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Industry Updates: September 2015

Melanie A. Feliciano Esq.
Nov 04, 2015

CFPB reports findings from “Know Before You Owe” eClosing pilot project
On Aug. 5, 2015, the Consumer Financial Protection Bureau (CFPB) issued a report on its eClosing pilot program. The eClosing pilot was a study evaluating the use of electronic records and signatures in the residential mortgage loan process. The four-month long project examined results involving seven lenders, four technology companies (DocMagic Inc., was one of the participants) and about 3,000 consumers.

CFPB issues guidance on cancellation and termination of PMI
On Aug. 4, 2015, the CFPB issued Compliance Bulletin 2015-03 to provide guidance to residential mortgage servicers and sub-servicers in their compliance with the private mortgage insurance (PMI) cancellation and termination provisions of the Homeowners Protection Act of 1998 (HPA). The Bulletin explains the HPA requirements and provides examples from the CFPB's supervisory experience of PMI cancellation and termination procedures that violate the HPA or create a substantial risk of non-compliance.

CFPB publishes Real Estate Professional's Guide
In August, the CFPB published a Real Estate Professional's Guide to assist real estate professionals with understanding the TILA-RESPA Integrated Disclosure (TRID) rule.

Arizona adopts national SAFE MLO test
The Conference of State Bank Supervisors (CSBS) announced on July 29, 2015, that the Arizona Department of Financial Institutions began using the National SAFE Mortgage Loan Originator (MLO) Test with Uniform State content on July 15. This brings the total number of agencies using the nationwide test to 47. Licensed applicants who pass the National SAFE MLO Test need not take any additional state-specific tests to hold a license within the participating 47 states.

Arizona deeds of trust
On March 27, 2015, Arizona enacted Senate Bill 1218, which requires a person recording a deed of trust or mortgage for residential property constructed for at least one family, but not more than four families, to include "residential 1-4" in the caption heading on the first page of each deed of trust or mortgage. According to SB 1218, failure to comply with this requirement does not affect the validity of the deed of trust or mortgage or the validity of the recording thereof. Correspondent lenders should check with their investors to determine whether they will require this caption heading on Arizona deeds of trust.

Melanie A. Feliciano Esq. is DocMagic Inc.’s chief legal officer and currently serves as editor-in-chief of DocMagic’s electronic compliance newsletter, The Compliance Wizard. She received her JD from the Georgetown University Law Center, and is licensed in California and Texas. She may be reached by phone at (800) 649-1362 or e-mail

This article originally appeared in the September 2015 print edition of National Mortgage Professional Magazine. 

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