cfpb: AFFILIATED BUSINESS ARRANGEMENTS AND THE CFPB - 06/18/14 09:59 AM
AFFILIATED BUSINESS ARRANGEMENTS AND THE CFPB
 
 
 
The cfpb is taking issue with another real estate company's affiliated business arrangement with a title company.  I've done a few blogs about one stop shopping. The cfpb is paying attention now to whether home buyers are being fully advised as to their options. 
Some lenders have contracts pre-printed that the buyer selects the title company or lender that is owned in part or fully by the real estate company.  The cfpb is questioning whether home buyers were aware of options or of the connection between the entities.
Whereas affiliated business arrangements have been around … (0 comments)

cfpb: SHOULD A PLUMBER CHARGE EVERYONE THE SAME? - 02/06/14 08:00 AM
SHOULD A PLUMBER CHARGE EVERYONE THE SAME?
 
I recently had a couple of small plumbing problems so I decided to call a well known plumber in the area. I called them because they do have a good reputation. I was not disappointed in the service from their employee of 20 years. After all the problems were small, and really, if I wanted to spend the time on them I could have done the repairs myself with a little help from the internet.
Given I don't want to spend my time plumbing and I don't really have the tools I called the … (2 comments)

cfpb: NON QUALIFIED MORTGAGES... THE FORBIDDEN FRUIT - 06/10/13 09:38 AM
NON QUALIFIED MORTGAGES... THE FORBIDDEN FRUIT

In checking out various publications, it is hard to not see something on a daily basis about qualified mortgages. What are they? What will become of those borrowers who do not fit "qualified" mortgages guidelines? Will mortgage lending tighten even more? 
I find it interesting that Raj Date, who was former deputy director of the CFPB has opened a consulting firm to focus on the industry for which his agency designed regulations.
That is some creative work, sir. Given the CFPB regulations, there will certainly be a market for your services.
According to reports employees of … (0 comments)

cfpb: WHAT THE CFPB COMPLAINTS SAY ABOUT MORTGAGE BROKERS - 04/03/13 02:39 PM
 
                       WHAT THE CFPB COMPLAINTS SAY ABOUT MORTGAGE BROKERS
 

Well, it seems after years of the mortgage broker taking it on the chin for the housing collapse, there is good news! Many of us in the industry are constantly hearing those unknowingly using the broker name in vain. Now the CFPB has proof mortgage brokers are better originators. 
It is confusing when the CFPB bucket for complaints is called application, originator, mortgage broker. It could just be called application or originator and be more accurate. At any rate, … (0 comments)

cfpb: HOW WILL CFPB COUNT L O COMPENSATION? - 02/27/13 08:34 AM

HOW WILL CFPB COUNT L O COMPENSATION?
With the CFPB closing the comment period on 2/25/2013 regarding loan originator compensation, here's one Loan Originator hoping they can do simple math.
 
The CFPB has described the "originator" as the company who originates the loan. 
The CFPB has a 3% limit on compensation. In the past the compensation was set and regulated by states. With the CFPB overriding the states, then the 3% becomes the most one can earn.  Now they are finalizing loan officer compensation. This is where the tricky math (for cfpb perhaps) comes in. 
One option is if a … (2 comments)

cfpb: RAJ DATE OF CFPB BROKER BASHING - 06/12/12 11:07 AM
RAJ DATE OF CFPB  BROKER BASHING
It would seem if the CFPB is to be of any help to consumers it should employ those with knowledge. Raj Date does not seem to fit the bill. Marc Savitt of NAIHP thinks he should step down for broker bashing. I'm in agreement. Constantly instilling in consumers a "fear" that mortgage brokers are out to take advantage of them is not helpful. Particularly when there is plenty of proof that banks and Wall Street caused the mortgage collapse - NOT BROKERS.
On Monday, Raj Date, deputy director of the Consumer Financial Protection Bureau, speaking … (0 comments)

cfpb: Supreme Court Says Discount Points Don't Equal Lower Rate - 05/25/12 03:20 PM
Supreme Court Says Discount Points Don't Equal Lower Rate
Wow, I don't want to get all giddy here, but this looks like some common sense! According to an article written by Brian Collins in National Mortgage News, the supreme court ruled in favor of Quicken loans regarding a suit where the borrowers say there was a RESPA violation.
The borrowers felt if they paid a discount point they should have received a lower rate for it. The lender says they did; they say they did not.
Who Cares? What I care about is by ruling in favor of the lender the Supreme … (13 comments)

cfpb: CFPB CONSIDERING A FLAT FEE FOR MORTGAGE ORIGINATORS - 05/10/12 11:03 AM
CFPB CONSIDERING A FLAT FEE FOR MORTGAGE ORIGINATORS

 
I read today the CFPB is considering a "FLAT FEE" for loan origination compensation. This is after the April Fools Day change in 2011 that made it illegal to collect a fee from a consumer and from a lender on the same file, and made it mandatory that every borrower be charged the exact same percentage, no matter the loan product, size of loan or work involved.
Prior to  April 2011, most of us had an idea of how much we needed to make on a loan to make a profit. … (2 comments)

cfpb: WHY IS THE CFPB COMPELLED TO CHANGE MORTGAGE FORMS? - 02/21/12 12:07 PM
WHY IS THE CFPB COMPELLED TO CHANGE MORTGAGE FORMS?
Well, the short answer is Dodd Frank. The consumer finance protection agency is charged with rule making based on the 400 rules in Dodd Frank. The CFPB was given the authority to complicate things.
I was looking at one of the latest "changes" they are working on, the goal supposedly to make the process simpler and easier to understand. I've seen different forms ranging from combining a good faith estimate and truth in lending to a revised settlement statement.
What is so amazing to me is that before all the "rules", the … (0 comments)

cfpb: WHO IS RUNNING THE CFPB? - 12/09/11 01:12 PM
WHO IS RUNNING THE CFPB?
Since the senate failed to confirm either Elizabeth Warren or Richard Cordray as director of the CFPB (Consumer Finance Protection Agency), then who is running it in the absence of a director? In the interim the acting director is Raj Date. His resume includes Capital One and Deustche Bank.
I wonder when I read that what he thinks now and thought then about his employer's credit card activity?
As this drama goes on and on in Washington, it makes me pause to consider the persons who are employed by the CFPB, the rules they are writing, … (1 comments)

cfpb: WHO IS RUNNING THE CONSUMER FINANCE PROTECTION BUREAU? - 07/21/11 01:20 PM
WHO IS RUNNING THE CONSUMER FINANCE PROTECTION BUREAU?
TODAY IS THE BIG DAY THE CFPB GOES LIVE. Since there is no confirmation of the director (Cordray of OH), then who is in charge? What are our elected officials afraid of when they don't want to confirm any director?
The CFPB has oversight of six areas: The six areas are debt collection; consumer reporting; consumer credit and related activities; money transmitting, check cashing and related activities; prepaid cards and debt relief services.
It is reported there are somewhere around 100 to 150 employees. Who are they?
So far we've seen … (0 comments)