Regulatory Update on Emerging Issues Facing Mortgage Lenders and CFPB's Enforcement Priorities in 2016
The CFPB has outlined its significant challenges with Mortgage Service Agreements (MSAs) and has initiated several enforcement actions against lenders that incorporate MSAs into business practices. Regarding loan originator compensation, the CFPB has initiated enforcement actions against lenders that have improperly paid loan originators leading to loan steering problems. Likewise, how employers bonus employees at year's end has become a significant challenge for lenders.
Moreover, the Regulation Z loan originator compensation rule prohibits loan originators from being paid based on a loan's terms or proxy for a loan's terms. The CFPB will increase efforts to assess compliance with this rule. The CFPB has also indicated that it will assess regulated entities' compliance with the TRID rule, despite Director Cordray's previous comments that the CFPB would provide some leeway with lenders that made a good faith effort to comply. Thus, because TRID has only been effective since October 2015, lenders will want to know exactly where to focus when considering TRID compliance.
Finally, the CFPB will continue to utilize its Unfair Deceptive and Abusive Acts and Practices (UDAAP) authority to bring enforcement actions against financial institutions. Thus, UDAAP authority is broad and the audience should understand the CFPB's UDAAP reach. As regulatory oversight grows more complex and enforcement actions more aggressive, it is imperative that financial services companies receive proactive advice and practical strategies at all levels of the company to ensure that best practices are utilized to avoid litigation and enforcement actions. Having a greater understanding of what is on the regulatory horizon can protect the company, consumers and promote business growth.
Implementing the best protective measures while also understanding supervisory and enforcement trends will better position companies to either eliminate or mitigate challenges from state and federal agencies and consumers.
In this session, our expert speaker Anthony M. Sharett will provide a regulatory update on emerging issues facing mortgage lenders, including an update on Consumer Financial Protection Bureau (CFPB) enforcement of Mortgage Service Agreements, compliance update for loan originator compensation, and provide information regarding the CFPB's enforcement priorities in 2016.
In this webinar, you will learn:
The CFPB's 2016 enforcement priorities, including without limitation, loan originator compensation challenges, Mortgage Service Agreement enforcement matters, TRID compliance challenges and CFPB compliance assessment
How to take a risk based approach when contemplating CFPB enforcement priorities
How to understand litigation risks associated with CFPB compliance focus areas
How the CFPB's UDAAP authority may be utilized by the CFPB in 2016
This program will provide examples of:
CFPB Enforcement Actions in the MSA area
CFPB Enforcement Actions in the Loan Originator Compensation area
CFPB Enforcement Actions that utilized UDAAP authority
Best Practices to Consider regarding CFPB compliance
Sample Enforcement Actions
Risk based compliance tools
Detailed examples of CFPB UDAAP authority
Who should attend?
Mortgage lenders (including banks, savings associations, and other mortgage companies)
Loan originators specifically - branch managers, sales team leaders, human resources managers, legal/compliance professionals
Anthony Sharett is a partner in the Litigation Practice Group in BakerHostetler's Columbus office and Vice-chair of the Financial Services Industry Group. Sharett focuses his litigation practice on consumer financial services and litigation and regulatory enforcement. He has successfully d...
Disclaimer: The content herein does not represent any association between CFPB and Eli Financial LLC. CFPB neither endorses any product of Eli Financial LLC nor warrants accuracy of the content hereto.