Consumer complaints to the CFPB about mortgages filed during the third quarter fell in most of the significant categories tracked by Inside the CFPB – with issues about the application and origination process being the one notable exception. Gripes in this regard rose 4.1 percent from the second quarter to the third, and increased a larger 12.6 percent at the nine-month mark versus a year ago, our latest analysis found. But at just 1,644 complaints, the number of homebuyer criticisms in this regard pales when compared to the huge number of mortgage applications and originations made during the same period. It is also important to note the seasonality associated with complaints in this area, as they tend to be highest during ...
Earlier this month, the House of Representatives voted 303-121 in favor of H.R. 3192, The Homebuyers Assistance Act. The legislation would provide the mortgage industry with a regulatory and legal safe harbor until Feb. 1, 2016, for mortgages originated in good faith under the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, otherwise known as TRID. The rule, designed to streamline the mortgage disclosures under the two laws, took effect Oct. 3, 2015, after nearly two years of notice from the CFPB. “The CFPB and House Republicans agree that a transitional period for TRID compliance which enables lenders to test their systems and ensures there is no large-scale disruption to mortgage lending is necessary,” said Rep. ...
ComplianceEase, an automated compliance solutions provider based in Burlingame, CA, has come out with an insurance-backed warranty program for loans that have been audited by its ComplianceAnalyzer solution. The program, called AssureCert, provides warranty coverage for compliance defects, including ones related to the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure Rule (TRID) and the ability-to-repay/qualified mortgage regulation, as well as federal and state consumer lending and high-cost laws and regulations. “The new QM and TRID rules have exposed lenders and investors to civil lawsuits, as well as fines and repurchase risk,” said John Vong, president of ComplianceEase. “Our insurance-backed AssureCert warranty will offer our clients – both large and small –additional protection and peace of mind.” The ...
Bank of America Pulls the Plug on All Marketing Services Agreements. Bank of America, the third-largest residential retail lender in the U.S., has pulled the plug on all marketing services agreements it has with realty firms, sibling publication IMFnews reported last week. The bank confirmed the move to the newsletter, noting that it will discontinue all “space rental agreement programs due to recent regulatory developments.” It added: “We expect our MSA agreements will conclude by Nov. 1, 2015, and we will terminate our lease agreements for space in accordance with their terms. While the decision to wind down our MSA and SRA programs was difficult, the end of these programs allows us to pursue different ways we might help builders ...
A lawyer by trade, Watt noted: “Unfortunately, legal constraints prevent me from saying much about this because we are in the period between the end of the comment period and the time we issue the final rule.”
“Had the proposal been implemented, it could have had a chilling effect on FHA lending, to the detriment of the borrowers served by the FHA program,” according to lawyers at K&L Gates.
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