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 […]

Read More Coronavirus Creates Potential Recording Delays that May Impact Mortgage Closings

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 […]

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

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 […]

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

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 […]

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

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 […]

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

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 […]

Read More NCUA Gets Serious About Credit Union Third Party Vendor Management