CFPB set to begin 5-year review of mortgage rules

CFPB review of mortgage rulesEarlier this week, Chris D’Angelo, the CFPB’s Associate Director of Supervision, Enforcement and Fair Lending, discussed the CFPB’s plans to initiate its review of major mortgage regulations, including the qualified mortgage rule which established standards for lenders to follow to ensure that borrowers have the ability to repay their mortgages.

According to the Dodd-Frank Act, the CFPB must assess all of its rules five years after they take effect to ensure they are accomplishing the objectives of Dodd-Frank as well as the impact on financial institutions and consumers. The qualified mortgage rule and other significant mortgage regulations took effect in January 2013.


CFPB fines Nationstar $1.75 million for HMDA violations

nationstar CFPB fineOn March 15, 2017, Nationstar Mortgage entered into a consent order with the CFPB to resolve alleged violations of the Home Mortgage Disclosure Act (HMDA). Nationstar will pay a $1.75 million civil money penalty for what the CFPB has termed “persistent and substantial reporting errors” that occurred between 2012 and 2014. According to the Bureau, this is the largest penalty for HMDA violations that the CFPB has imposed to date.

According to the consent order, Nationstar has “a history of HMDA non-compliance” which dates back to November 2011 when Nationstar entered into a consent order with the Massachusetts Division of Banks for violations related to HMDA and Regulation C.


1238
image/svg+xml