Compliance & Regulation

The Supreme Court late this week ruled that federal regulators cannot use RESPA as a price-setting statute to deter lenders and other settlement service providers from charging excessive fees or even “unearned” or bogus fees for which no service is provided.

Fannie Mae hopes to banish banks from any involvement in the purchase of force-placed insurance under a plan to lower the cost of the product.

What if flat fee loan officer/mortgage banker compensation prevails?

Key senators signaled guarded optimism Thursday about the chances of finding a bipartisan compromise on mortgage refinancing legislation, though the bill still faces an uphill fight in the House.

The CFPB surprised many when its proposals announced earlier this month contained a provision to eliminate certain critical differences between brokers and creditors concerning the compensation of loan officers. This may not, however, be as significant for brokers as it may first appear.

With more effective outreach to municipalities and better internal processes, servicers can minimize their risks of code violations and stiff penalties, and build stronger relationships with code enforcement departments to protect the condition and value of properties in their portfolios.

The Senate late this week passed a 60-day extension of the flood insurance program, preventing a shutdown of coverage by the beginning of June.

As the Litigation Compliance Law Center explained during a May 10 webinar, it was offering to pay finders' fees to mortgage brokers for recruiting homeowners who themselves paid a $5,000 up-front "retainer" to affiliated attorneys.

The Consumer Financial Protection Bureau outlined procedures Thursday for notifying nonbanks that they may be subject to supervision if they pose a risk to consumers.

Up to 90% of the borrowers underwater are current and continue to pay their mortgage on time.