Category Legal

CFPB Dealer Participation Update

When a regulatory body comes into conflict with industry powerhouses, fireworks are the result. And by fireworks, I mean a lengthy, sleep-inducing process punctuated by moments of double-speak and a complete failure to answer direct questions. Sorry. I just finished watching the Hearing on the Consumer Financial Protection Bureau’s Semi-Annual Report to Congress, which is […]

Participation Payments to Dealers Coming to an End?

Where loan origination is fragmented, payments get made to intermediaries for the services provided.  In some cases, those payments are clearly disclosed to borrowers as fees on the loan.  However, most of the time the cost of paying the intermediary is built into the borrower’s interest rate.  In the mortgage world, this is called yield-spread […]

Nobody “Likes” Compliance

If the world were Facebook, nobody would “like” regulatory compliance.  It is one of those costs of doing business that most prefer to spend as little time as possible thinking about.  Kind of like keeping stocked up on kitchen supplies. What makes regulatory compliance so unpopular isn’t just the burden and complexity.  It’s that it […]