August 23, 2012
August 23, 2012
Consumer Financial Protection Bureau (CFPB)
The CFPB announced that it is considering two requests for decisions on whether certain provisions of unclaimed property laws in Maine and Tennessee related to gift cards are inconsistent with federal law on gift card expiration dates.
The CFPB released the proposed rule regarding loan originator compensation. The proposed rule adds new restrictions on the imposition of any up-front discount points, origination points or fees; implements requirements concerning the proper qualification and registration or licensing of mortgage loan originators (MLOs); implements restrictions on mandatory arbitration and financing of certain credit insurance premiums; and provides additional guidance and clarification regarding current loan originator compensation restrictions. Comments are due by Oct. 16, 2012.
Federal Housing Finance Agency (FHFA)
The FHFA announced new standard guidelines for short sales involving Fannie Mae and Freddie Mac. The guidelines are designed to align and consolidate existing short sale programs into one standard short sale program. These guidelines will go into effect on Nov. 1, 2012.
Financial Accounting Standards Board (FASB)
The FASB published a proposal for presenting items reclassified out of accumulated other comprehensive income. The proposed changes would apply to public and private organizations, but not to not-for-profit organizations. Other comprehensive income includes gains and losses that are initially excluded from net income for an accounting period.
Financial Crimes Enforcement Network (FinCEN)
FinCEN issued Advisory FIN-2012-A009. The advisory highlights activity related to mortgage loan fraud so that financial institutions may better assist law enforcement when filing suspicious activity reports (SARs). Some of the types of fraud highlighted are occupancy fraud, income fraud, appraisal fraud and foreclosure rescue fraud scams.
Washington State Supreme Court
The Washington State Supreme Court ruled that lenders cannot foreclose on homeowners in the name of the Mortgage Electronic Registration Systems, Inc. (MERS). The ruling means that financial institutions or other noteholders will have to initiate foreclosures instead of relying on MERS.
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