Posts on mortgage compliance and industry regulation including TRID, HMDA, and MERS.
Everyone is well aware of the requirements of the new TRID rules and the related challenges in issuing the new forms, accurately and timely. There are some serious concerns in the Secondary Markets that minor issues, like fees not placed in the proper order, decimal places not carried out correctly, and/or misspellings on documents, along with missed timing of disclosure…
USDA Rural Development has recently introduced a new security role of “Lender Agent” to their participating lenders. This new role will enable lenders to provide Guaranteed Underwriting System (GUS) access to third party agents such as mortgage brokers and/or correspondent lenders. The USDA’s GUS was updated on December 9, 2015 to help facilitate this new functionality. Once officially designated as…
As Private Gomer Pyle would say to Sargent Carter, “Surprise, surprise, surprise!” It shouldn’t be a big surprise to mortgage lenders that one of the CFPB’s top priorities when performing audits in 2016 will be to carefully review and analyze all LO compensation plans (CFPB Audits). This has been an ongoing concern of the CFPB. They want to ensure that…
In the past, we’ve heard and read about Lenders being fined and penalized for violations which relate to their LO compensation plan and/or for some method that they pay their loan originators. Based on recent DOJ settlements with FHA lenders, problems may also arise resulting from FHA Underwriter comp plans. In the case of Franklin American Mortgage, of Franklin, TN,…
HUD/FHA announced that their FHA maximum mortgage limits will remain the same in 2016, in a press release dated December 9, 2015. There will be no change in the national loan limit “ceiling” of $625,500 or the “floor” of $271,050. This announcement will end all speculation that the FHA ceiling and/or floor would be increasing due to rising home prices…
Should a lender ask an FHA loan applicant the nature of their disability and how long they expect to be receiving any benefits? Be careful. A Michigan lender had to enter into an agreement with HUD to settle alleged discrimination against an applicant with a disability. Under this agreement the lender, Mortgage One, is required to make a monetary settlement…
