Between the Equal Credit Opportunity Act and the Fair Housing Act (FHA) lenders must avoid discrimination based on 11 different bases. Usually when we hear of a case of discrimination it involves race, ethnicity or sex. But recently HUD announced a settlement of a discrimination case with a mortgage lender that had engaged in familial status discrimination under the FHA by engaging in discriminatory lending practices against expectant mothers. The FHA protects an applicant from […]
Month: August 2011
REGULATION Z – LOAN ORIGINATOR COMPENSATION RULES
Everyone seems aware that Regulation Z rules, which were effective on April 1, 2011, state that no loan originator shall receive and no person shall pay to a loan originator, directly or indirectly, compensation in an amount that is based on any of the transaction’s terms or conditions. Everyone also seems aware that the term “compensation” includes salaries, commissions, and any financial or similar incentive provided to a loan originator that is based on any […]
AGENCIES REPEAL PROHIBITION ON PAYING INTEREST ON DEMAND ACCOUNTS
Both the Federal Reserve Board and the Federal Deposit Insurance Corporation published final rules repealing regulations that prohibited payment of interest on demand deposits, effective July 21, 2011. The Federal Reserve Board’s Regulation Q was repealed on July 12, 2011. The FDIC’s Part 329 was repealed on July 6, 2011. The regulations had been in place since 1933. The repeals were required by Section 627 of the Dodd-Frank Wall Street Reform and Consumer Protection Act […]