Four years after the nation’s largest mortgage servicers were ordered to clean up their foreclosure processes, many are still falling short of their obligations.
Six banks, including JPMorgan Chase, U.S. Bancorp and Wells Fargo, have not fully complied with consent orders related to the independent foreclosure review that began in 2011, the Office of the Comptroller of the Currency said Wednesday. The servicers were cited for a variety of issues including failing to respond to borrower requests for loan modifications, not making a good-faith effort to prevent foreclosures and not having compliance systems in place to track their progress.
The punishment for these infractions was harsh: Wells Fargo, the largest U.S. lender, and HSBC Holdings, Europe’s largest bank, are prohibited from acquiring mortgage servicing rights, entering into new servicing contracts or offshoring servicing activity until the consent orders are terminated. Four banks – JPMorgan in New […]
For years, many have been asking when the Consumer Financial Protection Bureau was going to get aggressive when it comes to pursuing lenders it believes skirted the loan officer compensation rules.
It appears that time is now.
Two lenders recently have settled claims they violated the LO compensation laws.
RPM Mortgage has agreed to pay $18 million dollars to redress alleged violations, as well as an additional $1 million fine. Further, the lender’s president also has agreed to pay a $1 million personal fine for his role in implementing a comp plan the CFPB claimed was illegal.
The company said it settled the matter without an admission of wrongdoing “to avoid the cost and distraction of litigation.”
RPM’s alleged violations center on its use of individual expense accounts which were funded by overages charged by the loan officers. The expense accounts could be used by loan officers to […]
After publishing 1,888 pages detailing new mortgage disclosures, the Consumer Financial Protection Bureau’s failure to file a required two-page form with Congress on time forced a delay of the rules’ effective date.
Under the Congressional Review Act, Congress and the Government Accountability Office must receive any new rule at least 60 calendar days before it takes effect, barring an emergency. But the CFPB failed to submit its notice until Tuesday, according to Robert Cramer, associate general counsel at the GAO.
That was the unspecified “administrative error” that forced the CFPB to delay the effective date for changes to the Truth in Lending and Real Estate Settlement Procedures acts until Oct. 1, a CFPB spokesperson confirmed.
Mortgage and real estate trade groups, as well as nearly 300 members of Congress, had pushed for the CPFB to delay the Aug. 1 deadline or offer an enforcement grace period to […]
After months of declining industry and congressional pleas to delay an impending rule combining two mortgage disclosure regimes, the Consumer Financial Protection Bureau on Wednesday announced a two-month delay due to an “administrative error.”
The CFPB released a statement from Director Richard Cordray saying the agency would issue a “proposed amendment” delaying the effective date to Oct. 1.
The rule, which would create an “integrated disclosure” combining requirements of the Truth in Lending Act and the Real Estate Settlement Procedures Act, is commonly known as TRID.
Although trade groups and nearly 300 members of Congress had pushed for the CFPB to delay the rule or offer a grace period for companies that simply make an effort to be in compliance, the CFPB said it decided to push the date back because of other reasons.
“We made this decision to correct an administrative error that we just discovered in meeting […]