Partner Stephen Fogdall Explored “The CFPB Guidance on Private Mortgage Insurance Cancellation and Termination: Is Your Firm Compliant?”On April 27, 2016 by Schnader
Financial Services Litigation co-chair Stephen Fogdall participated in The Knowledge Group’s live webcast, “The CFPB Guidance on Private Mortgage Insurance Cancellation and Termination: Is Your Firm Compliant?” on Wednesday, April 27, 2016.
On August 4, 2015, the Bureau of Consumer Financial Protection (CFPB) issued a bulletin which should assist residential mortgage servicers in complying with private mortgage insurance (PMI) cancellation and termination provisions under the Homeowners Protection Act of 1998 (HPA). The bulletin discusses borrower-requested cancellation, automatic and final terminations, PMI refunds, annual disclosures, and investor guidelines. It also underscores various practices which violate HPA or pose extensive noncompliance risk. Although the guidance does not contain any new standards, it implies CFPB’s anticipated focus on PMI in its future examinations. It is also likely that the bulletin would attract attention from the plaintiff’s bar since HPA can be a vehicle for class actions. Therefore, servicers should punctually evaluate their PMI cancellation and termination policies and procedures to ensure compliance and avoid potential legal risks.
In this two-hour LIVE Webcast, a panel of distinguished professionals and thought leaders assembled by The Knowledge Group helped lenders and loan servicers understand the fundamental aspects of this significant topic. They provided an in-depth discussion of The CFPB Guidance on Private Mortgage Insurance Cancellation and Termination. Speakers also offered best practices in developing and implementing effective and compliant PMI cancellation and termination policies.