Mortgage Daily Logo
mortgage news from industry experts

Mortgage Compliance Daily

Mortgage Compliance DailyRecent compliance activity

March 9, 2009

By MortgageDaily.com staff

As fast as new requirements emerge for government lending and appraisal ordering, new services are emerging to help mortgage companies comply. In other compliance news, mortgage trade groups are asking the Obama administration to exempt mortgage servicers from upcoming licensing requirements.Seven trade groups — including the American Bankers Association, the Consumer Mortgage Coalition and the Mortgage Bankers Association — issued a joint letter to U.S. Department of and Housing and Urban Development Secretary Shaun Donovan asking that mortgage servicers be exempt from the Secure and Fair Enforcement for Mortgage Licensing Act of 2008. The groups, concerned with a potential patchwork of state laws that could emerge requiring servicers to obtain state licensing, want the housing agency to clarify that S.A.F.E. doesn’t apply to servicers.

“While we support appropriate qualifications for mortgage servicing companies, we do not believe the S.A.F.E. licensing and registry system is the appropriate vehicle to address any servicer-related concerns,” the groups said. “We strongly urge that HUD publicly take the position that servicers, who work with consumers concerning existing loans, are not subject to S.A.F.E. and should not be subject to state licensing requirements under S.A.F.E.”

MBA issued a separate letter to U.S. Department of the Treasury Secretary Timothy F. Geithner said that the S.A.F.E. act, which encourages states to enact licensing and registration laws for lenders and mortgage brokers by July 30, may lead to unnecessary regulation that may impair loan modification efforts.

In its own letter to Donovan, the Consumer Mortgage Coalition highlighted issues caused by the lack of coordination between HUD on the Real Estate Settlement Practices Act and the Federal Reserve on the Truth in Lending Act. The group asked Donovan to delay implementation of compliance with new RESPA regulation until Jan. 1, 2010.

FNC Inc. recently issued a statement indicating that mortgage originators should immediately implement changes to their systems and operations to meet the May 1 deadline to comply with the new Home Valuation Code of Conduct. Under the code, Fannie Mae or Freddie Mac can demand that a seller repurchase noncompliant loans.

“They may not be fully aware that their systems and processes will require significant changes to avoid penalties associated with selling their new originations to the GSEs after May 1,” FNC’s designated HVCC expert Jon Fisher said in the statement.

FNC said its platforms ensure HVCC compliance utilizing auto-assignment-functionality that ensures appraiser independence while limiting orders to appraisal firms on the lender’s approved vendor list. The system also uses a non-biased rules engine.

A fully automated analysis from Interthinx helps mortgage companies avoid mistakes on loans insured by the Federal Housing Administration, a recent press release said. Dubbed PredProtect, the service alerts loan processors when excessive fees are found. The system also issues a warning when tax-service fees or loan-origination fees exceed 1 percent, in accordance with HUD Mortgagee Letter ML 2006-04.

Members of the National Association of Mortgage Brokers now have fully sponsored access to AllRegs’ federal compliance and pending legislation through AllRegs Online. NAMB said it is the only mortgage trade group that includes the service in its membership features.

Employees of financial institutions can receive more than 160 online compliance training utilizing Learn.com’s LearnCenter online training platform, Wolters Kluwer Financial Services announced today. The one-stop shop includes web-based skill development, content and development plan management.

Wolters Kluwer announced last month that senior compliance consultants Pat Ditlevson and Kevin Whalen earned their Certified Regulatory Compliance Manager designation from the American Bankers Association’s Institute of Certified Bankers.

U.S. Bancorp will utilize Compliance Express — an online licensing and compliance service, Sircon Corp. said in a recent press release.

LenderLive Network Inc. reported last month an increase in customer demand for its quality control services at its contract services division.

next story

back to current headlines
 

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION