Fee Splitting Violations
Lenders Compliance Group
by
1w ago
QUESTION  We were cited for two RESPA violations. The first thing we supposedly had was an undisclosed referral arrangement. But in our view, there was no increase in our charges, so we do not believe we did something wrong.  The other violation was about fee splitting. I became a mortgage broker a year ago. I am not a compliance person, and I don’t even know what that is, but based on the banking department’s letter, it means we had an arrangement with a company to split the fees on a mortgage loan. Now, I disagree about us even having such an arrangement, let alone splitting any fe ..read more
Visit website
Risk-Based Pricing Notice: Timing
Lenders Compliance Group
by
1w ago
QUESTION  We have a question about the risk-based pricing method. Our procedures already cover the required format of the pricing notice and the types of credit covered. What we want to know is when we are required to provide the risk-based pricing notice for closed-end credit transactions. Also, a question that concerns us is if we need to provide it if we are not going to do the loan.  When are we required to provide the risk-based pricing notice for closed-end credit?  Do we have to provide the risk-based notice if we don’t do the loan?  COMPLIANCE SOLUTION  Policie ..read more
Visit website
Quality Control Red Flags and Automated Fraud Alerts
Lenders Compliance Group
by
2w ago
QUESTION  I am the Chief Risk Officer of our company, a mortgage lender in the northwest. We have a nationwide footprint and an excellent Chief Compliance Officer. A persistent problem that she and I talk about is quality control findings, especially when the QC reports are showing fraud and misrepresentation. As a lawyer, I am cognizant of federal and state laws involving mortgage fraud.  However, we want a Red Flags approach. We want to put Red Flag checks into our underwriting processes. Our IT department is ready to install them. However, it seems that Red Flags have to be brough ..read more
Visit website
Elder Theft and Elder Scams
Lenders Compliance Group
by
1M ago
QUESTION  Our bank formed a group to prevent elder financial exploitation. Most of our clients are seniors and elderly, so we want to be sure our customers are protected from being exploited. They revised a number of screening procedures to catch fraud. They report directly to our Chief Compliance Officer.  In the last year, we have seen a substantial increase in elder financial exploitation. What bothers me is that most of the crooks seem to get away with financially exploiting older people because we sometimes catch the crooks after the fraud happens. This means we are constantly r ..read more
Visit website
CFPB’s Repeat Offender Registry – Part Two
Lenders Compliance Group
by
1M ago
QUESTION  Last week, you published an article about the Repeat Offender rule. The questioner was pretty upset about it. But I am not upset about it. After all, if a company repeats violations, why shouldn’t the public know about it?  I also run a mortgage lender, just like the other guy. I’m the President and CEO. My company is almost 30 years old. We’ve made it through upturns and downturns, and we’re positioned well for the next upturn. Along the way, we have had violations cited on banking audits. We corrected them and moved on. I can’t think of a single instance when the violatio ..read more
Visit website
CFPB’s Repeat Offender Registry – Part One
Lenders Compliance Group
by
1M ago
QUESTION  We just learned from our lawyers about the possibility that our firm will need to file as a Repeat Offender. I am really angry about this, and I am turning to you for feedback. This type of filing could crush our business reputation. I am the President and have built this company for over twenty years. Now, because we had a few violations, we are going to be considered repeat offenders. And the whole world is going to view us as repeat offenders.  I am outraged. I had a conference call with other company owners, and they wanted me to ask you for your understanding of this n ..read more
Visit website
CFPB Examination: Failure to Conduct Self-Assessments
Lenders Compliance Group
by
2M ago
QUESTION  We just received an MRA from the CFPB. We are a mid-size mortgage lender licensed in 30 states. This MRA hit us like a huge shock. Yesterday, we contacted your firm and spoke to a representative. I want to set up a conference call for my management and you to discuss how to proceed. Our counsel recommended that we bring you on board to assist them in handling the MRA demands.  Here's the situation. The CFPB found that we failed their exam in various areas, one of which was that we did not do any self-assessments, which they call "self-identifications."  First of all, I ..read more
Visit website
Regulatory Mandate: Third-Party Risk Management
Lenders Compliance Group
by
2M ago
QUESTION  I am the Compliance Manager of a bank. We have a mortgage banking platform. I handle our legal and regulatory compliance. Our new Chief Risk Officer wants to review our Third-Party Risk Management policy and procedures. The problem is that we do not have such a policy and procedures.  We have vendor management procedures, which our regulator has accepted. Like me, the CRO is an attorney but he can’t fathom how we could have functioned for so long without this policy, irrespective of the regulator’s evaluation. I respect his view, and he has discussed case law and regulatory ..read more
Visit website
Online Data Collection Challenge
Lenders Compliance Group
by
2M ago
QUESTION  Most of our business is from originating mortgages. Recently, we started originating Buy-Now-Pay-Later loans. I know you specialize in mortgage banking. And these are not mortgage loans. However, they are available online just like we offer our mortgages online.  Our attorney told us that getting a customer's social security number for online Buy-Now-Pay-Later loans poses consumer privacy and information security risks. She says we could collect partial SSN information directly from the customer and then use a third party source to obtain the full SSN before opening the acc ..read more
Visit website
Business Continuity Plan: Insufficient Recovery
Lenders Compliance Group
by
2M ago
QUESTION  According to the bank examiner, our Business Continuity Plan does not provide “sufficient recovery and resolution planning requirements” to manage stresses caused by system failures during a disaster. The problem is that they did not give us guidelines to determine what constitutes sufficient recovery procedures.  As a result, I am not sure we will satisfy their expectations. I have had our compliance department and lawyers come up with an outline of procedures, but they keep giving me scenarios, and I am not convinced that just listing scenarios is the way to go. I am our ..read more
Visit website

Follow Lenders Compliance Group on FeedSpot

Continue with Google
Continue with Apple
OR