TILA

Browse articles from all of our Newsletters related to TILA.

November 28, 2016

Inside the CFPB Full Issue November 28, 2016 (PDF)

View Inside the CFPB Full Issue November 28, 2016 (PDF)

November 28, 2016

Other News in Brief

Securitization Group Meets with CFPB Officials. Earlier this month, staff and members of the Structured Finance Industry Group met with CFPB Director Richard Cordray and other senior officials to talk about the state of the non-agency mortgage securities market and some of the factors hampering its return.... Mortgage Lenders Meet With Bureau, Other Regulators, to Discuss Diversity, Inclusion. A small group of mortgage lenders recently met with staff of the CFPB, the Federal Reserve, the Federal Deposit Insurance Corp., the Federal Housing Finance Agency and the Office of the Comptroller of the Currency to discuss best practices on how to develop and maintain diversity and inclusion programs within the mortgage industry, according to an account by the Mortgage Bankers Association....

November 28, 2016

TRID 2.0: The Comments - Industry Supports ‘Rebaselining’ Proposal, But Voices Caution

Some top industry players support the CFPB’s proposed amendment to its existing TRID rule that clarifies a lender’s ability to use a revised closing disclosure (CD) to reset tolerance baselines for fees and charges, as long as there are valid changes of circumstances. However, they think a few simple tweaks could maximize the usefulness of the change without creating an incentive for lenders to act in such a way as to defeat the bureau’s intention. The proposal clarifies that the authority to “rebaseline” exists for all CDs – not just the initial CD – and that for any CD issued after the first one, there is no timing requirement, and no timing limitation on the issuance of the initial CD. That means ...

November 28, 2016

TRID 2.0: The Comments - More Clarity Needed for TRID Effective Dates, Industry Says

Another area in which the CFPB sought industry input in its TRID clarifying rulemaking process is whether the proposed 120-day implementation period, starting from final publication in the Federal Register, will be adequate. Some industry commenters essentially said no. Others basically said, it depends. Wells Fargo was one of the commenters that fell into the former camp. “[S]ome of the clarifications in this proposal have already been implemented by the majority of the industry based on previous informal guidance from the bureau,” said the lender. “However, this proposal also contains a number of changes that are new or that are being proposed with more detailed direction than previously offered.” Some examples the lender cited were the proposed expansion to the ...

November 28, 2016

TRID 2.0: The Comments - More Changes Needed to TRID’s Cash-to-Close Table, Industry Says

The CFPB has made progress in its regulatory treatment of the cash-to-close table as reflected in its proposed rule to clarify aspects of its integrated disclosure rule, but more needs to be done, some leading industry groups said. “The cash-to-close sections of the Loan Estimate and Closing Disclosure represent some of the most challenging aspects of the TRID rule,” said the Real Estate Services Providers Council in a comment letter to the bureau. “The industry had noted that a failure of the prior disclosures was that they did not provide for disclosing to the consumer the lender’s estimate of the cash that he or she would need to close the loan,” it added. Further, the industry did not indicate that ...

November 28, 2016

TRID 2.0: The Comments - Industry Weighs in on Disclosing Lender and Seller Credits

As part of its TRID 2.0 clarifying rulemaking, the CFPB sought comment on whether lenders should have the option of disclosing lender or seller credits as either credits specific to particular charges or general credits applicable to settlement costs. The Mortgage Bankers Association suggested the CFPB give lenders options and not settle on one approach. “Some lenders would prefer a single approach; others indicate that optionality is likely necessary,” the trade group said in a recent comment letter. It noted that seller credits are governed by sales contracts between the buyer and seller, and that local custom frequently comes into play as to who pays a specific fee, such as owner’s title insurance. “Similarly, the particular application of lender credits ...

November 14, 2016

Inside the CFPB Full Issue November 14, 2016 (PDF)

View Inside the CFPB Full Issue November 14, 2016 (PDF)

November 14, 2016

Other News in Brief

Vendor Provides TRID-Oriented Video Content. Fast Forward Stories, a Bellingham, WA, provider of “brand-able” video content for the mortgage, title and real estate industries, recently released a download-ready library of 26 mortgage explainer videos on the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure Rule (TRID).... ICYMI: Here’s What Happens to Fines, Penalties Levied by the CFPB. A new report from the Government Accountability Office summarizes what happens to the fines and penalties the CFPB imposes on financial institutions for mortgage-related offenses, as follows ...

