CFPB “Hiring Spree” Signals New Enforcement Posture

As we have written here before, the election of the Biden-Harris ticket was sure to foretell a new regulatory approach to managing banks and banking. Given the “loosening” of oversight in the previous four years where nary a nasty audit was to be found and headline screaming consent orders were few and far between, it […]

Wire Fraud Remains a Key Cyber Liability Issue for Banks. Here Are Some Best Practices

It is only in the past several years that banks and mortgage lenders have faced heightened risk from wire fraud losses. In this time period lenders have been forced to uncover and defend the wide-spread use of various cyber schemes, including basic phishing using mass-market emails, spear phishing, using cyber intrusion tactics to go after […]

Transition to Permanent Work at Home Rules Increases Lender Risk from Third Party Vendors

When vendors allow employees to work from home, lenders face heightened service provider risk due to significantly relaxed operational oversight as well as non-sterile work environments where sensitive data can be lost or exploited more easily. Recent industry and news reports have discussed widespread efforts to make permanent work at home rules for employees. In […]

First Alliance Lending Subject of CFPB Action for Unlawful Lending Practices

Well it didn’t take long. We have been predicting for the past few months that the new Biden Administration would start to get much tougher on mortgage lenders. Especially as lenders are now seeing record revenues and profits; lots of deep pockets to collect fines and penalties. On January 15th, the CFPB announce it had […]

Biden’s Appointment to Head CFPB? It’s a Warren Protege

According to Housing Wire today, “President-elect Joe Biden announced several appointments Monday, including FTC Commissioner Rohit Chopra to head the Consumer Financial Protection Bureau.” “Chopra is a CFPB veteran, having previously served as assistant director, where he was the bureau’s top student loan watchdog. In 2011, the Secretary of the Treasury appointed him to serve […]

The Emerging COVID Foreclosure Crisis

The ongoing discussions in Washington regarding a second COVID stimulus package, involving over $1 Trillion in funding and $2000 individual payments, which follows the previous $600 individual payments in December, masks a growing foreclosure crisis that should be a concern for mortgage lenders. COVID forced all “non-essential” business into hibernation and caused widespread unemployment, underemployment […]

Biden and Harris and Warren, Oh My!

For the past four years lenders have experienced a relaxation of rules and regulations governing the banking industry, as well as a significant reduction in aggressive audits. That appears about to change. If their public statements are any guide, the new President and Vice President will likely increase the pressure on lenders regarding consumer protection, […]

When the Bough Breaks, The Fraud Schemes Will Fall

Mortgage fraud rises when volume drops after a sustained period of financial growth as we are experiencing now. It is safe to state that mortgage lenders may have never had it so good. Despite the tremendous negative effects of the COVID-19 pandemic on most of the economy, low interest rates and a shift in demographics […]

NYDFS Announces Enforcement Action Against Major Title Underwriter for Cyber Breach, First Ever

On July 21, 2020, the New York Department of Financial Services (NYDFS) announced that it had filed its first enforcement action under New York’s Cyber Security Regulation (23 NYCRR 500) against a large title insurance provider. Although the company is not named the fact pattern closely resembles the widely reported breach experienced by First American […]

Quicken Real Estate Affiliate Under CFPB Investigation for Possible RESPA Violations

Just when you thought it was safe to swim in the mortgage industry regulatory waters, and it seemed that the CFPB’s teeth had been ground down by legal challenges and political winds, news emerges that the risk of aggressive oversight remains a concern for many. In May the Consumer Financial Protection Bureau (CFPB) issued an […]