Adjustable Rate Mortgage (ARM) Rule
OVERVIEW
Adjustable-rate mortgages, one of the main
culprits of the housing crisis, are back in vogue. But banks say this time is
different.
Financial groups are sweetening terms to
entice customers to take out these loans, known as ARMs, whose rates can jump
after a few years. Some ARMs are cheaper, when compared with fixed-rate
mortgages, than they have been in more than a decade. The tactics are
reminiscent of the period before the 2008 crisis, when ARMs exploded in
popularity as banks and mortgage brokers touted their low initial rates to
consumers. Now, though, financial executives say they are focusing on borrowers
with strong credit who are using the loans to take out large "jumbo"
mortgages—and not so-called subprime borrowers, who used the loans to stretch
their buying power as far as it could go. ARMs comprised 31% of mortgages in
the $417,001-to-$1 million range that were originated during the fourth quarter
of 2013, according to data prepared for The Wall Street Journal by Black Knight
Financial Services, formerly Lender Processing Services, a mortgage-data and
services company. That is up from 22% a year earlier and the largest proportion
since the third quarter of 2008.
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| ARM Rule |
WHY
SHOULD YOU ATTEND
After a year adjusting to new rules issued by
the Consumer Financial Protection Bureau, some in the mortgage industry are
still not up to code, the CFPB's latest supervision report found. The bureau’s
eighth edition of supervisory highlights covers activities between January 2015
and April 2015, and resulted in remediation of $11.6 million to more than
80,000 consumers. We are extremely concerned that one year after the CFPB’s
mortgage servicing rules went into effect we are still finding runarounds and
illegal dual-tracking,” said CFPB Director Richard Cordray. “Consumers deserve
to be treated with honesty and integrity, and our rules require that servicers
give borrowers a fair process when they try to save their homes. The CFPB will
continue to stand beside consumers to make sure mortgage servicers are
following the law,” Cordray added. Under the Dodd-Frank Act, the CFPB has
authority to supervise banks and credit unions with more than $10 billion in
assets and certain nonbanks. The CFPB’s last report resulted in remediation of
$19.4 million to more than 92,000 consumers, along with six mortgage
origination violations.
AREAS
COVERED
- Resources regarding the various
indices that may be used for ARM lending
- Quiz you can administer to measure
staff learning and a separate answer key
- Fair Debt Collection Practices Act (FDCPA) rules
- ARM (Adjustable Rate Mortgage)
change notification requirements
WHO
WILL BENEFIT
- staff members who are currently
working with ARM loans
- anybody working to establish an
ARM program
- lending management
- loan operations
- compliance officers
- lenders
- Professionals participating in ARM
lending
- Bank and financial institution
auditors
- Controllers and corporate managers
- Forensic and management
accountants, accounts payable and financial analysts
- Governance, risk management and
compliance officers
LEARNING
OBJECTIVES
- Checklists to ensure that all ARM
documents are complete
- Employee training log
For more detail please click on this below link:
Email: support@trainingdoyens.com
Toll Free: +1-888-300-8494
Tel: +1-720-996-1616
Fax: +1-888-909-1882
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