Dodd Frank for the Privately Held Mortgage Company or Bank
Watch the video of Offit Kurman attorneys Ari Karen and Bill Heyman discussing the new Dodd Frank regulation and its effects on privately held banks and mortgage companies from June 14, 2011.
If you are having problems viewing the video, you may download it here (right click and choose “Save Target As”).
You can also download a PDF of the presentation here.
Dodd Frank Webinar Video:
LO Compensation Update
- Dodd Frank vs. Federal Reserve Rule
- Developments on compensation for brokered loans
- Differentiated product compensation
- Proper compensation documentation to support contracts
- Pricing and exception policies
- Splitting commissions and confirming the originator
Increased Focus on Fair Lending
- Necessary written policies
- Training for loan officers and management
- Practical and efficient self auditing
New Employment Liabilities
- Whistleblower protections
- Proper tax treatment of expenses and income
- Executive compensation
- Wage-Hour misclassification
New Borrower Protections
- Qualified mortgages
- Expanded HOEPA
- High cost loans
- Anti-steering protections
- Unfair and deceptive practices
- Documentation and recordkeeping
New Liabilities and Responsibilities
- Analyzing ability to repay without violating Fair Lending
- LO liability for violating Duty of Care
- New appraisal liabilities and required practices
- Documenting proper compensation and fee generation
- Sound incentive compensation for executives
Self Audits
- Maintaining privilege so findings cannot hurt you
- Documents to review
- Limiting cost of corrective actions
- Using experts/external consultants
The challenges posed by the new Dodd Frank legislation are not incomprehensible nor is harm to your business or your bottom line inevitable. There are practical and efficient means of compliance, which, if implemented, can be an opportunity to obtain an advantage over less informed competitors, many of whom will face significant liabilities as a result of non-compliance.
About the Presenters
Ari Karen is an aggressive and experienced litigator, with a primary focus on disputes involving claims of discrimination, unfair competition, fiduciary breach, partnership disputes, worker misclassification, and minimum wage and overtime litigation in all state and federal trial and appellate courts. Mr. Karen litigates both individual and class actions, utilizing strategies that aim at reducing or eliminating clients’ exposure in the most cost-effective and efficient manner. In addition to litigation, Mr. Karen uses his litigation experience to counsel clients in proactive and practical means of compliance with technical wage-hour laws and other labor and employment regulations.
Bill Heyman is an experienced commercial litigator with a keen understanding of the financial sector. His practice primarily focuses on financial services and securities litigation, employment cases, and other complex commercial disputes. He also defends companies, individual directors and officers on behalf of third-party insurers.