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.
Lenders need to take the initiative to analyze their Home Mortgage Disclosure Act data before the Consumer Financial Protection Bureau does.
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.
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.
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.