HMDA data provides information regarding home mortgage lending activity, and the proposed CFPB rule appears to significantly expand data reporting requirements for mortgage industry participants.
All employees, including executives, need to be focused on compliance and customer complaints. The Consumer Financial Protection Bureau is specifically concerned when a company does not appropriately monitor third-party vendors.
One thing lenders often overlook is the manner in which potentially isolated compliance problems can in retrospect be weaved into an elaborate and intentional conspiracy.
In about six years, by 2020, one out of three adult Americans will be a Millennial. By 2025, they will make up about 75% of the workforce.
Though there is still a year for mortgage lenders to get in compliance with the Consumer Financial Protection Bureau's document changes, the perils of missing that deadline are considerable.
The overall message that mini-correspondents were intended as transitions, not permanent business models means that the loan channel would be examined for consistency with the intended purpose.
Minority borrowers, as a group, are more likely to use the same lender again and more likely to comment about the experience in social media.
Selling loans into the secondary market was a good strategy for housing finance agencies when rates were falling, but now they are said to be heading back to traditional bond financings to boost their balance sheets.
Lenders need to take the initiative to analyze their Home Mortgage Disclosure Act data before the Consumer Financial Protection Bureau does.
Another roundup of comments on our Editor at Large blog, from the best and brightest to the funniest.
Unlike other regulatory agencies that in many cases looked at form over substance, the Consumer Financial Protection Bureau will ignore structures altogether when it perceives them to be "sham" transactions.
In our work, we've found that lenders who survey customers at the right time will see a significantly higher information return, which can then inform positive changes in the mortgage operation.
The CFPB and other regulators are showing an increasing appetite for big data. The HMDA database may be the biggest in the mortgage business and a preview of the upcoming dataset may give lenders a chance to stay one step ahead of the feds.
The Consumer Financial Protection Bureau requests data that if used too zealously could cause a massive restriction in the market and a reduction in the type and amount of lenders.
New and experienced compliance experts have to learn the nuances of all the new regulations.