The Federal Reserve published a compliance guide for Regulation Z and provides additional information regarding prohibitions related to mortgage originator compensation and steering. Regulation Z prohibits certain practices relating to payments made to compensate mortgage brokers and other loan originators. “The goal of the amendments is to protect consumers in the mortgage market from unfair [...]

Several mortgage industry trade groups are urging the Department of Housing and Urban Development to exempt warehouse lenders from provisions of the Real Estate Settlement Procedures Act. “It is important for HUD to recognize that warehouse lenders make commercial loans to mortgage lenders to facilitate secondary market transactions and they are not engaged in table funding [...]

The Mortgage Bankers Association filed suit against the Department of Labor (DOL) after a Wage and Hour Division Administrator’s Interpretation concluded that typical loan officers were exempt from Fair Labor Standards Act (FLSA) requirements for overtime payments under the “administrative exemption.” “In 2006, the department issued a clear opinion to MBA interpreting DOL regulations that exempted typical [...]

A group of trade associations are requesting the Federal Reserve Board delay its regulatory changes that would prohibit deceptive advertising and improve disclosure of reverse mortgage information until later in 2011. The National Reverse Mortgage Lenders Association, Mortgage Bankers Association, and the American Bankers Association said that while they generally support the proposal, given other legislative [...]

During the first week of January, the Department of Housing and Urban Development will publish their highly anticipated guidance to address an estimated 13,000 HECM reverse mortgages that are in default from a failure to pay taxes and insurance. The guidance is expected to rely heavily on assistance from housing counseling agencies and HUD has [...]

The Mortgage Bankers Association is asking the Federal Reserve to provide written guidance on its final rule on loan officer compensation because the association believes it’s vague and confusing, particularly for lenders seeking to comply with its provisions. Without the additional guidance, many lenders may be forced to be very conservative and implement compensation and loan pricing structures that [...]