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Tag Archives: mortgages

Breaking News: In PHH v. CFPB, D.C. Circuit Holds that CFPB Structure is Unconstitutional

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

The D.C. Circuit issued its long-awaited decision in PHH Corporation v. CFPB. In reversing the decision of Consumer Financial Protection Bureau (CFPB) Director Cordray to impose an enhanced penalty of $109 million on PHH for its use of a captive (wholly-owned) mortgage reinsurer, the court made several landmark rulings. First, it held that the CFPB’s… More >

CFPB releases Spring 2016 rulemaking agenda

Posted in Arbitration, Mortgages, Overdrafts, Payday Lending, Prepaid Cards, Small Business

The CFPB has released its Spring 2016 rulemaking agenda.  The agenda sets the following timetables for key rulemaking initiatives:  Arbitration.  The Spring 2016 agenda does not reflect the CFPB’s release of its proposed arbitration rule on May 5, 2016, stating only that the CFPB “is preparing to issue a Notice of Proposed Rulemaking this spring.” … More >

CFPB April 2016 complaint report highlights mortgage complaints, complaints from California consumers

Posted in Mortgages

The CFPB has issued its April 2016 complaint report which highlights complaints about mortgages and complaints from consumers in California.  The CFPB began taking complaints about mortgages in December 2011. General findings include the following: As of April 1, 2016, the CFPB handled approximately 859,900 complaints nationally, including approximately 26,500 complaints in March 2016.  As… More >

CFPB issues second rule to implement the HELP Act, expanding Qualified Mortgage coverage for lenders lending in rural and underserved areas

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

As we have addressed, Congress passed the Helping Expand Lending Practices in Rural Communities Act of 2015 (HELP Act) on December 4, 2015, in efforts to expand the designation of additional areas as being “rural” under Regulation Z of TILA.   The HELP Act was passed after the CFPB issued a final rule to expand the… More >

CFPB releases HMDA Rule Compliance Guide

Posted in CFPB Rulemaking, Fair Lending, Mortgages, Uncategorized

The CFPB released the Home Mortgage Disclosure (Regulation C) Small Entity Compliance Guide  on December 1, 2015.  According to the CFPB, the purpose of the Compliance Guide is to provide an accessible summary of Regulation C, in light of the final rule amending the Home Mortgage Disclosure Act (HMDA) which we summarized here.  In addition,… More >

House passes bill to curb QM requirements

Posted in CFPB General, Mortgages

On November 18, 2015, the U.S. House of Representatives passed a bill that would provide a safe harbor exception for depository institutions from certain provisions of the Truth in Lending Act and Regulation Z, and for mortgage originators from the steering prohibition of the loan originator compensation requirements under Regulation Z (LO Comp Rule). By… More >

CFPB issues final rule expanding definition of “small creditor” and “rural areas” under TILA

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

The CFPB has issued a final rule that revises the definitions of “small creditor” and “rural areas” under Regulation Z of the Truth in Lending Act (TILA). The final rule is effective January 1, 2016. We previously reported on the CFPB proposal to adopt these amendments. The CFPB believes that small creditors play an important… 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 >

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 >

CFPB issues new mortgage servicing guidance

Posted in Mortgages

On August 19, 2014, the CFPB issued a compliance bulletin and policy guidance updating and replacing its earlier guidance regarding mortgage servicing transfers.  In replacing Bulletin 2013-01 (the “Original Guidance”), Bulletin 2014-01 (the “New Guidance”) reinforces the Original Guidance and adds several interesting components to the regulatory mix as a direct result of the implementation of… 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 >

Study Finds Small Banks “Deeply Affected” by Dodd-Frank

Posted in CFPB General, Mortgages

The Mercatus Center at George Mason University recently published the results of a study of the effects of Dodd-Frank on small banks, defined as banks with less than $10 billion in assets each. The anonymous, web-based survey relied on responses from about 200 banks and was conducted between July 2013 and September 2013. The study… 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 >

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 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 >

Federal financial regulatory agencies finalize appraisal requirement exemptions

Posted in Mortgages

The CFPB, Fed, FDIC, FHFA, NCUA, and OCC have finalized a supplemental rule creating several exemptions to the appraisal requirements for higher-priced mortgage loans (HPML).  Those requirements are contained in the final rule adopted jointly by the agencies in January 2013 to implement Dodd-Frank provisions mandating appraisals for HPMLs. The final rule creates the following two… More >

CFPB updates TILA and RESPA exam procedures

Posted in CFPB Exams, Mortgages

On November 27, the CFPB released further updates to its Truth in Lending Act and Real Estate Settlement Procedures Act examination procedures.  The updates reflect October 2013 amendments to the CFPB’s mortgage rules that take effect next month.  The amendments were published in the Federal Register on October 23, 2013.  

More on the final RESPA-TILA integrated disclosures rule

Posted in CFPB Rulemaking, Mortgages

 As we previously reported, the Consumer Financial Protection Bureau released the nearly 1,900-page final RESPA-TILA Integrated Disclosures Rule on November 20. The rule will be effective for applications received on or after August 1, 2015. The industry had urged the CFPB to provide a reasonable implementation period in view of the significant changes to systems… More >

Director Cordray comments on mortgage rules at MBA convention

Posted in CFPB General, Mortgages, Richard Cordray

Director Cordray mostly repeated previous comments in his remarks this week at the Mortgage Bankers Association Annual Convention in Washington, DC.  The first portion of Director Cordray’s remarks followed his usual script, outlining the history of the financial collapse, Dodd-Frank, and the start of the CFPB.  From there, he explained how the CFPB took into… More >

CFPB files RESPA suit for alleged kickbacks to affiliated businesses

Posted in CFPB Enforcement, Mortgages

Last week, the CFPB announced that it had filed a lawsuit against a Kentucky law firm and its principals, alleging that the defendants violated Section 8 of the Real Estate Settlement Procedures Act (RESPA) by creating a network of Affiliated Business Arrangements (ABAs) to pay illegal kickbacks for mortgage settlement referrals. The complaint was filed… More >

Director Cordray focuses on mortgage rules in remarks to American Bankers Association

Posted in Mortgages

A substantial portion of Director Cordray’s remarks yesterday at the American Bankers Association’s Annual Convention in New Orleans was directed at justifying the Bureau’s decision not to delay the January 2014 effective dates of the new mortgage rules. Mr. Cordray reminded bankers that if the CFPB had failed to complete the rules, most of Title XIV of… More >