The NPLs are being offered on behalf of a residential loan asset manager…

The Cato Institute said the former Freddie executive Anthony “Buddy” Piszel consistently received exemplary performance reviews and was cleared of any wrongdoing…

Are nonbanks 'shadow' institutions, and if so, is that a bad thing?

One observer called the change “huge.”

Top mortgage industry representatives urged the CFPB to do more to facilitate the curing of loans with errors under the agency’s controversial Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, otherwise known as TRID. One such organization was the Housing Policy Council of the Financial Services Roundtable. In its comment letter to the CFPB, the HPC said providing more formal guidance on when and how lenders may correct or cure errors is not just a question of potential liability for lenders; it’s also important in reducing the uncertainty of customers if they experience varying interpretations by different lenders. “We recognize that it is difficult to anticipate all types of potential errors in advance,” said the HPC. “There ...

In the weeks leading up to the effective date of the CFPB’s integrated disclosure rule, the agency’s director, Richard Cordray, made clear that, from a supervisory perspective, the bureau would view enforcement of the rule as more diagnostic than punitive – an approach many industry officials believe should continue. In commenting on the CFPB’s proposed rule to clarify a number of aspects of TRID, the Mortgage Bankers Association strongly urged the current diagnostic examination approach be formally extended until the changes necessitated by a final rule have been fully implemented and it is clear that the compliance difficulties with such a complex rule have been largely resolved. “With this policy and the bureau’s and industry’s active engagement as compliance moves forward ...

Many elements of the mortgage finance industry took up the primary concern that real estate agents have had with the CFPB’s integrated disclosure rule since it first took effect: the sharing of the closing disclosure with third parties. In their recent comments to the bureau on its TRID clarifying proposal, multiple industry players said they were glad to see the agency addressed this issue somewhat; however, more must be done. The National Association of Realtors, for instance, told the bureau that one of the unintended consequences of the integrated disclosure rule has been lenders’ reluctance to share the new required CD with real estate professionals out of fear of liability for disclosing clients’ nonpublic personal information.“Regulation P, which governs ...

A number of industry software and technology vendors told the CFPB they must have a minimum of one year to fully test and comply with all the changes the agency wants to implement with its TRID clarifying proposed rule. Computer systems and software vendor Jack Henry & Associates said that due to the nature of these proposed changes (which will require revisions to forms, calculations and logic in the software), the industry needs an absolute minimum of 12 months for its implementation period. “Software providers such as Jack Henry & Associates work with multiple business partners and need lead time to analyze, plan, design, develop, test, document and distribute software changes to our financial institution clients prior to the implementation ...

Comments by CFPB Director Richard Cordray at last week’s Mortgage Bankers Association conference in Boston indicate that the industry can expect the bureau’s diagnostic approach to enforcing the TRID rule will continue, apparently until further notice. “As I told you last year, in our examination work around compliance with this rule, we and the other regulators have pledged to be sensitive to the progress made by lenders that are squarely focused on making good faith efforts to come into compliance with the rule on time,” Cordray said. “We have also said that our approach would be diagnostic and corrective, not punitive. That is precisely what we are doing.” This means that the regulators will evaluate a company’s compliance management system ...

The CFPB said last week it will issue warning letters to 44 residential lenders and mortgage brokers that are not properly collecting Home Mortgage Disclosure Act information – data that helps the agency uncover discriminatory lending practices – and advised them to review their practices and step up their compliance efforts, if need be. The bureau said it has information that appears to show they may be required to collect, record and report data about their housing-related lending activity, and that they may be in violation of those requirements. The CFPB said it identified the 44 companies by reviewing available bank and nonbank mortgage data. The identities of the 44 firms were not provided by the agency. “Financial institutions that fail to ...