Texas Updates Regulations Impacting Mortgage Originations and Mortgage Servicing
Updated Regulations The Texas Department of Savings and Mortgage Lending (“Department”) issued updated rules relating to mortgage companies, loan originators, mortgage bankers, and mortgage servicers. The revisions are aimed at modernizing and updating the rules by adding and replacing language for clarity, removing unnecessary or duplicative provisions, and updating terminology. Mortgage Loan Originators, Mortgage Companies […]
Illinois Legislation Prohibits Misleading Marketing Aimed at Borrowers
Misleading Marketing Laws As of January 1, 2024, mortgage companies soliciting consumers in Illinois will need to ensure their marketing materials do not run afoul of the state’s new law designed to protect consumers from being misled. The new law provides that any marketing materials from a mortgage company with no connection to the consumer’s […]
Court Dismisses CFPB’s Attempt to Expand Redlining Prohibitions
Redlining Updates The CFPB’s first lawsuit against a nonbank mortgage lender for redlining has been dismissed byan Illinois federal Court. The Court held that the protections offered to actual loan applicants arenot extended to prospective applicants. Bureau of Consumer Fin. Prot. V. Townstone Fin., Inc.,2023 U.S. Dist. LEXIS 18405, 2023 WL 1766484 (N.D. Ill. Feb. […]
HMDA RiskExec
CFPB’S HMDA Reporting Threshold Returned to 25HMDA Reporting Threshold On September 23, 2022, the United States District Court for the District of Columbia entered a judgment invalidating the CFPB’s rule raising the HMDA reporting threshold to 100 covered loans. The court's decision returns the operative HMDA reporting threshold to 25 closed-end loans originated. Notably, the court’s ruling did not alter the […]
ECOA Compliance Regulatory Compliance Analytics Section 1071
Navigating Section 1071: The Value of a Flexible Regulatory Compliance Analytics PlatformSection 1071 Compliance requirements are ever-changing, and it’s crucial for banking, lending, and other financial institutions to not only stay up to date with the latest regulatory updates and changes, but also have access to a comprehensive — and flexible — regulatory compliance analytics platform. Regulatory agencies, such as the Consumer Financial Protection Bureau (CFPB) […]
Regulatory Updates The Alaska legislature amended its laws related to mortgage loan originator licensing exemptions. The Nebraska legislature amended provisions related to its Installment Sales Act (“act”) which includes the purchase of mobile homes with an installment contract. All the legislation discussed is effective January 1, 2020. ALASKA HOUSE BILL 104 An employee of a […]
Legislative Updates The Florida and Kentucky legislatures have amended their respective laws concerning on-line notarizations and electronic documents. Both amendments are effective January 1, 2020. FLORIDA HOUSE BILL 409 At the time a notarial act is performed, the certificate of acknowledgement must include whether the signer personally appeared before the notary public at the time […]
OKLAHOMA SENATE BILL 915 The Oklahoma legislature has enacted provisions related to online notarial acts, the recording of electronic documents, and the use of electronic signatures and seals, effective January 1, 2020. A notary may certify that a paper or tangible copy of an electronic document is a true and correct copy of an electronic […]
Legislative Updates The Oregon legislature has amended the Oregon Consumer Information and Protection Act (formerly known as the Consumer Identity Theft Protection Act). They have also enacted amendments to its laws to address the issue of unoccupied residential properties that are unsafe or unsanitary; amended the definitions related to documents presented for recording; and amended […]
Legislative Updates The Wisconsin legislature has enacted provisions for the temporary authority for registered mortgage loan originators who transition to a licensed mortgage broker or lender. These provisions were effective November 28, 2019. The Pennsylvania Department of Banking and Securities has announced the 2020 base figure, effective January 1, 2020. WISCONSIN SENATE BILL 457 An […]
Federal Compliance Updates The U.S. Congress previously enacted the Economic Growth, Regulatory Relief and Consumer Protection Act which amended the SAFE Act to provide a temporary authority for registered mortgage loan originators to originate mortgage loans at a state licensed mortgage company. The Consumer Financial Protection Bureau (“CFPB”) recently issued an interpretive rule to address […]
WASHINGTON RULES 208-660-006 The Washington Department of Financial Institutions has amended rules implementing the Mortgage Broker Practices Act (“Act”), effective November 24, 2019. A new rule was added to allow qualified mortgage loan originators who are changing employment from a depository institution to a state-licensed mortgage company or qualified mortgage loan originators licensed in another […]
TEXAS FINANCE COMMISSION RULES The Finance Commission of Texas recently adopted new rules related to mortgage loan originator licensing requirements for military service members, military veterans, and military spouses, effective November 7, 2019. An individual is exempt from any increased fee or other penalty for failing to renew a residential mortgage loan originator license by […]
Compliance Updates The states of Hawaii, Indiana, Oklahoma and Texas have recently amended their laws or regulations regarding various aspects of licensing for mortgage loan originators, mortgage brokers, and mortgage lenders. HAWAII HOUSE BILL 988 The Hawaii amendment, effective November 24, 2019, allows for temporary authority to act as a mortgage loan originator. An individual […]
Legislative Updates New Jersey has enacted a foreclosure mediation act, effective November 1, 2019. New York has amended the laws regarding servicing transfers and loan modifications, effective November 12, 2019. NEW JERSEY ASSEMBLY BILL 664 The New Jersey legislature enacted the New Jersey Foreclosure Medication Act (“Act”) which codifies the state’s foreclosure mediation program. The […]
Regulatory Updates Federal agencies have revised the loan amount threshold for which appraisals are required, effective October 9, 2019. The FHFA has issued a final rule on validation and approval of credit score models used by the GSE’s, effective October 15, 2019. 84 FEDERAL REGISTER 53579 - APPRAISALS The Office of the Comptroller of the […]
Regulatory Updates The Nevada legislature has amended its Equal Opportunity for Credit Act (“Act”), and the New Jersey legislature has amended its security breach disclosure requirements. Both bills are effective October 1, 2019. The Ohio Secretary of State has issued rules related to electronic notaries and electronic notarizations. These rules relate to Ohio Senate Bill […]