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Legal Risks Associated with Mortgage Loan Officer Compensation

June 9, 2014

Authors

Bryan Cave Leighton Paisner

Legal Risks Associated with Mortgage Loan Officer Compensation

June 9, 2014

by: Bryan Cave Leighton Paisner

How a bank compensates mortgage loan officers can present legal risk for the bank.  Banks need to make sure their compensation practices comply with the federal Fair Labor Standards Act and related state laws, as well as Regulation Z.

Threshold Question: Are Loan Officers Exempt or Non-Exempt?

The exempt / non-exempt status of mortgage loan officers has been heavily-litigated in recent years and has been the subject of several Department of Labor opinion letters.  The inquiry remains very fact-specific and depends on what the loan officers actually do not just on their job descriptions. Relevant questions include:

CFPB Proposes New Amendments to Mortgage Servicing Rules

May 9, 2014

Authors

Amy Thompson

CFPB Proposes New Amendments to Mortgage Servicing Rules

May 9, 2014

by: Amy Thompson

On May 6, 2014, the CFPB issued proposed amendments to the mortgage rules under the Truth in Lending Act (TILA) affecting Regulations Z and X.  The proposed amendments affect the small servicer/small creditor exceptions to the mortgage rules and the “Qualified Mortgage” determination.  The CFPB proposes to partially re-define who may qualify as a “small servicer” under § 1026.41 of Regulation Z (incorporated by cross reference in Regulation X), revise the scope of the nonprofit small creditor exemption from the ability-to-repay rule in § 1026.43(a)(3)(v)(D) of Regulation Z, and establish a limited cure procedure where a creditor inadvertently exceeds

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“Is it safe?” Banking in 2014

May 1, 2014

Authors

Bryan Cave Leighton Paisner

“Is it safe?” Banking in 2014

May 1, 2014

by: Bryan Cave Leighton Paisner

Szell:  Is it safe? Babe:  I don’t know what you mean. I can’t tell you something’s safe or not, unless I know specifically what you’re talking about. Szell:  Is it safe? Babe: Yes, it’s safe, it’s very safe, it’s so safe you wouldn’t believe it. Szell:  Is it safe? Babe:  No. It’s not safe, it’s… very dangerous, be careful.

In the 1976 movie Marathon Man, Babe (Dustin Hoffman) is held down while Nazi war criminal Szell (Laurence Olivier) drills Babe’s teeth without anesthetic, trying to learn if it is safe to sell a cache of diamonds stolen from concentration camp

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CFPB Issues Final Integrated Disclosure Rules

January 3, 2014

Authors

Bryan Cave Leighton Paisner

CFPB Issues Final Integrated Disclosure Rules

January 3, 2014

by: Bryan Cave Leighton Paisner

On November 20, 2013, the CFPB published the final rules required by the Dodd Frank Act to provide for integrated mortgage disclosures under the Real Estate Settlement Procedures Act (“RESPA”) and the Truth in Lending Act (“TILA”).  The new rules provide for two new forms of disclosure to replace the existing RESPA Good Faith Estimate and HUD-1 disclosures and the corresponding early and final TILA disclosures.

The first new form (the Loan Estimate) will provide disclosures to help consumers understand the key features, costs, and risks of the mortgage for which they are applying, and will replace the

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Financial Services Update – March 11, 2011

March 11, 2011

Authors

Matt Jessee

Financial Services Update – March 11, 2011

March 11, 2011

by: Matt Jessee

OCC Criticizes Durbin Amendment

Last Friday, John Walsh, the Acting Comptroller of the U.S. Currency who oversees regulation of the nation’s largest banks, sent a letter to the Federal Reserve criticizing the Fed’s proposed rule to implement the Wall Street Reform Act’s “Durbin debit card swipe fee” amendment. In the letter, Walsh said the Durbin amendment “takes an unnecessarily narrow approach to recovery of costs that would be allowable under the law and that are recognized and indisputably part of conducting a debit card business. This has long term safety and soundness consequences – for banks of all sizes –

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Mortgage Reforms under the Dodd-Frank Act

August 3, 2010

Authors

Bryan Cave Leighton Paisner

Mortgage Reforms under the Dodd-Frank Act

August 3, 2010

by: Bryan Cave Leighton Paisner

The following outlines the primary consumer protection requirements of the Mortgage Reform and Anti-Predatory Lending Act (the “Act” or the “Mortgage Act”), which is Title XIV of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Effective Dates. The Mortgage Act is somewhat ambiguous as to its effective dates.  There is a possible argument  that those many provisions of the Act for which no regulation is specifically required took effect immediately upon the signing of the Act by the President on July 21, 2010.  We believe do not believe that to be a plausible interpretation.

Under the best interpretation

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