Democrats captured a majority of state attorney general seats in elections earlier this month, which will likely increase state-level litigation and multistate enforcement activity, said attorneys.

S&P Global Ratings last week urged mortgage servicers to continue to follow the best practices established after the financial crisis, even as some federal regulators are adopting less assertive regulatory approaches. “While we believe the regulatory landscape has changed and that these actions offer some promising developments for servicers, this overture could still prelude some hurdles,” an S&P report said. “Since servicers have invested considerable capital ...

An Illinois-based mortgage company will pay $1.2 million in restitution to consumers after a state investigation found a company’s branch manager defrauded consumers. Diamond Residential Mortgage Corp., Lake Forest, IL, recently settled with Illinois Attorney General Lisa Madigan and the Illinois Department of Financial and Professional Regulation, resolving a mortgage fraud allegation. Diamond’s Springfield branch manager, Chris Schaller ...

A top CFPB official last week touted the agency’s strategy on fintech and innovation in financial services as a perfect fit with its emphasis on cooperating with state regulators. Paul Watkins, director of the CFPB’s Office of Innovation, said the bureau is taking unique steps to coordinate with state regulators in creating regulatory sandboxes for financial technology companies. He joined other government officials in making remarks at the Bank Policy Institute’s ...

The CFPB has abandoned a controversial proposal to expand its disclosure of confidential information through Freedom of Information Act requests. Notably, a new final rule omits the whole part of a previous proposal that would have allowed the CFPB to share confidential information collected in supervisory events with any government agency it deems “relevant to the exercise of the agency’s statutory or regulatory authority.” Such agencies would ...

State-licensed mortgage lenders originated $239.70 billion of home mortgages in the second quarter of this year, according to nonbank mortgage call report figures compiled by the Nationwide Multistate Licensing System. The sector posted an 18.9 percent increase in origination volume from the first three months of the year, slightly more than the 17.1 percent rise in total first-lien originations over that period. As a result, the nonbank share of new production ... [Includes two data charts]

The Mortgage Bankers Association is working to reduce the speed talking and fine print that tend to accompany advertisements for mortgages. Currently, ad-disclosure requirements for mortgages vary by state. In August, Illinois became the first state to adopt a uniform ad-disclosure protocol supported by the MBA. Mortgage ads in the Prairie State must now include a reference to the Nationwide Multistate Licensing System and Registry’s consumer access website and cite ...

The securitization and mortgage banking industries heaved a collective sigh of relief after aMaryland appeals court ruled earlier this month that state licensing requirements do not apply to “foreign” statutory trusts.

New York has enacted legislation redefining a reverse mortgage as a “home loan.” With the new law, statutory 90-day pre-foreclosure notices and certificates of merit would be required for all reverse-mortgage foreclosures in the Empire State. New York’s foreclosure settlement conference law has incorporated the new definition by reference, removing any doubt that such meetings are required in most reverse-mortgage cases, said industry attorneys. Gov. Andrew Cuomo, D, signed the amendment into law on April 12, 2018, though it is deemed to have been in full force and effect as of April 20, 2017. However, the pre-foreclosure notice requirement for reverse mortgages has an effective date of May 12, 2018. For actions commenced after May 12, the new state law requires lenders, servicers or assignees to provide a pre-foreclosure notice at least 90 days before initiating legal action against the borrower at the ...

States are dedicating more resources for consumer protection in financial services to fill the vacuum of a potentially less aggressive CFPB. New Jersey Attorney General Gurbir Grewal, D, recently said in a press release that he and Gov. Phil Murphy, D, will “fill the void left by the Trump administration’s pullback of the Consumer Financial Protection Bureau,” and create what they referred to as a “state-level CFPB.” Murphy will name Paul Rodriguez as the director of the New Jersey Division of Consumer Affairs ...