Most (86 percent) of U.S. banks and credit union respondents in a recent survey by Wolters Kluwer Financial Services ranked the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule as the top regulatory challenge facing their organizations. When asked about complying with the complex TRID rules, 32 percent of respondents cited “collaborating with stakeholders” as their top issue, while 24 percent identified “last-minute changes that trigger closing delays” as the top anticipated challenges. Another 17 percent cited “information technology preparedness” as the top challenge, while 18 percent were still unsure about the regulation’s greatest impact on their operations. Overall, concerns about regulatory compliance and risk management challenges rose 7 percent compared to WKFS’ survey from ...
CFPB Director Richard Cordray showed no sign of backing down when it comes to the bureau’s expanded scrutiny of and skepticism toward marketing services agreements as possible violations of the Real Estate Settlement Procedures Act. Speaking at the recent Mortgage Bankers Association’s annual convention in San Diego, the director noted that his agency concluded from its enforcement experience that MSAs necessarily involve substantial legal and compliance risk for the parties to the agreements – whether they are lenders, brokers, title companies or real estate professionals. “We believe those risks are greater and less capable of being controlled by careful monitoring than mortgage industry participants may have recognized in the past,” said the director. “MSAs appear to create opportunities for parties to ...
With the brouhaha over the CFPB’s interest in the industry use of marketing services agreements growing, it is the bureau itself that is the biggest threat under the Real Estate Settlement Procedures Act, a leading industry attorney charged last week. “The threat, in a few short words, is the CFPB,” said Donald Lampe, a partner with the Morrison & Foerster law firm, during a webinar last week sponsored by Inside Mortgage Finance, an affiliated publication. “The CFPB, before our eyes, is rewriting the law, rules and previous guidance on RESPA Section 8(c)(2), which is the exception to RESPA for bona fide payments for services actually rendered – not just for MSAs, but so far, MSAs have received the most attention,” he ...
The biggest challenge that banks, credit unions and other lenders anticipate with the CFPB’s new final rule under the Home Mortgage Disclosure Act is accurate data capture, according to a new survey from Wolters Kluwer Financial Services. “Overall, concerns about the new HMDA data-collection rules generated a 67 percent rating by respondents, reflecting a degree of impact ranking of a ‘7’ or higher on a 10-point scale,” WKFS said. “When asked to rank specific HMDA challenges, 64 percent of respondents cited the task of accurately capturing the new data fields as either their first or second biggest obstacle in complying with the new rules.” System upgrades, increased staffing and other costs also are driving industry anxiety, the survey found. Upgrading ...
Most of the participants in the housing finance industry think they are being hobbled by over-regulation, and the chief culprit is the CFPB, according to a new survey from The Collingwood Group, a consultancy in Washington, DC. Among the mortgage industry professionals surveyed, 72 percent named regulation as the top issue that is negatively affecting their origination volume. “CFPB regulation, in particular, was the most common cited source of negative influence,” Collingwood said. “Survey respondents complained that while the CFPB is generating new regulations that are designed to protect the consumer, the costs to comply with new rules result in higher rates and fees for borrowers,” according to the survey. “In many cases, well-intended regulations end up being more harmful ...
CFPB Retracts Cordray’s Claim About Most Jumbo Mortgages Being Non-QMs. Questions from Inside Nonconforming Markets, an affiliated newsletter, compelled the CFPB to concede that Director Richard Cordray misspoke during a speech at the Mortgage Bankers Association’s recent annual convention in San Diego. In asserting that the CFPB’s ability-to-repay rule hasn’t caused a significant reduction in mortgage originations, Cordray referenced jumbo loans, “most of which are non-QM loans,” he said. “While comprehensive data on the non-QM share of jumbo mortgages are not available, a number of data sources suggest that most jumbos are in fact QMs, not non-QMs,” Inside Nonconforming Markets went on to note. Three of the five largest jumbo lenders told the newsletter most of their jumbos are QMs, ...
Agency multifamily MBS issuance dropped more steeply, by 19.7 percent, but that was from the record $30.91 billion issued during the second quarter of this year.
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