With implementation of the CFPBs ability-to-repay/qualified mortgage rule just a few months away, federal regulators are scheduled to meet in Washington, DC, later this week to discuss and possibly vote on a new version of a qualified residential mortgage/ risk retention proposal. The Federal Deposit Insurance Corp.s board of directors is scheduled to meet in open session at 10 a.m. on Wednesday, Aug. 28, for renewed formal consideration of a QRM/credit risk retention proposal as mandated by the Dodd-Frank Wall Street Reform and...
The CFPB recently released a second update to its exam procedures associated with the new mortgage regulations issued in January 2013, with the intent of providing guidance to financial institutions and mortgage companies on what the bureau will be eyeballing as the rules become effective. The updates cover the ability-to-repay rule and qualified mortgages, high-cost mortgages, and appraisals for higher-priced mortgage loans, as well as new amendments related to the escrow rule. With this latest iteration, the exam procedures now...
Earlier this month, the CFPB put out an updated small entity compliance guide for the ability-to-repay/qualified mortgage rule, incorporating clarifications and amendments to the rules issued on May 29, 2013, and July 10, 2013. The updated guide includes a handful of new sections, one of which goes into some detail about the exemptions that were added by the June 2013 concurrent final rule for certain creditors and loan programs, such as designated community development organizations, certain nonprofit organizations, and...
The CFPBs ability-to-repay rule and its qualified mortgage standard are getting closer every day, and best practices may provide the surest path to compliance. First off, if you havent started, start now. Theres a lot to do, theres a lot to know, and theres a lot to sort out. So, go ahead and get started. Its already August, and January will be here before we know it, Ginger Moore, the compliance officer at PrimeLending, a top-25 mortgage originator based in Dallas, TX, told participants during a recent Inside Mortgage...
Tammy Butler, the director of fair lending and compliance for Optimal Blue, a leading pricing engine, said shes been hearing from one attorney and industry consultant after another that the time of mortgage lenders naming their fees just to re‐name profit is not going to go over well with the CFPB. In fact, those who have been through the exams or been fined have learned the hard way that complete transparency to the consumer is a must, Butler said.For instance, Butler has heard some lenders plan on lumping a...
There are plenty of challenges associated with the CFPBs new standards for error notices and information requests, which are part of the bureaus new mortgage servicing standards, and policy analysts at PricewaterhouseCoopers have some compliance suggestions to help companies measure up. The new standards for error notices and information requests are expected to have a substantial impact on all mortgage servicers, the PwC analysts said in a recent overview. Implementing the changes will require careful review and possibly...
The CFPB may need to reach out more to consumers in areas that face the highest risk of foreclosure, and intensify pressure on lenders that serve older Americans, according to a new analysis of the CFPBs consumer complaint database by a handful of faculty members at the Yale University School of Law. Analyzing a new data set of 110,000 consumer complaints lodged with the bureau, they found that Bank of America, Citibank and PNC Bank were significantly less timely in responding to consumer complaints than the average financial...
CFPB examiners found numerous loss mitigation mistakes, including inconsistent communications with borrowers, spotty loss mitigation underwriting and long application review periods. All this could lead to new regulations for servicers.