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 […]

CPL or Bonds and Insurance: Which is More Important to Verify Before Doing Business with a Closing Agent?

Many lenders mistakenly believe that as long as they receive a closing protection letter (CPL) from a title agent or closing attorney then they have nothing to fear about a loss that may occur at the closing table. These lenders may collect an agent’s insurance certificate or declaration page but take no steps to verify […]

New York Law Now Requires Borrower Attorneys at Reverse Mortgage Closings to Protect Consumers from Fraud

Identity theft and misrepresentation in mortgage transactions has traditionally concentrated in the reverse mortgage business. In these cases one can clearly see how elderly homeowners can be manipulated into taking out loans or selling their homes through unscrupulous means. Oftentimes these transactions are conducted with powers of attorney and not every lender inquires why such […]

The Importance of Escrow Payment Recipient Name Matching to Avoid Wire Fraud Harm

Yesterday the Federal Reserve Chairman Jerome Powell testified in front of the US House Financial Services Committee about monetary policy generally, however he was asked an interesting question during his appearance by Representative Brad Sherman (D-CA). Rep. Sherman inquired why the Federal Reserve does not establish a payee name matching requirement to prevent wire transfer […]

The All Too Real Threat of Consumer Identity Theft and What Mortgage Banks Must Do to Help Prevent It

A recent article in Bloomberg Business Week chronicled the SIX YEAR plight of a reporter who was a victim of identity theft. The cost mentally, physically, financially and to his reputation was severe and life changing. Consumers are paralyzed without good credit, and the theft of identity can launch a nightmare scenario involving significant personal […]

NCUA Gets Serious About Credit Union Third Party Vendor Management

The National Credit Union Administration, based in Washington, was an early advocate for vendor management policies. As early as 2001, the NCUA issued a guideline suggesting that credit unions manage third party service provider risk carefully. The suggestion had no real weight however. After the CFPB issued its Bulletin 2012-3 bringing third party vendor management […]

Legal and Ethical Considerations Surrounding the Handling of Consumers’ Private Data by Mortgage Lenders

Never have there been so many legal and ethical considerations surrounding mortgage lender handling of consumer data. There are good reasons for this fact. Mortgage lenders have access to the most personal and private information owned and guarded by consumers. This includes their names, age and dates of birth, marital status, home addresses, work addresses […]