Residential Mortgage Loan Servicing News

Exam Type	Rating	Number of Licensees
File Reviews	1	7
File Reviews	2	3
File Reviews	3	3
File Reviews	4	0
Desk Review w/o Files	n/a	8

During the third quarter 2018, the residential mortgage loan servicing team conducted 21 examinations. Three exams were conducted on-site. The remainder were off-site. Overall, the trend is more “1” rated exams and less “2” rated exams than the previous quarter. The previous quarter also featured one “3” rated exam and one “4” rated exam. Compliance in residential mortgage loan servicing practices continue to show steady improvement over the last five years.

Common violations continue to be: failure to reconvey title to collateral within 30 days of the debt being paid off; misapplication of payments by not following the order of priority stipulated in the promissory note or deed of trust; and failure to file accurate annual assessment reports to the Department.

Effective September 1, 2018, the Department extended the time to reconvey title to 60 days, which provides a little more time for servicing staff to close the files and should help remove this citation from the quarterly list of common violations.

There were other changes to our residential mortgage loan servicing regulations effective September 1, 2018. View the adopted rules. Please review them if you have not previously and ask the Department any questions you may have.