New Mortgage Servicing Rules Take Effect

The new mortgage servicing rules that the CFPB finalized in January  2013 became effective January 10, 2014, affecting the Truth in Lending Act (TILA) under Regulation Z and the Real Estate Settlement Procedures Act (RESPA) under Regulation X. The amendments are intended to provide borrowers with … [Read more...]

Do You Know Your Defect Rates?

Fannie Mae announced new quality control guidelines on July 30, 2013 that include a requirement for lenders to track defect rates: Do you know your defect rates?  If … [Read more...]

CFPB Director vs. Congressman: What is the Likely Impact of QM?

Recent posts in Housing Wire’s REwired blog, from reporters attending the Mortgage Bankers Association 100th Annual Convention & Expo in Washington, D.C., discuss two vastly different forecasts of the impact the new qualified mortgage (QM) rules are likely to have on the mortgage … [Read more...]

Lenders’ Dilemma: Invest in Tech or Exit Mortgage Business

Here's a timely article (registration required) highlighting how the new regulatory environment for lenders is forcing a stark choice: either invest in technology to streamline and automate loan origination and servicing processes - or exit the business. Some choice excerpts: "Origination … [Read more...]

Cogent Quality Trend Reports Demystified – Infographic

Cogent QC Systems ship with numerous standard reports, organized by category.  Loan Status reports help managers to track the progress of audit activities; Audit Findings reports show audit findings from various perspectives, from granular detail to summary overview, but always for a particular … [Read more...]

Secondary Review Options in Cogent QC Systems

In the most recent issue of American Banker, the CEO of Cape Cod Savings had this to say about the burden of regulatory compliance: "...Because of HMDA and RESPA, we have checkers who check the checkers. Then we actually have another third layer of checkers who check the checkers who check the … [Read more...]

Categorize Audit Questions for Streamlined Reporting of Regulatory Data

Sometimes it makes sense to organize audit questions by regulation.  Compliance audits are often organized this way, with names of regulations comprising audit category names and audit questions clustering within those categories.  This organization can be reinforced by audit category codes such as … [Read more...]

MBA and FHA and Statistical Sampling in Quality Control

We are pleased to see the FHA proposing to introduce more statistical sophistication into its Quality Assurance Process (QAP) and to see the MBA responding with reasonable critiques.  There are a number of items under discussion which have been long-standing issues in the industry, including what … [Read more...]

Fannie Mae releases new list of Loan Defect Categories

In case you missed it, Fannie Mae released its new list of Loan Defect Categories on August 27, 2013. QC- loan-defect-categories-FNMA Says Fannie, "The list shows the loan defects, by categories, identified by Fannie Mae in post-purchase review of our acquisitions.  These defects (which may be … [Read more...]

CFPB Exam Manual versus War and Peace

In a recent Housing Wire article, Megan Hopkins reported on the CFPB’s update of its exam procedures, and at the end of the article is a link to the new update for RESPA.  Amazingly, the update for RESPA alone is an 82 page document! Wow, I thought, this is a lot for a Compliance department to … [Read more...]