Members of the K&L Gates Consumer Financial Services Group will speak on key topics at the upcoming MBA Legal Issues and Regulatory Compliance Conference in Boca Raton, FL (May 19-22). Melanie Brody will discuss a topic on everyone’s radar — fair lending and disparate impact — on Tuesday morning (May 21) , with a repeat… Continue Reading
Category Archives: Mortgage Lending
Subscribe to Mortgage Lending RSS FeedNMLS Advance Notice Release
Posted in Mortgage Lending, Mortgage Servicing, Payment SystemsBy: * Stacey L. Riggin
Ms. Riggin is not admitted to the practice of law.
On May 8, 2013, the Conference of State Bank Supervisors published release notes for a June 24, 2013 Nationwide Multistate Licensing System (“NMLS” or the “System”) upgrade which includes, among other changes, an advance filing feature that will permit state licensees to file advance notice of certain business changes electronically through the NMLS.
Uniform State Test – This Is Not a Joke
Posted in Mortgage LendingBy: Costas A. Avrakotos , *Jeffrey Prost , *Robin L. Gieseke Mr. Prost and Ms. Gieseke are not admitted to the practice of law. April Fools’ Day, a day traditionally reserved for pranks, trickery, and funny escapades, is upon us. All joking aside, on this April 1, 2013, the Conference of State Bank Supervisors (“CSBS”) will begin… Continue Reading
CFPB Provides Guidance on Mortgage Servicing Transfers
Posted in Bureau of Consumer Financial Protection (CFPB), Mortgage Lending, Mortgage ServicingBy: Jonathan D. Jaffe , Amanda D. Gossai
The CFPB recently released a Bulletin directed to residential mortgage servicers and subservicers (servicers).
Appraisers’ Customary and Reasonable Fees – Louisiana’s Power Grab
Posted in Appraisals, Mortgage LendingBy: Nanci L. Weissgold , Morey Barnes Yost
A recently proposed Louisiana Real Estate Appraisers Board (“Board”) rule has created uncertainty in the Louisiana appraisal market regarding appraiser compensation.
FHA Announces Upcoming Changes to Strengthen the Mutual Mortgage Insurance Fund
Posted in FHA/VA, Mortgage Lending, Mortgage Servicing, Other Federal Agencies & GSEsBy: Phillip L. Schulman, Krista Cooley
The U.S. Department of Housing and Urban Development’s recently announced that an independent actuarial review of the FHA Mutual Mortgage Insurance (MMI) Fund found that the Fund’s capital reserve ratio has fallen to -1.44%, which represents a negative economic value of $16.3 billion.
FHA and RHS Respond to Hurricane Sandy
Posted in FHA/VA, Mortgage Lending, Mortgage Servicing, Other Federal Agencies & GSEsBy: Holly Spencer Bunting , Kathryn M. Baugher
In the wake of Hurricane Sandy, both the U.S. Department of Housing and Urban Development (“HUD”) and the Rural Housing Service (“RHS”) have issued guidance intended to help homeowners with government insured or guaranteed loans who were affected by the storm.
FHA Issues Annual Financial Report to Congress
Posted in FHA/VA, Mortgage Lending, Mortgage Servicing, Other Federal Agencies & GSEsBy: Phillip L. Schulman, Krista Cooley
On Friday, November 16, 2012, the U.S. Department of Housing and Urban Development released its 2012 Annual Report to Congress and announced that the FHA Mutual Mortgage Insurance (MMI) Fund suffered a $16.3 billion deficit.
CFPB’s Proposed Rule on Receiving a Copy of Your Appraisal and Valuation
Posted in Appraisals, Mortgage LendingBy: Nanci L. Weissgold, Kerri M. Smith Although Congress mandated the sunset of the Home Valuation Code of Conduct (HVCC) in the Dodd-Frank Act, Congress effectively codified many of its requirements, including the obligation to furnish a copy of an appraisal to borrowers. To implement this statutory change to ECOA, the CFPB proposes to amend… Continue Reading
CFPB Proposes Regulations to Combine RESPA and TILA Mortgage Disclosures: Buckle Up for the Long-Anticipated Ride
Posted in Bureau of Consumer Financial Protection (CFPB), Mortgage LendingIn one of the most anticipated actions of the Consumer Financial Protection Bureau’s “Know Before You Owe” campaign, on July 9, 2012, the CFPB published 1,099 pages of a proposed regulation to combine mortgage disclosure forms required under the Real Estate Settlement Procedures Act (“RESPA”) and the Truth in Lending Act (“TILA”).
Supreme Court’s No Decision is a Decision in First American v. Edwards
Posted in Litigation & Enforcement Actions, Mortgage LendingBy: Phillip L. Schulman, Emily J. Booth
Must a consumer suffer actual harm to sue the settlement service providers involved in his or her real estate mortgage transaction for engaging in activities that violate the Real Estate Settlement Procedures Act (RESPA), or is the mere allegation of a statutory violation sufficient to get the consumer into court?
DOJ Doubles Down on Disparate Impact, Settles Discriminatory Pricing Case with SunTrust Mortgage
Posted in Fair Lending/Anti-Discrimination, Litigation & Enforcement Actions, Mortgage LendingBy: Melanie Hibbs Brody, David G. McDonough, Jr.
