Federal bank regulators have made it clear that they will hold financial institutions responsible for the actions – and lapses – of the vendors with which they do business.  This comprehensive guidance from the Office of the Comptroller of the Currency highlights the kinds of questions lenders are likely to be asking title agents and… Read More »

The Washington state Supreme Court has held that a title insurance underwriter may be liable for the allegedly illegal marketing activities of one of its agents.  Although Washington state’s restrictions on marketing activities are unusually broad, it is possible that courts in other states might issue similar rulings.   This WFG compliance bulletin explains the decision… Read More »

The CFPB has published a new consumer guide explaining the “ability to repay” and “qualified mortgage” rules and offering advice to consumers on how to take advantage of the protections they provide.

The CFPB has published the final rules implementing the new “Integrated Mortgage Disclosures.”  The rules, which take effect August 1, 2015, replace the RESPA Good Faith Estimate and HUD-1 disclosures with new   “Loan Estimate” and “Closing Disclosure” forms. If you want more detail (and have lots of time), you can find the CFPB’s 1,800 pages… Read More »

The Consumer Financial Protection Bureau has requested comments on the closing process – specifically, how it might be improved.  An article by Joe Drum, WFG’s executive vice president in charge of agency, published recently in National Mortgage News, explains why agents should be very concerned about the CFPB’s rulemaking in this area.

Can mortgage rates predict the Super Bowl winner?  HSH, an analyzer of mortgage data, thinks so.  The company notes that in the divisional playoffs, the team from the city with the highest mortgage rates has always won.  Extrapolating from that, the company predicts that the Seattle Seahawks will win the ring.

Some housing analysts have blamed low household formation rates ─ the result off limited job prospects for young adults ─ for scaled-back projections of future home buying demand.  Birth rates may provide even more cause for concern.  Live births fell by more than 10 percent between 2008 and 2011, according to the Agency for Health… Read More »

Consumers would benefit if bankers spent less on marketing to consumers and more on educating them, according to the Consumer Financial Protection Bureau.  A CFPB study found that the industry spends approximately $17 billion annually on consumer marketing but only about $670 million on financial education.

Nearly half of all the mortgage defaults occurring during the housing bust would have been avoided had the Qualified Mortgage rules that took effect in January been in effect, a Goldman Sachs study has concluded.  The study found that 47 percent of the loans originated between 2005 and 2008 and 59 percent of those originated… Read More »

It will take at least another two years for lenders to clear the shadow inventory of non-performing loans, according to Standard & Poor’s.   Although progress has been slower than anticipated, “the trend is in the right direction,” Mark Fleming, chief economist for CoreLogic, observed.