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 ...
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’ ...
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 ...
The presidential campaign of Democrat Hillary Clinton issued a fact sheet indicating that the candidate supports allowing small institutions to enjoy the qualified mortgage safe harbor for portfolio loans. “Before the crisis, Wall Street promoted dangerous mortgage products, even when they knew borrowers might get into trouble, harming countless communities in the process,” said the fact sheet. “But when community banks and credit unions offer mortgages, they’re looking to invest in their neighborhoods and communities to help them grow and prosper. “Clinton supports a proposal put forward by Senate Democrats to expand the safe harbor for QM liability protection to include all mortgages made by community banks and credit unions with under $10 billion in assets – so long as the ...
Laurie Maggiano, servicing and secondary markets program manager at the CFPB, appeared at a recent forum on housing finance sponsored by the Urban Institute and CoreLogic and highlighted the most significant changes the bureau has made to its 2013 mortgage servicing rules. She began with requests for clarification that servicers themselves made of the CFPB. “There are clarifications that servicers can indeed enter into short-term repayment plans without collecting a complete application document for consumers,” Maggiano said. Also, there is now more flexibility for servicers to stop collecting documents for a particular loss mitigation option when it is evident the borrower is not a candidate for the option.Additionally, the bureau provides clarification on how servicers select a reasonable deadline ...
The CFPB’s final amendments to its 2013 mortgage servicing regulations will enhance the industry’s practices and benefit the non-agency residential mortgage-backed securities market, according to analysts with Moody’s Investors Service. On the other hand, costs are going to go up, and the brunt of that burden will be borne by smaller servicers. “The new CFPB rules set forth multiple timeline requirements, compliance to which will require servicers to implement several system changes,” the analysts said in a new report. “Such changes will likely result in increased automation of servicing processes that will improve overall efficiencies.” However, implementation costs are going to go up because servicers will have to update their technology and adjust staffing levels to meet the new requirements...
CFPB Proposes Changes to FOIA Procedures, Treatment of Information; Would Expand Disclosure of Confidential Supervisory Information to State AGs. The CFPB has proposed amendments to the procedures used by the public to obtain information from the bureau under the Freedom of Information Act, the Privacy Act of 1974, and in legal proceedings.... Bank of America Close to Fulfilling Settlement Obligations. Bank of America has conditionally fulfilled more than 91 percent of its obligation to provide $7 billion worth of consumer relief under the terms of its historic mortgage settlement agreement with the U.S. Department of Justice and six states, according to Eric Green, the independent monitor of the agreement...
Industry observers are weighing in on the redesigned Uniform Residential Loan Application, an industry standard that has largely remained the same for the past 20 years, until now. The GSEs published the new form last week to give lenders ample time to get familiar with it. The updated form won’t officially be in use until Jan. 1, 2018. The URLA is for single-family loans submitted to Fannie Mae and Freddie Mae, as well as mortgages insured by the FHA, VA or U.S. Department of Agriculture’s Rural Housing Services. The redesigned form falls under the larger Federal Housing Finance Agency and GSE initiative to standardize single-family mortgage data in the U.S.
Price is paramount to buyers purchasing a mortgage company, but equally important is bringing over the salesforce – namely loan officers – and making sure they stay happy under the new owners. That’s one of many insights contained in a new “In-Focus” report from The Stratmor Group, a consulting firm that plies its trade in the M&A circuit as well as other sectors of the industry. “While the numbers and related analysis are fundamental to the negotiating process, there is an ...
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