First Tennessee Bank will end up paying $212.5 million to settle allegations that they originated and delivered FHA insured loans that did not meet FHA eligibility (Fined). The settlement was brought about by an action by HUD and DOJ against First Tennessee under the False Claims Act. Interestingly, First Tennessee admitted that they had knowingly certified loans for the FHA…
As part of the upcoming TRID changes, when providing a consumer with the new Loan Estimate a Broker, Bank or Lender must also provide a new settlement information booklet known as “Your home loan toolkit” (Toolkit). CFPB has updated the Settlement Cost Booklet to provide a consumer with more information to help them make better choices about their mortgage, with…
Is it a grace period or not? That is the big question surrounding the very recent CFPB letter on post TRID implementation enforcement actions. Although CFPB has announced it will be sensitive to lenders that make a “good faith” effort to comply with the new rules, they do not go as far as to say there will be no enforcement…
Provident Funding Associates, a major California-based wholesale lender, recently settled with the Consumer Financial Protection Bureau and the Department of Justice to the tune of $9 million. The settlement was not for any violations made by Provident, but for lending discrimination by Brokers who originated loans for Provident. The discrimination came about in the form of higher rates being charged to…
The Financial Regulatory Improvement Act of 2015 sponsored by Senator Richard Shelby, R-AL, was recently passed out of the Senate Banking Committee, chaired by non-other than Senator Shelby, himself. This is the first step in the long journey toward full passage of the Bill by the Senate and then the House. Will it make it? If so, will it be…
With rents on the rise in many areas, are renters looking to make to move to homeownership? Not so, according to a study commissioned by Freddie Mac (Study). In the past, many consumers rented a home or apartment until they could save enough money, and have sufficient income, to afford to buy a home. That is the American Dream. Is…
