Industry groups are beginning to comb through 660 pages of new proposed Truth in Lending Act regulations designed to provide better disclosures to consumers about closed-end mortgage loans and home-equity lines of credit. At the same time, they look at the new proposals as another layer in a growing list of regulatory burdens that could drive up compliance and operating costs and eventually... Read More

Mortgage lenders and brokers may need to review how the new disclosure rules under the Mortgage Disclosure Improvement Act of 2008 might affect their closing and due diligence process. A joint analysis by Jonathan Jaffe, Steve Kaplan and David Tallman, attorneys with the Washington law firm K&L Gates, indicated that mortgage loan originators could face problems as... Read More

The mortgage broker industry was dealt a serious legal blow last week after a federal court upheld a controversial final rule amending disclosure of broker-fee compensation under the Real Estate Settlement Procedures Act. With the loss, mortgage brokers must comply with the new good faith estimate requirements under the new RESPA final rule, which establishes new GFE and HUD-1 settlement... Read More

Congressional frustration over the slow pace of foreclosure prevention strategies is rekindling Democrats’ interest in bankruptcy cramdowns, which some hope might force lenders to put more shoulder into loan modification efforts. Nearly three months after the Senate rejected a House-passed cramdown bill that would have authorized bankruptcy judges to write down loan... Read More

Mortgage industry groups urged the Federal Trade Commission to abandon its plan to propose rules reining in certain mortgage practices deemed to be unfair and deceptive, arguing it would only overlap with certain current regulatory consumer protection efforts and confuse consumers. The industry... Read More

For the second time this year, the Federal Trade Commission had delayed enforcement of its Red Flags rule to give creditors and financial institutions more time to develop and implement written identity theft prevention programs. On July 29, the FTC announced that it is moving back the Red Flags’ enforcement date to Nov. 1, 2009. The agency previously delayed implementation of the... Read More

The Treasury Department last week sent draft legislation to Congress as part of its regulatory reform agenda to protect investors from inappropriate ratings practices and bring more transparency to the credit ratings process. The administration bill, the “Investor Protection Act of 2009,” would also strengthen the Security and Exchange Commission’s authority over credit rating agencies and... Read More

House Financial Services Committee Chairman Barney Frank, D-MA, last week warned financial services providers – community banks in particular – to cooperate with Congress on regulatory restructuring, saying that changes will come one way or another despite industry opposition. In remarks to the National Press Club, Frank urged the financial community to cooperate and... Read More

Connecticut. Legislation was signed into law July 7 making mortgage fraud a criminal... New Hampshire. Gov. John Lynch, R, signed H.B. 334 into law July 16 allowing state banking regulators... Illinois, Florida. Attorneys general of both states have taken enforcement actions against bogus foreclosure relief... Read More

House of Representatives: NFIP Extended. On July 29, the House passed H.R. 3139, which would extend the National Flood Insurance Program through... Department of Housing and Urban Development: FHA Loans Made Eligible for HAMP. FHA loans are now eligible for modifications that reduce up to 30 percent of a... Read More

On July 23, the Obama administration sent proposed legislation to Congress that would create a single National... The International Accounting Standards Board has announced plans to revise IAS 39, which would affect how financial... Loan modifications dropped 5.1 percent in June from May as the industry reported 96,000 modified mortgages... Read More