Tag Archives: Mortgage Regulation

Community banks should be exempt from pending regulations on high-cost mortgages since they were not responsible for the mortgage crises, the Independent Community Bankers of America (ICBA) stated in a release. In July, the Consumer Financial Protection Bureau (CFPB) announced it was proposing rules for high-cost mortgages, which would be determined based on interest rates, points and fees, or prepayment penalties.

Fannie Mae and Freddie Mac new representations and warranty guidelines for lenders Tuesday to clarify lenders' risk regarding repurchase claims and define steps lenders can take to challenge repurchase claims they feel are without grounds. Under the new guidelines, if a loan is current for 36 consecutive months, lenders ""will be relieved of certain repurchase obligations,"" according to the Federal Housing Finance Agency, regulator of Fannie Mae and Freddie Mac.

The Securities and Exchange Commission (SEC) froze the assets of a San Diego-based firm and its owner over accusations of real estate fraud.

Delinquent borrowers oftentimes make themselves as elusive and unavailable as possible when it comes to communicating with their servicers. During a panel at the Five Star Conference, industry experts discussed the reasons behind the difficulty in reaching borrowers. Colleen Hernandez, CEO and president of the Homeownership Preservation Foundation, explained three main reasons why borrowers won't respond or reach out to their servicer.

The California State Department of Real Estate (DRE), which is responsible for licensing and regulating activities of real estate brokers and salespersons, had to take action against more license holders compared to the previous year.

Just how important is disclosure to American borrowers? Very important, if the figures from a recent Harris Interactive survey mean anything. MortgageMarvel.com commissioned a survey of 2,214 American adults 18 years or older to learn that one full-quarter of Americans take disclosure into account when considering their next home loan. After disclosure, 20 percent of survey respondents ranked anonymity as their second most-valued quality in the lending process.

The Consumer Financial Protection Bureau is on a roll lately. On Friday, the agency offered up rules to reduce interest rates, do away with points and fees, and screen mortgage loan officers. In the first of a slew of new rulemaking proposals, In the first of a slew of new rulemaking proposals, the CFPB would require lenders to make available loans that are stripped of their origination points and discount fees for certain consumers. The proposals would also require background checks for loan officers and bar arbitration clauses for credit insurance practices.

A lawsuit against eight companies in the mortgage industry alleges the defendants used fraudulent mortgage documents to process foreclosures on Ohio homeowners and charged the foreclosed homeowners inflated, unfair fees. According to the lawsuit, the companies were involved in ""abusive foreclosure practices"" that involved preparing, executing, and notarizing fraudulent court documents and assignments of mortgages used to initiate and prosecute foreclosures.

Higher-risk mortgage loans may have a new set of rules to go by when it comes to appraisals. A proposed rule from six federal agencies would set out new requirements when conducting appriasals for higher risk mortgages. For example, the rule would require creditors to use a licensed or certified appraiser when preparing reports based on the physical inspection of a property.

Clearer monthly mortgage statements, warnigns before interest rates adjust, quick correction of errors - these are among the proposed rules for mortgage servicers from the Consumer Protection Financial Bureau. According to a commentary from Fitch Ratings, these new rules, if implemented, would set consistent standards for residential servicers, but the rules ""will also further increase compliance costs for the industry and potentially drive further consolidation within mid to smaller servicers.""