Friday, February 28, 2020

Coronavirus: CDC Guidance - An Urgent Message


The Center for Disease Control and Prevention (CDC) has issued an alert regarding the Coronavirus Disease, entitled Interim Guidance for Businesses and Employers to Plan and Respond to Coronavirus Disease 2019 (COVID-19), February 2020.

This Interim Guidance (“Guidance”) is based on what is currently known about the coronavirus disease 2019 (COVID-19). The CDC will update this Guidance as needed and as additional information becomes available.

Read the CDC's Guidance HERE.

Unfortunately, much is unknown about how the virus that causes COVID-19 spreads. Current knowledge is largely based on what is known about similar coronaviruses.

The Guidance is meant to help prevent workplace exposures to acute respiratory illnesses, including COVID-19, in non-healthcare settings. The guidance also provides planning considerations if there are more widespread, community outbreaks of COVID-19.

Lenders Compliance Group is willing to help!

At this time, we suggest that you review your Disaster Recovery and Business Continuity Plan (“DRBC”), as the impact, features, factors, procedures, and policy requirements relating to COVID-19 should be set forth therein. The plan should include the CDC’s recommended strategies for employers to implement. 

Due to this emergency, if you need help with your DRBC, Lenders Compliance Group is offering to provide its DRBC review, assessment, risk rating, recommendations, and policy at a 20% discount from our already low fee. If the cost is a bit tough to manage, we will give you an affordable payment plan. Avoid the manual mills, one-size-fits-all, and fill-in-the-blanks versions. The DRBC must be customized to your institution to be effective and meet regulatory scrutiny!

To request support with your DRBC, click HERE.

  • Ensure the plan is flexible and involve your employees in developing and reviewing your plan.
  • Conduct a focused discussion or exercise using your plan to find out ahead of time whether the plan has gaps or problems that need to be corrected.
  • Share your plan with employees and explain what human resources policies, workplace and leave flexibilities, and pay and benefits will be available to them.
  • Share best practices with other businesses in your communities (especially those in your supply chain), chambers of commerce, and associations to improve community response efforts. 
Response Plan

There are numerous actions that must be implemented now
Do not wait! 
Time is not on your side!

  • Identify possible work-related exposure and health risks to your employees.
  • Review human resources policies to make sure that policies and practices are consistent with public health recommendations and are consistent with existing state and federal workplace laws.
  • Explore whether you can establish policies and practices, such as flexible worksites (i.e., telecommuting) and flexible work hours (i.e., staggered shifts), to increase the physical distance among employees and between employees and others if state and local health authorities recommend the use of social distancing strategies.
  • Identify essential business functions, essential jobs or roles, and critical elements within your supply chains (i.e., raw materials, suppliers, subcontractor services/products, and logistics) required to maintain business operations.
  • Plan for how your business will operate if there is increasing absenteeism or these supply chains are interrupted.
  • Set up authorities, triggers, and procedures for activating and terminating the company’s infectious disease outbreak response plan, altering business operations (i.e., possibly changing or closing operations in affected areas), and transferring business knowledge to key employees.
  • Plan to minimize exposure between employees and also between employees and the public, if public health officials call for social distancing.
  • Establish a process to communicate information to employees and business partners on your infectious disease outbreak response plans and latest COVID-19 information.
  • Anticipate employee fear, anxiety, rumors, and misinformation, and plan communications accordingly.
  • In some communities, early childhood programs and K-12 schools may be dismissed, particularly if COVID-19 worsens. Determine how you will operate if absenteeism spikes from increases in sick employees, those who stay home to care for sick family members, and those who must stay home to watch their children if dismissed from school.
  • Local conditions will influence the decisions that public health officials make regarding community-level strategies; employers should take the time now to learn about plans in place in each community where they have a business.
  • If there is evidence of a COVID-19 outbreak in the US, consider canceling non-essential business travel to additional countries per travel guidance on the CDC website.
  • Travel restrictions may be enacted by other countries which may limit the ability of employees to return home if they become sick while on travel status.
  • Consider cancelling large work-related meetings or events.
  • Engage state and local health departments to confirm channels of communication and methods for dissemination of local outbreak information.

Wednesday, February 26, 2020

CFPB Posts New FAQs on TRID

The Consumer Financial Protection Bureau (CFPB) has posted Frequently Asked Questions related to the TRID Rule and lender credits. 

Visit TILA-RESPA Integrated Disclosure FAQs

Topics Covered

  • Corrected Closing Disclosures (CDs) and the 3-Business Days waiting period before consummation
  • Model Forms
  • Construction Loans
  • Providing Loan Estimates (LEs) to Consumers
  • Lender Credits


Corrected Closing Disclosures

  1. If there is a change to the disclosed terms after the creditor provides the initial Closing Disclosure, is the creditor required to ensure the consumer receives a corrected Closing Disclosure at least three business days before consummation?
  2. Is a creditor required to ensure that a consumer receives a corrected Closing Disclosure at least three business days before consummation if the APR decreases (i.e., the previously disclosed APR is overstated)?
  3. Does Section 109(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act affect the timing for consummating a transaction if a creditor is required to provide a corrected Closing Disclosure under the TRID Rule?

