In recent years, the industry has seen various types of foreclosure rescue fraud perpetrated against borrowers, lenders, and servicers. One example is a California-based scam that caused losses of more than $2.5 million whereby the scam’s orchestrators recorded fraudulent documents in local courthouses in an effort to “cloud title” and halt or stall the foreclosure
FHFA Issues Advisory Bulletin to Improve Fannie and Freddie Oversight of Non-Bank Mortgage Servicers
We have previously reported on the Federal Housing Finance Agency’s concern that the recent explosive growth of nonbank specialty mortgage servicers may pose operational and liquidity risks to such servicers and put in jeopardy Fannie Mae and Freddie Mac (collectively, the Enterprises) that guarantee these mortgages. In particular, FHFA concluded that the nonbank servicers’ use
ALJ Issues First Decision in Contested CFPB Administrative Enforcement Action; Appellate Decision by Director Cordray Pending
In November, Administrative Law Judge Cameron Elliot of the U.S. Securities and Exchange Commission issued the first “recommended decision” in a litigated Consumer Financial Protection Bureau administrative enforcement action.
In In re PHH Corporation, et. al., the CFPB alleged this residential mortgage lender was engaged in a nearly 15-year “mortgage insurance kickback scheme” by
OCC Revises Comptroller’s Handbook Booklet on TILA
On December 16, the Office of the Comptroller of the Currency (OCC) issued a new Truth in Lending Act (TILA) booklet of the Comptroller’s Handbook.
Replacing guidance from December 2010, this booklet provides updated guidance and procedures to examiners in connection with recent changes made to Regulation Z (12 CFR 1026), primarily with regard
CFPB Webinars Available on TILA-RESPA Integrated Disclosure Rule
Last month the CFPB held another in a series of webinars on the TILA-RESPA Integrated Disclosure Rule. You can view the video of this webinar – and the prior three webinars – here, which focused on questions related to completing the Closing Disclosure Form.
Last month’s session was the fourth in a series of
CFPB Asks for Comments on Proposed Amendments to 2013 Mortgage Rules
On December 15, the CFPB published a proposed rule regarding Amendments to the 2013 Mortgage Rules under the Real Estate Settlement Procedures Act (Regulation X) and the Truth in Lending Act (Regulation Z).
As we previously discussed, in October 2014 the CFPB issued a final rule amending the 2013 mortgage rules that took effect
Colorado’s Attorney General is Busy Making Things “Rocky” for Certain Foreclosure Law Firms
As part of a recent investigation and clean-up of that state’s foreclosure industry, Colorado’s Attorney General John Suthers has filed two more lawsuits against in-state foreclosure law firms, alleging fraud and violations of state consumer protection laws. These lawsuits close out a busy 2014, in which other similar civil lawsuits were filed by Colorado’s AG,
Eighth Circuit Rejects County Recorders’ Claims Against Lenders, Servicers, and MERS
Last Friday, the Eighth Circuit affirmed the dismissals of claims filed by county recorders in Iowa and Minnesota who claimed that the use of the Mortgage Electronic Registration System (MERS) unjustly deprived the counties of recording fees. In Plymouth County v. Merscorp, Inc., Plymouth County, on its own behalf and on behalf of all
Senate Extends Mortgage Debt Forgiveness Act by One Year
Last week, the United States Senate passed an extension of the Mortgage Debt Forgiveness Act. Without the Act, any home mortgage forgiveness that results from a short sale would have counted as income for homeowners. In other words, homeowners that had short sales in 2014 will not have to pay taxes on the mortgage debt
CFPB Issues Bulletin on Verifying Disability Income in Mortgage Lending
In November, the Consumer Financial Protection Bureau issued a compliance bulletin (CFPB Bulletin 2014-03) reminding lenders of their legal obligations when underwriting mortgage loans for Social Security disability recipients. The agency outlined steps that creditors can take to avoid illegal discrimination in violation of the Equal Credit Opportunity Act (ECOA) and Regulation B.
Lenders in