Archive

RESCISSION CASE HEADED TO SUPREME COURT

As we reported on March 21 (click here for article)  the federal appeals courts are divided on whether a borrower timely exercises the right of rescission by sending the creditor a rescission notice within three years of consummation or whether the borrower must also file a lawsuit within three years. The U. S. Supreme Court has granted review in one of the rescission cases we reported. The case (Jesinoski v. Countrywide Home Loans) will be […]

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AFFORDABILITY ACT – CONTROVERSY ON DETACHED STRUCTURES

On March 23 Congress passed the Homeowner Flood Insurance Affordability Act. The Affordability Act revises certain sections of Biggert-Waters, eliminates or delays other sections and creates new rules. Section 13 of the Affordability Act is causing some controversy. It adds: The following exclusion to Subsection (c) of section 102 of the Flood Disaster Protection Act of 1973: (3)  DETACHED STRUCTURES.—Notwithstanding any other provision of this section, flood insurance shall not be required, in the case […]

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WHAT IS MISMO?

The Mortgage Industry Standards Maintenance Organization, (MISMO) is a not-for-profit subsidiary of the Mortgage Bankers Association (MBA). It is a developer of technology standards for both residential and commercial property transactions. By promoting improved data consistency, MISMO aims to reduce costs and increase transparency while promoting confidence in mortgages as an asset class for investors. MISMO develops and maintains a comprehensive set of standards and data points for all stages of the mortgage loan life […]

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WHERE’S HMDA HEADED? PART 5 – OPERATIONAL IMPROVEMENTS

The Consumer Financial Protection Bureau (CFPB) wants to improve the collection, reporting and sharing processes for Home Mortgage Disclosure Act (HMDA) data. This effort has the potential to reduce the burdens on lenders; but in its short history the CFPB has not earned a reputation for taking action solely in the interest of financial institutions. Collection and Reporting Approximately 70 percent of all loans eventually sold to a Government-Sponsored Enterprise use the Uniform Loan Delivery Dataset […]

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HUGE UDAAP PENALTY

The CFPB announced that Bank of America has agreed to pay $772 million in refunds and penalties for deceptive credit card practices. Please don’t stop reading just because the case involves a big bank and credit card issues. The deceptive practices in this case involved debt cancellation and identity theft monitoring products which may be a concern for banks of any size and for many products other than credit cards. A simple rule for deciding […]

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