Currently, the Know Before You Owe/TILA-RESPA Integrated Disclosure Rule (“TRID”) does not permit changes to a Closing Disclosure (“CD”) to cure a tolerance violation more than four (4) business days prior to consummation. Did the 2017 TILA-RESPA Rule eliminate this issue known as the “Black Hole”?
- How the current four business day timing element has prevented creditors from resetting tolerances;
- the costs involved when the timing element has prevented creditors from resetting tolerances; and
- whether creditors are providing the initial CD so that it is received “substantially before the required three business days prior to consummation with terms and costs that are nearly certain to be revised.
I heard that the CFPB issued the final 2017 TILA-RESPA Rule which clarified and amended certain mortgage disclosure provisions under TRID. What is the effective date of the amendments?
What are a mortgage servicer’s obligations under the Servicemembers Civil Relief Act (“SCRA”)?
What types of anti-money laundering risks are most common with real estate and mortgage transactions?
- Use of shell companies (i.e. non-publicly traded corporations, limited liability companies, or trusts that have no physical presence beyond a mailing address and generate little to no independent economic value)
- All-cash real estate purchases.
Am I required to ensure that NMLS Unique Identifiers appear on my employees’ LinkedIn, Facebook and other Social Media pages?
How do I ensure my subservicer is following its policies and procedures?
- Procedures demonstrating how the master servicer verifies that the subservicer is actually following its own procedures;
- An explanation of how the master servicer implements quality control audits and when and how often such audits will be performed;
- A method to track subservicer servicing errors and deficiencies, as well as any remediation plans; and
- As a best practice, an annual onsite visit that permits the master servicer to sit with key subservicing staff to understand the staff’s day-to-day process and reconcile it against the subservicer’s written policies and procedures.
The Consumer Financial Protection Bureau (“CFPB”) focuses on consumer complaints. What are some best practices related to consumer complaint management?
I understand the new HMDA rules require reporting of automated underwriting system (AUS) information effective January 1, 2018, but how do you determine what to report if we use more than one AUS or pull results several times?
- Conditions that require the identification of a suitable property;
- If so, determine whether you obtained only one result from that AUS. If so, report that information.
- If you used an AUS that does not match the loan type reported or if you obtained more than one result from the AUS that matches the loan type reported, determine whether an AUS that was used to evaluate the application matches the purchaser, insurer, or guarantor (if any) for the loan (i.e. Desktop Underwriter for a loan that Fannie Mae purchased).
- If so, and you obtained only one result from that AUS report that information
- If you did not use an AUS that matches the purchaser, insurer, or guarantor or if you obtained multiple results from an AUS that matches the purchaser, insurer, or guarantor or loan type, you report the result that is closest in time to the credit decision and the AUS that generated that result.
- If you simultaneously obtain multiple results closest in time to the credit decision, you report each of the multiple AUS results that you obtained and the AUSs that generated each of those results up to a total of 5 results and 5 AUSs. You should never report more than 5 results or 5 AUSs (in such case, only choose 5 AUSs and 5 results to report).
Can you provide clarification on the definition of “Preapproval” under the new HMDA rules and information regarding reporting requirements?
- Conditions that require the identification of a suitable property;
- Conditions that require that no material change occur regarding the applicant’s financial condition or creditworthiness prior to closing; and
- Limited conditions that (a) are not related to the applicant’s financial condition or creditworthiness and (b) you ordinarily attach to a traditional home mortgage application (such as requiring an acceptable title insurance binder or a certificate indicating clear termite inspection and, if the applicant plans to use the proceeds from the sale of the applicant’s present home to purchase a new home, a settlement statement showing adequate proceeds from the sale of the present home).
Is it permissible for my compliance department, which is independent of the operations and business units, to perform compliance-related internal audits?
Should mortgage lenders maintain a documented “Disaster Recovery/Business Continuity Plan”?
Often we make exceptions to our established credit standards (i.e. we lower a rate to match a competitor’s offer and thereby retain the consumer). Is it possible that fair lending risks arise as a result of our company engaging in this activity?
- Memorialize written policies and procedures for pricing exceptions (when allowed) and how they must be documented.
- Monitor and Audit to make sure these policies are followed.
- Train staff on the policies (not just basic fair lending training).
Can a lender require a non-borrowing spouse to be a borrower or sign any loan documents?
As a lender, am I required to audit my Document Custodian on a regular basis?
- Deficiencies are identified and appropriately mitigated;
- Management and staff possess adequate knowledge to perform in a custodial capacity;
- The Document Custodian has established controls, policies and procedures;
- The Document Custodian meets the minimum requirements as determined by GNMA;
- The Document Custodian is issuing Final Pool Certifications in a timely manner as required by GNMA;
- Recorded modified documents and reinstated loans have had documents inserted into the pool or removed from the pool; and
- A loan-level review from a selection of pools is conducted. Files must be reviewed to ensure that the collateral file is intact and contains all the necessary original documents and endorsements.
What is Internal Audit and is it a requirement for mortgage lenders?
Does the Equal Credit Opportunity Act (“ECOA”) permit a creditor to favor elderly applicants when determining whether to extend credit?
Currently, the Know Before You Owe/TILA-RESPA Integrated Disclosure Rule (“TRID”) does not permit changes to a Closing Disclosure (“CD”) to cure a tolerance violation more than four (4) business days prior to consummation. Is it true that, if enacted, the proposed TRID amendments will eliminate this issue known as the “Black Hole”?
What events should trigger the production of an off-cycle escrow analysis?
- When a scheduled escrow disbursement has increased or decreased greater than a predetermined amount. This could be based upon a fixed dollar amount or percentage, determined by each company,
- When the Disbursement Date of an escrowed item is changed,
- The addition or removal of an escrow line, or
- The change in the maximum allowable escrow cushion.
Under the Know Before You Owe/TILA-RESPA Integrated Disclosure Rule (“TRID” or the “Rule”) the sample Written List of Service Providers (Model Form H-27) includes a column where the estimated charge for each service is set forth. Is a lender required to include an estimated cost for each service on the Written List of Service Providers?
Is it true that mortgage lenders may now look at whether a mortgage loan applicant pays off his or her credit card in full or carries a month-to-month balance?
Does Freddie Mac require employees of each approved Seller/Servicer to complete annual fraud training?
Can a mortgage loan originator be held individually liable for a violation of the Loan Originator Compensation Rule?