TILA

Browse articles from all of our Newsletters related to TILA.

September 22, 2016

Some RMBS Originators are Replacing QC Reviews With Feedback from Whole Loan Investors: Moody’s

Some residential mortgage-backed securities loan originators are moving away from performing internal post-acquisition quality control loan reviews in lieu of obtaining feedback from their whole loan investors, according to a new report from Moody’s Investors Service. “Some aggregators are relying more on their investors for quality control feedback,” said Moody’s. The ratings service identified in particular Redwood Residential Acquisition Corp. and JPMorgan Mortgage Acquisition Corp., which it said “are relying more on feedback from whole loan investors to monitor the quality of due diligence firm loan reviews, as opposed to conducting their own internal reviews, since a large portion of their acquisitions are sold in whole-loan trades.” Moody’s noted...

September 19, 2016

Inside the CFPB Full Issue September 19, 2016 (PDF)

View Inside the CFPB Full Issue September 19, 2016 (PDF)

September 19, 2016

Hensarling Bill Also Would Make Revisions to CFPB Mortgage Rules

H.R. 5983, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act by Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, has incorporated the provisions of a number of bills that have either already passed the committee or the full House of Representatives and that would affect ...

September 19, 2016

TRID Was ‘A Beast’ at First, Now ‘A Paper Tiger,’ Experts Say

It’s been almost a year now since the CFPB’s integrated disclosure rule went into effect, and industry participants across the credit spectrum appear increasingly comfortable with the new disclosure regime. But when it first came out, the rule took all the oxygen from the room and caused more fear and anxiety that, in retrospect, appears to be have been justified, according to a handful of experts in the non-prime mortgage origination space. Speaking during ...

September 19, 2016

TRID 1.0 Blamed for Rise in Mortgage Defects, Study finds

The CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule has been blamed for a lot, including, most recently, producing more defects in mortgage loans. According to a new industry trends report from ACES Risk Management Corp. (ARMCO), a provider of web-based audit technology solutions for the mortgage industry based in Pompano Beach, FL, the industry experienced “a significant decrease in defects” through the second quarter of 2015. However, ...

September 19, 2016

Life Under TRID: TRID 2.0 Raises Plenty of Issues In Minds of Industry Commenters

Industry trade groups have yet to weigh in on the CFPB’s TRID clarifying rulemaking, but the grassroots rank-and-file have, and many of them are raising more concerns and questions. For instance, Ross Miller, president of Miller Home Mortgage in Metairie, LA, complained that there are no exceptions for the three-day waiting period when there is an emergency. “I had a client whose father was quickly scheduled for open heart surgery,” he said in a comment letter. “The client was ...

September 16, 2016

Oversight Seen as Protecting Investors in Expected MBS From Marketplace Lenders, Rating Implications Unclear

Regulations and practices in the mortgage market will help protect investors in MBS backed by residential mortgages from marketplace lenders, according to Moody’s Investors Service. However, it’s not clear if the protections will be enough to offset the rating penalties often applied to originators and assets that lack historical performance records. Moody’s published its analysis last week, noting that while no residential MBS has been issued by a marketplace lender as yet, the firm expects issuance at some point. Marketplace lenders – the most prominent of which is Social Finance – connect...

September 15, 2016

HFSC Passes Dodd-Frank Replacement, Bill Would Foster Portfolio Lending, Make Mortgage Changes

The House Financial Services Committee this week marked up, mostly on party lines, a comprehensive alternative to the Dodd-Frank Act that would, among other things, create a legal safe harbor for mortgage loans that are originated by a lender and then held in portfolio on its balance sheet. Democrats unanimously opposed the bill and refused to offer a single amendment, continually railing against Wells Fargo and accusing the Republicans of wanting to take the nation “back to the regulatory Stone Age.” The bill passed...

