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Tag Archives: Consumer Financial Protection Bureau

With New Regulations, Demonstrating Compliance and Controls Is Key

The mortgage servicing industry is fielding a spate of new rules and regulations--49 mortgage reforms and 63 required rules related to consumer protection. With the regulatory intervention the industry is experiencing today, there is an increased and immediate need for system controls, certification of compliance, and information management controls--for both servicers and their outsourcing partners.

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HUD Defines Two Types of Qualified Mortgages

HUD has issued a newly revised definition for Qualified Mortgage (QM) which will affect all Federal Housing Administration (FHA) loans moving forward. The new rule goes into effect January 10, 2014, and will apply to mortgages that are insured, guaranteed, or administered through HUD. The agency's version of QM builds on the existing QM rule finalized by the Consumer Financial Protection Bureau earlier this year.

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GSEs Update Short Sale Policies

Fannie Mae and Freddie Mac announced changes to their Servicing Guides Monday aimed at helping more borrowers avoid foreclosure through short sales and deeds-in-lieu of foreclosure (DILs). Some of the changes are to align with certain Consumer Financial Protection Bureau (CFPB) rules and regulations that implement the mortgage servicing provisions of the Dodd-Frank Act, and some are simply to ease eligibility requirements for liquidation workout options.

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CFPB Finalizes ‘Know Before You Owe’ Mortgage Disclosures

The Consumer Financial Protection Bureau (CFPB) is issuing a rule Wednesday requiring lenders to use its disclosure templates to lay out mortgage terms for borrowers. The new ""Know Before You Owe"" mortgage forms will replace existing federal disclosures, and the CFPB says they'll help consumers better understand their options, comparison shop for the best mortgage deals, and avoid costly surprises at closing.

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CFPB Hits Private Insurer with $100K Fine

Republic Mortgage Insurance Corporation (RMIC) faces a $100,000 fine and enhanced supervision by the Consumer Financial Protection Bureau (CFPB) for allegedly offering illegal kickbacks to lenders in the form of captive reinsurance policies in exchange for business referrals, according to an announcement from the CFPB. Such activities violate federal consumer laws and have become a target area for the bureau.

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Castle & Cooke Penalized for Steering Consumers to Costlier Mortgages

The Consumer Financial Protection Bureau (CFPB) has investigated Castle & Cooke Mortgage, LLC, and on Thursday, announced a proposed consent order in its enforcement action. Castle & Cooke allegedly steered consumers into mortgages that were unnecessarily costly, and paid loan officers illegal quarterly bonuses based on the interest rate of the loans they offered to borrowers.

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Report: Market Will Prosper Under Ability-to-Repay, QM Rules

Today's resilient capital market has the capacity to adapt readily to the pending Ability-to-Repay and Qualified Mortgage (QM) rules set to take effect January 10, 2014, according to a white paper issued by CoreLogic. The paper titled, ATR/QM Standards: Foundation for a Sound Housing Market, provides an overview of the rules themselves and examines their possible impact on the market.

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Regulators See No Fair Lending Risk in QM

The CFPB's mortgage servicing standards--including the Qualified Mortgage (QM) definition and the Ability-to-Repay rule--take effect in less than 90 days. Some bankers have indicated they might limit their offerings to only QM products as the transition is made, and many are concerned that as a result, their operations may run counter to the Equal Credit and Opportunity Act, implemented by the Federal Reserve's Regulation B. Those fears, however, are unfounded, regulators say.

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One-Fifth of Today’s Mortgage Loans Don’t Meet QM Standards

One in five loans originated in today's mortgage market will not meet the requirements of the Consumer Financial Protection Bureau's (CFPB) Qualified Mortgage (QM) rule that goes into effect in January, according to an audit of new loans by ComplianceEase. Of the 20 percent of loans that would not qualify, ComplianceEase determined fee levels would be the disqualifier for about half. The QM rule allows for points and fees of up to 3 percent.

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CFPB Offers Additional Guidance on Mortgage Servicing Rules

The Consumer Financial Protection Bureau (CFPB) released a bulletin and interim final rule Tuesday to provide greater clarity to the market concerning mortgage servicing rules that take effect in January 2014. The clarifications address contact with delinquent borrowers, communications with family members after a borrower dies, and treatment of consumers who have filed for bankruptcy.

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