If there is such a thing as a “quiet couple of months” in the world of Mortgage Compliance, we may have experienced them recently. October of this year marked the 1-year anniversary of the TRID rollout. For the most part, the industry seems to have found a way to emerge from that relatively unscathed.
Among the most notable compliance news lately are the CFPB v. PHH legal proceedings. While they are still on going, the ultimate result of it could fundamentally change how the CFPB is structured. It’s one to keep an eye on as it could potentially affect everyone reading this.
A summary of the situation: PHH had a fine imposed upon them a while ago for some RESPA violations by a regulator other than the CFPB. PHH challenged those findings and ultimately the CFPB investigated. The result of that investigation was a dramatic increase in the fine originally imposed. PHH challenged that once again and Washington DC District court overturned the CFPB’s increase in the fine and ultimately called in to question the constitutionality of the structure of the CFPB (with a single director at its helm). Legal actions persist to this day, and there is a very real possibility that the combination of the court ruling(s) and the incoming white house administration could find that the Bureau may have to headed by a combination of directors. At present, the director of the CFPB holds as much power as any one individual ever has in a public office (save for the POTUS of course).
Also noteworthy is that upcoming changes to HMDA (Regulation C) reporting. Institutions will have to begin collecting a LOT more HMDA data starting January 1, 2018 and reporting that additional data by March 1 2019. This presents logistical issues with loan origination systems as well as opening up lenders for 2-3 times the level of scrutiny for Fair Lending practices. It also presents a data security concern for consumers as so much of their personal data will be made available to the public via HMDA reporting.
Enjoy the holiday season and be safe.
Ron Culver, Compliance Chair