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Regulation and compliance

Regulator: Bank misled veterans on VA loan refinances

Law and legal issues, Mortgages, Originations, Regulation and compliance, The VA /

Federal officials are ordering a community bank and national mortgage lender to investigate and take corrective action over alleged misconduct that targeted Department of Veterans Affairs borrowers.  Processing Content In a consent order filed in early April, the Office of the Comptroller of the Currency accused The Federal Savings Bank, a Chicago-based depository institution specializing […]

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Lead generation firm fined for years of unlicensed activity

Law and legal issues, MARKETING TO BORROWERS, Originations, Regulation and compliance /

LeadPoint, a marketing lead provider serving home lenders, said it was ending all mortgage-related activity upon resolving Connecticut allegations of operating as an unlicensed entity for years.  Processing Content Connecticut banking officials lodged a $50,000 penalty against LeadPoint in a consent order issued in late March. Both parties agreed to the order after a 2025

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HEI customers file new class action against Unison

Home equity loans, Industry News, Law and legal issues, Regulation and compliance /

Home equity investment provider Unison is the target of a potential class action lawsuit in Colorado that could void its existing contract agreements in the state. Processing Content In legal documents filed in Colorado federal district court this week, plaintiffs Katharine and Charles Kane sued the San Francisco-based HEI firm after discovering the amount they

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Fifth Third official: AI will help banks ‘out-code’ vendors

Agentic AI, Consumer lending, Originations, Regulation and compliance, Servicing /

Key insight: Banks’ reliance on third-party software vendors and core providers may be eroding, according to Fifth Third consumer lending head Jay Plum.  What’s at stake: Rather than scrambling to prepare for an annual exam, AI will prompt banks to conduct ‘mini reviews,’ making the exam process much easier. Expert quote: “AI changes the nature

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Newrez faces .2M penalty for servicing violations

Newrez faces $4.2M penalty for servicing violations

Enforcement, Industry News, Regulation and compliance, Servicing /

Washington State regulators are proposing a hefty financial penalty against Newrez after charging the company with numerous mortgage servicing violations in response to an investigation into more than 125 consumer complaints. Processing Content The Washington State Department of Financial Institutions seeks to fine the lender and servicer nearly $4.2 million for repeated violations of consumer

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RESPA cases are rising as states fill CFPB void

RESPA cases are rising as states fill CFPB void

Law and legal issues, Originations, Politics and policy, Regulation and compliance /

A wave of steering investigations from the past year could keep growing.  Processing Content Lawsuits and state probes for violations of the Real Estate Settlement Procedures Act and its Section 8 provision have risen in the past year, said Jonathan Kolodziej, partner at Bradley Arant Boult Cummings. The mortgage industry attorney noted increased scrutiny from

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Banks get operational risk relief in Basel proposal

FDIC, Politics and policy, Regulation and compliance /

Key insight: The proposal simplifies operational risk capital for the largest banks. Forward look: Critics warn lower capital could raise systemic risk as in prior crises. Key Quote: “The proposal really misses the mark in terms of what its original intent was.” -Phillip Basil, director at Better Markets Regulators’ revised Basel operational risk capital framework

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States score win as Flagstar denied escrow rehearing

Law and legal issues, Mortgages, Regulation and compliance, Servicing /

The Conference of State Bank Supervisors celebrated an appellate court’s decision not to grant a request by Flagstar Bank for the full panel in an interest-on-escrow case. Processing Content The organization used the ruling to call on the Office of the Comptroller of the Currency to end its efforts to create a national preemption. This

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Mortgage industry baffled by Trump’s MLO order

Originations, Politics and policy, Regulation and compliance /

A section of President Donald Trump’s recent executive order, titled “Promoting Access to Mortgage Credit,” caused confusion throughout the mortgage industry, seemingly addressing a nonissue. Processing Content Section 10 of the order called for “eliminating duplicative or unnecessary requirements regarding licensing or registration for mortgage loan officers of any smaller bank.” The directive fits with

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Mortgage order adds more rules to diminished CFPB’s load

Politics and policy, Qualified Mortgages, Regulation and compliance, Trump administration /

Key insight: An executive order encouraging the Consumer Financial Protection Bureau to modify two of its mortgage rules would add a considerable load to the agency’s already overloaded agenda, and at a time when its rulemaking capacity is greatly diminished.  Expert Quote: “The CFPB has a bigger agenda than they’ve ever had with a smaller

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