CFPB Gives Sneak Peek of Coming Loan Originator Compensation Rules
On May 9th, the Consumer Financial Protection Bureau (CFPB) unveiled initial details of rules to be formally released later this summer regarding loan originator compensation. The CFPB outline of the proposed rule provides indications of the limits that will be proposed on origination fees. Click here for the outline.
Most significantly, brokers and creditors would no longer be able to charge origination fees that vary with loan size. Under the proposed rules, brokers and creditors would only be allowed to charge flat origination fees.
In addition, while the rule does not impose new requirements on individuals that must be SAFE Act compliant, the rule does -- under Dodd-Frank guidelines -- impose new requirements that would:
• Not alter the scope of individuals who are subject to licensing or registration, and it would not alter the minimum standards for licensing or registration. It would instead define what is necessary for entities that employ or retain the services of such individuals in order to comply with the new Dodd-Frank requirement that they also be “qualified.”
• Require that to be “qualified,” mortgage loan originators (MLO) entities must ensure that MLO individuals who work for them are licensed or registered, to the extent those individuals are already required to be licensed or registered under the SAFE Act and its implementing regulations. The proposal being considered would clarify that MLO entities are obligated under TILA to ensure that their MLO employees comply with SAFE Act requirements.
The CFPB is seeking input, particularly from small business entities on a variety of questions related to the coming proposed rules. Click here for more information. For an analysis of the outline, click here.
MHI Participates in Urban Land Institute's Spring Meeting
MHI participated in the Urban Land Institute’s Spring 2012 Meeting by taking part in the Manufactured Housing Community Council (MHCC) meeting on Wednesday, May 9th. The MHCC is composed of manufactured home community owners, manufacturers of our homes, real estate analysts, manufactured housing suppliers and other interested parties to discuss the challenges and opportunities inherent in manufactured home communities.
The prevailing mood at the MHCC was one of optimism that the housing crisis is now moving into recovery, with positive indicators pointing to a continuing recovery in housing markets. Champion Home Builders’ Kevin Flaherty, Vice President of Marketing, gave an in-depth and informative presentation on the operational costs of building a manufactured home today, along with a look at design innovations and trends and how evolving customer preferences are driving changes in today’s manufactured homes. Chris Parrish of Parrish Manor, a 280-site manufactured home community in Garner, North Carolina, discussed his innovative approach to community management and how he is leveraging his partnerships with various organizations to build a competitive advantage in his housing market.
HUD Issues Grants for Fair Housing Enforcement and Awareness
On May 9th, The U.S. Department of Housing and Urban Development (HUD) announced nearly $50 million in federal grants to fair housing organizations in 35 states to assist people that believe they have been victims of housing discrimination.
The federal funds will be used to enforce the Fair Housing Act through investigation and testing of alleged discriminatory practices, and to educate housing providers, local governments and potential victims of housing discrimination about their rights and responsibilities under the Fair Housing Act.
MHI-PAC to Host Senator Lamar Alexander of Tennessee
On Wednesday, June 6th, MHI-PAC will host a fundraising luncheon for Senator Lamar Alexander (R-TN). Representative Alexander is a key Member of the Appropriations Committee and a friend of the industry. He has been an advocate of manufactured housing for many years. Senator Alexander has been supportive of MHI’s efforts to seek relief from burdensome regulations imposed by the Energy Security Independence Act of 2007.