Mar 15 2017

How bad can a person's credit be and still be licensed as a mortgage loan officer and receive an NMLS number?

Oct 13 2016

Amid Congressional Firestorm, Wells Fargo CEO Stumpf Announces Retirement

Wednesday, October 12, 2016 - 18:53

Eric C. Peck - NMP Editor in Chief

Read Original Article HERE.

Wells Fargo has announced that Chairman and Chief Executive Officer John Stumpf has informed the company’s Board of Directors that he is retiring effective immediately. The Board elected Tim Sloan, the company’s president and chief operating officer, to succeed him as CEO, and Stephen Sanger, its lead director, to serve as the Board’s non-executive chairman, and independent director Elizabeth Duke to serve as vice chair. Sloan also was elected to the Board.

Oct 12 2016

U.S. Court of Appeals Ruling Seeks to Reduce CFPB's Power

Tuesday, October 11, 2016 - 15:09

Eric C. Peck - NMP Editor in Chief

Original article can be found HERE.


A three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit has called for the President to remove the single-director structure of the Consumer Financial Protection Bureau (CFPB), calling the appointment unconstitutional. In the 110-page ruling, the U.S. Court of Appeals called for limits to the power of the president, and disband the CFPB’s current single-director power structure.

Sep 14 2016

CFPB levies $100 million fine against Wells Fargo

CFPB levies $100 million fine against Wells Fargo

Employees opened more than 2 million fake accounts to get sales bonuses

Jun 15 2016

CFPB's eRegulations web-based tool

CFPB's eRegulations is a web-based tool that makes regulations easier to find, read, and understand. The tool has been expanded to include three additional Bureau regulations. We are also updating an existing regulation to reflect changes that the Bureau has recently made.
We have added the following regulations to the website:
We have also updated Regulation Z (Truth in Lending Act) to reflect recent changes.

We expect to add additional regulations and to update existing regulations when they change! 

May 27 2016

CO PE Course Content Outline Updated

CO-DORA has updated the course content for the required 2 hours of pre-licensure education.  The outline has been updated to reflect recent changes approved by the Colorado Board of Mortgage Loan Originators to state specific regulation to comply with the federal integrated disclosure rules. Changes reflected in the course content outline include:

  • Strike all of CRS 12-61-914(2)- Written Disclosure of Fees
  • Strike all of CRS 38-40-102- Disclosure of Cost
  • Moved all deceptive practices from 12-61-911 to 12-61-905.5- Prohibited Conduct and Deceptive Practices
  • Strike all of 12-61-911- Prohibited Conduct

The revised content outline has been posted on the course provider page of the NMLS Resource Center.  It is requested that CO state-specific PE courses by updated no later than July 15, 2016 or upon course renewal, whichever is soonest.

Apr 18 2016

Kentucky Amends Annual CE Requirement

NMLS has been informed that Kentucky is amending its annual continuing education (CE) requirement for MLO license renewal.  Beginning July 15, 2016 (anticipated effective date) Kentucky  will require 8 hours of annual CE which will also include 1 hour of KY state-specific education.  Accordingly, the number of hours of annual CE required for license renewal is being reduced from 12 to 8.  The requirement for 4 hours of KY state-specific education every-other-year is also being removed.  Additional details are available on the state’s web site.

Apr 18 2016

Mississippi Amends CE Requirement for State-Specific Education

NMLS has been informed that effective July 1, 2016, Mississippi will no longer require the completion of MS state-specific continuing education and that the number of  hours of annual education required for license renewal is being reduced from 12 to 8.  The requirement for 4 hours of MS state-specific pre-licensure education remains.   Additional details are available on the state’s web site.

Mar 30 2016

STRATMOR: TRID Is Boosting Customer Satisfaction

by: Orb Staff

on March 29, 2016



One of the big questions mortgage lenders and others involved in the mortgage process have been asking for the past year is whether the Consumer Financial Protection Bureau’s (CFPB) new TILA-RESPA Integrated Disclosure (TRID) rules will result in any measurable improvement in customer satisfaction. The goal of the rule, after all, is to inform and empower consumers by giving them clearer information about the terms of the mortgage they’re considering and give them more time to compare what’s being offered with other deals.

According to recent data extracted from STRATMOR’s MortgageSAT Borrower Satisfaction Program, overall consumer satisfaction with the mortgage process has increased since TRID was implemented – but the increase is satisfaction mainly has to do with the fact that lenders are more frequently contacting borrowers during the post-application/pre-closing period, as a result of the CFPB’s new rule.

STRATMOR’s data also shows that although the average number of days to close a mortgage loan increased for a few months after TRID was first implemented, the average number of days to close has since decreased – at least as of February – back to a normal “pre-TRID” level.

