Policy Manuals

Advertising and marketing your mortgage products and programs are standard business practices. However, there is an ever-increasing risk of Consumer Financial Protection Bureau (CFPB) and/or Federal Trade Commission (FTC) enforcement actions for unfair or deceptive advertising and for violations of the Truth in Lending Act (TILA) and implementing Regulation Z. There are also numerous regulations and agency requirements for mortgage lending advertising activities based on RESPA, S.A.F.E. Act, MARS (Regulation O), MAP rules, Fair Housing Act, HUD-issued guidance, state laws, and other fair-lending regulations.

Do you need a policy to address the implementation of Anti-Money Laundering strategies and Suspicious Activity Reporting? This comprehensive policy manual from AllRegs addresses the requirements of Nonbank RMLOs required by the United States Bank Secrecy Act, USA PATRIOT Act and related regulations as they put their new program into practice. All businesses of any size or structure can make use of this flexible policy which lends itself to deeper implementation as your organization grows.

Fair Lending is a topic that requires continued attention in the mortgage industry. Various federal regulations impose anti-predatory and fair lending requirements and many state laws require mortgage organizations to prove tangible net benefits to the borrower. As a course of business, lenders should have a plan in place for adhering to Fair Lending laws and their own internal policies.

Fannie Mae and Freddie Mac issued notices regarding new Appraiser Independence Requirements and require that seller/services establish internal procedures to comply with the federal rules for Appraiser Independence. Both Fannie Mae and Freddie Mac require that all single-family loans they purchase adhere to standards for solicitation, selection, compensation, and practitioner independence when it comes to home appraisals.

Audits are a part of every lending institution's reality. Audits, also called examinations, may be conducted by a lender's internal audit team, by external CPA firms, or by any of the GSEs, government lenders, or regulatory agencies with which a mortgage lender does business. Lending organizations will fare better if they are prepared internally, and know what to expect, and how to manage the audit process.

This document outlines the need for a consumer complaint policy and the risks of noncompliance; identifies existing complaint portals managed by industry regulators; outlines the framework of a consumer complaint process; and provides training protocols and best practices to effect process implementation.

The Electronic Signatures in Global and National Commerce Act (E-Sign) is a federal act that facilitates the use of electronic records and signatures in interstate or foreign commerce. The regulation includes specific requirements for obtaining consumer consent, providing the opportunity to withdraw consent, assuring that the consumer can reasonably access electronic records, and establishing guidelines for permissible purposes, E-Sign vendors, and record retention. E-Sign specifically excludes certain types of documents from being eligible for electronic records and signatures. The Uniform Electronic Transactions Act (UETA) provides a legal framework for the use of electronic signatures and records in government or business transactions. UETA makes electronic records and signatures as legal as paper and manually signed signatures in transactions relating to business, commercial and governmental affairs.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) provides authority to the Consumer Financial Protection Bureau to "prevent financial harm to consumers while promoting good practices that benefit them." The CFPB has authority under Dodd-Frank to supervise mortgage companies and consumer reporting companies. One of the CFPB strategies to accomplish this goal is to enforce compliance with federal consumer financial laws and prevent unlawful discrimination.

Servicing is a complicated space. Not all transactions are the same. How do you implement and observe those consumer protection mechanisms related to debt collection as required by related regulations administered by the CFPB and others?