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Category Archives: Mortgages

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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 >

House Financial Services Subcommittee Holds Hearing on How QM Harms Homeowners

Posted in CFPB General, CFPB Rulemaking, Mortgages

On January 14, 2014, the House Subcommittee on Financial Services held a hearing entitled “How Prospective and Current Homeowners Will Be Harmed by the CFPB’s Qualified Mortgage Rule.”  Four lender representatives and one consumer law non-profit testified about the necessity to consider changes to the QM rule. Rep. Shelley Moore Capita (R-WV) and her fellow… More >

House Financial Services Committee to hold hearing on QM rule

Posted in Mortgages

The House Financial Services Committee has announced that on Tuesday, January 14, it will hold a hearing entitled “How Prospective and Current Homeowners Will Be Harmed by the CFPB’s Qualified Mortgage Rule.”  The witnesses scheduled to appear are: (1) Jack Hartings, President and Chief Executive Officer, The Peoples Bank Co., on behalf of the Independent… More >

CFPB revises three mortgage publications

Posted in Mortgages

The CFPB has issued a notice announcing that it has made revisions to the following three mortgage-related consumer publications: “What You Should Know About Home Equity Lines of Credit,”  “Consumer Handbook on Adjustable-Rate Mortgages, and “Shopping for Your Home Loan, Settlement Cost Booklet.”   The notice indicates that the revisions consist of technical and conforming changes… More >

CFPB releases additional resources for mortgage consumers

Posted in Mortgages

In advance of today’s effective date for most of its new mortgage rules, the CFPB has been releasing additional resources for consumers. As described in the CFPB’s January 7 press release, the most recent “resources” include sample letters for consumers to send their servicers, tip sheets, fact sheets, lists of questions and answers, and a tool… More >

Richard Cordray visits the Daily Show?

Posted in Mortgages

Yes, if you were watching Jon Stewart’s Daily Show last night on Comedy Central, you would have seen that one of his guests was CFPB Director Richard Cordray.  (A video of Director Cordray’s appearance can be viewed here.)  Director Cordray’s Daily Show appearance last night followed his appearance yesterday morning on Morning Joe, an MSNBC… More >

CFPB’s fact vs. fiction guide: useful information for consumers or defense planning?

Posted in Mortgages

With the January 10 effective date imminent, the CFPB has issued what it labels a “fact vs. fiction guide” on its ability-to-repay/qualified mortgage rule.  According to the CFPB, the guide is intended “to help dispel some of the most common misconceptions about what this new rule actually means for consumers.”   It appears that the primary ”misconception” the CFPB… More >

CFPB to hold mortgage servicing rule training event

Posted in Mortgages

The CFPB has announced that on January 10, 2014, the date on which most of its new mortgage rules take effect, it will host an event entitled “Protecting homeowners: New tools for empowering consumers and advocates.”  The event, which will take place in Phoenix and be viewable on the CFPB’s website, is described as “an… More >

CFPB adds list of rural and underserved counties for 2011

Posted in Mortgages

The CFPB has posted on its website a list of rural and underserved counties for calendar year 2011.  The CFPB had already posted lists of such counties for calendar years 2012 and 2013.  As initially adopted, the CFPB’s final rule requiring creditors to establish escrow accounts for certain first-lien higher-priced mortgage loans contained an exemption… More >

CFPB seeking information on mortgage closing process

Posted in Mortgages

In a notice scheduled to be published in tomorrow’s Federal Register, the CFPB is seeking information about the mortgage closing process from industry, consumers and other members of the public.  According to the notice, because the CFPB wants “to encourage the development of a more streamlined, efficient, and educational closing process as the mortgage industry increases… More >

CFPB adjusts HMDA data collection and TILA mortgage escrow thresholds

Posted in Mortgages

In notices published in yesterday’s Federal Register, the CFPB adjusted the thresholds of the asset-size exemptions for collecting HMDA data and establishing an escrow account for certain mortgage loans under TILA. Pursuant to Regulation C, which implements HMDA, depository institutions with assets below an annually adjusted threshold are exempt from HMDA data collection requirements. In… More >