Dykema Gossett PLLC
Dykema Gossett PLLC

Consumer Financial Protection Bureau Law Blog

CFPB Law Blog

News and analysisi of the priorities, initiatives and regulatory actions and proceedings of the Consumer Financial Protection Bureau

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Showing 29 posts in Mortgages.

CFPB Releases Small Entity Compliance Guide for TILA-RESPA Integrated Disclosure Rule

In late March, the Consumer Financial Protection Bureau (CFPB) issued a  Small Entity Compliance Guide (Guide) for the TILA-RESPA Integrated Disclosure Rule (TILA-RESPA Rule). In compliance with Section 212 of the Small Business Regulatory Enforcement Fairness Act of 1996, the CFPB has issued the guide to help small businesses comply with the TILA-RESPA Rule, which is effective August 1, 2015. Read More ›

CFPB Deputy Director Remarks Warn of Harsher Enforcement

Mortgage servicers expecting temperate enforcement of the new mortgage servicing rules received a wake-up call from Consumer Financial Protection Bureau (CFPB) Deputy Director Steven Antonakes during his February 19, 2014 remarks to the Mortgage Bankers Association. Read More ›

CFPB Announces Potential Changes in Home Mortgage Disclosure Act Data Collection

On February 7, 2014, the Consumer Financial Protection Bureau (CFPB) announced that it will consider changes to improve data collection under the Home Mortgage Disclosure Act (HMDA), which was enacted in 1975 to gather information on whether financial institutions were serving the housing needs of their communities and providing access to residential mortgage credit. Read More ›

New CFPB Guidance on Higher-Priced Mortgage Loan Appraisal Rules under the Truth in Lending Act

On December 12, 2013, six federal financial regulatory agencies (the Federal Reserve, CFPB, FDIC, FHFA, NCUA, and OCC) issued a final rule amending the Dodd-Frank Act appraisal requirements for “higher-risk” mortgages to create exemptions from appraisal requirements for manufactured homes; loans of $25,000 or less (indexed each year for inflation); and certain “streamlined” refinancing transactions.  These exemptions are just in time, as the Higher-Priced Mortgage Loan (or HPML) Appraisal Rules under the Truth in Lending Act take effect on January 18, 2014.    Read More ›

CFPB Closes Door on Captive Mortgage Reinsurance Arrangements

On November 15, 2013, the CFPB filed a complaint and a proposed consent judgment against Republic Mortgage Insurance Corporation (RMIC).  The complaint alleges that RMIC violated section 8 of the Real Estate Settlement Procedures Act (RESPA) by obtaining illegal kickbacks from RMIC’s lenders.  The violation allegedly occurred when RMIC entered into captive mortgage reinsurance arrangements with its lenders.  The proposed consent judgment would require RMIC to pay $100,000 in penalties; to end its practice of entering into captive mortgage reinsurance arrangements; and to be subject to monitoring by the CFPB.  Read More ›

CFPB Publishes New Mortgage Disclosure Forms

On November 20, 2013, the Consumer Financial Protection Bureau (CFPB) issued a 1,887 page rule requiring mortgage lenders to use two new disclosures when making mortgage loans to consumers.  The new forms are a "Loan Estimate," which replaces the preliminary Truth-in-Lending Disclosure Statement and Good Faith Estimate, and a "Closing Disclosure," which replaces the final Truth-in-Lending Disclosure Statement and HUD-1 Settlement Statement.  Mortgage lenders must use the new forms by August 1, 2015. Read More ›

Mortgage Lender Agrees to Repay Consumers and Pay Fines for Allegedly Steering Consumers into Higher-Rate Mortgages

Castle & Cooke Mortgage (Company), LLC, its president, and a senior vice president have agreed to pay more than $13 million dollars in restitution and fines in connection with a lawsuit filed by the Consumer Financial Protection Bureau (CFPB). In July, the CFPB filed the lawsuit in a Utah federal court alleging that the company, Matthew Pineda, its president, and Buck Hawkins, a senior vice president, had violated consumer protection laws by paying bonuses to loan officers who placed consumers with mortgage loans that had higher interest rates. Read More ›

Reverse Mortgage Rule re. Surviving Spouses Remanded to HUD

In Bennett v. Donovan, three plaintiffs brought suit against the Secretary of the Department of Housing and Urban Development (HUD) alleging that regulations implementing the Home Equity Conversion Mortgage (HECM) program violated the Administrative Procedure Act (APA).  Read More ›

CFPB Files First Action Over Loan Origination Compensation: The CFPB Does Not Like Unwritten Policies

Yesterday (7/23/13), the CFPB filed its first action based on violations of “Compensation Rule” under Regulation Z, 12 C.F.R. § 1026.36(d)(1)(i), and the Consumer Financial Protection Act, 12 U.S.C. § 5536(a)(1)(A), (CFPA). The complaint alleges that Castle & Cooke Mortgage LLC, and two of its officers, “recklessly or knowingly paid quarterly bonuses” to loan officers “who steered consumers into mortgages with higher interest rates” in violation of the Compensation Rule. The Compensation Rule prohibits the payment of any type of compensation “based on any of the transaction’s terms or conditions.” The CFPB claims that the defendants had an unwritten policy of paying quarterly bonuses to loan officers based on an unwritten formula that rewarded the origination of loans with high interest rates. The CFPB believes that more than 1,100 bonuses were paid to originators under this system, which could result in civil penalties ranging from $5,000 per violation, up to $25,000 for reckless violations, and up to $1,000,000 for knowing violations. In addition to be being the CFPB’s first action over alleged violations of the Compensation Rule, the action is significant for two other reasons, which should be of concern to financial institutions. Read More ›

CFPB Validates Uniform State Test for Mortgage Loan Originators For SAFE Act

On May 20, 2013, the CFPB validated the use of a Uniform State Test (UST) for mortgage origination licensing under the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). Under the SAFE Act, Mortgage Loan Originators (MLO) must pass a “qualified written test” that examines an applicant on ethics and federal and state laws regarding mortgage origination, fraud, consumer protection and fair lending issues. By validating the use of a UST, as opposed to requiring MLOs to pass a separate examination for each state that they wished to be licensed in, the CFPB removed any doubt that the UST is a good mechanism for leveling the playing field between licensed and registered mortgage loan originators. Read More ›