In its Fall Supervisory Highlights, the CFPB addressed its latest supervisory observations relative to mortgage origination and mortgage servicing. These are issues the CFPB has encountered during examinations, and are therefore areas to which mortgage lenders and servicers may wish to pay special attention to avoid getting whacked!
• Strength of compliance management systems in auditing for compliance with mortgage origination laws and regulations and managing third party relationships
• Ensuring loan originators are properly licensed or registered before engaging in loan origination activities
• Provision of services to consumers with limited English proficiency, including marketing efforts, in compliance with Regulation B and other fair lending laws
• Redlining and review of lending patterns in comparison to other lenders