There is no level of risk too small to be concerned with in RESPA.
Generally, advertising cost should be split pro rata based upon the amount of advertising space each party use under the Real Estate Settlement Procedures Act, but more complicated issues arise.
Lenders should adhere to all requisite pre-foreclosure loss mitigation measures for HUD loans.
While the lawsuit may not succeed, lenders should carefully evaluate adherence to required loss mitigation procedures on Department of Housing and Urban Development loans.

"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.
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