Mortgage Compliance

CFPB Expresses Pleasure With Lender Performance

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cfpb-peggy-twohig-mba-regulatory-conferenceSpeaking at MBA’s Legal and Regulatory Conference in Washington, DC, Peggy Twohig, CFPB’s Assistant Director, said that the CFPB is generally pleased with what lenders have done to comply with the new Dodd-Frank rules. Interestingly, she mentioned ability to repay and LO comp, but not TRID. I guess it’s a little too soon to tell.

With some exceptions, they also found through their examinations that lenders are not violating unfair and deceptive practices when originating loans. It’s kind of a left-handed compliment to those lenders who having been doing business the right way all along. It’s as if they expected to find numerous violations.

Maybe, I’m just being defensive. However, just because I’m paranoid, doesn’t mean that someone isn’t out to get me.

Ms. Twohig’s statement, “We now have the regulatory structure and oversight in place that will be better for consumers and the mortgage industry in the long run,” gives me pause for concern. Is she saying that now with big brother watching, lenders will stay in line? Oops, there goes my paranoia again…

With all that lenders were hit with after the crash, they came out still standing tall and doing the right thing; but not without a lot of pain and expense. However, there’s still more to come. We haven’t gone through the TRID exams yet and are looking down the barrel of increased HMDA reporting requirements. Who knows what lurks is those shadows?

Regardless, Lenders will keep doing what they do best; servicing the consumers by providing and delivering financing to needy homebuyers and in servicing their loans. They are a resilient and innovative group and the consumers, the country, and our economy are all better off for it.

Unfortunately, it looks as though there are still some challenges on the horizon from CFPB and from HUD and DOJ. Read the rest of the story. (FHA Concerns)

For now Lender’s, take a bow. According to CFPB, so far you’re passing the tests.

Michael Vitali

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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Michael Vitali

About Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.
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