TOPIC: Mortgage

Opting out of Escrow

Employee at a bank ($405MUSA)
We currently Escrow all loans on primary residences and are considering opting out of Escrow all together unless the property is in a Flood Zone. Can anyone give me some insight on the process of doing this and pros/cons of opting out of Escrowing? We will discuss at our next compliance meeting and I would love to know what other banks have done/are doing in order to help us make a decision. Also if anyone has a sample notice to send to customers or policy and procedures that would be helpful as well! Thanks in advance!

    Delinquent Tax Refund

    Employee at a bank ($495MUSA)
    Our settlement agent wants to re-issue a new closing disclosure for a mortgage that closed in November 2019. The reason is that they overpaid delinquent property taxes at closing and recently the settlement company received a refund on behalf of the customer for overpaid delinquent property taxes. Should they reissue a CD showing the correct amount of delinquent property taxes due?

      Encompass clients - Do you have access to a data dictionary for system access?

      Employee at a bank ($10.2BUSA)
      My memory is not what it used to be, but while I was at a prior employer I seem to recall seeing a huge file from Encompass that had the name of the type of access, possible values for the field and then a brief description of what the field was for.  For example, Field name/Access level: Create New Loan File, Possible values: Yes/No, Desc: "Yes" means that the user is allowed to create a new loan file within their own pipeline.  "No" means that the user is not allowed to create new loan files.  

      If you have such a list, would you be willing to share its title/revision/version and maybe let me know how you were able to get the document from the vendor?  A colleague at my new organization submitted a ticket with our request, and were told that we would need to send someone to their admin training session, but that even then we would probably wouldn't be given access to the full document.  

        Mortgage Subservicing

        Employee at a credit_union ($857MUSA)
        Good Morning
        We will be moving our mortgage servicing to a sub servicer. From a compliance stand point, I am looking for policies, QC checks, migration plans, etc to help ensure a smooth transition and a clean oversight. Does anyone have any guides, policies, checklist they are willing to share?

        Thank you

          Commission split

          VP at a bank ($611MUSA)

          Are there any banks out there who require MLO's to split their commission with a referring banker?  For instance, private banker refers new mortgage client to MLO. MLO's usual 60 bps gets split: 20 bps to private banker, 40 bps to MLO.  Looking to see if others are doing this.  Thanks in advance!

            HUD False Claims Act Announcement at MBA Conference

            Department of Housing and Urban Development Secretary Ben Carson delivered on his promise to work with the Department of Justice to address the use of the False Claims Act in the lending space, announcing Monday that HUD and the DOJ have reached an agreement that will see the DOJ back away from Federal Housing Enforcement lending enforcement and leave enforcement mostly to the FHA itself.

            The goal of the move, according to Carson, is to bring banks back to FHA lending.

            Click to learn more about the announcement Carson shared at the Mortgage Bankers Assocation Annual Conference 

              High Priced/High Cost Mortgage

              Manager at a credit_union ($141MUSA)
              Good afternoon:

              I am hoping that someone might be able to share any tools or worksheets they use to determine if a mortgage (or fixed home equity loan) meets the high priced/high cost mortgage requirements as required by Reg Z.  Currently we outsource our 1st mortgage originations and they calculate this on those loans.  But we need to be calculating for our equities, which are processed in house.   

              Also, if you have an excerpt from your lending policy that may address this, that would be especially helpful as well.


                Lendwell Demo Video

                 "In the last few weeks, you've likely heard about Lendwell, a mortgage settlement platform that offers multiple services in one convenient location. A common question that we have received is, "What does the process look like in Lendwell?”. 

                To answer that question, we've put together a short demo so that you can see how simple the ordering processing is with Lendwell. If you have any questions or if you're ready to try Lendwell for yourself, please reach out to us at We can get you set up today.