Systemic issues and the cost of implementing new disclosures top compliance experts’ list of concerns about proposed changes to closed-end mortgage rules under the Truth in Lending Act. While the goal of the Federal Reserve Board’s proposal for massive TILA changes is to make sure consumers understand financial products and can repay the loans, the cost for implementing these...
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Comprehensive mortgage settlement rules taking effect next year will require mortgage lenders to be responsible for the accuracy of third-party fees and other disclosures made by mortgage brokers, according to the Department of Housing and Urban Development. But compliance experts warned that while HUD may exercise restraint and flexibility during the rules’ implementation phase...
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The mortgage industry will likely soon confront an old foe – cramdown – as Democratic proponents announced plans last week to attach a provision to the financial regulatory reform legislation.The House narrowly passed bankruptcy reform legislation earlier this year, and the Senate rejected a cramdown bill by Sen. Majority Whip Richard Durbin, D-IL, who has been trying for years...
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While cramdown legislation is poised for a comeback in Washington, DC, other court-sanctioned alternatives to foreclosures are being tried in various jurisdictions. In North Carolina, legislation was enacted last week to ensure that homeowners and mortgage lenders have the opportunity to resolve foreclosures voluntarily. The Consumer Protection Act of 2009 would allow...
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The Internal Revenue Service is taking steps to improve monitoring and enforcement of mortgage interest deduction compliance. The IRS action came in the wake of a study by the Government Accountability Office, which found that while the agency has some evidence of taxpayer problems with mortgage interest deduction limits, it does not know the extent of noncompliance. In a letter commenting...
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Credit rating agencies may want to reevaluate their use of the First Amendment as a defense against liability arising from ratings they issued on subprime investment products that eventually soured. Industry lawyers say a recent decision by U.S. District Court Judge Shira Scheindlin in New York City could be an influential precedent in other cases pending against credit rating agencies in...
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Lawsuits in which municipalities sought compensation or reimbursement from subprime originators and securitizers for foreclosure-related costs have taken different turns, raising doubts as to the effectiveness of the strategy. Baltimore City and Wells Fargo are now engaged in discovery after a federal judge in July denied the lender’s motion to dismiss the city’s suit alleging...
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The Department of Housing and Urban Development is developing a new appraiser policy that may include parts of the Home Valuation Code of Conduct appraisal system now in place at Fannie Mae and Freddie Mac. HUD made the announcement as it denied reports that it has no plans to adopt the HVCC wholly or in part. Contrary to published reports, FHA Commissioner Dave Stevens said he “supports much of...
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The House Financial Services Committee is looking to mark up legislation that would create a federal consumer protection agency next week, even as opponents ramp up their opposition to the bill. While Financial Services Committee Chairman Barney Frank, D-MA, has not announced a schedule, committee staff members are looking at Sept. 23 to mark up H.R. 3126, the Consumer Financial Protection...
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District of Columbia. The District will join a multi-state settlement with Countrywide Financial Corp. to resolve claims of unfair and deceptive mortgage lending practices. The agreement with several state attorneys general was announced in October 2008 shortly after Bank of America purchased Countrywide...
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Federal Deposit Insurance Corp.: Forbearance to Unemployed Borrowers. The FDIC is encouraging its partners in a loss-share agreement with acquirers... OCC/FRB/FDIC/OTS: Draft Regulatory Capital Rules. Federal thrift and banking regulators are planning to propose rules to align financial institutions’...
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Wall Street is urging the Federal Deposit Insurance Corp. to allow all qualified... The Mortgage Bankers Association has released a proposal that would deconstruct... The American Bankers Association last week urged Treasury Secretary Tim Geithner and... Credit counselors are in Washington, DC, for the National Foundation for...
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