CFPB Gets Serious on Loan Officer Comp


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 […]

Here’s Why CFPB Had to Delay the TRID Deadline


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 […]

CFPB Delays TRID Due to ‘Administrative Error’


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 […]

The TRID Loophole the CPFB Says Is Legit


Anyone who’s closely read the nearly 1,900-page final rule for the TILA-RESPA Integrated Disclosures likely noticed a nifty loophole when it comes to how lenders can issue mortgage pre-approvals.

For everyone else, the Consumer Financial Protection Bureau recently clarified how a loan pre-approval doesn’t automatically trigger TRID’s three-day window for delivering initial disclosures.

The workaround was mentioned during a webinar hosted by the CFPB and Federal Reserve Board that also addressed new rules that prohibit lenders from requiring a borrower to provide verifying documentation prior to providing the Loan Estimate.

The CFPB first pointed out that TRID only prevented lenders from “requiring” such information, but that if voluntarily provided by the borrower it was permissible. Of course, the agency immediately followed up by explaining that a lender that explicitly or implicitly requires such documentation would be violating the law.

This obviously […]