon indicating that the CFPB will propose to delay the effective date of the TILA/RESPA Integrated Disclosure (TRID) rule until October 1, 2015.  The CFPB has previously resisted calls from industry and lawmakers for a delay in the TRID rule’s scheduled August 1 effective date.  Earlier this month,… More >

Company that entered into CFPB consent order loses motion to dismiss class action

Posted in CFPB Enforcement, Mortgages

A California federal judge has rejected the attempt of Castle & Cooke Mortgage, LLC, the mortgage company that entered into a consent order with the CFPB in November 2013 to settle charges that it violated the Regulation Z loan originator compensation rule, to dismiss two counts of an amended class action complaint filed against it… More >

CFPB takes aim (again) at loan originator compensation

Posted in Mortgages

Two days after announcing a proposed consent order with a mortgage company and its CEO to settle charges that the company paid bonuses and higher commissions to loan officers in violation of the Regulation Z loan originator compensation (LOC) rule, the CFPB announced a second settlement with another mortgage company involving alleged violations of the… More >

CFPB issues reverse mortgage focus group report and consumer advisory

Posted in Mortgages

The CFPB has issued a report that discusses the results of a focus group study it conducted on reverse mortgage advertisements and a consumer advisory about such advertisements. The report is entitled “A close look at reverse mortgage advertisements and consumer risks.”  In conducting its study, the CFPB interviewed 59 homeowners age 62 and older in… More >

CFPB settles loan originator compensation case

Posted in Mortgages

The CFPB has entered into a proposed consent order with a mortgage company and its CEO to settle charges that the company paid bonuses and higher commissions to loan officers in violation of the Regulation Z loan originator compensation (LOC) rule.  The consent order would require the company to pay $18 million in redress to… More >

CFPB provides breathing room on compliance with TILA/RESPA integrated disclosure rule but misses mark in waiting period guidance

Posted in Mortgages

While not agreeing to the grace period from enforcement sought by lawmakers and industry, Director Cordray stated in a letter sent yesterday to members of Congress that the CFPB “will be sensitive to the progress made by those entities that have squarely focused on making good-faith efforts to come into compliance with the [TILA/RESPA Integrated Disclosure… More >

CFPB and DOJ announce settlement with mortgage lender charged with discriminatory broker compensation policy

Posted in Mortgages

The CFPB announced last week that, together with the Department of Justice (DOJ), it had entered into a proposed consent order with Provident Funding Associates, a wholesale mortgage lender, to settle charges that Provident violated the FHA and ECOA by allowing its wholesale brokers to charge higher fees to African-American and Hispanic borrowers than non-Hispanic white borrowers. … More >

FDIC to hold teleconference on CFPB mortgage rules

Posted in Mortgages

The FDIC’s Division of Depositor and Consumer Protection will hold a teleconference on May 21, 2015 on implementation of the CFPB’s mortgage rules.  FDIC staff will share observations made by FDIC examiners during initial examinations since the rules became effective in January 2014.  In addition, FDIC staff will highlight a number of practices currently used… More >

Democrats release alternative regulatory relief bill

Posted in Mortgages, Privacy

Democrats on the Senate Banking Committee have released a regulatory relief bill intended to be an alternative to the bill released by Senator Richard Shelby.  While Senator Shelby’s bill is entitled the “Financial Regulatory Improvement Act of 2015,” the alternative bill is entitled the “Community Financial Institution Regulatory Relief and Consumer Protection Act of 2015.” The… More >

Shelby Draft Regulatory Relief Bill Addresses Various Residential Mortgage Issues

Posted in CFPB General, CFPB People, Mortgages, TILA / RESPA

On May 12, 2015 Senator Richard Shelby (R-AL) released a draft of a regulatory reform bill entitled the Financial Regulatory Improvement Act of 2015.  The draft bill addresses various residential mortgage lending issues, a number of which are summarized below.  The draft bill is scheduled for markup on May 21, 2015. TRID Safe Harbor.  Section… More >

Does Director Cordray fully appreciate the implications of the TRID rule?

Posted in Mortgages

Statements made by CFPB Director Cordray to the National Association of Realtors on May 12, 2015 suggest that the Director may not fully appreciate the implications of the TILA/RESPA Integrated Disclosure (TRID) rule that is scheduled to become effective August 1, 2015. The TRID rule requires that the combined consummation disclosure, which is called the… More >

CFPB issues compliance bulletin on unlawful discrimination based on receipt of mortgage assistance

Posted in Fair Credit, Mortgages

In a new compliance bulletin (Bulletin 2015-02), the CFPB “reminds” creditors of their obligation not to discriminate against applicants because their income includes vouchers from the Section 8 Housing Choice Voucher (HCV) Homeownership program.  The CFPB states in the bulletin that it “has become aware of one or more institutions excluding or refusing to consider… More >

CFPB files complaint against companies offering mortgage payment program

Posted in CFPB Enforcement, Mortgages

In a complaint filed yesterday in a California federal court, the CFPB alleges that two related companies offering a biweekly mortgage payment program and their individual owner engaged in deceptive telemarketing acts or practices that violated the Telemarketing Sales Rule and abusive and deceptive acts or practices that violated the Consumer Financial Protection Act.  The complaint seeks… More >

House to hold May 14 hearing on TILA-RESPA integrated disclosures

Posted in Mortgages

On May 14, 2015, the House Financial Services Committee’s Subcommittee on Housing and Insurance will hold a hearing on “TILA-RESPA Integrated Disclosure: Examining the Costs and Benefits of Changes to the Real Estate Settlement Process.” While the witnesses have not yet been announced, it is likely that the hearing will feature a renewed call from subcommittee… More >

Bipartisan House bill introduced to create temporary safe harbor from enforcement of TILA-RESPA integrated disclosure rule

Posted in Mortgages

Republican Congressman Steve Pearce and Democratic Congressman Brad Sherman have introduced a bill in the House of Representatives (H.R. 2213) that would provide lenders with a temporary safe harbor from enforcement of the TILA-RESPA integrated disclosure (TRID) rule which is set to take effect on August 1, 2015. The bill provides that the TRID rule… More >

CFPB/Fed webinar on TILA-RESPA integrated disclosures rule scheduled for May 26

Posted in CFPB General, CFPB Rulemaking, Hot Issues, Mortgages, TILA / RESPA

On May 26, 2015, the CFPB and Federal Reserve will be co-hosting the fifth and final webinar in their series on the TILA-RESPA integrated disclosures (TRID) rule.  Presumably, the reference to this webinar being the “final” webinar is intended to mean that it is the final TRID webinar before the rule becomes effective on August… More >

House passes bill to amend TILA points and fees definition for mortgage loans

Posted in Mortgages

Earlier this week, the House of Representatives passed a bill to amend the TILA definition of “points and fees” that is used to determine whether a loan is a high-cost mortgage or, for purposes of TILA’s ability to repay provisions, a qualified mortgage. The “Mortgage Choice Act,” H.R. 685, would amend the points and fees definition to… More >

CFPB issues final rule on homeownership counseling requirements

Posted in Mortgages

The CFPB has issued a final rule to assist lender compliance with RESPA and TILA homeownership counseling requirements.  Under RESPA, a lender must provide applicants for a federally related mortgage loan with a list of certified homeownership counselors.  TILA prohibits a creditor from making a high-cost mortgage loan unless it receives written certification that the… More >