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Tag Archives: mortgage

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 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 >

CFPB and Florida AG obtain judgments against foreclosure relief companies

Posted in CFPB Enforcement

The CFPB announced that, together with the Florida AG, it has obtained judgments against several Florida companies and their individual operators who were charged in a complaint filed in a Florida federal court with using deceptive marketing practices and collecting illegal advance fees from consumers seeking mortgage relief services.  A default judgment entered against the… More >

CFPB Spring 2015 agenda: significant rulemaking actions on the horizon

Posted in CFPB Rulemaking

Just in time for the holiday weekend, the CFPB released its Spring 2015 rulemaking agenda last Friday.  The agenda sets the following timetables: Prepaid financial products.  In November 2014, the CFPB issued a proposed rule for prepaid financial products, including general-purpose reloadable prepaid cards and certain digital and mobile wallets.  The agenda indicates that the CFPB… 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 >

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 >

Senate Banking Committee to hold April 16 hearing on mortgage credit availability

Posted in Mortgages

On April 16, 2015, the Senate Committee on Banking, Housing and Urban Affairs will conduct a hearing entitled, “Regulatory Burdens to Obtaining Mortgage Credit.”  The witnesses scheduled to appear are: Tom Woods, President, Custom Woods Homes, and Chairman, National Association of Home Builders Chris Polychron, Executive Broker, First Choice Realty, and President, National Association of… More >

CFPB targets another mortgage lender for deceptive advertising

Posted in CFPB Enforcement, Mortgages

The CFPB has announced the settlement of an enforcement action against a California-based mortgage lender for alleged deceptive advertising practices, including the use of advertisements that the CFPB claimed falsely led consumers to believe that the company was affiliated with the U.S. government.  The consent order requires the lender to pay a civil penalty of… More >

CFPB increases appraisal requirement exemption threshold

Posted in Mortgages

The CFPB, Fed, and OCC have adjusted the threshold for smaller loans that are exempt from the appraisal requirement for “higher priced mortgage loans.”  The appraisal requirement became effective January 18, 2014, and the exemption, which is subject to annual adjustment for inflation, currently applies to credit extensions of $25,000 or less. Effective January 1,… More >

CFPB Fall 2014 rulemaking agenda indicates further delay in proposed debt collection and other rules

Posted in CFPB Rulemaking

Based on the CFPB’s Fall 2014 rulemaking agenda, proposed rules dealing with payday loans/deposit advance products, overdrafts, and debt collection are still months away. The CFPB’s timetables for “prerule activities” are February 2015 for payday loans/deposit advance products, July 2015 for overdrafts, and April 2015 for debt collection.  The CFPB’s Spring 2014 agenda had given… More >

CFPB issues bulletin on consideration of public assistance income in credit decisions

Posted in Fair Credit, Mortgages

The CFPB has issued a new bulletin (Bulletin 2014-03) that is intended “to remind creditors” of their ECOA/Regulation B obligations with respect to consideration of public assistance income and relevant standards and guidelines regarding verification of  Social Security Disability Insurance and Supplemental Security Income (together, Social Security disability income). Based on an accompanying CFPB blog… More >

CFPB settles second loan originator compensation case

Posted in CFPB Enforcement, Mortgages

The CFPB entered into a stipulated order and final judgment with Franklin Loan Corporation (Franklin) to settle allegations that Franklin paid its employee loan originators compensation based on the interest rates charged on mortgage loans in violation of the Regulation Z loan originator compensation rule.  Without admitting or denying the allegations, Franklin agreed to pay… More >

Leading industry trade groups comment on HMDA/Reg. C proposal

Posted in CFPB Rulemaking, Mortgages

Six leading industry trade groups have submitted a letter commenting on the CFPB’s proposed rule amending Regulation C to expand Home Mortgage Disclosure Act data reporting requirements.  The trade groups consist of the Consumer Bankers Association, Mortgage Bankers Association, American Bankers Association, Consumer Mortgage Coalition, Financial Services Roundtable and Housing Policy Council. In the letter,… More >

Mortgage company that entered into CFPB consent order moves to dismiss class action claims

Posted in CFPB Enforcement, Mortgages

Earlier this week, 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 (“LO Compensation Rule”), filed a motion to dismiss three counts of the class action complaint filed against it in July… More >

CFPB posts 2015 final lists of rural and rural or underserved counties

Posted in Mortgages

The CFPB has posted its 2015 final lists of Rural and Rural or Underserved Counties on its website.  The CFPB has previously posted lists of such counties for calendar years 2011-2014. The lists are relevant to exemptions in several CFPB mortgage rules, including the CFPB’s rule requiring creditors to establish escrow accounts for certain first-lien… More >

ABA renews request for CFPB clarification on rolling mortgage delinquencies

Posted in Mortgages

This past July, the American Bankers Association sent a letter to the CFPB requesting several clarifications to the mortgage servicing rules.  One of such clarifications concerned application of the “120-day rule,” meaning the rule that prohibits a servicer from sending the first notice or filing for foreclosure unless a borrower’s mortgage loan is more than… More >

CFPB updated mortgage servicing transfer guidance published in Federal Register

Posted in Mortgages

In yesterday’s Federal Register, the CFPB published the compliance bulletin and policy guidance (Bulletin 2014-01) regarding mortgage servicing transfers that it previously issued on August 19, 2014 (New Guidance).  The New Guidance updates and replaces earlier guidance regarding mortgage servicing transfers set forth in Bulletin 2013-01.  We summarized the New Guidance in a prior blog… More >

CFPB finalizes amendments to mortgage rules

Posted in CFPB Rulemaking, Mortgages

The CFPB has issued a final rule amending certain provisions of the 2013 Title XIV final mortgage rules.  While in its press release the CFPB describes the amendments as “minor adjustments to its mortgage rules,” the final rule contains several major changes from the CFPB’s proposal. QM Points and Fees Cure.  Generally, to be considered a… More >

Industry trade groups provide recommendations to CFPB on TILA-RESPA implementation

Posted in CFPB General, CFPB Rulemaking

Sixteen industry trade groups, including the American Bankers Association, the Mortgage Bankers Association, and Financial Services Roundtable, have sent a letter to Director Cordray in which they requested that the CFPB provide additional guidance to help the mortgage industry implement the new TILA-RESPA Integrated Disclosures Rule that will become effective on August 1, 2015. In… More >

CFPB announces eClosing pilot program participants

Posted in Mortgages

The CFPB has announced the participants for its mortgage eClosing pilot program, a three-month pilot set to begin later this year.  The CFPB’s plans to conduct the pilot were unveiled at a forum on the mortgage closing process held in April 2014, together with the CFPB’s release of a report on the “major pain points associated with the closing… More >