Model Forms

  1. Does a creditor’s use of a model form provide a safe harbor if the model form does not reflect a TRID Rule change finalized in 2017?

Construction Loans

  1. Are construction-only loans or construction-permanent loans covered by the TRID Rule?
  2. Are there special disclosure provisions for construction-only or construction-permanent loans under the TRID Rule?

Providing Loan Estimates (LEs) to Consumers

  1. When is a creditor required to provide a Loan Estimate to a consumer?
  2. Can creditors require consumers to provide additional information (other than the six pieces of information that constitute an application under the TRID Rule) in order to receive a Loan Estimate?
  3. Can creditors require consumers to submit verifying documents in order for the consumer to receive a Loan Estimate?
  4. Is the requirement to provide a Loan Estimate triggered if the consumer submits the six pieces of information in order to receive a pre-approval or pre-qualification letter?
  5. What if a creditor needs to collect additional information (other than the six pieces of information that constitute an application for purposes of the TRID Rule) or verifying documents to process a pre-approval or pre-qualification request?

Lender Credits

  1. What is a lender credit for purposes of the TRID Rule?
  2. What is the difference between a specific lender credit and a general lender credit?
  3. Is a creditor required to disclose a closing cost and a related lender credit on the Loan Estimate if the creditor will absorb the cost?
  4. Is a creditor required to disclose a closing cost and related lender credit on the Closing Disclosure if the creditor will absorb the cost?
  5. How are lender credits disclosed on the Loan Estimate?  
  6. How are lender credits disclosed on the Closing Disclosure?
  7. How does a creditor disclose lender credits for a loan that the creditor refers to as a "no-cost loan"?
  8. How does a creditor disclose lender credits if the creditor provides a credit, rebate, or reimbursement to offset specific closing costs charged to the consumer?
  9. How does a creditor disclose lender credits when it is offsetting a certain dollar amount of closing costs charged to the consumer without specifying which costs it is offsetting?
  10. Can lender credits change?
Phone: 866-602-6660
Voicemail: 866-255-6466

Wednesday, February 12, 2020

Monthly Mortgage Compliance - Semi-Annual Opportunity

Message from Jonathan Foxx, Ph.D., MBA 
Chairman & Managing Director
Lenders Compliance Group.

Twice each year, we open our doors to new clients to join our family of clientele that use our monthly mortgage compliance support. 

During this discount enrollment period, we discount our already low monthly flat fee. The timeframe to take advantage of this offer ends on March 31st

We offer the discount as an expression of our mission. Let me explain.

When I started Lenders Compliance Group in 2006, there were virtually no other mortgage compliance and risk management companies around. My idea was to offer a team of the top compliance experts at a fraction of the cost it would be to retain any of them individually. At first, it was rough going, because companies had become grudgingly dependent on high fees and high payroll costs. One by one, they joined us and in time Lenders Compliance Group became the preeminent compliance firm in the country.

Of course, soon the copycats popped up, jumping onto what they thought was a big money-making bandwagon. But I said then, as I say now, 'I welcome competition.' The hybridization of compliance firms mystified me at first, such as firms that offered boilerplate policies and procedures for next to nothing but slammed lenders with excessive monthly fees, law firms that previously had no mortgage compliance departments all of a sudden sprung up with their various "compliance divisions," and quality control firms that had no real mortgage compliance experience except for providing QC auditing yet parleyed their client list. Unfortunately, and inevitably, many lenders were chiseled, chastened, but happily came to us. 

Believe it or not - and I have said this many times - we choose our clients as much as they choose us. Not every client is a good fit, and just because they have a lot of money or clout does not mean they are right for us. We seek lenders that are serious about implementing compliance, not trying to find a way to twist a regulation into an unrecognizable shape. We'll sometimes modestly push the compliance envelope, but only so much! If you conduct compliance on the basis of a cost/benefit ratio, you're probably not a good fit for us.

I'm proud of what we've accomplished, and it all began with monthly compliance support. In effect, we become an extension of your office!

We now provide the largest range of compliance services - all of it hands-on, personal, and direct! But we will always stick by our vision to provide a safe and sound approach to monthly compliance.

So, what do you get as a monthly mortgage compliance client? This -

Low Monthly Flat Fee
On-going Compliance Support
Supervised by Directors
Subject Matter Experts
Unlimited Questions
Most Policy Documents
Secure Record Storage
Dedicated Team

If you are a lender that needs cost-effective regulatory compliance guidance relating to mortgage acts, rules, regulations, and Best Practices, and you are committed to safety and soundness, you should contact us. We'll provide independent, reliable, low cost, on-going support to your compliance team!

If you miss out on this opportunity for a reduced fee, we'll be providing the offer again later this year. The deadline is March 31st. But why wait? 

Just contact us and we'll send you a one-page presentation, and you can also speak with me or one of our Directors to discuss your compliance needs. 

If you're interested, we'll give you a simple form to complete that lets us know a little about your organization, so that we can send you an engagement proposal with appropriate pricing, staffing, and scope. We're usually able to get started immediately!

Click the sidebar button or feel free to contact us at your convenience via email, phone, or even leaving a voicemail. 

Phone: 866-602-6660
Voicemail: 866-255-6466

Wishing you all the best!