The firm’s data shows that the percentage of borrowers being contacted by their lender prior to closing has increased from 85% to 91% since TRID was implemented. This increased contact – which was a key goal of TRID – is likely the cause of the increased borrower satisfaction. Currently, overall borrower satisfaction with the origination process stands at about 91%, a record high since MortgageSAT was launched in 2013.

The fact that TRID is having a positive impact on the consumer experience is good news for lenders because they have invested considerable time and money in technology, revamped processes and human resources in order to prepare for, and deal with, the new rule, which took effect on Oct. 3.

STRATMOR’s data also shows that TRID has boosted lenders’ back-office origination costs by an average of $210 per loan.

“Implementing TRID has obviously not been easy for lenders,” says Matthew Lind, senior partner and founder of STRATMOR, in a release. “It’s been costly, as well. On average, since October 2015, TRID has increased lender back-office fulfillment and post-closing costs by an average of $209 per loan, and lenders are estimating that only about 17 percent of those costs can be recovered through additional charges.”

Interestingly, STRATMOR’s research shows that independent lenders are generally well ahead of – and have had better overall experiences than – banks with regard to TRID implementation.

A survey conducted by the firm shows that about 87% of lenders now have the rule fully implemented; only 1% say their efforts are “way behind.” Independent lenders were generally ahead of banks, with TRID implementation fully accomplished at 72% of small and 80% of midsize independents, as compared with just 33% and 44%, respectively, for small and midsize banks.

In fact, banks seemed to have a harder time with implementation all around, with 31% characterizing their experience under TRID as either “difficult” or “terrible” versus only 16% of independents reporting similar results.

To access a copy of the report, click here.

Mar 30 2016

Guaranteed Rate Hit with $25M Judgment for Data Stolen By Poached LO

By: Brad Finkelstein

March 28, 2016



A jury awarded Mount Olympus Mortgage Co. more than $25 million in a lawsuit alleging "corporate espionage" by former employee Benjamin Anderson and his new employer, Guaranteed Rate.

Anderson and another former Mount Olympus originator who now works for Guaranteed Rate, Brian Decker, were accused of stealing loan files, borrower information and other proprietary data from the Irvine, Calif.-based lender.

"The purpose of the scheme was to divert hundreds of MOMCo loan customers to Guaranteed. The Individual Defendants misappropriated MOMCo's confidential and proprietary information and directed MOMCo customers to Guaranteed," the lawsuit, filed in an Orange County, Calif., superior court, reads.

The complaint alleges the pair acted with the encouragement of Chicago-based Guaranteed Rate.

"Guaranteed and Anderson conspired and devised a scheme to defraud MOMCo and secretly misappropriate MOMCo's proprietary and confidential information," the lawsuit reads. "Anderson was the perfect infiltrator: Anderson would continue to masquerade in his role as Mortgage Banker for MOMCo, while simultaneously, unlawfully downloading gigabytes of proprietary and confidential borrower information as well as offer confidential information from MOMCo's servers, and diverting such information to Guaranteed."

Anderson and Decker are among nine former Mount Olympus employees accused of participating in the scheme, which allegedly involved more than five gigabytes of Mount Olympus data. The claims against Decker was severed from the original lawsuit against Anderson and Guaranteed Rate and will be tried separately, said Chad Hummel, an attorney for Mount Olympus, in an interview. Claims against the remaining seven former Mount Olympus employees were previously settled confidentially out of court, Hummel added.

California law required the state's Attorney General as well as consumers be notified regarding a data breach involving over 500 individuals. Hummel said that over 900 files were involved in this case; a letter dated July 30, 2014 notifying customers of the data breach is posted on the Attorney General's website.

Guaranteed Rate officials declined an interview request. In a written statement, the company denied the lawsuit's allegations.

"Guaranteed Rate would never encourage Ben Anderson, or any loan officer, to bring over loans in process or download any data," the statement reads.

"Needless to say, Guaranteed Rate strongly disagrees with the jury’s conclusion, and we are reviewing all available options for an appeal in the case," it adds.

According to Hummel and court documents, the situation at Mount Olympus came to a head on June 5, 2014. There was a meeting between company management and Anderson, who ranked No. 6 among top originators in 2013 with production of $201 million and 21st in 2012 with production of $180 million, over a decline in his loan origination volume.

After the meeting, Anderson's desk was empty and his computer hard drive had data missing. At that point the company terminated Anderson's employment, Hummel said. Mount Olympus was able to recover the missing information and found archived emails showing Anderson had been corresponding with Guaranteed Rate for three months, Hummel said, adding what was "discovered at that point just the tip of the iceberg of the data theft."

The complaint said Anderson received a new employee package from Guaranteed Rate in April 2014. The jury found that Anderson breached his employment contract and fiduciary duty to Mount Olympus, as well as committed fraud.

