Compliance

Loan Originator Compensation

Do I add the commission schedule to the Employment Plan? What compensation plan should I use?

When do I have to do Compliance Audits? What audits are required?

Depending on the scope of your business, (e.g.; lender, non-delegated or broker) you have different audits required. Customize the list we provide in your Compliance Manager Duties.

When do my employees and I have to do the required compliance training?

We have a suggested training calendar in the compliance manual. We don't recommend doing all training all at once.

What disclosures are necessary for a reverse mortgage?

Each state may have its own specific requirements, and each investor/agency has it's own documents, but here are the big ones.

What is a lousy policy/procedure document?

We see a lot of bad policies and procedures. Why do they keep getting recirculated?

What should my Privacy Notice say?

Broker or Lender - You should deliver the Privacy Notice BEFORE you share any information with your customer.

Can I make changes in LO Comp? Switching from Lender to Borrower Paid or Vice-Versa

You cannot change LO compensation when any change is a proxy for loan terms, except when it is in the borrower's best interests.

Do I have to report HMDA Data?

Depends on the size of your business and whether YOU are providing the credit decision

Where is the policy for delivering initial disclosures?

While state specific disclosures differ from state to state, the standard pack of disclosures for EVERY loan depends on the loan type.

How do I register on the BSA E-Filing Portal?

To comply with AML/BSA rules, the company's compliance officer must be prepared to file a Suspicious Activity Report.

IT Security Fail - I lost my documents because of a computer failure! Can I get another copy?

We are happy to re-create your order, but if you've lost your documents due to computer failure, that is a HUGE red flag.

Credit Report Fees - Changed Circumstances

Can a broker or lender charge a borrower a fee for a credit rescore? Can the fee on the LE and CD be updated for a rescore?

How to Sign Up for BSA E-Filing

Step one of the AML/BSA Independent Audit is to validate that the BSA Officer has the ability to access the BSA E-Filing Platform

ECOA/Fair Lending - Cancel or Withdraw an Application

What do I have to do when an application doesn't go anywhere?

Document Retention - What do we have to keep in our files?

What documents do we keep after a file closes? Can I just get a printout from my lender?

Brokers - What disclosures do I have to send?

Lenders tell you "Don't send a disclosure package. We do that for you..." But what is missing from your lender's package that a state regulator will cite you for?

AML Compliance Package - Implementing BSA/AML policies and procedures

AML Compliance requires 4 things - 1.) AML Officer (that's you), 2.) Compliance Plan (your 1-70 BSA AML Plan) 3.) Annual Training, and 4.) Independent Review

Can I get a referral fee from a Credit Repair Company?

These are notoriously egregious sources of consumer abuse. Generally, be very careful with any engagement with them.

How to track non-certificate training

Managers must take the same quizzes as employees, but they also have to take additional training. We have an extensive library of compliance manager training on YouTube. Here's how to document online training video completion on YouTube.

Ohio Dual Authority

I recently discovered your article published in the subject of dual capacity where the loan originator acts as the Realtor also.  I can not find where this is permissible in the state of Ohio.  Do you have any subject matter that would confirm this is allowed in the state or be able to direct me to a resource to confirm this please ?

RESPA Loan Estimate Triggers are NOT ECOA Applications

Pre-Qualifications with a Property Address, though, MUST have a Loan Estimate

Real Estate Agent is also Loan Originator - Same Transaction

The problem arises when you try to act in both roles in the same transaction and "double-dip." Now you have a conflict of interest.

What are the Current Year Thresholds for Various Regulations?

Many regulations adjust caps and thresholds based on the current value of money, which changes with interest rates and inflation. Here are some of the most common thresholds.

Website Terms of Service

What do I have to put in my website terms of service?

Enterprise-Wide Risk Assessments for Small Mortgage Companies

Small mortgage companies face the same regulatory expectations as larger institutions when it comes to identifying and managing risk. Even with one or two branches and fewer than fifty employees, regulators expect management to conduct an enterprise-wide risk assessment (EWRA) that evaluates exposures across operations, compliance, cybersecurity, and customer interactions. The EWRA provides a structured way to document where risks exist, how they are controlled, and how often those controls are reviewed.

Connecticut Loan Broker and Real Estate Agency Dual Authority

Although dual authority is allowed, compensation is limited when collecting fees for both services.

When a Customer Falls for a Hacked Email: What to Do Next

It’s every lender’s nightmare: a borrower receives a hacked email that looks legitimate, wires funds to the fraudster’s account, and suddenly the closing is in jeopardy. Unfortunately, this type of wire fraud has become one of the fastest-growing cybercrimes targeting mortgage transactions. Under your 2-9 IT Security Program, you should be prepared with a structured response plan to minimize loss, assist the customer, and demonstrate compliance to regulators.

Hiring, Onboarding - How to for the Mortgage Business

This reflects the hiring and onboarding procedures **as contained in your manuals and forms**. All placeholders from the earlier draft have been replaced with the correct taxonomy and form IDs from your FORMS list.