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Dodd-Frank Act

Community Banks Struggle Against Regulatory Burdens

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Community banks did not cause the housing bubble, but they were nonetheless grouped with all lenders into absorbing the post-2008 regulatory burden placed on financial institutions by the Dodd-Frank Act and the Consumer Financial Protection Bureau (CFPB). And while the compliance requirements have taken a financial toll on these smaller institutions, they nonetheless persevere in pursuit of residential mortgage originations.Click to continue

Top Mortgage Executives Sound Off on the State of the Industry

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This is the 12th time since 2008 that the Mortgage Bankers Association (MBA) Conference Survey Report & Scorecard survey of senior mortgage banking executives has been conducted and distributed. It is completed twice annually, at the MBA’s National Secondary Market Conference in May and at the MBA’s Annual Convention in October.Click to continue

CFPB Cautions Mortgage Brokers When Transitioning to Mini-Correspondent Lenders

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The Consumer Financial Protection Bureau (CFPB) recently issued supervisory and enforcement guidance regarding concerns that some mortgage brokers may be transitioning, or restructuring their business, to a mini-correspondent lender model under the belief that doing so would automatically alter or exempt them from important consumer protections affecting mortgage broker compensation.Click to continue

Loan Officer Compensation Based on Referral Sources

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Question: Can an MLO be paid different compensation for “Self-Sourced” referrals (i.e., originated loans that the MLO obtained through his or her own relationships) and “Company-Sourced” referrals (i.e., originated loans from a source in which the company or an employee of the company other than the MLO has a relationship, such as loans sourced through lead agreements, market servicing agreements or joint marketing agreements)?Click to continue

The Interaction of Best Practices, Vetting and Insurance as the Ultimate Vendor Management Solution

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In July, the Consumer Financial Protection Bureau (CFPB) entered into the first consent order affecting third-party service provider violations. ACE Cash Express Inc., a payday lender, agreed to pay $10 million to settle allegations of improper debt-collection activities.Click to continue

Regulators Target AMCs With Joint Proposed Rule

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A new regulation is slated to be implemented on appraisal management companies (AMCs) would be subject if, in a given year, it oversees an appraiser panel of more than 15 state-certified or state-licensed appraisers in a state, or 25 or more state-certified or state-licensed appraisers in two or more states.Click to continue

The Enforcement Powers of the Consumer Financial Protection Bureau

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For several months, the Consumer Financial Protection Bureau (CFPB or “Bureau”) has implemented a spate of enforcement actions against banks and non-banks. My interest in this article is neither to re-litigate those cases nor single out any particular financial institution for further scrutiny. Sometimes we must learn our lessons at somebody else’s expense, rather than to castigate another for unseemly conduct. None of us, however, is absolved of the responsibilities, the violations of which could lead to enforcement actions against us or the financial institution where we are employed.Click to continue

Combining Valuation Technology With Data Analytics Takes Appraisals to New Heights

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Most lenders understand that having a sound collateral risk program is essential component of sound credit administration and is mandated by the Dodd-Frank Act. However, there are many aspects that may be overlooked in the actual implementation. For example, reviewing appraisals and evaluations thoroughly before engaging in a loan transaction is critical exercise. This process ensures the value conclusion is reliable and enables informed credit decisions, minimal credit risk, and compliance to supervisory requirements.Click to continue