September 8, 2016

Title Agents Bash TRID Clarification Proposal, Real Estate Agents Love Getting Access to Docs

Hundreds of industry participants have written to the Consumer Financial Protection Bureau to express their opposition to or support of the bureau’s attempt to resolve some of the ambiguity associated with its Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure Rule. Title insurers say the CFPB missed a chance to fix a major problem: confusion about title premium charges. Real estate agents say the bureau is making things better for consumers by allowing lenders to share disclosures. One title insurance professional noted...

September 5, 2016

Inside the CFPB Full Issue September 5, 2016 (PDF)

View Inside the CFPB Full Issue September 5, 2016 (PDF)

September 5, 2016

TRID Compliance Issues Disclosed on New Nonprime MBS

The new nonprime mortgage-backed securities deals from Angel Oak Capital Advisors and Deephaven Mortgage contain a number of mortgages reflecting a range of issues in terms of complying with the CFPB’s TILA/RESPA Integrated Disclosure rule (TRID), a review of the offering documents revealed. Part of the compliance issues stem from the ongoing uncertainty about cures for minor errors. While the CFPB issued a proposed rule in July attempting to clarify some of these TRID uncertainties, and the Structured Finance Industry Group has worked with industry participants on a set of guidelines, it is still not clear whether some TRID errors can be cured. The $132.65 million nonprime MBS from Angel Oak included 251 mortgages subject to TRID, representing 59.4 percent ...

September 5, 2016

Real Estate Agents Report Mixed Experience With TRID 1.0

The TILA-RESPA Integrated Disclosure rule helped improve communications with no impact on closing times, according to some real estate agents. But other agents reported that the new disclosure rule caused significant delays in closing purchase mortgages. The disparity in findings is contained in the newest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey, which asked real estate agents to describe their best/worst experience with lenders this year. TRID, as might be expected, received a number of mentions. An agent in California said lenders have been much better at communication since TRID took effect in October. “I feel that TRID keeps them more aware of the timelines they need to adhere to,” the agent said. And a sales professional in Maryland said homebuyers’ ...

September 5, 2016

Real Estate Agents Support CFPB Plan to Share Closing Documents

Scores of real estate professionals have written to the CFPB to express their support of the TRID 2.0 provision that would enable the sharing of mortgage origination documents between lenders and real estate professionals. Carol Barkstrom, principal broker/owner at Connections Realty in Richmond, VA, told the CFPB, “Thank God you are proposing to make this change. We as agents being denied access to closing documents has been a huge problem.” Previously, real estate professionals “have always had access to disclosure documents to catch possible mistakes and omissions and to explain the meaning of all the pieces and parts of the closing documents to our selling and buying clients,” she added. However, with the original TRID rule, the bureau’s attempt to ...

September 5, 2016

Life Under TRID: Title Agents Slam CFPB’s TRID Clarifying Rulemaking

Hundreds of title agents across the U.S. responded in an organized letter-writing campaign and flooded the CFPB’s inbox with negative comments about the bureau’s attempt to clarify a number of issues related to its controversial TILA/RESPA Integrated Disclosure Rule, otherwise known as TRID. One title insurance professional commented that the CFPB missed an opportunity to change the closing disclosure’s calculation of title fees. “Consumers around the country continue to receive inaccurate information at the closing table about their title insurance costs,” she said. “This provision of the rule defeats the bureau’s own mission to provide consumers with a better understanding of their transaction.” The title agent urged the CFPB to fix this problem immediately so consumers will have a clear ...

August 26, 2016

Pressure for GSEs to Expand Role in Manufactured Housing Grows, Freddie Forms MH Task Force

Manufactured housing advocates are pushing for more government-sponsored enterprise support for manufactured lending, especially for chattel loans that are not considered mortgages because the loan is not secured by a dwelling and land. The issue has gathered steam as the Federal Housing Finance Agency works to finalize a “duty-to-serve” regulation for Fannie Mae and Freddie Mac that focuses on mortgage financing for very low-, low- and moderate-income families in rural areas and manufactured housing. Back in May, the Manufactured Housing Institute and representatives from both GSEs had discussed...

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