Troutman Sanders LLP: CFPB Goes After Mortgage Industry; Other Nonbanks Are Next

By David N. Anthony , Alan D. Wingfield and Virginia Bell Flynn Five days after the Consumer Financial Protection Bureau (CFPB) obtained its full power to regulate nonbanks through the controversial recess appointment of Richard Cordray as Director, the CFPB made its first public move against...

Ballard Spahr LLP: CFPB Confirms Mortgage Loan Originators May Participate in Qualified 401(k) Plans

By members of the Consumer Financial Services Group The Consumer Financial Protection Bureau has confirmed that Regulation Z (which implements the Truth in Lending Act) does not prohibit mortgage loan originators from participating in qualified profit-sharing 401(k) or employee stock ownership plans...

Troutman Sanders LLP: CFPB Proposes New Rules for Mortgage Servicers

By John C. Lynch , David N. Anthony , John F. Costello, Jr. and Virginia Bell Flynn On April 9, 2012, the Consumer Financial Protection Bureau (CFPB) announced a proposal for mortgage servicing rules that it plans to issue this summer. Richard Cordray, Director of the CFPB, stated that "for too...

Troutman Sanders LLP: The CFPB Goes After the Mortgage Industry: New Proposed Mortgage Loan Origination (MLO) Standards

By John C. Lynch , David N. Anthony , Paige S. Fitzgerald and Virginia Bell Flynn On March 9, 2012, the Consumer Financial Protection Bureau announced that it will propose residential mortgage loan origination (MLO) rules this summer, with a goal of adopting final rules by January 2013. According...

Ballard Spahr LLP: CFPB Issues Reverse Mortgage Study and Information Request

By the Consumer Financial Services Group Reverse mortgages are the subject of a Report to Congress and a Notice and Request for Information recently issued by the Consumer Financial Protection Bureau. Report to Congress The report is the product of the CFPB's study of reverse mortgages...

Ballard Spahr LLP: CFPB Moves to Broaden Scope of ‘High-Cost’ Mortgages

By Mercedes Kelley Tunstall The Consumer Financial Protection Bureau is moving to broaden the scope of mortgages that would be viewed as "high cost" and therefore subject to special disclosure requirements. In a notice of proposed rulemaking issued on July 9, 2012, the CFPB proposed amendments...

Williams Mullen: Debate Continues over Liability Protection for Lenders: Safe Harbor verses Rebuttable Presumption for “Qualified Mortgages”

BY: J.P. MCGUIRE BOYD, JR. Fifteen months after the Federal Reserve Board proposed its initial ability-to-repay rule as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, no final rule has been adopted due in large part to the continuing debate over how to protect lenders...

Ballard Spahr LLP: CFPB Follows Script in Issuing Servicing Rules

By Michael S. Waldron The Consumer Financial Protection Bureau took the much-anticipated next step in its high-profile initiative to transform mortgage servicing last Friday when it issued proposed mortgage servicing regulations. The proposals consist of a 250-page Real Estate Settlement Procedures...

Ballard Spahr LLP: CFPB Issues Guidance on Mortgage Servicing Transfers

by the Mortgage Banking Group The Consumer Financial Protection Bureau has issued guidance warning residential mortgage servicers and subservicers that CFPB examiners will be looking carefully at their compliance with federal law and focusing on specific areas related to servicing transfers. Bulletin...