CFPB Director Richard Cordray told members of Congress last week that the bureau’s final rule on Home Mortgage Disclosure Act reporting would likely come out sometime this summer, perhaps in July. He also indicated there would be a significant amount of time for mortgage lenders to get in compliance with it. He did not, however, provide any more detail such as a specific timetable. During last week’s hearing of the House Financial Services Committee, Rep. Randy Hultgren, R- IL, said small financial institutions are concerned about the proposal. “CFPB’s efforts thus far to narrowly tailor proposed HMDA requirements have been insufficient,” he said. “Even though the Dodd-Frank Act mandates 17 new data fields, the CFPB has proposed an additional 20 ...
A key take-away from last week’s hearing of the House Financial Services Committee was a clear indication that the CFPB plans to fully enforce its integrated disclosure rule when the Aug. 1, 2015, effective date kicks in. The rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act was finalized in November 2013. During the hearing this past Tuesday, Reps. Randy Neugebauer, R-TX, and Brad Sherman, D-CA, both pressed CFPB Director Richard Cordray on whether he would be open to a 60-day enforcement delay or a “restrained enforcement” period when the TILA/RESPA integrated disclosure rule – the TRID – goes live. Cordray did not come right out and say he would refuse to accept or implement one, but ...
There might be the usual hard line posturing on the part of both major political parties in the U.S. Congress on display when it comes to legislation related to the CFPB. But behind the scenes, top industry officials have no intention of letting up on the pressure they are trying to bring to bear on lawmakers to pass as many practical changes to bureau rulemakings as possible. “In the next two weeks, there will be several bills introduced dealing with less controversial but important elements of regulatory reform that we think will have bipartisan support,” said one mortgage industry executive in Washington, DC. Bills are expected to include provisions such as providing “qualified mortgage” status for many portfolio loans, with ...
CHLA lists four specific concerns about the proposed capital rule, including a complaint that a 25 basis point “add on” (based on UPB) is too “severe.”
Mortgage companies that fall under the heading “real estate credit” actually cut 300 employees during the month, leaving the sector with 211,700 full-timers.
FHA launched into the new year with a slight dip in forward mortgage loan originations in January from December with nonbanks leading the charge, according to Inside FHA Lending’s analysis of agency data. Lenders originated $11.8 billion in FHA-insured loans in January, a 0.7 percent decrease from December and down 3.5 percent from the prior year. FHA was charging a higher annual mortgage insurance premium of 1.35 percent for most of the month until a 50 basis point reduction, effective Jan. 26, lowered the MIP to 0.85 percent for a 30-year, fixed-rate mortgage with a five percent downpayment, and down to 0.80 percent for a similar FHA loan with more than five percent downpayment. The impact of the reduced MIP on February originations is still unclear, but most FHA lenders are expecting a boost in volume because many consumers ... [1 chart]
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