2015 NRMLA Regional Conference, Day Three

14 Apr

Tradition Title Agency representatives Karen Keating and Alison Keating met many of our partners at this year’s National Reverse Mortgage Lenders Association Regional Conference in New York.  Here is a recap of the conference topics, a day at a time.

On Friday March 27, the conference panel resumed with the “Counsel’s Briefing” where the NRMLA legal team of Jim Brodsky and Jim Milano gave participants a regulatory and legal update.  They covered several topics of interest.

In general, marketing has been under scrutiny by the CFPB (Consumer Financial Protection Bureau). The Bureau has taken action against misleading advertising, with litigation and penalties imposed.  Cases examined included an ongoing lawsuit against All Financial regarding HECM advertising, a settlement with former HECM lender New Day over non-disclosure of paid endorsements, and a civil penalty against Lighthouse Title for paying referral fees.

The team advised caution in marketing.

The non-borrowing spouse case of Bennett vs Donovan (as Secretary of HUD) was resolved with a determination that regulations at the time were unclear, with an ongoing effort for senior borrowers, as a class, to be protected.

As always, loan officer compensation rules were discussed.  The CFPB has said that LOs cannot be paid based on terms of the loan, no dual compensation is permitted, and no steering can be allowed.  These rules are not applicable to open-ended loans.

The CFPB has compiled a complaint database on the Bureau’s website where Yelp-like reviews can be posted.  Their internal complaint portal has a feature where companies can sign up to receive and respond to any complaints.

The final session of the day and of the conference was an update on the secondary market: “HMBS Investor Issues and Trends.”

The latest on secondary markets is summed up in this article:


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