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Inside the CFPB

December 21, 2009

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RESPA-TILA Harmonization Work Begins

The Department of Housing and Urban Development and the Federal Reserve Board are meeting to find ways to adopt a unified disclosure form that complies with both the Truth in Lending Act and the Real Estate Settlement Procedures Act. Officials with both agencies confirmed to Inside Regulatory Strategies that their staffs have begun exploring ways to develop a single, integrated form, which lenders may use to... Read More

HUD Inclined to Subject Servicers to SAFE Act

The Department of Housing and Urban Development last week said it is inclined to require the licensing of individuals who perform loan modifications, including mortgage servicers and third-party modification specialists, as “loan originators” under the Secure and Fair Enforcement Mortgage Licensing Act. But HUD said it first wants to hear from the public on the issue before making a final determination. The department believes that... Read More

HUD Delivers Settlement Cost Booklet for Jan. 1 Implementation

An updated settlement cost booklet issued by the Department of Housing and Urban Development last week provides basic, useful information to homeowners but is not enough to fully explain the new Real Estate Settlement Procedures Act requirements taking effect on Jan. 1. Lenders are also complaining about the rush to get the booklet out and the lack of time to work on... Read More

ALTA Issues Instructions for Handling HUD-1 Closing Form

The American Land Title Association has developed a uniform set of instructions to help lenders and title companies handle the new settlement documents that will become mandatory Jan. 1 due to regulatory changes under the Real Estate Settlement Procedures Act. Among other things, the new RESPA regulations require the settlement agent to obtain new information from... Read More

Fed Issues Directive on ECOA Notice in Loan Modifications

Mortgage servicers that decline a loan modification request, even under the Home Affordable Modification program, and fail to provide an adverse action notice to borrowers could potentially face hefty penalties for violating the Equal Credit Opportunity Act. Such was the implication of a directive issued by the Federal Reserve to its examiners Dec. 4 to clarify questions raised by... Read More

Democrats Faced 'Enemy Within' In Passing Regulatory Reform Bill

Congress passed comprehensive regulatory reform and restructuring legislation after a tough, uphill battle that pitted Democrats not only against traditional opponents but dissenting colleagues as well. After the smoke cleared, the House approved H.R. 4173, the Wall Street Reform and Consumer Protection Act of 2009, by a vote of 223-202. The bill represents the biggest change in financial industry regulation and supervision in decades and the toughest... Read More

Increased Appropriations Give Boost to HUD Fraud Prevention

Housing counseling assistance and initiatives for combating and preventing mortgage fraud got a major chunk of FY2010 appropriations approved recently by Congress for the Department of Housing and Urban Development. H.R. 3288, the FY2010 Consolidated Appropriations Act, provides $87.5 million for housing counseling assistance, up from the $65 million Congress allocated in FY2009. Of that amount... Read More

Regulatory Agenda Show No Action On ‘Required Use’ in Near Term

The Department of Housing and Urban Development has yet to determine how to address “required use” under the Real Estate Settlement Procedures Act. In the Obama administration’s semiannual regulatory agenda released recently, HUD acknowledged it has not made any decision on its next step regarding required use even as other major provisions of the final RESPA rule neared... Read More

Lender Quickly Settles Overcharge Case, FHA Violations with HUD

Barely a week after being suspended due to improper lending practices, a Baltimore-based lender agreed to pay the Department of Housing and Urban Development $277,500 in civil penalties and refund FHA borrowers for fee overcharges. Last week’s settlement agreement with Equitable Trust Mortgage Corp. is the latest in a series of enforcement actions taken by HUD to clamp down on abusive and predatory lending practices that may result in... Read More

State Roundup

Ohio. Attorney General Richard Cordray has filed a lawsuit against New York-based HomEq Servicing for allegedly issuing unfair loan modification agreements and providing “inadequate, incompetent service” to homeowners facing foreclosure. HomEq, a non-prime servicer owned by Barclays Capital, is a participant in the Home Affordable Modification Program. The lawsuit alleged that the agreements were stacked against the homeowners in that... Read More

Federal Roundup

House of Representatives: Online Security Bills. The House recently passed two bills – H.R. 2221, the Data Accountability and Trust Act, and H.R. 1319, the Informed P2P User Act – to promote online security. H.R. 2221 is designed to protect consumers by requiring security policies and procedures to protect personal information. It would require a nationwide notice once... Read More

Worth Noting ...

Freddie Mac has announced new information on the Home Affordable Modification Program, including a government campaign to increase conversions from trial to permanent modifications. Bulletin Guide 2009-08 also talks about the role of Freddie sellers and servicers and revisions to HAMP requirements. Fannie Mae also provided the following updates to HAMP... Read More

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