Mortgage lenders have had a little more than three months to get used to the CFPB’s integrated disclosure rule, but many are still squirming with uncertainty about civil liability and enforcement, particularly when it comes to errors in the Loan Estimate and the Closing Disclosure. Much of the problem stems from ambiguity in the wording of the rule itself. “Although TRID implements portions of the Truth in Lending Act and the Real Estate Settlement Procedures Act, the text of the regulation does not state which statutory liability applies to the various parts of the rule or forms,” K&L Gates attorneys Holly Spencer Bunting and Charles Weinstein said in a recent review. Instead, civil liability under TRID is a matter that ...
The recent death of conservative U.S. Supreme Court Justice Antonin Scalia may make it difficult for the nation’s highest court to consider a pending case that has far-reaching implications for the mortgage industry and the broader financial services sector. The specific question in Spokeo, Inc. v. Robins is whether the respondent (Robins) identified an injury-in-fact under Article III of the U.S. Constitution by alleging that the petitioner (Spokeo) had willfully violated the Fair Credit Reporting Act by publishing inaccurate personal information in consumer reports – in this case, on a consumer-reporting type website – without following reasonable procedures to assure the information’s accuracy. Spokeo tried to dismiss the suit on the grounds that Robins could not prove he suffered a specific financial ...
Plurality Finds No Delays Because of TRID. The most recent online poll by Inside Mortgage Finance, an affiliated publication, posed the following to respondents: “A lot has been written lately regarding loan closing delays tied to the new TRID rule. What’s been the average delay at your lending shop, if at all. (Report in business days, not calendar.)” Thirty percent selected “TRID has caused no delays because we were prepared.” Another 27 percent chose 1 to 4 days, 13 percent checked 5 to 10 days, and 11 percent selected “11 to 15 days. It’s been a nightmare.” Interestingly, 20 percent chose the final option: “We’re too embarrassed to tell you.” Uh-oh. ...
RamQuest-eLynx Integration Enhances TRID Compliance with Automated Data Flow Between Lenders and Settlement Agents. Texas-based RamQuest, a provider of comprehensive title and settlement services solutions, and Ohio-based eLynx, a provider of on-demand web-based compliance services, recently announced a product/service synchronization to help lender and settlement agent clients comply with the CFPB’s integrated disclosure rule known as TRID. “The integration enables lenders utilizing eLynx’s Expedite ID compliance solution to exchange property, fee and loan data electronically with thousands of settlement service providers using RamQuest,” the companies said. “This bi-directional exchange of data simplifies the collaboration required for lenders to generate the Closing Disclosure mandated by the TILA-RESPA Integrated Disclosure rule.” ...
Late last week, Moody’s Investors Service published an analysis detailing risks from mortgage warehouse securitizations. The warning was published days after a $225.0 million deal from Jefferies Funding was issued with a Aaa rating from Moody’s. Analysts at Moody’s stressed that securitized mortgage warehouse facilities face risks that differ from traditional residential MBS. The analysts said Station Place Securitization Trust 2016-1 from Jefferies addressed the risks, prompting the Aaa rating. Station Place was backed...
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