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Compliance

CFPB Fines Texas-Based Firm for FCRA Violations

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The Consumer Financial Protection Bureau (CFPB) has taken action against an auto finance company that distorted consumer credit records for years. Texas-based First Investors Financial Services Group Inc., which lends primarily to sub-prime borrowers, failed to fix known flaws in a computer system that was providing inaccurate information to credit reporting agencies. This potentially harmed tens of thousands of its customers.Click to continue

FHA’s Bailout on the Backs of Buyers Begins to Fail: The Administration Takes Action

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In the June 2013 issue of National Mortgage Professional Magazine, I penned an article entitled “FHA Continues to Bail Itself Out on the Shoulders of New Borrowers.” In this piece, I discussed the fact that FHA’s decision at that time to raise mortgage insurance premiums (MIPs) was effectively forcing new FHA borrowers to bail FHA out from the poor loans of years past.Click to continue

Consumer Direct Title Insurance: A Wake Up Call for Title Agents?

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A few columns ago, I discussed how the initial negative reaction to vendor management and independent vetting of title agents was short-sighted. That vetting established a form of new credential that agents could use to set themselves apart from the pack.

At that time, I commented about how the major underwriters seemed to be growing their direct-managed offices, perhaps to reduce their reliance on contract agents to increase revenue and reduce risk.Click to continue

Four From Dallas Area Sentenced for Roles in $3 Million Mortgage Fraud Scheme

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Four Dallas-area individuals, along with a defendant from Georgia, who were convicted for their roles in a mortgage fraud scheme that caused more than $3 million in losses to lenders, have been sentenced, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas. Jarrod Jamiel Williams, most recently of McKinney, Texas, was sentenced by U.S. District Judge Barbara M. G. Lynn to 87 months in federal prison and ordered to pay approximately $3.6 million in restitution.Click to continue

MISMO Announces Schedule for Residential Data Standard

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The MISMO Residential Standards Governance Committee has announced the schedule for the next two releases of the MISMO Residential Data Standard. Updates to the Standard, which supports data exchange transactions and corporate data models across the residential mortgage lifecycle, are expected to be released for Public Comment in November 2014 and July 2015, respectively. Click to continue

FSR Launches Multimedia Campaign on CFPB Complaint Site

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The Financial Services Roundtable (FSR) has launched a multimedia campaign highlighting a Consumer Financial Protection Bureau (CFPB) plan that may misinform consumers by posting unverified, anonymous and potentially inaccurate complaints about financial services companies on a government Web site. 

"The CFPB's plan will feature only one side of the story, and such one-sided accounts will not advance the CFPB's mission of better informing and helping consumers,” said FSR President and CEO Tim Pawlenty.Click to continue

National MI Appoints New General Counsel

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National Mortgage Insurance Corporation (National MI), a subsidiary of NMI Holdings Inc., has announced the appointment of William “Bill” Leatherberry as general counsel. Leatherberry comes to National MI from Century Aluminum, a publicly-traded primary aluminum company with over $1.5 billion in revenues, where he served as executive vice president, chief legal officer, general counsel and secretary. Leatherberry joined Century in January 2005.Click to continue

Secure Settlements Announces Strategic Venture With CIS Information Services

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Secure Settlements, Inc. (SSI) announced that it has concluded a strategic joint venture agreement with CIS Information Services (CIS), a credit reporting and business risk assessment firm to streamline and enhance the SSI’s suite of vendor management and risk monitoring products and services.Click to continue

Homeownership Counseling and Cessation of the “Temporary Disclosure”

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Question: We are a lender that recently received a notice from one of our investors, advising that there is a “new” Homeownership Counseling requirement with respect to applications dated on or after Aug. 1, 2014, related to providing a complete list of HUD-approved housing counseling agencies to applicants. What new requirement is the investor referring to? What must we include in our disclosures to the applicant in order to be in compliance? Additionally, are we required to have the applicant sign an acknowledgement of receipt of the disclosure? Click to continue