Compliance & Regulation

The red pens have come out as members of the real estate industry start to critique the Consumer Financial Protection Bureau's new mortgage shopping toolkit less than a day after its release.

The chance to earn higher compensation and the ability to offer more mortgage products is causing a growing number of loan officers to go out on their own.

All areas identified by the CFPB in its supervisory report have particular relevance to the mortgage industry, and lenders should review their compliance with the large-scale subject matter areas that the CFPB is committed to enforcing.

The bill would require written contract amendments, signed by the lender, for most loans. Legislators took up the issue after a judge in the state sided with a borrower's claim of having an oral agreement from Bank of America to modify a mortgage.

Wells Fargo's quality-control procedures will play a key role in a closely watched mortgage-fraud case that could go to trial this summer. Federal prosecutors are using the bank's internal reports to allege its executives knew about deficient loans.

Ahead of the August deadline for lenders to provide new Loan Estimate and Closing Disclosure forms, the Consumer Financial Protection Bureau unveiled a new mortgage shopping toolkit Tuesday.

HSBC Holdings defeated New York's lawsuit alleging its paperwork delays put property owners in foreclosure at an increased risk of losing their homes.

The mortgage application and closing process is once again facing an overhaul. The Consumer Financial Protection Bureau will soon require lenders to provide customers with integrated disclosure forms, which aim to clarify costs associated with real estate transactions. As with any new process, the switch poses a number of challenges for lenders — and could even put business at risk during implementation. Here are five pitfalls to look out for in the process.

Forcing lenders to fund upgrades for HUD through the proposed administrative fee would set a dangerous precedent, essentially taxing the very borrowers they are intending to serve.

The technology, still in its early development stages, will analyze Home Mortgage Disclosure Act files prior to formal submission to the regulator so lenders can spot and fix errors faster.