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Potential PMI Pitfall: Recalculating PMI Termination Date After Loan Modification May Lead to Litigation Exposure

In August, the CFPB issued a compliance bulletin to clarify lenders’ obligations to terminate Private Mortgage Insurance (PMI) charges under 12 U.S.C. § 4902.  One subject that the bulletin did not address—but which is somewhat ambiguous—is how to calculate when PMI must be terminated after a loan is modified. Unless a borrower…

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Class Action Scrutiny Of New York Loan Satisfactions Increases

**EDITOR’S NOTE:  This post was guest-authored by Goodwin Procter partner Joe Yenouskas and associate Alyssa Sussman.  Both are members of Goodwin Procter’s Consumer Financial Services Litigation Group.** A series of putative class actions have been filed recently in New York federal courts by borrowers alleging that their mortgage satisfactions were not timely…

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Final Countdown: Mortgage Industry Apprehensive as TRID Effective Date Looms

Arguably the most pressing topic at this year’s Mortgage Bankers Association’s (MBA) Regulatory Compliance Conference (held on September 20-22, 2015 in Washington, D.C.) was the implementation of the TILA-RESPA Integrated Disclosure (TRID) Rule, which will take effect on October 3, 2015.   While industry leaders at the conference generally seemed to accept…

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FHA Attempt To Provide New Guidance: Too Little, Too Late?

On June 18, the Federal Housing Administration provided lenders with a new Defect Taxonomy for Single Family Housing Loans, or Loan Quality Assessment Methodology.  It has been working on the new taxonomy for almost a year, and the final product is very similar to what it presented for comment in September…

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New York’s Highest Court Clarifies Judicial Foreclosure Standing Requirements

Editor’s Note:  This post was guest-authored by Joseph Yenouskas, a partner in Goodwin Procter’s Consumer Financial Services Litigation Group who focuses on general civil litigation in federal and state trial and appellate courts, with a particular emphasis on defending financial institutions and mortgage lenders in complex consumer class action lawsuits. The…

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CFPB Director Faces Tough Questions Before House Committee on Financial Services

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On March 3, 2015 CFPB Director Richard Cordray appeared before the House Committee on Financial Services to deliver testimony regarding the Bureau’s work.  Director Cordray spent much of his semiannual address touting the Bureau’s efforts in the mortgage space.  In his written statement, Director Cordray commented on the Bureau’s Qualified…

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Foreclosure Protection is Back in the Spotlight: CFPB Proposes New Rules for Mortgage Servicers

The CFPB recently proposed additional amendments to its Mortgage Servicing Rules which, if implemented, would provide additional protections for mortgage borrowers facing default or foreclosure.  These amendments, which the CFPB announced on November 20, 2014, are the latest in a series of revisions to the Rules (which we have discussed…

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CFPB Finalizes Mortgage Rules Amendments

On October 22, the CFPB issued amendments to the Dodd-Frank Act mortgage rules that took effect in January 2014.  The amendments include: ATR/QM Cure Provision: Under the Ability-to-Repay/Qualified Mortgage Rule, a mortgage loan must meet certain requirements to be considered a “qualified mortgage”.  One such requirement is that the points and fees…

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CFPB Takes Action to Enforce New Mortgage Servicing Rules

The Consumer Financial Protection Bureau (CFPB) has entered a consent order with a mortgage bank following CFPB’s allegations that the bank violated the new mortgage servicing rules.  CFPB claimed that the bank: ​took an unreasonably long time to process borrowers’ applications for loan modifications or other foreclosure relief; failed to…

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