With the constant change in regulatory laws in the mortgage arena. It is important to be aware of some of the current trends that are forming. Listed are some trends that we feel are very important for both lenders and appraisers:
1. Increasing enforcement
Even before all the new rules went into effect in January, the CFPB had already started groundbreaking actions under existing rules. The impacts, which are increasing now that the bureau is beginning to enforce the new rules, are hitting companies and individuals who’ve not been under scrutiny before.
The CFPB is teaming up with regulators up and down the system to uncover possible violations and prosecute alleged infractions, making the long arm of the law even longer.
3. Bigger Penalties
The new CFPB rules—and some of the older ones too—allow for triple damages and longer enforcement windows, increasing the risk of any enforcement action or lawsuit.
4. Importance of Thorough Documentation
Not only will accurate records be necessary to prove you followed the rules, their absence may be used as proof you didn’t.
Information obtained from “Inside Mortgage Finance Publication”