Small Way to Avoid Some Servicing Requirements?

Article by: Ben Giumarra, Spillane Consulting Associates, Inc. Some of the new servicing regulations don't actually apply to certain loan types - identify them and take one small step towards minimizing your regulatory burden.   The federal mortgage servicing rules added over the past few years (some in 2014, again in 2017, and one more coming in 2018) can be tough.  But in some cases, servicers are voluntarily over-complying with these already-rigorous requirements. For example, some "small … [Read more...]

How to Invite Real Estate Agents to Your Christmas Party (without running afoul of RESPA)

Article By: Ben Giumarra, Spillane Consulting Associates Here's what you need to know about avoiding RESPA Section 8 anti-kickback violations when sponsoring a party for real estate agents or other referral partners. The industry has adopted more conservative stances towards RESPA Section 8 anti-kickback concerns since the CFPB came in and ramped up enforcement in this area. But just as some of those decisions may have been over-conservative despite an active CFPB, some … [Read more...]

Republicans Win CFPB Hearing: How It Affects You

Article By: Ben Giumarra, Spillane Consulting Associates What you should to know about the CFPB turmoil and how it affects you The Debate Mr. Cordray left a vacancy when he stepped down as director of the CFPB. The big question remaining - who will serve as acting director until a replacement can go through the appointment process (which can take years)? President Trump claimed authority to assign his choice (Mulvaney) pursuant to a general law giving authority to fill vacancies in such … [Read more...]

Borrower Changes Demographic Data Answer

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. What to do when borrower wants to change answers to HMDA demographic information post-application.  The topic for today how to handle a situation where a borrower wishes to change his original answers to HMDA's demographic information post-application. Scenario At application stage (by telephone), Joe Borrower declines to provide demographic information when the loan officer asks for HMDA purposes. The loan officer correctly … [Read more...]

HMDA is Coming … Review #2

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. While Ben's away, Gregg will play ... a special [re]issue of the Wednesday compliance newsletter while Ben is on vacation.   Note from Ben: I appreciate Gregg Oberg taking over newsletter duties for the second week in a row. See you all next Wednesday!  Alright, Crocodile Dundee will be back tomorrow, so I've got this last newsletter to try and steal his audience. Last week we looked at scenarios in which demographic … [Read more...]

HMDA is coming …Review #1

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. While Ben's away, Gregg will play ... a special [re]issue of the Wednesday compliance newsletter while Ben is on vacation, with commentary from Gregg. Alright, Ben's traveling through Australia, probably trying to remember to drive on the opposite side of the road, and probably listening to a playlist frustratingly including an equal mix of songs by Jim Croce, Volbeat, and Taylor Swift (*shake my head in disgust). So get a chance … [Read more...]

HMDA Analysis for More than Just Compliance…

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Are you missing an opportunity when you review your HMDA LAR to look beyond technical reporting errors? Does the LAR data have more to tell you? When I first met John, he asked me: Is it possible for our clients to not only survive these regulatory changes (Dodd-Frank), but actually benefit from them? Well, classic case of John asking a question that seems innocent enough at first, but that actually guides you towards a much … [Read more...]

How much of TRID will help with HMDA?

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. We've spent a lot of time learning TRID and other rules written by the CFPB over the past 5 years. To what extent can we rely on some of those lessons, principles, and definitions to carry over to the last major Dodd-Frank mortgage regulatory reform item (HMDA)? Good news and bad news. Good news first - some of the new data points required by HMDA are carried over from TRID or Ability-to-Repay principles. So assuming we put in the … [Read more...]

Future (aka Trailing) Compensation on HELOCs?

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Could banks and credit unions exploit an advantage over non-depositories with a shift in how they compensate for HELOCs? I don't think this will work for all institutions. But I'm curious why the following wouldn't work in certain cases. Read on and see if you agree that how banks and credit unions compensate employees for HELOCs might give it a unique competitive advantage. Observations Let's start off with some initial … [Read more...]

HMDA “Loans in Limbo”: 2017-2018 Timing Issue

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Remember this later with that 2017-18 reporting window, but also understand now if you're thinking strategically about HMDA 2018. We know that January 1, 2018 is the date new HMDA data collection rules kick in. But what exactly do we do with "loans in limbo" - loans where we take an application in 2017 but don't take final action until 2018?   Side note: I bet a lot of people are going to have this question, but only for … [Read more...]