LO Comp questions remain after bureau finalizes QM amendments
The Consumer Financial Protection Bureau recently finalized long-awaited amendments to its ability-to-repay/qualified mortgage rule to address outstanding issues related to the counting of loan originator compensation for the purposes of QM’s 3 percent points and fees cap. Dodd Frank Update sat down with Richard Andreano, a partner at Ballard Spahr LLP, during the 2013 National Settlement Services Summit in Cleveland to get his take on the amendments. Read on for the details.
CFPB releases report on overdraft practices
The Consumer Financial Protection Bureau released a report on bank and credit union overdraft practices that raises concerns about whether consumers can anticipate and avoid overdraft costs associated with checking accounts. The report shows significant differences across financial institutions when it comes to overdraft coverage on debit card transactions and ATM withdrawals. The report also finds that consumers who opt in for overdraft coverage incur greater costs. Read on to learn about the study and how the CFPB intends to proceed from here.
Summit live coverage: The ‘year of implementation’ and the one thing that will pull us out of the recession
Positivity permeated the grand ballroom of Cleveland’s Marriott at Key Center hotel as Bill Cosgrove, vice chairman of the Mortgage Bankers Association and the chief executive officer of Union Home Mortgage Corp, kicked off the 2013 National Settlement Services Summit. As the housing market continues to improve, it’s becoming a key component to pulling the country out of the recession. While housing numbers are encouraging, Cosgrove cautioned that we need to ensure we have the proper mortgage industry structure in place as we continue through the “year of implementation.”
Groups worry QM compliance could trigger fair lending concerns
Several major trade groups want the government to provide written assurances that complying with the Consumer Financial Protection Bureau’s new mortgage rules won’t increase institutions’ risk of a fair lending violation. The groups said the mortgage rules will constrict credit availability and may lead to disparate outcomes for some borrowers. Read on for the details.
CFPB releases first round of exam manuals for new mortgage rules
The Consumer Financial Protection Bureau released the first in a series of roadmaps its examiners will use to assess compliance with the agency’s new mortgage rules. The bureau said its exam procedures offer financial institutions and mortgage companies “valuable guidance” on what the CFPB will be looking for as the rules become effective. The first pair of manuals focuses on new requirements pertaining to appraisals, escrow accounts, and compensation and qualifications for loan originators. Read on for the details.
CFPB wields power to quash alleged ‘abusive’ practices for first time
Since the advent of the Consumer Financial Protection Bureau, industry participants have wondered how and when the new agency would use its Dodd-Frank-mandated authority to ban abusive acts or practices in the consumer financial marketplace. On May 29, the agency announced it is seeking to exercise this power for the first time in a case involving a Florida debt-relief company. Read on to learn what activities the company allegedly engaged in that constituted abuse in the eyes of the CFPB.