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Mortgage and Home Equity
Mortgage and home equity products have received increased regulatory and legislative scrutiny over the past few years. Historically, CBA has focused on home equity as a major retail product of our members. However, the Dodd-Frank Act’s elimination of federal preemption standards previously afforded to operational subsidiaries has forced many depository institutions to internalize their primary mortgage products, making them a more traditional retail issue. CBA is focused primarily on the efforts of the CFPB to regulate in this space, including TILA-RESPA reform, Qualified Mortgage (QM) rulemaking, and Dodd-Frank Title 14 rulemaking.
- March 24, 2017On Friday, March 24, 2017, the CFPB released a proposal to amend Regulation B to provide additional flexibility for mortgage lenders concerning the collection of consumer demographic information, while supporting the industry’s ability to use consistent forms and practices. The CFPB believes this will help the mortgage industry as it works to adopt new application forms, including the revised...March 24, 2017On Friday, March 24, 2017, the Office of the Comptroller of the Currency (OCC) reported overall performance of first-lien mortgages continues to improve, and the number of loans in delinquency continues to decline. The OCC report , OCC Mortgage Metrics Report, Fourth Quarter 2016, showed 94.7 percent of mortgages were current and performing at the end of the quarter, compared with 94.1 percent a...March 15, 2017On Wednesday, March 15, 2017, the CFPB ordered Nationstar Mortgage LLC to pay a $1.75 million civil penalty for violating HMDA by consistently failing to report accurate data about mortgage transactions in 2012 through 2014. Nationstar, a nationwide nonbank mortgage lender headquartered in Coppell, TX, is a wholly-owned subsidiary of Nationstar Mortgage Holdings Inc. With nearly three million...February 8, 2017On Wednesday, February 8, 2017, the CFPB released its monthly complaint snapshot highlighting consumer complaints about mortgages. The snapshot shows consumers continue to report experiencing problems with mortgage servicers, specifically when making mortgage payments. As of January 1, 2017, the CFPB handled approximately 260,500 mortgage-related complaints. Some complaints involved funds being...January 31, 2017On Tuesday, January 31, 2017, the CFPB took action against Prospect Mortgage, LLC, for allegedly paying illegal kickbacks for mortgage business referrals. The CFPB also took action against two real estate brokers and a mortgage servicer who allegedly took illegal kickbacks from Prospect. Under the terms of the consent order, Prospect will pay a $3.5 million civil penalty for its illegal conduct,...January 23, 2017On Monday, January 23, 2017, the Bureau took separate actions against Citi Financial Servicing and Citi Mortgage for allegedly not informing borrowers about their options to avoid foreclosure and asking consumers to complete excessive paperwork for foreclosure relief. Specifically the CFPB claims Citi Financial: Kept consumers “in the dark” about foreclosure relief options; Misled consumers about...January 5, 2017On Thursday, January 5, 2017, the OCC issued its Fall Semiannual Risk Perspective , covering January to June of 2016. As in past reports, strategic, credit, operational and compliance risk were top concerns. However, leveraged lending – a top concern in the past – has diminished in focus, while governance over sales practices rose to the level of a key risk area. Key findings include: Strategic...December 7, 2016On Wednesday, December 7, 2016, the CFPB took action against three reverse mortgage companies for alleged deceptive advertisements, such as claiming that consumers could not lose their homes. The Bureau ordered American Advisors Group, Reverse Mortgage Solutions, and Aegean Financial to cease deceptive advertising practices, implement systems to ensure they are complying with all laws, and pay...December 1, 2016CFPB Releases Small Entity Compliance Guide for Mortgage Servicing On Thursday, December 1, 2016, the CFPB issued an updated Mortgage Servicing Small Entity Compliance Guide on Mortgage Servicing, incorporating recent changes made to the Mortgage Servicing Rule. The amended Rule will be effective October 19, 2017; however, the provisions relating to successors in interest and periodic statements...October 31, 2016On Monday, October 31, 2016, the CFPB released the 13th edition of its Supervisory Highlights . The report revealed, during the review period, recent confidential supervisory resolution resulted in restitution to over 225,000 consumers totaling approximately $11.3 million. Additionally, the CFPB stated its supervisory activities have either led to or supported two recent public enforcement...