CFPB Warns Of Double Dealing On Digital Mortgage Comparison Shopping Platforms

By KIMBERLEY HAAS Officials at the Consumer Financial Protection Bureau are warning shoppers about pay-to-play mortgage comparison shopping platforms. CFPB Director Rohit Chopra said in a statement on Tuesday that given current mortgage interest rates, it is important for homebuyers to shop and compare loan offers. “We are working to ensure that online platforms are not manipulating their search results in order to coerce kickbacks from lenders,” Chopra said. Rates for a 30-year fixed-rate mortgage hovered just above 6% last week. In a press release, CFPB officials said that American consumers looking for the best deal on mortgages often turn to comparison-shopping platforms and mobile apps. “Many of the websites and applications claim to offer ranked lists of providers suitable…

Rocket Pro TPO Takes Aim At UWM Ultimatum With “Bully Shield”

By KIMBERLEY HAAS The executive vice president of Rocket Pro TPO told brokers across the country on Monday that they are willing to indemnify those who choose to fight United Wholesale Mortgage’s anti-competition ultimatum. During a live-streamed Ignite Live event, Mike Fawaz said he believes the ultimatum was one of the worst things to happen to independent mortgage brokers in 50 years. “The ultimatum uses lawyers and contracts to limit choice – both for the broker and for the clients the broker services,” Fawaz said. “There’s no other way to put it – the ultimatum is immoral, reduces broker incomes, and increases the rates the clients of brokers will pay.” Fawaz said that they stand behind brokers who want to…

Powell On Inflation: “We Will Stay The Course Until The Job Is Done”

By KIMBERLEY HAAS After officials at the Federal Reserve raised rates by 25 basis points, Chair Jerome Powell said that the fight against inflation isn’t over and he does not see them cutting rates this year. During a press conference on Wednesday afternoon, Powell said the disinflationary process has started in some sectors of the economy but they remain cautious. “Certainty is just not appropriate here. Inflation, it’s just hard to forecast inflation. It may come down faster. It may take longer to come down, and yet, our job is to deliver inflation back to target and we will do that, but I think we’re going to be cautious about declaring victory and sending signals that we think that the…

Remote Office Inspection Helps Financial Companies Comply With Laws And Agency Guidelines

By KIMBERLEY HAAS Leaders at ActiveComply say their new digital service helps companies in highly regulated industries stay compliant while employing remote workers. Banks, mortgage lenders, credit unions, and investment banking firms have to follow strict agency guidelines, as well as state and federal laws. Remote Office Inspection allows compliance teams at those institutions to document their efforts when employees are working outside of the office. Rob Nunziata, co-founder and CEO of ActiveComply, uses the example of FHA home loan files, which must be protected under rules established by officials at the U.S. Department of Housing and Urban Development. Nunziata said the most important thing to regulators is that consumer data is protected. “We had a conversation with HUD early…

Listen To The Mortgage Note Podcast

The Mortgage Note’s Editor Kimberley Haas has been interviewing some of the leaders in the country over the past year. This podcast highlights the successes and innovations taking place in the mortgage industry. If you would like to participate in future episodes, please email us at [email protected]   Read Articles Featuring The Guests: Meet The Woman Behind “Wall Street South” You Can Get A Mortgage At Walmart Learn About Financing Manufactured Homes With Rocket’s EVP Of Capital Markets Guild Leaders Hope To Help Hispanic Homebuyers Through New Partnership The Future Landscape Of Cities: Live-Work-Play, Science Centers, Medical Offices Follow Us On Twitter: The Biden-Harris administration announced new actions to protect renters this week and leaders at the U.S. Department of…

Automated Valuation Model Offers Property Data For Industry Professionals

By KIMBERLEY HAAS A new automated valuation model that recently hit the market uses a national property database, geospatial comparable data, and artificial intelligence to help users evaluate properties. Altisource, founded in 2009, is a provider of services and technology for the mortgage and real estate marketplaces. Their NestRange AVM helps with valuations for originations and defaults. The original AVM model was built as an in-house tool, according to Chief Strategy Officer and CTO Israel Meir. “Early last year, we felt that we were at a pretty good place to package this up and offer it as a commercial system in addition to continuing to use it internally,” Meir said in a recent interview with The Mortgage Note. NestRange was…

HUD Officials To Fight Inequities In Housing With New Proposed Rule

By KIMBERLEY HAAS A new proposed rule meeting President Joe Biden’s call to fully enforce the Fair Housing Act was announced by officials at the U.S. Department of Housing and Urban Development on Thursday. “Affirmatively furthering fair housing means more than merely steering clear of housing discrimination violations,” Demetria McCain, principal deputy assistant secretary for fair housing and equal opportunity, said in a statement. “Today, HUD is taking new, bold action to eliminate the historic patterns of segregation that continue to harm American families. This action will help make the purpose of the Fair Housing Act reality by making it easier for local communities to identify inequities and make concrete commitments to address them.” According to a press release, the rule…

Rocket Pro TPO EVP Slams UWM, Promotes Mortgage Broker Freedom

By KIMBERLEY HAAS The new executive vice president of Rocket Pro TPO took to social media on Tuesday to question the actions of United Wholesale Mortgage’s CEO. Mike Fawaz, who served as senior vice president of sales before recently being promoted to EVP, published a piece called “Mortgage Brokers – Still Truly Independent?” on LinkedIn where he said UWM’s President and CEO Mat Ishbia believes they have “pricing power” over brokers. “If he’s right, that presents a very clear danger to America’s mortgage brokers and their clients. One of the most powerful benefits of being a mortgage broker is independence. Independence of choice and real competition is the only effective tool a broker has to ensure someone else doesn’t dictate margin and…

Largest Bank Headquartered In LA Will Pay Over $31M In Redlining Settlement

By KIMBERLEY HAAS Officials at the U.S. Department of Justice announced on Thursday that they have secured over $31 million from City National Bank to resolve allegations of redlining in Los Angeles County. City National is the largest bank headquartered in Los Angeles and among the 50 largest banks in the country. This is the largest redlining settlement agreement in the department’s history, according to a press release. Redlining is an illegal practice where lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. According to the complaint filed in federal court, City National avoided providing mortgage lending services to majority-Black and Hispanic neighborhoods…

Reaction To Wells Fargo Announcement Lukewarm

By KIMBERLEY HAAS Leaders at Wells Fargo announced this week that they are reducing their home lending footprint and some people are saying it may be big news in the lending space, but will likely not make much of a difference to the average consumer. It was announced Tuesday that the company, formerly the nation’s largest mortgage lender, is exiting the correspondent lending channel and shrinking its mortgage servicing portfolio. Plans are to focus on serving bank customers and members of minority communities. Lawrence White, a professor of economics at the New York University Leonard N. Stern School of Business, sat down with the Mortgage Note to talk about the news on Wednesday. White said he hopes the move by leaders at…