Friday Round-Up: CFPB Sues Over LO Comp, More Push for Reverse Mortgage Change

In case you missed it… here’s what happened in reverse mortgage news this week. 

The CFPB filed suit against a mortgage company for LO comp violations. The bureau filed a complaint in federal district court against Castle & Cooke Mortgage LLC, a Utah-based mortgage lender, alleging the company and two of its officers illegally provided bonuses to loan originators who steered consumers into mortgages with higher interest rates.

FHA Urged Senators to act on HECM authority. In a hearing before Senate Banking Committee members, Carol Galante, assistant secretary for the Department of Housing and Urban Development, stated that the agency does not plan to reinstate the formerly popular product under FHA’s Home Equity Conversion Mortgage program and urged the committee to approve authority for HUD to make reverse mortgage changes. 

NRMLA took a similar stance, urging the Senate to act. The National Reverse Mortgage Lenders Association spoke in support of pending legislation in the Senate that would grant the Department of Housing and Urban Development the authority it needs to make swift changes to its reverse mortgage program.

… and NRMLA’s annual conference is approaching! In advance of the conference, on Saturday November 2, participants will gather in service for NRMLA’s Annual Habitat for Humanity event. Volunteers are needed. Email Rhiannon Behnke for more information and to RSVP.

Written by Elizabeth Ecker

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