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) […]
OCC Bulletin 2018-17 The Office of the Comptroller of the Currency (“OCC”) recently issued a bulletin on June 15, 2018 to provide national banks, federal savings associations, and federal branches and agencies (collectively the “banks”) with clarification regarding OCC supervisory policies and processes on how examiners evaluate and communicate bank performance under the Community Reinvestment […]
Regulatory Updates The Minnesota Department of Commerce (“Department”) recently issued Residential Mortgage Originator and Servicer Supervisory Guidance to bring attention to the most common deficiencies the Department has identified in examinations and investigations. The common deficiencies are as follows: Interest Rate Lock and Discount Point Agreements: Failure to properly disclose the five requirements of the […]
South Carolina House Bill 4628 The South Carolina legislature recently enacted the South Carolina Telephone Privacy Protection Act (“Act”), effective May 18, 2018. The Act applies to “Telephone solicitations” which means the initiation of a telephone call, or a text or media message sent, to a natural person’s residence in South Carolina, or to a […]
Legislative Updates The Arizona legislature recently adjusted the licensing fees paid to the Department of Financial Institutions and amended its law related to data security breaches. Both bills discussed in this memorandum are effective July 16, 2018. Arizona Senate Bill 1150 The following nonrefundable fees are payable to the Department of Financial Institutions: To apply […]
South Dakota Senate Bill 62 The South Dakota legislature recently amended its laws to address identity theft, effective July 1, 2018. "Breach of system security" means the unauthorized acquisition of unencrypted computerized data or encrypted computerized data and the encryption key by any person that materially compromises the security, confidentiality, or integrity of personal or […]
Legislative Updates The Virginia legislature recently passed bills amending its laws related to foreclosure. The bills are effective July 1, 2018. Virginia House Bill 311 If, on the date of a foreclosure sale of a single-family residential dwelling unit, the former owner remains in possession of the dwelling unit, such former owner becomes a tenant […]
Legislative Updates The Iowa legislature recently amended its laws related to mortgage releases and to shorten the period of time for redeeming real property from foreclosure and delaying sale of foreclosed property and to adjust the statute of limitations period for executing judgments on claims for rent. All the legislation discussed in this memorandum is […]
Connecticut House Bill 7141 The Connecticut legislature recently amended its laws related to mortgage servicing, effective July 1, 2018. No mortgage servicer shall, directly or indirectly: Employ any scheme, device or artifice to defraud or mislead borrowers or mortgagees or to defraud any person; Engage in any unfair or deceptive practice toward any person or […]
Florida Rules 69B-186.010 The Florida Department of Financial Services Division of Insurance Agents and Agency Services (“Department”) recently amended its rules regarding unfair methods of competition and unfair or deceptive acts or practices in the transaction of title insurance, effective May 13, 2018. A “referrer of settlement service business” means any person who is in […]
Georgia House Bill 780 The Georgia legislature recently amended various laws governing financial institutions, effective May 3, 2018. A prohibition order, which prohibits an individual from participating in any capacity in the affairs of a financial institution, may be issued by the Commissioner in connection with a suspension order. Such prohibition order may provide that […]
Regulatory Updates The Montana Department of Administration (“Department”) recently revised rules related to annual reporting for consumer loan licensees, mortgage definitions, mortgage renewal fees, and escrow funds held by mortgage companies, effective April 28, 2018. The New Jersey Department of Banking and Insurance (“Department”) issued Bulletin 18-04, on April 10, 2018, warning consumers about the […]
Washington House Bill 2057 The Washington legislature recently amended its laws related to foreclosure in the case of a deceased borrower or an abandoned property, effective June 7, 2018. The seeking of the appointment of a receiver, or the filing of a civil case to obtain court approval to access, secure, maintain, and preserve property […]