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...]

Notification Requirements After a Data Breach

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. Scratching the surface of a much bigger issue. What do we do when we discover a "security breach" or otherwise that some unauthorized person had access to a consumer's personal information, such as a check or disclosure? Because hey - it happens. Loan paperwork is sent to the wrong address, which happens (yet another good thing about electronic delivery, it's password protected). Or maybe a record is sent to the wrong third … [Read more...]

Are No-Verification Loans Making a Comeback?

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. You've probably heard the rumors or even seen advertisements. Mortgage loan with no income or asset verification! ("Just sign and drive.") Is there any truth to this? We keep seeing advertisements and hearing rumors about "my competitor" who is offering mortgages to customers with no income or asset verification. Could this really be? Is this a return to these dangerous loan products? Do we need to relax our underwriting … [Read more...]

Ocwen’s Servicing Woes/ Expectations for Successors-in-Interest

  Breaking down the major CFPB/20 State action against Ocwen and also looking at one interesting servicing issue in detail.  I's a mortgage servicing bananza today!Ocwen Enforcement Action!Let's start with the Ocwen action:Brought by the CFPB along with 20 other states, this has caused Ocwen's stock price to drop 55%. Ocwen is a major loan servicer, with a 1.4 million loan portfolio spread across 50 states.I normally hate to copy long quotes, but here are some relevant parts of the … [Read more...]

Underwriter also doing Appraisal Review?

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. A recent submission is answered in today's newsletter.So I received this note the other day: Hi Ben - I recently met with other members of [ABC Trade Group] and one of the topics discussed was Appraisal Review Independence.  I recalled that you had recently written an article about it and pulled it out after.  It did not address the particular question and was hoping to run it by you if you do not mind.  So my question is this: … [Read more...]

Special Treatment for Commercial Customers — Fair Lending Concern or No?

Article by: Ben Giumarra, Spillane Consulting Associates, Inc. Some thoughts on what can be--but probably shouldn't be--a sticky situation.  It makes you cringe ... your bank's best commercial client comes in for a personal mortgage loan and they want special treatment -- a better rate, closing cost rebate, etc. "Do you know who I am???" But having just returned from your annual fair lending training, you're concerned that this runs afoul of fair lending regulations and preferential … [Read more...]

Complying with a Massachusetts advertising rule for brokered loans

  Article By: Ben Giumarra, Spillane Consulting Associates, Inc. A quick look at a rule that could trip some responsible lenders up. It's commonplace for a mortgage lender- including banks and credit unions- to act as a broker on certain transactions. This often occurs with loan types such as reverse mortgages or FHA loans, loans that the lender rarely sees or are too complex to originate without some assistance. So for example, you're a community bank with a good variety of … [Read more...]

RIMBA’s Women in Mortgage Banking

By: Pier-Mari Toledo RIMBA’s Women in Mortgage Banking is a newly organized group in the Rhode Island Mortgage Bankers Association. Comprised of women in the mortgage lending business and ancillary service providers to the mortgage lending industry, our mission is to promote female leadership within our industry by empowering personal and professional growth through education, mentoring, and networking. Women face unique challenges in business that our male colleagues don’t have to … [Read more...]

Unnecessary Flood Disclosures?

  Article by: Ben Giumarra, Spillane Consulting Associates, Inc Could you gain some efficiencies with how your making certain Flood disclosures? Let's discuss what's required (and not).  So today we continue our war against disclosure packages bogged down with unnecessary stuff. One page, sometimes one sentence, at a time. It might not seem like a lot - but #1) removing one disclosure might remove 2 hours of back-and-forth with a borrower getting an unnecessary signature, and … [Read more...]