Webcasts & Speaking Engagements

How the Wall-Street Reform Act Impacts Affiliated Businesses

Joe Kolar participated in a RESPRO audio seminar, "How the Wall-Street Reform Act Impacts Affiliated Businesses," on September 16, 2010.

The Dodd-Frank Wall Street Reform and Consumer Protection Act that President Obama signed into law on July 22 is the most sweeping financial reform package since the 1930s. There already have been hundreds of articles and seminars on its overall impact on the mortgage industry – but how will this new law specifically impact real estate brokers, homebuilders, mortgage lenders, and other title/settlement service providers that are part of affiliated business arrangements?

On September 16, 2010, RESPRO hosted an audio seminar that highlighted those provisions in the new law that potentially will affect the regulatory and business environment for affiliated business arrangements in the housing industry.
Highlights: 

• The Consumer Financial Protection Bureau: This new independent bureau, to be set up over the next year, will take over rulemaking and enforcement for all major consumer financial protection laws, including the Real Estate Settlement Procedures Act (RESPA). What new powers and penalties will this new Bureau have, and how will it change the federal regulatory environment for your affiliated companies?
• The “Ability to Repay” Standard and Its Impact on Affiliated Businesses: The new law requires mortgage lenders to determine the borrower’s ability to repay the loan in a way that discriminates against mortgage loans in which an affiliated title or settlement service business is used. How will this affect your regulatory compliance costs and your ability to sell your loans in the secondary mortgage market, and what can you do about it?
• The Lower HOEPA Threshold and Its Impact on Affiliated Businesses: The law lowers the Home Owners Equity Protection Act (HOEPA) “points and fees” threshold from 8% to 5% while maintaining its discriminatory impact on loans in which an affiliated title or settlement service business is used. What are the consequences for smaller loans using affiliated title and other settlement services?
• New Rules for Appraisal Management Companies: The law establishes new appraisal requirements, including new rules for appraisal management companies, and requires that fee appraisers receive customary and reasonable fees. What is the impact on affiliated appraisal management companies?
• A New State Preemption Standard for Affiliated Businesses: The law takes away federal preemption of state laws for subsidiaries of national banks. What does that mean for joint venture partners of national bank mortgage and title subsidiaries?

Click here for the presentation