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Compliance

"Addressing these concerns by providing tighter definitions and clarity should encourage sellers to serve a broader range of qualified borrowers," said Freddie Mac EVP David Lowman.
Fannie Mae and Freddie Mac updated their representation and warranties frameworks in a move designed to encourage mortgage lenders to ease credit restrictions by limiting repurchase requirements.
An automated consumer training technology aims to mitigate compliance risk in loans outside qualified mortgage standards for liability protection.

A company faces a fine because it allegedly improperly paid 32 loan officers. Image: Fotolia.
A fine levied against a relatively small lender shows that capitulating to the demands of staff on matters of lawful loan officer compensation is not a risk worth taking.

Lenders cannot afford to relax when it comes to performing regression analysis and fair lending training, but may find if they have strong compliance that they have more pricing options.

Requiring that a borrower bring a lawsuit to meet a three-year statutory window for preserving rescission rights is "just not the way you would write a dispute resolution provision," Kagan said.
Justices seem to struggle with what rescission actually means in practice and in the Truth-in-Lending Act.

Is the regulator is looking to ban this channel or providing a road map to lenders on how to do things properly?
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