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Compliance

Agencies and CSBS Issue Guidance Regarding HELOCs

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Four federal financial institutions regulatory agencies and the Conference of State Bank Supervisors (CSBS) have jointly issued guidance to financial institutions regarding home equity lines of credit (HELOCs) nearing their "end-of-draw" periods, which occurs when the principal amount of the HELOC must begin to be repaid. The guidance encourages financial institutions to effectively communicate with borrowers about the pending reset and provides broad principles for managing risk as HELOCs reach their end-of-draw periods.Click to continue

Actual Versus Average Charges

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Question: When may a HUD-1 Settlement Statement include charges for services that will be greater than the actual charge?

Answer: The amount stated in a HUD-1 Settlement Statement for any itemized service may not exceed the amount actually received by the settlement service provider for that specific itemized service, unless the charge is an average charge determined in accordance with Regulation X, the implementing regulation of the Real Estate Settlement Procedures Act (RESPA).Click to continue

We Need More Than e-Closings to Improve the Consumer Closing Experience

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On April 23, I traveled to Washington, D.C. to attend the Consumer Financial Protection Bureau (CFPB) Forum on the mortgage closing process. The build-up to this event came on the heels of the open public comment period the Bureau established for consumers and industry participants to offer personal experiences, ideas, suggestions and comments about the residential mortgage closing process. The sum and substance of the open comment period was reviewed, edited and compiled into a CFPB Report entitled: “Mortgage Closings Today.”Click to continue

Are Third-Party-Paid Fees Included in High-Cost Determinations?

More than a month after the January 2014 implementation date of the Dodd-Frank Act’s rules, many in the industry still have questions about how fees and charges paid by a third-party (a third-party is a party other than the lender and the borrower), including the seller, should be treated for the purposes of calculating Section 32 and Qualified Mortgage (QM) total points and fees.Click to continue

HUD Dishes Out More Than $24,000 in Fines for Discriminatory Condo Listings

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The U.S. Department of Housing and Urban Development (HUD) has announced a Conciliation Agreement between the Connecticut Fair Housing Center (CFHC) and respondents Lil-1 Associates, AllPoints Realty and realtor Lillian Polak. The real estate companies will pay more than $24,000 to settle allegations that they published discriminatory listings and advertisements for condominiums specifying that children were not permitted.Click to continue

MBS Issue Lands Former Credit Suisse Manager Behind Bars

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Preet Bharara, the U.S. Attorney for the Southern District of New York, announced that David Higgs, a former managing director in the Investment Banking Division of Credit Suisse Group, was sentenced to time served in connection with a scheme to hide more than $100 million in losses in a mortgage-backed securities (MBS) trading book at Credit Suisse. On February 1, 2012, HIGGS pled guilty, pursuant to a cooperation agreement, to the offense of conspiracy to falsify the books and records of the bank.Click to continue

GSEs Complete Nearly 3.2 Million Foreclosure Prevention Actions Through Q1

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Fannie Mae and Freddie Mac have completed nearly 3.2 million foreclosure prevention actions since the start of the conservatorships in 2008, with approximately 88,800 actions occurring in the first quarter. These measures have helped more than 2.6 million borrowers stay in their homes, including 1.6 million who received permanent loan modifications.Click to continue

Senate Banking Committee Approves Castro as Next HUD Head

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The U.S. Senate Banking Committee has approved the nomination of San Antonio Mayor Julian Castro as next head of the U.S. Department of Housing & Urban Development (HUD) by a 16-6 vote on Wednesday.Click to continue