Just when you think refi has had its last hurrah, rates dip below 3% and voilà
— millions of consumers are back in the refi target range. Not to look this gift horse in the mouth, but all the projections still show rates moving higher for the rest of this year. Still, lower rates are a boon for homebuyers while they last, especially as thelatest NAR numbers show home-price growth has increased 17.2% since March last year. Ouch!
Speaking of pain, the CFPB is on the hunt for mortgage companies who hurt consumers, and all signs say they won't be very patient when they find them. During a panel yesterday at the MBA Spring conference on getting ready for CFPB exams after COVID, the compliance experts didn't mince words.
"They're looking to pin some heads on the wall, to show that there's a new cop on the beat," said Jeffrey Naimon, a partner at Buckley LLP. "They want to make examples."
This will sound very familiar to many in mortgage who remember the days of quick CFPB enforcement actions under former CFPB Director Richard Cordray. In fact, after warning servicers on April 1 that "unprepared is unacceptable," the bureau this week sent data requests to mortgage servicers to see how they are handling forbearance programs and whether the temporary debt relief is likely to get borrowers back on their feet.
One way to protect your company according to the panelists: respond quickly to any consumer complaints. As Nanci Weissgold of Alston and Bird put it: "We know the CFPB loves to turn complainants into witnesses." Read the rest of their very timely advice here.
Servicers can make a difference to homeowners impacted by COVID-19. Fannie Mae's one-stop toolkit has all the information you need to answer homeowners' questions about forbearance and post-forbearance options. Visit the Toolkit.
This is a challenging time for servicers, with somewhat of a perfect storm of increased volumes, pandemic-driven dislocation and increased regulatory pressures. First American Mortgage Solutions helps deliver shortened turn times while maintaining compliance. Presented by First American Mortgage Solutions
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