Legal Blog

Compensation and Compliance Matters: The End of the Pre-Approval

While many lenders focus upon the new integrated disclosures, one of the less-cited aspects of the regulations prohibits lenders from requiring borrowers to submit any verification documentation prior to providing the borrower with the disclosures. Under the new rules, a lender would not be able to require a borrower to submit any information verifying income prior to issuing a pre-approval. While the lender could require a borrower to provide information as to income and identifying institutions and account numbers, the lender could not require the borrower to verify the representations or information. .Click here to read the entire article on National Mortgage News. akaren@offitkurman.com  | 240.507.1740 Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide. Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others. You can also connect with Offit Kurman via FacebookTwitterGoogle+YouTube, and LinkedIn. WASHINGTON | BALTIMORE | FREDERICK | PHILADELPHIA | WILMINGTON | VIRGINIA