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) […]
The Connecticut legislature recently amended its laws related to foreclosure mediation and the Banking Law of Connecticut (“Act”). All the legislation discussed in this memorandum is effective October 1, 2018. Connecticut Senate Bill 391 The Connecticut legislature recently amended the law governing foreclosure mediation to remove the requirement that a borrower represented by counsel […]
CFPB Interpretative and Procedural Rule Partial Exemptions from the Requirements of the Home Mortgage Disclosure Act under the Economic Growth, Regulatory Relief, and Consumer Protection Act The Bureau of Consumer Financial Protection (“CFPB”) issued an interpretive and procedural rule (the “Rule”) to clarify provisions of the Economic Growth, Regulatory Relief, and Consumer Protection Act […]
Illinois Senate Bill 2432 The Illinois legislature recently amended provisions of its laws related to foreclosure, effective August 23, 2018. A court’s jurisdiction is not affected by a technical error in format of a summons if the summons has been issued by a clerk of the court, the person or entity to be served is […]
Idaho Department of Finance Policy Statement 2018-01 The Idaho Department of Finance (“Department”) recently issued a policy statement on July 1, 2018 concerning the requirement of financial responsibility/fitness of mortgage loan originators, qualified persons in charge, and designated control persons of mortgage brokers and lenders under the Idaho Residential Mortgage Practices Act. The policy statement […]
Annual Privacy Notice - 83 FEDERAL REGISTER 40945 The Bureau of Consumer Financial Protection (“CFPB”) recently amended provisions of Regulation P (which implements the Gramm-Leach-Bliley Act) related to the annual privacy notice, effective September 17, 2018. Unless otherwise provided, a financial institution for which the CFPB has authority must provide a clear and conspicuous […]
Washington Rules 208-620-010 The Washington Department of Financial Institutions (“Department”) recently revised rules related to the Consumer Loan Act (“Act”). The Act applies to each loan made to a resident of Washington by a licensee under the Act or persons subject to the Act, effective September 1, 2018. “Individual servicing a residential mortgage loan” […]
The Illinois legislature, Rhode Island Department of Business Regulation, Banking Division, and Utah Department of Commerce, Division of Real Estate, recently released new regulatory updates.
Legislative Updates Arizona House Bill 2434 The Arizona legislature recently enacted a regulatory sandbox program (see definition below) to allow companies to test innovative financial service products without a licensing requirement, effective August 3, 2018. “Applicable agency” means an Arizona department or agency established by law to regulate certain types of business activity in Arizona […]
Legislative Update District of Columbia B22-0185 The Council of the District of Columbia recently enacted the Consumer Protection Clarification and Enhancement Amendment Act of 2018 (“Act”) to provide clarification on unfair or deceptive trade practices, effective July 17, 2018. In construing the term “unfair or deceptive trade practice” due consideration and weight must be […]
The North Carolina legislature recently amended its laws related to foreclosure. The amendments apply to foreclosure sales noticed on or after July 1, 2018.
The Colorado legislature recently amended its laws related to protections for consumer data privacy, effective September 1, 2018. The legislature also amended its laws related to the foreclosure process on property that is encumbered by a deed of trust, effective August 8, 2018.
The Colorado legislature recently amended its laws related to mortgage loan originator licensing, effective August 8, 2018. The Minnesota legislature recently amended its laws related to mortgage originator licensing, effective August 1, 2018. The New Hampshire legislature recently amended its laws related to mortgage licensing, and exemptions from licensing, effective August 7, 2018.