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Top Story Lending Related

02/21/2020

Data on borrowers' experiences in getting a mortgage

The Federal Housing Finance Agency and the Consumer Financial Protection Bureau have released for public use additional loan-level data collected through the National Survey of Mortgage Originations (NSMO). The data, which are from loans originated in 2017, provide insights into borrowers' experiences in getting a residential mortgage. Data from 2018 originations are expected to be released by the end of 2020.

02/21/2020

Updated interactive URLA published

Fannie Mae and Freddie Mac have announced their publication of the interactive (fillable) PDF versions of the redesigned Uniform Residential Loan Application (URLA) with an effective date of “09/2020,” along with corresponding supporting documents. These interactive forms comprise the final version of the loan application and are to be supported by the industry in system development and preparation of the redesigned URLA and updated GSE-specific automated underwriting system (AUS) specifications for the November 1, 2020, mandate.

The announcement also lists a number of supporting documents, including an FAQ with new questions and updates in support of the changes made to the redesigned URLA and the GSEs' AUS specs.

02/21/2020

OCC releases enforcement actions

The OCC has released a list of new enforcement actions taken against national banks, federal savings associations, and individuals currently and formerly affiliated with such institutions. The actions listed are dated from late December 2019 to early February 2020.

In addition to actions separately reported previously, the OCC listed removal/prohibition orders against a former teller at CIT Bank, N.A., Pasadena, California (misappropriation of cash from her teller drawer); a former head teller supervisor at Midland Federal Savings and Loan Association, Bridgeview, Illinois (misappropriation of vault cash and making false entries); a former teller at U.S. Bank, N.A., Cincinnati, Ohio (misappropriation of cash from her teller drawer and making false cash total entries); and a former teller at JPMorgan Chase Bank, N.A., Columbus, Ohio (misappropriation of cash from ATMs for which she was the custodian).

Also listed were three notices of charges that may result in orders of prohibition, orders for reimbursement, orders for civil money penalties and/or other actions, one of which notices was directed to five former officials of Wells Fargo Bank, N.A., Sioux Falls, South Dakota, in connection with charges that the former officials participated in or were responsible for "sales practices misconduct" at Wells Fargo Bank. The notice states the Comptroller's intention to assess civil money penalties of between $500,000 and $25,000,000 against the five former officials and to issue orders of prohibition to two of them.

02/21/2020

CFPB and two states sue loan brokers

The Consumer Financial Protection Bureau has announced that the Bureau, the South Carolina Department of Consumer Affairs, and Arkansas Attorney General Leslie Rutledge have filed a lawsuit in federal district court in the District of South Carolina against Candy Kern-Fuller, Howard Sutter III, and Upstate Law Group LLC. The Bureau alleges that the defendants worked with a series of companies that brokered contracts offering high-interest credit to consumers, primarily disabled veterans, and violated the Consumer Financial Protection Act’s prohibition against deceptive acts or practices and against providing substantial assistance to deceptive and unfair acts or practices of others.

02/20/2020

Comment period extended on CRA proposal

The FDIC and OCC have announced they have extended the public comment period for proposed changes to the rules implementing the Community Reinvestment Act (CRA) through April 8, 2020. On December 12, 2019, the FDIC and OCC announced a proposal to modernize the regulations under the CRA and provided for a 60-day comment period following formal publication on January 9, 2020. The FDIC and OCC have now determined that a 30-day extension of the comment period is appropriate.

02/20/2020

Parts of Florida county suspended from flood program

The Federal Emergency Management Agency has published a notice [85 FR 9675] in this morning's Federal Register that unincorporated areas of Saint Lucie County, Florida were suspended yesterday (February 19, 2020) from the National Flood Insurance Program due to noncompliance with the floodplain management requirements of the program. FEMA's notice was dated February 4, 2020.

02/20/2020

CFPB Winter 2020 Supervisory Highlights

The CFPB has published issue 21 (Winter 2020) of its Supervisory Highlights, reporting examination findings in the areas of debt collection, mortgage servicing, payday lending, and student loan servicing that were completed between April 2019 and August 2019. These observations were reported:

  • Debt collection
    • Failure to disclose in subsequent communications that communication is from a debt collector
    • Failure to send notice of debt
  • Mortgage servicing
    • Loss mitigation notice violations
  • Payday lending
    • Failing to apply borrowers’ payments to their loans
    • Inaccurate disclosure of annual percentage rate
    • Failure to include a fee in calculation of finance charge and annual percentage rate
    • Failure to retain evidence of compliance with Regulation Z
    • Adverse action notices that failed to disclose the principal reason(s) for the adverse action
    • Unfair imposition of unauthorized and undisclosed fee
  • Student loan servicing
    • Inaccurate monthly payment amounts after servicing transfer

As for the loss mitigation notice violations found in exams of mortgage servicers, the Bureau noted that several such problems followed on the heels of major natural disasters that prompted much larger volumes of assistance requests, and no "matters requiring attention" were issued.

02/19/2020

Fannie and Freddie joint credit score model solicitation

The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac (the Enterprises) have published a Joint Credit Score Solicitation, which describes the process for credit score model developers to submit applications to the Enterprises. The Enterprises will accept applications for 120 days, from May 18 – September 15, 2020.

02/19/2020

NMLS annual report released

The 12th annual report on NMLS operations, performance and development efforts has been released in conjunction with the start of the NMLS Annual Conference & Training. The report, “Building a Foundation for the Future,” highlights the State Examination System, Temporary Authority to Operate and more.

02/19/2020

$655M for Indian housing grants announced

HUD Secretary Carson has announced more than $655 million in Indian Housing Block Grants (IHBG) to Native American tribes in 38 states. Funding is distributed to eligible tribes and their tribally designated housing entities to carry out a range of affordable housing activities in their communities.

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