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Compliance

CFPB Offers Clarification on Heirs Losing Homes

Keys_to_Homeownership/Credit: Creatas Images

The Consumer Financial Protection Bureau (CFPB) is issuing an interpretive rule to clarify that when a borrower dies, the name of the borrower’s heir generally may be added to the mortgage without triggering the Bureau’s Ability-to-Repay (ATR) rule. This clarification will help surviving family members who acquire title to a property to take over their loved one’s mortgage, and to be considered for a loan workout, if necessary, to keep their home.Click to continue

The Insured Closing Letter is Obsolete

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A recent panel on fraud issues I attended included a healthy debate about the extent to which a lender can rely on the insured closing letter as a means to offset risk at the closing table.Click to continue

Will SCOTUS Take Up Spokeo v. Robins and Address the No Harm, No Foul Claim?

Cherry Red Gavel/Credit: Comstock

Several interested parties, including the National Consumer Reporting Association (NCRA) have filed amicus briefs in the U.S. Supreme Court urging it to hear the case of Spokeo v. Robins and reverse the Ninth Circuit’s conclusion that “the violation of a statutory right” in itself is “a sufficient injury in fact to confer standing” under Article III [Robins v.Click to continue

SunTrust Reaches Agreement With Multi-Agency Force on HAMP Issues

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The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), the U.S. Department of Justice, the U.S. Attorney’s Office for the Western District of Virginia, the Federal Housing Finance Agency Office of Inspector General, and the U.S. Postal Inspection Service have announced that a non-prosecution agreement with SunTrust Mortgage Inc. has been reached that resolves a criminal investigation of SunTrust’s administration of the Home Affordable Modification Program (HAMP).Click to continue

PCV Murcor Integrates With Calyx on Appraisal Compliance

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PCV Murcor announced that it will begin offering compliant appraisals through Calyx Software’s Point loan origination system. Integrating the two systems enables Calyx Point users to quickly and securely order and track appraisals from PCV Murcor through the existing Calyx Point interface. The availability of this service will increase efficiency by simplifying the ordering and delivery process while helping lenders of all sizes to obtain the highest levels of valuation compliance.Click to continue

U.S. Bank Reaches $200 Million Settlement With Government for FHA Violations

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U.S. Bank has agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced.Click to continue

FHA Seeking Feedback for Single-Family Handbook

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As part of a broader effort to develop a handbook which will be a single, authoritative source of policy for FHA-approved lenders, the Federal Housing Administration (FHA) posted two new handbook sections on The Drafting Table for feedback. The Handbook is part of FHA’s “Blueprint for Access,” which is intended to make easier for FHA lenders to comply with Single-Family requirements and encourage lending to creditworthy borrowers across the credit spectrum."Click to continue

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