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 […]

SUPREME COURT RULING ON CFPB CONSTITUTIONALITY IS NO REPRIEVE FOR LENDERS

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 […]

A Brief Word About COVID-19 and Depression

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 […]

Scrutinizing Insurance Coverage Is Critical to Managing Settlement Agent Risk to Prevent Losses.

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 […]

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

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 […]

Is the Rush to Enact RON Laws and Rules Creating More Confusion in the Mortgage Industry?

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 […]

Data Privacy and Security Issues for Mortgage Industry Professionals in the Temporary Work at Home Situation

The mortgage lending industry has faced severe financial threats and incurred significant financial harm due to data security and data privacy breaches. These breaches have resulted in wire fraud, data theft and identity theft in the past few years. The industry has previously come together and incorporated tools and policies to combat the issue, however […]

The New Mortgage Closing Etiquette, and a Word or Two about E-Mortgages and E-Closings

In the midst of the current COVID-19 health crisis, lenders and settlement agents who schedule and conduct mortgage loan closings where a small group of people typically gather to sign documents and finalize a transaction should consider adopting a process that offers a safe place to conduct business. A suggested checklist might include the following: […]

Coronavirus Creates Potential Recording Delays that May Impact Mortgage Closings

With the latest news that towns, cities, counties and in some places entire states are shutting down as a precautionary measure to prevent the spread of COVID-19, concern is rising that the inability to record notices of settlement, deeds, mortgages and mortgage satisfactions will upend the closing industry. In order to successfully conclude the closing […]