The jury also found that Anderson along with Guaranteed Rate violated portions of section 502 of the California Penal Code involving the copying of mortgage loan computer files. Even though the claims against Decker were separated from this case, the jury also found Decker to be accountable.

In its verdict on March 17, the jury awarded Mount Olympus $5.6 million from lost profits and $4.6 million in lost business value jointly coming from Anderson and Guaranteed Rate. The jury also determined Anderson had to disgorge nearly $2 million he earned from commissions on the loans involved in this case, Hummel said. The jury also found Guaranteed Rate earned $657,000 unjustly.

On March 22, the jury awarded Mount Olympus $12.5 million in punitive damages from Guaranteed Rate and $500,000 from Anderson.

Mount Olympus can elect to take either the jury award on lost profits or unjust enrichment, but not both, Hummel said. In the case of Guaranteed Rate, Mount Olympus is taking the lost profits award of $5.6 million, the lost business value of $4.6 million and the punitive damages of $12.5 million, for a total of $22.7 million. Against Anderson, the lender is taking the $1.9 million in unjust enrichment award instead of the $5.6 million in lost profits (for which the jury held both him and Guaranteed Rate jointly liable for), the $4.6M lost business value award that both Anderson and Guaranteed Rate are jointly liable for, as well as the $500,000 punitive damage award — for a combined judgment of $25.1 million.

In addition, the judge presiding over the case may assess attorney's fees and other damages under California Business and Professions Code Section 17200, which deals with unfair competition.

Anderson and Decker filed a countersuit against Mount Olympus, as did Guaranteed Rate. Guaranteed Rate dropped its suit during the trial. Anderson made wage and defamation claims. The wage claims were dismissed by the judge, Hummel said. The jury decided against Anderson on the defamation claims.

Both Anderson and Decker appear on the 2016 Top Producers list. Anderson did $182 million volume for 2015 and ranked No. 16. Decker ranked No. 32 with volume of $139 million.

Mount Olympus did not have a problem with Anderson leaving for a larger competitor, Hummel said. "Everybody is free to recruit legitimately; everybody is free to move legitimately. But the data relating to customers that is in a mortgage bank's database is generally the property of the mortgage bank and it is illegal for an employee to take that data without the employer's and in particular, the customer's knowledge or consent," he continued.

Mount Olympus, besides its Irvine office, had an office in Temecula, Calif., which closed on June 5, 2014 because of the situation with Anderson and Decker. The company now does business as Tru Mortgage and it opened a second office located in Beverly Hills, Calif., this past August.

"Now more than ever, the mortgage industry depends on legitimate and fair practices, and maintaining the integrity of private consumer financial data is a responsibility entrusted to every mortgage bank that we cannot and should not take lightly," said Mount Olympus' chairman Claude Arnall in a press release.

Mar 18 2016

CFPB to host next TRID webinar in April

This Week in Washington
Thursday, March 17, 2016


The Consumer Financial Protection Bureau (CFPB) announced that the Federal Reserve will be hosting a webinar on the TILA-RESPA Integrated Disclosure (TRID) rule, also known as Know Before You Owe, at 2 p.m. EDT Tuesday, April 12. This is the CFPB’s second webinar since the rule was implemented Oct. 3, 2015. The first post-implementation webinar took place on Tuesday, March 1.

Anyone who would like to participate in the webinar can register here.

Mar 11 2016

It’s Not Your Father’s Mortgage Industry Anymore

Author: Paul Anastos | Origination March 9, 2016

puzzle-coming-togetherIn the years before 2000, mortgage lending in the U.S. was a conservative industry that featured strict underwriting and little innovation. However, with the emergence of the Internet and the economic boom it fostered, along with the repeal of a nearly 70-year limitation on the business activities of banks and other financial institutions, the stage was set for disaster.

Feb 24 2016

CFPB Issues Guidance on Construction Loans / TRID

BY  · FEBRUARY 23, 2016

Good Tuesday morning from our nation’s capital! I’m happy to be in attendance alongside the nearly 5,000 credit union professionals at this year’s CUNA Governmental Affairs Conference (GAC). GAC is a tremendous opportunity to network with others in the industry and share stories of the #CUdifference with our legislators and regulators.

As always, CUNA has done a great job of putting together a jam packed agenda here in Washington, D.C. As a result, I’ll keep today’s post brief. You know, it’s funny. I can actually hear my regular readers (all three of them) breathing a collective sigh of relief.

Feb 22 2016

CFPB Pledges Leeway in Early TRID Exams


The Consumer Financial Protection Bureau openly acknowledged that the transition to new mortgage-disclosure requirements presents a major challenge for lenders, saying it will give them some leeway in upcoming exams.

"We're very aware of the significant challenges the industry has faced in order to get into compliance with this rule," said Allison Brown, a program manager in mortgage servicing in the CFPB's office of supervision policy.

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