Links in “Mortgage Lending”

Mortgage Bankers Association warns its members to take the CFPB's bulletin on marketing services agreements seriously. See also Risk Watch 74. [10/15/15]

Mortgage applications tumbled 27.6% the week after the TILA-RESPA Integrated Disclosure rule took effect. The drop was partially offset by the 25.5% spike in mortgage applications the week before TRID took effect. [10/14/15]

The CFPB has assured leniency with lenders who make a “good faith” effort to comply with TRID, lenders may still face liability from private lawsuits, and are encouraged to implement policies and procedures which ensure compliance. [10/14/15]

A Florida court sides with mortgage servicers in two cases where the homeowners attempted to use RESPA as a shield against foreclosure. In one case, the homeowner argued that the mortgage servicer should not be able to foreclose because it didn't respond to repeated requests for payment history that included a previous financial institution. In the other case, the borrower claims the servicer failed to respond in detail to a borrower's inquiry about why the property was being subjected to drive-by inspections. In both cases, the court found the servicers sufficiently responded. [10/14/15]

The CFPB posted a much anticipated bulletin aimed at providing guidance to the mortgage industry regarding marketing services agreements (MSAs). The bulletin offers an overview of the federal prohibition on mortgage kickbacks and referral fees, and describes examples from the CFPB’s enforcement experience as well as the risks faced by lenders entering into these agreements. The CFPB expresses grave concern over MSAs and issues strong warnings noting the legal and regulatory risk for lenders utilizing MSAs. [10/9/15]

In order to reduce costs and increase the speed of the loss claim process, The Rural Housing Service (RHS) intends to amend rules for the Single Family Housing Guaranteed Loan Program (SFHGLP).  As a result of the amendment, when a Real Estate Owned property (REO) remains unsold by a lender, the lender would be required to order a liquidation value appraisal.  Associated costs would be included in liquidation costs. [10/6/15]

"Realtors are ready for the change," says a president of a regional Realtor Association, citing a national survey that shows more than 80% of all realtors have received training about the new mortgage disclosure rules. [10/1/15]

On October 15, 2015, the Federal Reserve System will host a fair lending webinar. Participating agencies will include NCUA, CFPB, the FDIC, the OCC, the DOJ, the Federal Reserve Board, and the Department of Housing and Urban Development. A wide range of subjects will be discussed, including developments in mortgage lending, compliance management, pricing, and the use of data to evaluate fair lending risk. [9/29/15]

Following the harsh penalties at the hand of the Justice Department for making shoddy FHA loans, many mortgage lenders are abandoning FHA loans, such as JP Morgan Chase, which had 12.2% of the market share two years ago, but only 0.2% at the end of last quarter. [9/29/15]

The CFPB with the Department of Justice (DOJ) announced a joint action against Hudson City Savings Bank for discriminatory redlining practices that denied residents in majority-Black-and-Hispanic neighborhoods fair access to mortgage loans in neighborhoods in New York, New Jersey, Connecticut, and Pennsylvania. The proposed consent order, if upheld, will mandate $25 million in direct loan subsidies, $2.25 million in community programs and outreach, and a $5.5 million penalty. [9/25/15]