November 14, 2016

CFPB’s Enforcement, UDAAP Authority at Stake in PHH Case

The recent decision by the U.S. Court of Appeals for the District of Columbia Circuit in the dispute between the CFPB and PHH Corp. has some significant enforcement implications for the bureau, according to a top compliance attorney. At stake in particular is the bureau’s authority to enforce federal consumer financial protection laws as well as the Consumer Financial Protection Act (CFPA) prohibition of unfair, deceptive, or abusive acts or practices (UDAAP). In a recent client note, Barbara Mishkin, of counsel in the Philadelphia office of the Ballard Spahr law firm, noted that among the court’s findings was that the Real Estate Settlement Procedures Act’s three-year statute of limitations (SOL) applies to the agency’s administrative enforcement actions. “Not only did ...

November 14, 2016

GSEs Endorse Aspects of TRID That Support Uniform Closing Dataset

Government-sponsored enterprises Fannie Mae and Freddie Mac recently expressed support for those portions of the CFPB’s TRID clarifying rulemaking that facilitate their Uniform Closing Dataset, which they developed to support the accurate disclosure of data on the closing disclosure. “The GSEs believe that the bureau should retain the current status of the sample forms, specifically, as model forms under the Truth in Lending Act and standard forms under the rule pursuant to authority under the Real Estate Settlement Procedures Act,” Fannie and Freddie said in a recent comment letter to the bureau. “Much of the required text of the integrated disclosure is dynamic. It is not contained in the blank forms, and instead is only illustrated when the form is ...

November 14, 2016

TRID 2.0 Poses Software Implementation Challenges

Implementing the changes that the CFPB is proposing to its TRID rule will involve the deployment of a considerable amount of resources, time and energy, software vendors told the bureau recently. In a comment letter sent to the bureau, DocMagic said that many of the agency’s proposed changes would require a substantial amount of reprogramming by not only technology vendors but also by creditors, investors and settlement agents. “In addition, each programming change would need to be tested to ensure the software integrations among the thousands of companies in the industry work properly,” the company said. DocMagic also pointed out that it operates SmartCLOSE, which is a collaborative closing portal that allows creditors and settlement agents to collaborate to complete ...

November 14, 2016

TRID 2.0: The Comments: Rule Causes Tension to Flare Between Industry Factions

  Some of the public comments submitted to the CFPB regarding its TRID 2.0 clarifying rulemaking highlight tensions and rivalries that have emerged between different factions in the homebuying and mortgage-making industry since the original integrated disclosure rule took effect. In its comment letter on the bureau’s proposal, one point of emphasis that JPMorgan Chase raised is that lenders need better cooperation from settlement agents. “The success of the rule largely depends on the collaboration of a…

November 10, 2016

CFPB, Dodd-Frank May Be in the Crosshairs of Trump Administration, GOP-Controlled Congress

Mortgage lenders and servicers could see a dramatic change in the regulatory environment following the election of Donald Trump as president with a GOP-controlled Congress. During a campaign of many and sometimes conflicting promises, Trump vowed to repeal the Dodd-Frank Act, which would require Congressional action and, if carried out in its entirety, would abolish the Consumer Financial Protection Bureau. Some observers think a more likely outcome is a restructuring of the CFPB itself and curbing of some regulatory and enforcement actions, perhaps with new leadership. Mortgage lending issues were...

November 4, 2016

CFPB Urged to Formalize Guidance on TRID

Participants in the non-agency market are concerned that the Consumer Financial Protection Bureau hasn’t done enough to provide lenders and investors with certainty regarding the liability associated with the TILA-RESPA Integrated Disclosure rule. The CFPB issued a proposed rule in August that would clarify a number of concerns regarding TRID. But the bureau’s proposed rule didn’t include guidance CFPB Director Richard Cordray had detailed in a Dec. 29 letter to the Mortgage ...

November 3, 2016

Fannie, Freddie Concede Industry’s Point on UCD Reporting Burden, Postpone Requirement for a Year

After hearing lenders’ concerns about the increased reporting burden they would face from some of the changes that Fannie Mae and Freddie Mac want to make to their Uniform Closing Dataset requirements, the two government-sponsored enterprises agreed to postpone the requirement to provide the seller closing data for one year. “The GSEs understand the difficulties that acquiring the seller data presents, particularly as many lenders are still working through their processes to obtain the seller closing disclosure and data from settlement companies,” the pair said late last month in letters to the Mortgage Bankers Association. “In recognition of these challenges, the GSEs have agreed...

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