Figuring out HELOCs: Late Charges, Prepayment Penalties, and More (Massachusetts-heavy)

Article By: Ben Giumarra, Spillane Consulting Associates, Inc. An area that's due for some clarity - HELOC lending pursuant to Federal and Massachusetts rules regarding late charges and prepayment penalties. I always expect HELOCs to be simple - they're exempt from many of the trickiest new regulations (ATR/QM, LO Comp, TRID, etc) - but time and again a HELOC-related issue seems to stop the presses at 501 John Mahar Highway. I think back to figuring out how to service "freeze-lock" lines … [Read more...]

Incorporate Massachusetts fair lending rules into ECOA disclosures?

Article by: Ben Giumarra, Spillane Consulting Associates Addressing some nuances in fair lending/ECOA rules. So I received this question from a friend the other day: I wanted to reach out to with a question regarding genetic information as a protected class in Massachusetts regarding ECOA purposes. Reading the law it appears "genetic information" should be noted as a protected class on our ECOA disclosures. Can you confirm whether or not we should have "genetic information" included on … [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...]

Waiving overdraft fees: Fair lending concerns in 2017

  Article By: Ben Giumarra, Spillane ConsultingMake sure you're safe here.  We all know Federal regulators are playing close attention to overdraft protection products. Take, for example, the CFPB's report that 8% of consumers pay 75% of overdraft fees.There's a lot to this issue - and we'll probably see new regulations addressing it. If you're worried about it, the FDIC's 2010 guidance is a good place to start. Certainly, it can be a fair and honest service, not to mention a … [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...]

Lender’s Obligation for Seller’s Closing Disclosure?

Article by: Ben Giumarra, Spillane Consulting Associates, Inc You're checking (and re-checking) your Closing Disclosures to avoid any errors and to fix any that do occur post-closing. They're finally looking a lot better, but you're now seeing plenty of problems with Seller CDs, which are provided directly by closing agents. Do we worry about this or not? Let's talk this through now so you can have an intelligent and confident conversation with regulators if this ever comes up in an exam, … [Read more...]