Dodd Frank for the Privately Held Mortgage Company or Bank

Watch the video of Offit Kurman attorney Ari Karen a 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 Presenter

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.