FYI. Democrats introduce bill to re-instate HMDA low threshold for reporting.

Last year, Congress voted to roll back several measures passed under Dodd-Frank, a law that many in the mortgage industry said created overly burdensome regulations. This relates to HMDA.

Among the changes was a law raising the loan-quality criteria reporting requirement exemption from 25 to 500 mortgages per year and from 100 to 500 home equity loans per year.  So many of you smaller brokers and lenders were exempt.

According to the bills sponsor, Democrat Cortez Masto, the rollback effectively exempted 85% of all banks and credit unions from reporting loan characteristics vital to ensuring lending fairness.

Cortez Masto’s bill would reinstate the Dodd-Frank requirement that any bank making more than 25 mortgage loans or 100 home equity lines of credit per year report detailed characteristics, including interest rates, points and fees and loan terms, as well as borrower characteristics such as credit score and ethnicity.

The bill would also require each loan to receive a unique identifier so it can be tracked if it is sold to an investor.

Just be aware, we will keep you posted. For now, your triggers are still 25 and 100.

Email if any questions.

 

Nelson A. Locke, Esq

Compliance Services, USA

(800) 656-4584

California has another new rule.

December 27th, 2018

All Department of Business Oversight (DBO) licensees are required by law to establish and maintain an email address for receiving communications and documents from the DBO beginning January 1, 2019.

The email address:
1. Must not be an email of any individual employee.
2. Must be able to receive attachments.

To register a designated email address, licensees must go to DBO’s website here. Instructions to create a designated email are available here.

Licensees are required by law to notify the DBO before changing the designated email and provide the DBO with the new designated email.

If licensees fail to comply with the designated email requirements, the licensee may be subject to a fine of up to fifty dollars ($50) per day, not to exceed one thousand dollars ($1,000) in the aggregate.

Nelson A. Locke, Esq.

Compliance Services USA

(800) 656-4584

AML And BSA Annual Risk Assessment Compliance

LL Logo 022015Here we are in late November, and there are some of you out there who need to have an independent party perform a Risk Assessment to satisfy state regulators regarding your compliance with Money Laundering Law and the Bank Secrecy Act.

We can do this for you, it will take about an hour and involves a small fee. $250 for survey and interview. The session will result in a complete Risk Assessment Report that will satisfy any requests for at least the next six months. This is an emerging trend. 

If you would like to schedule this, shoot me an email at nl@lockelaw.us  and let us know.

Nelson A. Locke, Esq.

Compliance Services USA

(800) 656-4584

Have you completed your 2018 your continuing education yet? You are running out of time.

We recommend Jim Montrym and Andrea Worthington of the Mortgage Broker School.

You can reach them at (800) 735-8565, or use their web site which is :

http://www.brokerschool.com/ :category/industry-partners-processing-compliance/ 

I have used their services personally for the last 15 years. Always good, never bad. Don’t wait until the last minute, space is limited. thw8s1030z

If you use them for your CE please tell us because it could be a helpful bit of information in the event you are audited.

Nelson A. Locke, Esq.

Compliance Services USA

(800) 656-4584

States where current Audit Activity is high.

 

Hello folks, here comes December!

Is your required annual training for AML and GLB done and certified? If not, give us a call.

In the past six weeks we have assisted in responding to at least 15 state or CFPB Audits.

We have successfully negotiated the lifting of three suspensions and successfully negotiated reduced fines for violations an average of 50%.

 

Audit satsifactoryIf you need that kind of Compliance Expertise in your corner,

email us at nl@lockelaw.us

Current Active Audit States

  • Florida

  • Texas

  • Washington

  • Oregon

  • North Carolina

  • Michigan

  • Virginia

  • New York

For more information, contact us at (800) 656-4584.

Nelson A. Locke, Esq

Compliance Services, USA

 

AML And BSA Annual Risk Assessment Compliance

LL Logo 022015Here we are in late November, and there are some of you out there who need to have an independent party perform a Risk Assessment to satisfy state regulators regarding your compliance with Money Laundering Law and the Bank Secrecy Act.

We can do this for you, it will take about an hour and involves a small fee. The session will result in a complete Risk Assessment Report that will satisfy any requests for at least the next six months. This is an emerging trend. 

If you are a small Broker shop, don’t be concerned. However, if you have multiple state licenses or more than 10 MLO staff, you may want to consider this extra step to stay in the safe zone.

If you would like to schedule this, shoot me an email at nl@lockelaw.us  and let us know.

Nelson A. Locke, Esq.

Compliance Services USA

(800) 656-4584

What to do if a Lender asks you to repay commissions………..

This is a disturbing practice that is surfacing more and more.

You work hard for your borrower and help them obtain the mortgage loan they need. It is either a purchase or a refinance, and the borrower never says anything to you about intending to pay off their loan within a year. You probably signed your broker-lender agreement without asking us to review it for trap doors like this so………the contract has a clause in it allowing your lender to claw back your hard-earned fees no matter where they came from (borrower OR lender paid) and no matter why the client paid off early.

Constructively, this is a broker prepayment penalty. The regulations never considered this. The regulations protect the consumer, and then the lender shifts the penalty to you.  You probably did not know this penalty was in your contract because it likely was not explained to you when you signed your contract. Did they ask you to initial each page?

When you work hard to originate a mortgage loan you deliver something of value. You deserve to be compensated. If your borrower decides without any warning to prepay the loan, they got the benefit of your hard work for what amounts to nothing. Work without pay is called unjust enrichment. Under quasi-contract the borrower owes you for the claw back the lender assessed you with. You earned your fee.

What can you do? I don’t see a problem with a broker-borrower contractual agreement that requires the borrower to indemnify you in the event the borrower decides to pay off early. It is an advanced informed agreement. If you are our client we can provide this to you at no cost. If you are not our client but would like to learn more, contact us at (800) 656-4584. Or email us at nl@lockelaw.us 

This is just one example of the pro-broker things we do to help our clients make and retain their earnings.

That’s all for now.

Nelson A. Locke, Esq.

Compliance Services USA

http://www.expertlenderservices.com