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 ...

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 ...

The CFPB has issued an amendment to its guidance on service providers, clarifying that mortgage lenders have a degree of flexibility in deciding the appropriate course of action for managing their risk. In its revised bulletin, the bureau began by noting that it “recognizes that the use of service providers is often an appropriate business decision for supervised banks and nonbanks. “Supervised banks and nonbanks may outsource certain functions to service providers due to resource constraints, use service providers to develop and market additional products or services, or rely on expertise from service providers that would not otherwise be available without significant investment,” it added. However, the mere fact that a supervised bank or nonbank enters into a business relationship ...

The CFPB’s latest supervisory highlights report provides some Home Mortgage Disclosure Act data collection and reporting reminders for 2017. For starters, beginning with HMDA data collected in 2017 and submitted in 2018, responsibility to receive and process HMDA data will transfer from the Federal Reserve Board to the CFPB. “The HMDA agencies have agreed that a covered institution filing HMDA data collected in or after 2017 with the CFPB will be deemed to have submitted the HMDA data to the appropriate federal agency,” the bureau stated. (The HMDA agencies are the CFPB, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corp., the Fed, the National Credit Union Administration, and the Department of Housing and Urban Development.) ...

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 ...

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 ...

Social media and mobile-digital communications have already reshaped a number of industries, and mortgage banking isn’t going to be any different, according to a leading guru in the field. Many of today’s loan officers are going to become obsolete unless they adapt to rapidly shifting consumer expectations, said Clara Shih, CEO and founder of Hearsay Social, during a session at the recent annual convention of the Mortgage Bankers Association. Although there are some ...

RE/MAX promises that its new loan brokerage franchise concept is RESPA compliant...

An executive at Angel Oak Capital, Atlanta, parent of Angel Oak Home Loans, confirmed that his firm is seeking a rating and would like to issue a rated non-QM MBS someday…