CFPB Monitor News Guidance Perspectives of CFPB | Ballard Spahr Law Firm Blog

Category Archives: Mortgages

Subscribe to Mortgages RSS Feed

Community banks urge CFPB to expand small creditor exemption

Posted in CFPB General, Mortgages

Recently, the Independent Community Bankers of America (ICBA) and a 45-member coalition of state and regional banking associations submitted a letter to the Consumer Financial Protection Bureau (Bureau) urging the agency to expand the small creditor exemptions under certain Title XIV mortgage rules that went into effect in January 2014. The ICBA argues that changes… More >

CFPB issues policy guidance on mini-correspondent structure for mortgage lenders

Posted in Mortgages

On July 11, 2014, the CFPB issued supervisory and enforcement guidance entitled “Policy Guidance on Supervisory and Enforcement Considerations Relevant to Mortgage Brokers Transitioning to Mini-Correspondent Lenders.”  The guidance addresses regulatory requirements applicable to mortgage brokers under the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA).  The CFPB notes that… More >

CFPB Provides Guidance on Ability to Repay Rule Application to Assumptions of Residential Mortgage Loans

Posted in CFPB General, CFPB Rulemaking, Mortgages

On July 8, 2014 the CFPB provided guidance on the application of the Regulation Z ability to repay rule (section 1026.43) to assumptions of residential mortgage loans for purposes of clarifying the application of the rule in cases in which a relative acquires title to a security property upon the death of the borrower and… More >

CFPB to issue whitepaper on methodology for identifying auto finance discrimination and consider use of advisory opinions

Posted in Auto Finance, Military Issues, Mortgages, Payday Lending

While Director Cordray’s appearance at the House Financial Services Committee’s hearing on the CFPB’s fifth Semi-Annual Report yesterday was accompanied by the usual dose of political theater, his testimony did yield the following items of noteworthy information:  The CFPB will be issuing a white paper later this summer regarding use of the proxy methodology for… More >

CFPB orders New Jersey title services company to pay for illegal mortgage referrals

Posted in CFPB Enforcement, Fair Lending, Federal Agencies, Mortgages

On June 12, the CFPB announced that it has issued a Consent Order under which a New Jersey title services company, Stonebridge Title Services Inc., agreed to pay a $30,000 civil money penalty for paying illegal kickbacks for referrals in violation of RESPA Section 8.  According to the CFPB’s press release, Stonebridge paid commissions to… More >

VA issues “qualified mortgage” definition for VA guaranteed or insured loans

Posted in CFPB General, CFPB Rulemaking, Federal Agencies, Mortgages

On May 9, 2014, the Department of Veterans Affairs (VA) issued an interim final rule defining a qualified mortgage (QM) for VA insured and guaranteed loans.  Under the proposed rule, all purchase money origination loans and refinances other than certain interest rate reduction refinance loans (IRRRL) guaranteed or insured by the VA are defined as… More >

CFPB issues proposed amendments to mortgage rules

Posted in CFPB Rulemaking, Mortgages

The CFPB published a Proposed Rule offering three specific amendments to the 2013 Title XIV Final Mortgage Rules. The proposed amendments respond to concerns about origination and servicing issues.  In particular, the Proposed Rule would: (1) create a limited, post-consummation cure mechanism for mortgage loans thought to be qualified mortgages (QMs) at origination but that… More >

CFPB publishes guidance regarding RESPA-TILA integrated disclosure forms

Posted in CFPB General, Mortgages

The CFPB recently published guidance (the Guide) to assist mortgage originators and settlement service providers in completing the Loan Estimate and Closing Disclosure forms required under the RESPA-TILA Integrated Disclosure Rule (the Rule). The Guide provides step-by-step instructions that industry participants can follow when completing each page of the required forms. The Rule becomes effective August… More >

CFPB to hold mortgage closing forum on April 23

Posted in Mortgages

The CFPB has announced that it will be holding a forum on the mortgage closing process in Washington, D.C. on April 23, 2014.  The announcement states that the event will feature remarks from Director Cordray, and a discussion with consumer groups, industry representatives, and members of the public. The CFPB has indicated that the next phase… More >

CFPB issues small entity compliance guide for RESPA/TILA integrated disclosure rule

