The Unconventional Lending Path

Potential risks and compliance considerations in making ‘non-qualified’ mortgages under the CFPB’s ability-to-repay rule By Joseph J. Reilly and Shara M. Chang When the Consumer Financial Protection Bureau issued its final “ability to repay” rule under Regulation Z in January, the bureau formally set a new regulatory standard requiring all mortgage lenders to make a […]

The New Servicing Frontier

The CFPB pursues higher industrywide mortgage servicing standards through its regulations By David Vida The Consumer Finance Protection Bureau has a simple mission: make markets for consumer financial products and services work effectively and efficiently for all Americans. The bureau plans to accomplish this through education, enforcement, and both studying and monitoring consumer financial markets.

Statements After Closing

Getting ready for new CFPB rules for periodic billing statements and ARM-adjustment notices By Mary Thorson As part of the set of various new mortgage lending standards it announced in January, the Consumer Financial Protection Bureau released its final residential mortgage servicing rules, 2013 Real Estate Settlement Procedures Act (Regulation X) and Truth in Lending […]

Compensating Loan Officers

Preparing for new CFPB rules clarifying mortgage lender compensation programs By Kevin T. Kane The Consumer Financial Protection Bureau’s new mortgage lending standards released in January include revised loan originator compensation requirements. The CFPB’s final rule on loan originator compensation clarifies requirements and restrictions—imposed by the Dodd-Frank Wall Street Reform and Consumer Protection Act—that amended […]

Decisions, Decisions

While creating new opportunities, the Consumer Financial Protection Bureau’s new mortgage lending standards will likely require more focus, adjustments and quick work By Howard Schneider The Consumer Financial Protection Bureau earlier this year issued an array of final landmark rules for residential mortgage lenders. New standards for loan underwriting and servicing will require community banks […]

Rules on Lender Pay

What’s new in CFPB loan originator compensation regulations for mortgage lending The Consumer Financial Protection Bureau released a series of six major new regulations in January that will significantly influence residential mortgage lending operations of all institutions, including community banks. The regulations released cover ability to repay/qualified mortgage (QM) standards; appraisals for higher-priced mortgage loans; […]

Signs of the Times

A compliance checkup for required signage and public notice requirements By Mary Thorson It’s a “sign” of compliance. Financial institutions are buried under disclosure requirements, but no disclosures are more conspicuous than those required to be posted for public scrutiny. Public signage and notice requirements run the gamut from those making loan and deposit stipulations […]

Mixed and Matched

Sorting out which regulations apply to particular consumer overdraft protection programs By Mary Thorson Check bounce programs, cash sweep programs and payment lines of credit—each brings a different set of regulatory requirements, policies, procedures and practices.

Defining Future Mortgages

While including measures benefiting community banks, the CFPB’s ability-to-repay rules are a major step in defining the future of home finance By Elizabeth Eurgubian and Ron Haynie Community banks gained significant accommodations in the Consumer Financial Protection Bureau’s ability-to-repay qualified mortgage rule issued in January, the first of several mortgage rules that will determine the […]

Grievances and Grumblings

Effectively managing consumer complaints as an elevated compliance requirement By Mary Thorson Customer complaints—and customer compliments—have always been valuable sources of feedback, allowing businesses to improve their products and service. With the Consumer Financial Protection Bureau’s emphasis on ensuring that financial service providers respond swiftly and fairly to customer complaints, complaint management has become a […]