Since the Great Recession, the regulation of residential mortgages and those who service them have been in sharp focus. Legislators and regulators continue to demonstrate an abiding mistrust in the servicing industry a full decade after the financial collapse—imposing and then tinkering with a regulatory scheme that is challenging for most people (and most lawyers,… Continue Reading
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Citing Operational Challenges, CFPB May Rewrite TRID
Posted in CFPB, Compliance Resources, Mortgage Servicing, Regulatory Developments, TILA/RESPA, Trending NewsToday, the CFPB issued a letter to various industry trade groups, including the Mortgage Bankers Association, the American Bankers Association, and the Independent Community Bankers of America, acknowledging that the implementation of the “Know Before You Owe” rule (otherwise known as “TRID”) poses many “operational challenges.” Many financial institutions and industry participants do not have… Continue Reading
CFPB Issues Final Home Mortgage Disclosure Act Rule
Posted in CFPB, HMDA, Mortgage Servicing, Regulatory Developments, Trending NewsThe CFPB issued a final rule changing Regulation C, which implements the Home Mortgage Disclosure Act (HMDA) today. This is significant because HMDA requires certain institutions to collect, report, and disclose information about their mortgage lending activity. The CFPB and other banking regulators will use the reported data to determine whether financial institutions are serving… Continue Reading
CFPB Expands the Definition of Qualified Mortgages for Small Creditors
Posted in CFPB, Mortgage ServicingOn September 21, 2015, the Consumer Financial Protection Bureau (“the CFPB”) finalized several changes to the mortgage rules that impact community banks and credit unions. The CFPB proposed these rules in January to help smaller banks and credit unions lend in rural and underserved areas. The effective date for this proposed rule (with additional clarifications… Continue Reading
Mortgage Loan Rate Locks: A New Risk Environment Under TRID
Posted in CFPB, Mortgage Servicing, Regulatory Developments, TILA/RESPAThe Consumer Finance Protection Bureau’s (the “CFPB”) amendments to the 2013 TILA-RESPA Integrated Disclosure Rule (“TRID”) will become effective on October 3, 2015. The amendment extends the timing requirement for revised disclosures when consumers of mortgage loans lock a rate or extend a rate lock after the Loan Estimate is provided. Lenders can now provide… Continue Reading
New Fannie Mae Lending Product Counts Extended Family Income
Posted in Mortgage Servicing, Trending NewsToday, Fannie Mae announced a new lending product, the HomeReady mortgage, which is intended to help creditworthy borrowers with low and moderate incomes to gain access to a mortgage. In order to qualify for the HomeReady mortgage, borrowers will be required to complete an online education course, called “Framework”, to educate and prepare them for… Continue Reading
Updated Compliance Resources for the TILA-RESPA Integrated Disclosure Rule
Posted in CFPB, Compliance Resources, Mortgage Servicing, Regulatory Developments, TILA/RESPA, Trending NewsAs many of you know, the effective date of the TILA-RESPA Final Rule and the related TILA-RESPA Amendments has been delayed to October 3, 2015. Please take note of the following updates from the CFPB: Freddie Mac and Fannie Mae Data Standards Freddie Mac and Fannie Mae have released a common industry dataset, called the… Continue Reading
Spotlight on TILA’s Duty to Provide Timely Mortgage Payoff Statements
Posted in CFPB, Mortgage Servicing, Regulatory Developments, TILA/RESPA
Given the growing complexity of the mortgage servicing rules faced by both bank and non-bank mortgage servicers, it is worthwhile to shine a spotlight on some rules which at first glance seem fairly straight forward, but upon scrutiny, require more analysis. As previously discussed on this blog, the CFPB amended the Truth in Lending Act (TILA)… Continue Reading
Mortgage Industry Continues to Face New Regulatory Proposals in 2015
Posted in Basel III, CFPB, Mortgage Servicing, Regulatory Developments, TILA/RESPACFPB Proposes to Give Relief to Small Lenders On January 29, 2015, in response to comments from industry groups and stakeholders, the CFPB proposed amendments to certain mortgage rules that were issued in 2013. The CFPB will take comments until March 30, 2015 on these proposed rules. The proposed rule expands the CFPB’s definition of… Continue Reading
The Adverse Impact of Basel III on the Retention of Mortgage Servicing Assets
Posted in Basel III, Mortgage Servicing, Regulation AB, Regulatory DevelopmentsBasel III As we start of the New Year, I think it is a good idea to assess Basel III’s impact on banks. We have just finished year one of the five year phase in of Basel III. As many of you are well aware, when the Federal Reserve Board approved the Basel III Regulatory Capital and… Continue Reading
CFPB Proposes Additional Restrictions for Mortgage Servicers
Posted in CFPB, Mortgage Servicing, Regulatory DevelopmentsOn November 20, 2014, the CFPB proposed several amendments to the mortgage servicing rules under Regulation X and Regulation Z, after previously implementing amendments to these regulations in January, 2014. As previously described in this blog, the prior amendments addressed 9 key areas and included rules governing the transfer of servicing between servicers. The new… Continue Reading
CFPB Pursuing Mortgage Servicers with UDAAP
Posted in CFPB, Mortgage Servicing, Regulatory Developments, UDAAPOn September 29, 2014, the CFPB took action against Flagstar Bank for violating the CFPB’s new mortgage servicing rules by “illegally blocking borrowers’ attempts to save their homes.” The CFPB focused on the Flagstar’s actions from 2011 to present and found that Flagstar failed to devote sufficient resources to administering loss mitigation programs for distressed… Continue Reading
CFPB: Big Changes to the Mortgage Servicing Rules
Posted in CFPB, Mortgage Servicing, Regulatory Developments, TILA/RESPAOn October 22, 2014, the CFPB finalized amendments granting nonprofit small servicers an exemption from new mortgage servicing rules. These mortgage servicing rules are part of several rules regulating mortgages, including the Ability-to-Repay rules, that went into effect on January 10, 2014. The servicing related changes impacts nine key areas: Periodic billing statements Interest rate… Continue Reading
Welcome to Bank Law Monitor: A Legal Blog for the Financial Services Industry
Posted in Auto Finance, CFPB, Compliance Resources, Credit Cards, Debt Collection, Marijuana, Mortgage Servicing, Overdrafts, Regulation AB, Regulatory Developments, TILA/RESPA, Trending News, UDAAPWelcome! Graham & Dunn’s Financial Services team is pleased to announce the launch of Bank Law Monitor, a legal blog for the financial services industry. Bank Law Monitor will analyze regulatory developments, report on significant news and market trends, and monitor upcoming regulatory changes that impact the financial services industry. Our goal is to help… Continue Reading
CFPB Jurisdiction: Continued Expansion via Its Consumer Protection Mandate
Posted in Auto Finance, CFPB, Credit Cards, Debt Collection, Mortgage ServicingThe CFPB has exclusive supervisory authority over depository institutions that have assets totaling more than $10 billion dollars. For these depository institutions, the CFPB is the primary rule maker and enforcer of consumer protection laws applicable to these institutions. For depository institutions that have $10 billion or less in total assets, the Federal Reserve Board… Continue Reading