Posted in Mortgages

The CFPB recently issued an 89-page small entity compliance guide for the TILA-RESPA Integrated Disclosure Rule (the “Guide”).  As we reported previously, the CFPB issued the final rule in November 2013 to integrate the initial and final mortgage loan disclosures under the Truth in Lending Act and RESPA.  The final rule appeared in the December… More >

Federal regulators issue joint proposed rule regarding appraisal management companies

Posted in CFPB Rulemaking, Federal Agencies, Mortgages

On March 24, 2014, the CFPB along with five other federal agencies issued a joint proposed rule (“Proposed Rule”) regarding Appraisal Management Companies (“AMC”) as required by section 1473 of the Dodd-Frank Act (“Dodd-Frank”).  Under Dodd-Frank, Congress tasked federal regulators with establishing minimum requirements regarding AMC registration and supervision.  The other regulators are the federal… More >

CFPB considering action on zombie foreclosures

Posted in Mortgages

According to a Reuters report, a CFPB official, speaking at a Federal Reserve Bank of Cleveland conference last week, stated that the CFPB is beginning to take a close look at abandoned properties and “zombie” foreclosures.  The term “zombie foreclosure” refers to a situation in which a borrower has moved out of a home after the… More >

HUD Issues Proposal to Avoid FHA Loans From Being Prohibited Starting Next Year

Posted in Federal Agencies, Mortgages

On March 13, 2014, HUD published a proposal to eliminate the requirement that an FHA loan borrower be required to pay interest after the loan is prepaid.  The move is needed because the requirement would effectively cause FHA loans to be prohibited under CFPB rules starting in January 2015.  Comments on the proposal are due… More >

Karen Morgan heading to Consumer Financial Protection Bureau

Posted in CFPB People, Mortgages

Please join us in offering well wishes to Karen Morgan, a Mortgage Banking Group associate in the Washington, D.C., office who is leaving Ballard Spahr for a new opportunity at the Consumer Financial Protection Bureau. Karen will be Attorney-Advisor in the CFPB’s Office of Supervision Policy under its Division of Supervision, Enforcement, and Fair Lending…. More >

CFPB settles self-reported RESPA violations

Posted in CFPB Enforcement, Mortgages

The CFPB announced today that it has issued a Consent Order under which a Connecticut mortgage lender that self-reported potential RESPA Section 8 violations agreed to pay an $83,000 civil money penalty for such violations.  According to the CFPB’s press release, in addition to reporting its own potential violations, the lender provided information “related to the… More >

CFPB sends warning to mortgage servicers

Posted in Mortgages

Describing his message as a “tough one,” CFPB Deputy Director Steven Antonakes told attendees yesterday at the Mortgage Bankers Association’s National Mortgage Servicing Conference that “continued sloppiness” by servicers “is difficult to comprehend and not acceptable.”  While acknowledging the CFPB’s past statements that it would not immediately expect perfect compliance with the new mortgage servicing… More >

CFPB explores HMDA changes

Posted in CFPB Rulemaking, Fair Lending, Mortgages

The CFPB announced it will begin the rulemaking process for changes to the reporting requirements under the Home Mortgage Disclosure Act (HMDA). As an initial step, the CFPB will convene a Small Business Review Panel to seek early feedback on ways to improve HMDA reporting. The Dodd-Frank Act requires that the CFPB expand HMDA reporting… More >

CFPB supervisory report highlights exam report changes, non-public supervisory actions and mortgage servicing deficiencies

Posted in CFPB Enforcement, CFPB Exams, Mortgages

Last month, the CFPB began using new templates for its examination reports and supervisory letters (collectively, “reports’).  The template changes were announced in the CFPB’s Winter 2013 Supervisory Report, which highlights supervision work completed between July and October 2013.  CFPB examiners (who numbered approximately 320 as of January 2, 2014) began using the new templates for… More >

CFPB settles RESPA referral fee charges against mortgage lender based on rent payments

Posted in CFPB Enforcement, Mortgages

The CFPB has announced that it has issued a Consent Order to settle charges that a mortgage lender and its principal violated RESPA Section 8 by paying illegal kickbacks to a bank in exchange for mortgage loan referrals.  According to the Consent Order, the lender had entered into an agreement with a bank in which the… More >