Tag Archives: TILA

Former CFPB executive highlights hot spots in TILA/RESPA

On August 1 the industry will be forced to comply with theConsumer Financial Protection Bureau’s Truth In Lending Act and the Real Estate Settlement Procedures Act.

In order to help lenders better sort through the new world of TILA/RESPA, HousingWire hosted a webinar sponsored by Optimal Blue featuring guest speakers Benjamin Olson, partner at BuckleySandler and former Consumer Financial Protection Bureau deputy assistant director, office of regulations.

Other participants included Jerra Ryan, vice president of compliance with Cherry Creek Mortgage Company and Diane Evans, president of American Land Title Association.

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Hammond couple sue Green Tree, JP Morgan, Bank of NY Mellon, and Ocwen over ‘robosigning’ and TILA

A Hammond couple claim in a federal lawsuit that they were victims of “robosigning” and other predatory mortgage practices that left them facing foreclosure.

According to the lawsuit, which was filed in Lake County Superior Court a month ago and was moved to U.S. District Court in Hammond on Tuesday, Pedro and Elisa Rico bought their Hammond house in 1996.

The couple were up to date on their payments, but their lender, Green Tree Servicing, LLC, approached them about refinancing in 1999.

The lawsuit says Green Tree used their son, who was a minor at the time, to translate the terms of the new loan for them, which they thought included a fixed rate over 15 years.

The Ricos say they didn’t learn until a year ago when they received a notice that it actually included a balloon payment of $40,000 due in August 2014.

The Ricos are claiming Green Tree and Bank One used other deceptive practices, such as having documents signed by a notary when they weren’t there and providing false information for Elisa Rico to join the deed on the house so the couple would qualify.

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And here is information on the Rico’s lawsuit. Case number 2:2015cv00089:

Rico et al v. Green Tree Servicing, LLC et al

Plaintiff: Pedro F. Rico and Elisa F. Rico
Defendant: Green Tree Servicing, LLC, J.P. Morgan Chase Bank, N.A., Bank of New York Mellon and OCWEN Loan Servicing, LLC
Case Number: 2:2015cv00089
Filed: March 10, 2015
Court: Indiana Northern District Court
Office: Hammond Office
County: Lake
Referring Judge: John E Martin
Presiding Judge: Joseph S Van Bokkelen
Nature of Suit: Truth in Lending
Cause of Action: 28:1441 Petition for Removal
Jury Demanded By: Plaintiff

Lenders running scared: Lenders struggle with U.S. Supreme Court rescission decision

Law360, New York (February 20, 2015, 2:16 PM ET) — Slightly more than a month after the U.S. Supreme Court found that borrowers need only to notify their creditors of their intention to rescind a mortgage within three years, lenders are still trying to figure out just how to respond to a potential flood of rescission requests, attorneys say.

The Supreme Court’s January decision in Jesinoski et al. v. Countrywide Home Loans Inc. et al. said that the Truth In Lending Act gave borrowers the power to rescind their mortgages simply by notifying lenders of their…

Source: Law360

Mortgage Machine’s LOS source code prepares lenders for compliance

Mortgage Machine Services, a provider of lending solutions, will start offering the source code to Mortgage Machine, its loan origination system, to the entire mortgage industry to help better prepare the market for the upcoming Consumer Financial Protection Bureau TILA-RESPA regulations.

“There are so many changes in compliance that have been hitting mortgage bankers,” said Jeff Bode, owner of Mortgage Machine Services. “We think this will save lenders quite a bit of time and money.”

The CFPB recently made changes to Regulation Z, which implements regulation for the Truth in Lending Act (TILA), and Regulation X, which covers the Real Estate Settlement Procedures Act (RESPA). Both go into effect Aug. 1.

Up until now, the Mortgage Machine Services solution was used by a select group of mortgage bankers, but the updated solution adds in more attractive features to appeal to lenders.

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Jesinoski vs Countrywide Supreme Court Loan-Rescission Decision

Supreme Court Backs Borrowers’ Right to Rescind Mortgages in a Unanimous Decision



WASHINGTON—The U.S. Supreme Court on Tuesday adopted a borrower-friendly interpretation of a federal law that gives consumers the right in some circumstances to rescind their mortgage loans.

The case examined the Truth in Lending Act, which allows borrowers to rescind a loan within three days after the transaction is consummated, or until the lender has delivered the required disclosures about the loan agreement. The law places a three-year time limit on a borrower’s right to rescind, even if the creditor still hasn’t provided all the necessary loan disclosures.

Consumer and civil-rights groups had filed a brief with the high court supporting the Minnesota couple who sued to get out of a 2007 mortgage refinancing, saying the rescission right was an important means for protecting consumers against abusive lending practices.

The high court, in an opinion by Justice Antonin Scalia , ruled unanimously that borrowers need only notify the creditor within three years of their intent to rescind. The court rejected the position of Bank of America Corp. ’s Countrywide Home Loans subsidiary, which argued that borrowers must take the additional step of filing a lawsuit within three years if the two sides disagree on whether proper loan disclosures have been provided.

Fed announces exemption adjustment for smaller loans

New exemption level starts Jan. 1

The Federal Reserve Board announced the annual adjustment of the dollar amount used to determine whether a small loan is exempt from the special appraisal requirements that apply to higher-priced mortgage loans.

The Dodd-Frank Wall Street Reform and Consumer Protection Act amended the Truth in Lending Act to require creditors to obtain a written appraisal based on a physical visit of the home’s interior before making a higher-priced mortgage loan. The rules implementing this requirement contain an exemption for loans of $25,000 or less and also provide that the exemption threshold will be adjusted annually based on the annual percentage change reflected in the Consumer Price Index.

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