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 […]Read More The Emerging COVID Foreclosure Crisis
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, […]Read More Biden and Harris and Warren, Oh My!
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 […]Read More When the Bough Breaks, The Fraud Schemes Will Fall
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 […]Read More NYDFS Announces Enforcement Action Against Major Title Underwriter for Cyber Breach, First Ever
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 […]Read More Quicken Real Estate Affiliate Under CFPB Investigation for Possible RESPA Violations
Today the United States Supreme Court, in a 5-4 decision, declared that the structure of the directorship of the Consumer Financial Protection Bureau (CFPB) is unconstitutional. The decision addressed the “only for cause” removal provision created by Congress which had effectively made its single-directorship above checks and balances because it prevented the Executive Branch, namely […]Read More SUPREME COURT RULING ON CFPB CONSTITUTIONALITY IS NO REPRIEVE FOR LENDERS
This blog normally focuses on mortgage industry issues relating to fraud. Today, however, I wanted to talk about an issue that is more personal and near to my heart, knowing some close friends who are dealing with severe anxiety and depression during these times. They call their difficult days “COVID down days.” COVID “down” day […]Read More A Brief Word About COVID-19 and Depression
Even the best laid plans and the most stringent controls cannot prevent every fraud loss. When a loss does occur, where do you turn to mitigate your damages? Insurance and fidelity bonds provide a measure of recovery when losses occur; CPLs are not insurance policies as we have covered before and are not included in […]Read More Scrutinizing Insurance Coverage Is Critical to Managing Settlement Agent Risk to Prevent Losses.
The current COVID-19 health crisis presents the mortgage industry with a unique dilemma when it comes to risk management and crisis leadership. For those of us who lived through the 2008 financial meltdown, this feels very different. In fact it is a lot different. In 2008 banks and mortgage lenders faced somewhat unprecedented losses when […]Read More Why this Crisis is So Different from the 2008 Wall Street Collapse and How We Can Lead During an Event that Impacts the Entire World
Recently we have heard about states rushing, by way of executive order or rule change (NY, NH, CT) and with hastily passed legislation (NJ), to permit remote online notarization in their states. The motives are clear and the intentions are good: the ability to close loans while limiting human interaction is critical at this time […]Read More Is the Rush to Enact RON Laws and Rules Creating More Confusion in the Mortgage Industry?