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 pooh-pooh’ed mortgage lender concerns that the Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule will hurt their business because of the need to extend closings when revisions prompt another round of disclosures. “Now, just as we heard prophets of doom bemoaning the effects of the [ability-to-repay] qualified mortgage rule before it took effect, so too we are hearing some of the same voices bemoaning the effects that the ‘Know Before You Owe’ mortgage disclosure rule will have,” the director said at the recent Mortgage Bankers Association annual convention in San Diego. “They say that by requiring closing disclosures to be provided three days in advance, the rule will delay and disrupt closings,” ...
Discussing the new integrated disclosure rule known as TRID, Ishbia noted that loan brokers “adapted wonderfully and we are closing a lot of TRID loans.”
OCC chief Thomas Curry added: “It’s clear to me that these reserves need to rise to account for the increasing credit risk we are seeing in the system."
A trade association representing large financial institutions has asked the FHA to clarify its policy regarding the use of downpayment assistance programs on home purchases financed with FHA mortgage loans. The differences in the interpretation of the Department of Housing and Urban Development’s inspector general and the FHA of downpayment assistance programs (DAP), especially by state housing finance agencies, has created uncertainty among lenders, according to the Consumer Mortgage Coalition. In a letter to HUD Secretary Julian Castro, the CMC expressed concern that lenders may become unwilling to continue offering loans with assisted financing because of legal uncertainty. “This would be unfortunate for moderate-income borrowers nationwide, and it would unnecessarily limit the ability of [state housing finance agencies] to function,” the group said. SHFAs do not rely on taxpayer funding for ...
The Department of Veterans Affairs and the FHA have issued guidelines concerning the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure (TRID) rule as it relates to VA- and FHA-backed mortgages. The new TRID rule covers loan applications received on or after Oct. 3, 2015. It replaced Truth-in-Lending-Act disclosures and the Department of Housing and Urban Development’s closing (HUD-1) settlement statement. The rule requires that all covered loans be closed using the new closing disclosure. The VA has announced new closing-disclosure guidelines and a new mandatory method for the stacking order of loan files selected for full-loan review. According to the VA, all files selected for full review on or after Oct. 3 may include the HUD-1 statement. The agency is aware that loans will be requested that have the HUD-1 closing document, and that it will perform the full file review with the ...
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