Mortgage companies could see more enforcement of the Real Estate Settlement Procedures Act, National Mortgage News reported this week, following statements made by former FHA Commissioner Brian Montgomery to a conference of industry professionals.
“As you know, there has been very little enforcement in this area for several years and now that the [Consumer Financial Protection Bureau] has purview I think you can expect that to change,” Montgomery, who new chairs the Washington D.C.-based Collingwood Group told Mortgage Bankers Association conference attendees last week in New Jersey.
In the area of fair housing, now governed by both the Department of Housing and Urban Development and the CFPB, Montgomery said the industry is likely to see an increase in complaints. He also speculated that Qui Tam lawsuits under the Whistleblowers Act may be on the rise, National Mortgage News reported.
“In the past three years HUD and FHA have been busy tracking and taking action against FHA lenders that violated underwriting guidelines but with those cases beginning to ease up regulators are expected to turn to RESPA and affiliated business arrangements,” the article says.
Read the original article at National Mortgage News.
Written by Elizabeth Ecker