Category Mortgage

The Homeowner Can Believe Everything They Read – Even if They Filed Bankruptcy

Federal appeals court gives effect to mortgage servicer’s disclaimers in monthly statements and letters and holds that homeowner is charged with carefully reading them and a basic level of understanding in what they say. Recently, the United States Court of Appeals for the Fourth Circuit affirmed a trial court’s ruling that granted a mortgage servicer […]

Additional Mortgage Rule Implementation Resources for Lenders

The Consumer Financial Protection Bureau (“CFPB”) has issued additional resources related to the CFPB’s mortgage servicing rules. The first, a fact sheet, summarizes key issues for small creditors operating in a rural or underserved area. This fact sheet includes information related to verifying small creditors’ official designation under the mortgage servicing rules. This document also […]

TRID – Impressions and Updates So Far

Although we are still only a few months into the sea change in residential real estate closing documentation, the general consensus is that implementation of the TILA–RESPA Integrated Disclosure (“TRID”) has been relatively smooth. The deadline for implementation was extended following months of preparation and educational steps for realtors, brokers, and lenders; therefore, most industry […]

CFPB Proposal Extends Small Creditor Status and Exemptions to More Institutions

Additional community banks, credit unions, and other institutions would benefit from a proposal of the Consumer Financial Protection Bureau (“CFPB”) to facilitate the offering of certain types of mortgages in rural and underserved areas, and to help small creditors adjust their business practices to comply with the new rules. As banking professionals know, the CFPB […]

Supreme Court Provides TILA Home Loan Rescission Guidance

In a unanimous opinion last week, the Supreme Court of the United States explained that a home loan borrower exercising her right to rescind under the Truth in Lending Act (“TILA”) need only provide written notice to his lender within the three-year period, not file suit within that period. Jesinoski v. Countrywide Home Loans, Inc., No. […]

Bank Fined $10 Million by CFPB for Violating New Mortgage Servicing Rules

Earlier this week, on September 29, 2014, the Consumer Financial Protection Bureau (“CFPB”) took action against Michigan-based Flagstar Bank, fining it $10 million and ordering $27.5 million in payments to consumers. Flagstar allegedly “took excessive time to process borrowers’ applications for foreclosure relief, failed to tell borrowers when their applications were incomplete, denied loan modifications […]

CFPB Issues Updated Guidance on Loan Servicing Transfers

Recently, the Consumer Financial Protection Bureau (“CFPB”) issued a bulletin regarding the obligations of mortgage companies to protect consumers before, during, and following loan transfers between mortgage servicers. The preface to the bulletin states that the “CFPB’s concern in this area remains heightened due to the continuing high volume of servicing transfers.” Institutions that hold […]

CFPB Proposes Changes to Reg C

The Home Mortgage Disclosure Act (“HMDA”), implemented through Regulation C, is the next target for changes by the Consumer Financial Protection Bureau (“CFPB”).   The CFPB’s proposed rule claims to simplify the reporting process for financial institutions while also updating the reporting requirements.  HMDA, originally enacted in 1975, requires many financial institutions to report information about […]

Thoughts From Mortgage Servicing Compliance Seminar in Dallas

Recently I had the privilege to speak in Dallas at the American Conference Institute seminar on mortgage compliance issues. My panel, which included two other mortgage lawyers, addressed updates to ECOA, RESPA and TILA in the mortgage servicing context. Many other interesting panels composed of compliance personnel, in-house lawyers and outside counsel covered a range […]

Financial Institutions and Creditors’ Rights: Ninth Circuit Finds SCRA Liability Based on Prior Servicer’s Actions

Recently, R. Scott Adams authored the following article for DRI‘s Commercial Litigation Committee. The Servicemembers Civil Relief Act (“SCRA”) was signed into law in 2003, greatly expanding prior legislation in order to better assist servicemembers in avoiding default and foreclosure while they are on active duty.  The SCRA has been expanded several times over the […]