The general perception in the mortgage industry is that the CFPB and their new regulations are like an albatross around the necks of mortgage companies, especially the smaller independents.
Under the Consumer Financial Protection Bureau plan, lenders would need to respond to virtually every public complaint even those by consumers, disgruntled employees, and competitors that abuse this forum.
A Supreme Court ruling overturning circuit court rulings in D.R. Horton Inc. v. the National Labor Relations Board is in question. This affects the enforceability of class waiver arbitration agreements.
Loan officers have traditionally been on an island with borrowers, with little management involvement in an originators communications with clients. Increasingly, lenders need to think about systems and/or protocols to ensure that such communications are handled properly.
Unless the industry is content to be a boutique player with a hugely smaller pool of potential borrowers, it had better emulate the Fed and ease on down the road.
The CFPB has opened a back door by accusing a lender of engaging in unfair and deceptive acts in connection with originating loans that the borrowers could not "afford."
The GSEs make mortgages? Banks don't? For an economics professor who has made the causes of the housing collapse a central campaign issue, David Brat sure doesn't sweat the details.
The Consumer Financial Protection Bureau recognized a distinction in terms of the treatment of persons working for a company based upon their classification as employees or contractors.
By obtaining a third-party opinion that provides a reasoned analysis supporting borrowers' ability to repay, a lender places itself in a substantially stronger position with respect to subsequent ATR claims.
While lenders do not survey applicants on sexual orientation for their Home Mortgage Disclosure Act reports, a look at the data on same-sex couple applicants is intriguing.
The Consumer Financial Protection Bureau last week quietly issued over $70 million in fines to entities which have been through private settlements without specifying why. Here are some likely causes.
Last month, BMO Harris Bank changed policies on auto lending to pay a flat percentage of the loan amount to auto dealers making loans (sound familiar?).
The mortgage life support provided by the federal government since the crash is ebbing. It will be interesting to see if the industry can breathe on its own now.
Credit card telemarketers allegedly went off script in describing the benefits and charges of credit protection plans to coax consumers into receiving them. The move has implications for loan officers.
What might work better would be clarifying guidance on mortgage insurance premium rules, the meaning of bona fide discount points, and the rules for affiliate compensation.