Posts on mortgage compliance and industry regulation including TRID, HMDA, and MERS.
This goes under the “Are you kidding me?” category. CFPB has filed an order for RPM Mortgage, a California lender, to pay $19 million dollars in fines; $18 million as rebates to harmed consumers and $1 million in civil money penalties. They also ordered RPM’s CEO, Erwin Robert Hirt, to personally pay an additional $1 Million civil penalty. The total…
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…
Attention: Lenders, FHA Borrowers, and DE Underwriters Much publicity has been generated recently on several major lawsuits filed by the Department of Justice (DOJ) based on allegations that certain lenders violated the False Claims Act by knowingly submitting improperly underwritten loans to HUD/FHA for mortgage insurance. The most recent case involves Quicken Loans who has decided to sue DOJ and…
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…
In honor of David Letterman’s recent departure from television, I have compiled a Top Ten list of concerning policies in HUD/FHA’s draft 4000.1 Handbook. Number 10: The Mortgagee must re-verify, in writing or electronically if available, employment, income, assets, gift funds, source of funds and mortgage or rental payments as part of a pre-closing (or pre-funding) review. (Page 506) Although…
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…
