Bob Niemi, Senior Advisor Financial Services Regulatory & Compliance rniemi@bakerlaw.com 614-462-2665 @Niems42 614-565-5901
Introduction Bob Niemi: Former Ohio Deputy Superintendent Former NMLS Ombudsman Former NMLS Policy Committee Former AARMR Board & Exam Trainer Over 25 years mortgage experience Mortgage Sales + Ohio MBA
Introduction Bob Niemi: NOT AN ATTORNEY Can Never Provide Legal Advice Just GOOD Advice Business Policy, Practices, Consulting Training of Whole Team for Compliance They don t know that they don t know
o One of the Nation s Leading Law Firms o Offices in 14 cities Coast to Coast o Consumer Financial Services www.finservblog.com/ www.bakerlaw.com/financialservicesindustry o Financial Services Risk Summit 3/3/2016 o Keynote Speaker: Calvin R. Hagins, CFPB o Outside General Counsel Ohio MBA o NMLS and Regulatory Insight o Compliance, Policy, Training, Preparation
Ohio DFI Consumer Finance: Ohio Administrative Code Rule Review Process began in 2011 1/04/2016 Many hands DFI + Stakeholders Dodd Frank, MDIA, SAFE, CFPB Nothing is clearer than clarity Word Diet, SAFE & CFPB language Accreditation 11/14 12 USC 5107(a) Growth in Licensing / Funding
Industry Take Aways: o Branches & License Requirements o LO may be Licensed in Escrow o Special Account a MUST for MB o Electronic Storage Accepted 4 yrs o Accept NMLS in place of Ohio # o Reduces Required Forms for Ohio o Removes pre-safe C/E & Fines o Allows LO Comp after a job change
Clarity in Definitions: Definitions include many changes: o Advertising follows CFPB / Reg. N o Adds USDA & FHLB Cincy to MBMB o Clarifies Resident of this State o Transaction of Business in Ohio o Allows 3 rd Party Providers as LO o Allows automated underwriting or use of third party provider
Quick Quiz: Is an exempt mortgage banker exempt from licensure and examination?
Quick Quiz: Is an exempt mortgage banker exempt from licensure and No: examination? 1322.022 (C) 1 The mortgage banker shall be subject to examination in the same manner as the registrant with respect to the conduct of the mortgage banker s loan originators MLOD s, Special Account, Brick & Mortar
Quick Quiz: Who is Contestant #1?
Quick Quiz: CFPB Director Richard Cordray
Quick Quiz: What Ohio Forms are you required to provide?
Forms Named in ORC: o Mortgage Loan Origination Disclosure o Affiliated Business Disclosure Form o Timely Disclosure of Material Change o Good Faith Estimate o Truth in Lending Disclosure o Property Tax Escrow and Monthly Payment Disclosure o Prepayment Penalty / HOEPA Form
Forms Named in ORC: o Mortgage Loan Origination Disclosure o Affiliated Business Disclosure Form o Timely Disclosure of Material Change o Good Faith Estimate o Truth in Lending Disclosure o Property Tax Escrow and Monthly Payment Disclosure o Prepayment Penalty / HOEPA Form o www.com.ohio.gov/documents/fiin_prepaymentpenaltyjan2016.pdf
Quick Quiz: If the State were to knock on your door are you ready? What about the CFPB?
Sure, we re compliant I think
Why States Examine? Ensure Compliance: Ohio Revised Code ORC defines law - Legislation Ohio Administrative Code OAC explains the law Regulation Federal Laws Graham Leach Bliley, RESPA, TILA Federal Rules TRID, LO Compensation, Ability to Repay
TRID Update CFPB grace period ending Investors may require practices not mandated by law Constant communication with investors is critical and should be documented CFPB may (will) make some tweaks to TRID as a result of comments received from the industry
Top Five Answers for TRID: 1) The Reason I Drink 2) The Reason is Delays 3) Dirt Spelled Backwards 4) TILA-RESPA Integrated Disclosure 5) Know Before You Owe
Top Five Reasons Investors Reject Loans: 5. Title Company file number not included on page 1 of CD 4. Alternate CD Issues 3. CD Contact Information Incomplete 2. CD Title Description
Top Five Reasons Investors Reject Loans: 1. LE and CD dated the same date! Resources: Rich Horn, Client surveys
Top Five Bob Questions: 5. Whoa - Melissa is your wife? 4. Didn t we work together at? 3. Can you still officiate? 2. Didn t I just see you were in?
Top Five Bob Questions: 1. How is the knee? wait that knee?!?
Top Five Questions: 5. Didn t the NMLS approve me? 4. Why does the Notice of Escrow of Taxes & Regular Monthly Payment? 3. Do I need to provide the MLOD? 2. What is OMLA and OMBA?
Top Five Questions: 1. Why do I have to make up old C/E and pay a fine?
Mortgage Compliance Magazine:
Atlanta Chicago Cincinnati Cleveland Columbus Costa Mesa Denver Houston Los Angeles New York Orlando Philadelphia Seattle Washington, DC www.bakerlaw.com These materials have been prepared by Baker & Hostetler LLP for informational purposes only and are not legal advice. The information is not intended to create, and receipt of it does not constitute, a lawyer-client relationship. Readers should not act upon this information without seeking professional counsel. You should consult a lawyer for individual advice regarding your own situation. 2016