This topic consolidates the heartbeat of today's mortgage banking environment with news stories relevant to the financial compliance industry.
Housingwire--Sarah Marx
According to the ICE Mortgage Monitor report, the national delinquency rate climbed to 3.29% in September, up 12 basis points from August and up 13 basis points from September 2022.
MBA Newslink
MISMO developed an industry-standard dataset mapping for the U.S. Department of Veterans Affairs (VA) Verification of VA Benefits (Form 26-8937) to facilitate transformations underway at VA and to provide an industry standard for the exchange of the information required on the VA Verification of Benefits form, creating efficiency and improved interoperability within the system.
Search our Compliance Calendar for current regulatory changes & updates.
Lenders advised to remain vigilant to ensure downward trend continues
MBA NewsLink
According to the Federal Housing Finance Agency, the GSEs completed 47,370 foreclosure prevention actions during the second quarter.
Ballard Spahr LLP--Richard J. Andreano, Jr., John L. Culhane, Jr. & Michael R. Guerrero
The CFPB is now revisiting the issue in Circular 2023-3 addressing Equal Credit Opportunity Act (ECOA) adverse action notice requirements in connection with credit decisions based on algorithms.
On Tuesday, September 19th, 2023, the CFPB published circular 2023-03 notifying creditors of adverse action reporting requirements under ECOA and Regulation B for loans underwritten using complex algorithms involving "artificial intelligence".
"By partnering with ACES, we have witnessed an overall improvement in the quality of our reviews."
-Hilda Melendez, Quality Control Systems Director at Lennar Mortgage
HousingWire article authored by Sharon Reichhardt, EVP of Operations at ACES Quality Management
MBA Newslink
This week's update includes information relating to the Senate Banking Committee property insurance hearing, changes to the NMLS mortgage call report, and more.
DS News--Eric C. Peck
According to the MetaSource annual servicing quality control findings report, missing bankruptcy notices and proof of claims documentation topped the findings list.
DS News Demetria Lester
According to HouseCanary, Inc.'s August Market report, the housing market slowed due to the Federal Reserve rate hikes.
Automated compliance tests to ensure compliance on more loans in less time
Ballard Spahr LLP--John L. Culhane, Jr., Richard J. Andreano, Jr., Michael Gordon & Alan S. Kaplinsky
A group of trade associations is urging the CFPB to address the disparity that has resulted from the order entered by the Texas federal district court in the lawsuit challenging the CFPB’s small business lending rule that granted preliminary injunctive relief only to the plaintiffs and their members.
This update includes information on MBA's response to the interagency proposed rule on AVM quality control standards.
DS News--Kyle G. Horst
ATTOM Data's third-quarter market trends report found that there were 1,277,612 vacant properties in the country and provides insight into the blight of zombie homes and their economic impact .
MBA Newslinks
According to the Mortgage Bankers Association’s Monthly Loan Monitoring Survey, the number of loans in forbearance decreased by 5 basis points from 0.44% of servicers’ portfolio volume in the prior month to 0.39% as of July 31.
