Mortgage risk

Compliance Risks Outside the Mortgage Loan File

ATS Secured is hosting a webinar on November 12 featuring Brian Levy, Of Counsel at Katten & Temple, LLP. Levy will speak on compliance and repurchase risk in marketing and servicing practices, specifically those found outside a typical loan file review.

Interested in learning more about our webinars? Download them, complete with Q&As, today!

The Four Corners of the Mortgage Loan File Are Not Risk Comprehensive

Traditional consumer compliance and repurchase risk management has focused on file review; however, many risks cannot be found or measured within the four corners of the loan file. The CFPB is vigorously enforcing “outside the file” issues with new interpretations that challenge settled practices. These pose regulatory and class action enforcement liability.

Levy will speak on specific consumer compliance risks, including:

  •  Lender marketing and promotional activities
    • RESPA referral fee violations
    – MSA’s, desk leases and AfBA’s
    – “Old school” gifts and kickbacks
    • UDAAP in marketing
  • Loan Officer Compensation (TILA)

RESPA Section 8 Compliance

A prime example of a compliance issue outside the loan file is a RESPA Section 8 violation. You may think you know RESPA, but the CFPB is putting a new spin on it and some of the largest players are changing in response. The enforcement environment is such that you need to “disprove the negative,” or overcome the assumption that your relationship is to enable payment for referrals.

It is essential for financial institutions to know how these compliance issues can impact their business and to keep their risk mitigation practices up to date with the changing regulatory landscape.

Want to make your mortgage process easier and more accurate? Contact ATS Secured today.

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