In case you missed it… here’s what happened in reverse mortgage news this week.
The CFPB started knocking on lenders’ doors. One mortgage company told RMD it will be audited by the new agency starting next week, including an a two-week on-site visit from CFPB reps. The agency is still coming under fire for its unprecedented authority and the controversial recess appointment of its first-ever director, Richard Cordray.
In other CFPB news… the agency is under way with a reverse mortgage industry study. The deadline for the study is July 21. For that study, it will be seeking the input of industry participants. It will also do a study to develop recommendations on best practices for financial advisors who work with seniors.
Mortgage servicers signed historic settlement for $25 billion. The ongoing robo-signing saga ended in the five largest servicers, Bank of America, J.P Morgan Chase, Wells Fargo, Ally Financial and Citigroup ponying up funds to cover some consumer losses as well as steep fines for illegally foreclosing on hundreds of thousands of American homeowners. Bank of America was on the hook for a separate $1 billion sum for HAMP and FHA loan violations.
A House bill was introduced to help the FHA insurance fund in “time of crisis.” A House subcommittee approved a bill Tuesday to help the Federal Housing Administration “shore up” the health of the Federal Housing Administration’s mortgage insurance fund.
A new rule requires all mortgage lenders file fraud reports. All nonbank residential mortgage lenders will be required to submit suspicious activity reports (SARs) to the Financial Crimes Enforcement Network (FinCEN) as specified under a new final rule announced Tuesday by the Treasury.
Written by Elizabeth Ecker