The Department of Justice recently announced a $21 million settlement with SunTrust Mortgage over allegations that SunTrust’s neutral and non-discriminatory policy of granting loan originators discretionary pricing authority somehow resulted in loans to minority borrowers to be priced higher than loans to White borrowers
U.S. Supreme Court Ends the RESPA Section 8(b) Debate: It Takes Two to Tango
Posted in Bureau of Consumer Financial Protection (CFPB), Litigation & Enforcement Actions, Mortgage LendingBy: Holly Spencer Bunting, Phillip L. Schulman
The split in the federal Circuit Courts over the interpretation of Section 8(b) of RESPA has been resolved, and the result is that it takes two to tango for a Section 8(b) violation.
CFPB Proposes Strict Controls on Discount Points, Origination Fees, and Broker Compensation
Posted in Bureau of Consumer Financial Protection (CFPB), Mortgage LendingBy: Kris D. Kully
The Consumer Financial Protection Bureau (CFPB) is considering putting strict limits on a creditor’s ability to price its mortgage loans, and on a consumer’s ability to choose among pricing options.
CFPB Issues First “Bulletin” Regarding TILA’s Loan Originator Compensation Rule
Posted in Bureau of Consumer Financial Protection (CFPB), Mortgage LendingThe CFPB issued its first pronouncement—which it refers to as a Bulletin—regarding the Truth in Lending Act’s (“TILA”) loan originator compensation rule (the “LO Comp Rule”).
New SAFE Act Examination Guidelines for State Regulated Entities: Spring Cleaning May Be Required
Posted in Mortgage LendingThe Multistate Mortgage Committee’s (“MMC”) new SAFE Act Examination Guidelines (“SEGs” or “Guidelines”) leave little doubt that nondepository institutions should expect more detailed and intrusive examinations of their mortgage loan originator (“MLO”) hires and policies by state regulators.
CFPB Plans Small Business Review Panel for Combined RESPA and TILA Disclosures and Hints at Possible Regulatory Changes
Posted in Bureau of Consumer Financial Protection (CFPB), Mortgage LendingIf you are on the edge of your seat waiting for the combined RESPA/TILA proposed regulations and disclosure forms, we have our first glimpse into the changes being contemplated by the Consumer Financial Protection Bureau (“CFPB” or “Bureau”).
FinCEN Extends Anti-Money Laundering Program and Suspicious Activity Reporting Requirements to Non-Bank Residential Mortgage Lenders and Originators
Posted in Mortgage Lending, Mortgage ServicingBy: András P. Teleki, Kathryn S. Williams
Residential mortgage lenders and originators (RMLOs — known as “mortgage companies” and “mortgage brokers” but not individual loan originators) now are subject to the Bank Secrecy Act’s (BSA) anti-money laundering regime pursuant to a long expected new regulation published in the Federal Register on February 14, 2012 by FinCEN, a part of Treasury that implements the U.S.’s anti-money laundering regime.
Freeman v. Quicken Loans to Decide Whether Undivided Unearned Fees Violate RESPA
Posted in Bureau of Consumer Financial Protection (CFPB), Litigation & Enforcement Actions, Mortgage LendingTo split an unearned fee or not to split an unearned fee in order to violate the Real Estate Settlement Procedures Act (RESPA) – that is the question.
Supreme Court Case on Disparate Impact Voluntarily Dismissed – Parties in Magner v. Gallagher Say Never Mind
Posted in Fair Lending/Anti-Discrimination, Mortgage Lending, Other Federal Agencies & GSEsIn a rare and unexpected move, the City of St. Paul last Friday agreed to dismiss its appeal to the U.S. Supreme Court challenging whether a violation under the Fair Housing Act may be proved under a disparate impact legal theory, or whether proof of intentional discrimination is required.
Mortgage Industry Submits Comments on HUD’s Proposed Disparate-Impact Rule under the Fair Housing Act
Posted in Fair Lending/Anti-Discrimination, Mortgage Lending, Other Federal Agencies & GSEsBy: Paul F. Hancock, Andrew C. Glass, Melanie Hibbs Brody, Roger L. Smerage, Melissa S. Malpass, Gregory N. Blase
On January 17, 2012, K&L Gates LLP submitted the comments of six financial services trade associations to the United States Department of Housing and Urban Development (HUD) on the proposed rule to implement a disparate-impact legal standard under the Fair Housing Act.
Freddie Mac’s Refinancing Policy
Posted in Mortgage Lending, Other Federal Agencies & GSEsBy: Kerri M. Smith
NPR and ProPublica charged Freddie Mac with investing in securities that would lose value if homeowners refinanced their mortgages.
No More Mister Nice Guy: Indemnification Now Required by FHA Lender Insurance Regulations
Posted in FHA/VA, Mortgage LendingBy: Phillip L. Schulman, Krista Cooley, Holly Spencer Bunting
FHA mortgagees participating in the Lender Insurance (“LI”) program will be required to indemnify HUD for self-endorsed loans that HUD deems ineligible for FHA insurance based on a final regulation published by the U.S. Department of Housing and Urban Development (“HUD” or “Department”) on January 25, 2012.
FHA’s Lender Insurance Program Will Soon Cost Lenders More Money
Posted in FHA/VA, Mortgage LendingBy: Krista Cooley, Phillip L. Schulman, Holly Spencer Bunting
FHA mortgagees participating in the Lender Insurance (“LI”) program will be required to indemnify HUD for self-endorsed loans that HUD deems ineligible for FHA insurance based on a final regulation to be published by HUD on January 25, 2012.