Last month involved several regulatory compliance updates and hot topics in the Mortgage industry. We’ve rounded up some key updates and how they will affect you and your financial institution going forward.
CFPB Doubles Down On Mortgage Servicing Enforcement
The new acting director of the Consumer Financial Protection Bureau (CFPB), Dave Uejio, told staff in an email on Thursday that the bureau will direct its attention to mortgage servicers, promising “aggressive action” to ensure companies follow the law.
In the email, Uejio laid out his vision for the coming months, saying that his top two priorities are relief for consumers facing hardship due to COVID-19 and the related economic crisis and racial equity.
“One thing we can do immediately is focus our supervision and enforcement tools on overseeing the companies responsible for COVID relief,” Uejio said in the email. “I am concerned about the findings described in last week’s Supervisory Highlights edition that companies are failing to properly administer relief through the crisis.” Here are some of the issues the acting director highlighted on servicers:
Why Is This Important to Me and My Financial Institution?
All signs are pointing to increased scrutiny from the CFPB under the new administration, and it appears there will be an emphasis placed on mortgage servicers.
$15,000 Tax Credit Could Cover Entire Down Payment For Homes in 40 of the 50 Largest U.S. Metros
The idea of potentially bringing back a first-time home buyer credit has been proposed by President Joe Biden recently – with a maximum credit of $15,000. If passed, a first-time homebuyer tax credit could push some renters closer toward homeownership.
“Legislation that reduces barriers to homeownership could allow millions of renter households to finally enjoy the stability and wealth-building owning a home can provide,” said Zillow economic analyst Alexandra Lee.
Why Is This Important to Me and My Financial Institution?
If a potential tax credit is put in place for those eligible, it may increase affordability and mortgage demand for the first-time homebuyers segment.
Biden’s CFPB nominee Rohit Chopra brings ‘substantive’ regulatory expertise
Observers expect Chopra to address racial disparities in access to credit and capital that have contributed to financial inequity. More than likely we will see a more intense focus surrounding fair lending. In the past, Chopra has advocated the use of disparate impact analysis to identify and remedy lending practices that are discriminatory.
Why Is This Important to Me and My Financial Institution?
Once confirmed, we may see a more brawny, powerful, and robust CFPB under Rohit Chopra. Take time to study Chopra and his work as the FTC Commissioner and how closely he worked with Elizabeth Warren in getting the CFPB started.
White text
*For other news, please refer to Industry News through Mortgage HQ!
Mortgage HQ includes industry news and trends from mortgage experts available at your fingertips, as well as daily one-minute videos from Dale Vermillion, one of the foremost leaders in the mortgage industry. Topics include daily market updates, sales tips and motivational videos to keep LOs excelling in their business.
To see a demo that will give you access to valuable training topics like these and more, visit OncourseLearning.com/Mortgage-H-Q.
About the Author
Michael Rhodes
Product Manager at OnCourse Learning
Michael Rhodes is the Product Manager for the mortgage segment at OnCourse Learning. Michael has worked in the financial services industry for 24 years and keeps up to date on mortgage industry hot topics. Michael received his Bachelor of Arts in Business Administration from Carroll University.
Leave A Comment