Links in “Mortgage Lending”

JPMorgan Chase and Wells Fargo will both be paying fines ($35.7 million total) for illegal mortgage kickbacks. This should “…serve as a warning for those in the mortgage market” according to Cordray. [1/23/15]

There is nothing new about the RESPA Section 8 prohibition against the payment of kickbacks for referrals of mortgage settlement services. However, if you factor in greed, you have the reason why these violations continue to occur. JPMorgan Chase and Wells Fargo will now be paying $35.7 million in penalties for a kickback scheme under which a title company paid loan officers cash and provided free marketing services in exchange for referrals. [1/23/15]

Quarterly survey of bank risk officers finds that while the job picture is improving, wage growth isn't keeping pace, which could lead to people getting overextended on credit cards and higher delinquency rates. Here is their forecast for credit cards, student loans, and housing loans. [1/22/15]

The CFPB has finalized two minor changes to the "Know Before You Owe" mortgage disclosure requirements. Director Richard Cordray emphasizes that these changes will "make it easier for creditors," while also protecting consumers. [1/21/15]

Despite a flat real estate market and declining first-time home buyer applications, more consumers sought mortgages from credit unions in 2014 than at any time in the past. The recent decline in the FHA insurance premium rates and credit unions’ willingness to work with less-qualified applicants could position them to continue to do very well in 2015. [1/19/15]

More on the CFPB's findings that nearly half of consumers do not shop among multiple lenders before applying for a home loan. The bureau has launched a new site called "Owning a Home Toolkit." Also, here's Bloomberg's Businessweek take on the matter. [1/16/15]

Continuing the recent attention it has given to shopping for mortgages, the CFPB has created a five-step consumer guide to "navigate the market, ask the questions, and take the steps that will help" consumers in finding the best mortgage possible. [1/16/15]

Lenders wishing to cancel case numbers for loans in process pursuant to Mortgagee Letter 2015-01. Critical update on FHA's New MIP Cancellation Procedures. [1/14/15]

CFPB Director Richard Cordray gave an address highlighting the past and present mortgage situations in the United States. Additionally, he discussed several impacts of the CFPB's recent report related to a lack of shopping around in the mortgage market. [1/14/15]

The Truth in Lending Act affords homeowners the right to rescind a mortgage for up to three years from consummation of the loan if material mortgage disclosures were inaccurate or not provided. At issue was whether the homeowner needed to simply notify the lender in writing of his/her desire to rescind, or if the homeowner was required to actually file suit within the three-year window. The Supreme court reversed lower court decisions and held that written notice was all that was required to exercise this right. [1/14/15]