The CFPB plans to release its long-awaited final rule to implement Dodd-Frank Act amendments to the Home Mortgage Disclosure Act in late summer, according to the bureau’s Spring 2015 rulemaking agenda, which was released late last month. “The proposal would help align the law with existing industry standards for collecting data on mortgage loans and applications,” said the agency. “It would also improve HMDA’s effectiveness through changes to institutional and transactional coverage, modifications of reporting requirements, and clarifications of existing regulatory provisions. We expect to release a final rule in late summer.” Elsewhere, the CFPB continues to be steadfast on the Aug. 1, 2015, effective date for its TILA/ RESPA integrated disclosure rule, and its latest rulemaking agenda betrays no ...
Lenders are so amped up about the CFPB’s pending integrated disclosure rule and the host of other mortgage-related and other financial services regulations from the bureau that they can be forgiven for getting excited about the prospect of regulatory relief from sympathizers in Congress. However, the bill that made its way out of the Senate Banking, Housing and Urban Affairs Committee, the Financial Regulatory Improvement Act of 2015, introduced by Sen. Richard Shelby, R-AL, is really just the first serious episode of what will likely be a series of mini-dramas to come in the weeks and months ahead. So lenders shouldn’t get their hopes up just yet, some observers suggest. “It’s a starter,” said Bob Davis, head of mortgage markets ...
The Republican version of regulatory relief legislation that passed out of the Senate Banking, Housing and Urban Affairs Committee recently revises a handful of CFPB rulemakings in a number of key areas, most notably in liberalizing the criteria for qualified mortgage status under the CFPB’s ability-to-repay rule.However, the lender/creditor would have to hold the loan in portfolio from its inception, or any acquirer of the loan must continue to hold it in portfolio.Additionally, the mortgage cannot have been acquired through securitization, nor can it have certain forbidden features, like negative amortization, interest-only provisions, or a loan term in excess of 30 years. Further, the lender would be required to document the borrower’s income, employment, assets and credit history...
The pending TILA/RESPA Integrated Disclosure (TRID) rule from the CFPB is going to raise the risk of losses for investors in U.S. residential mortgage-backed securities, according to a new report from Moody’s Investors Service. Currently, as Moody’s points out, RMBS trusts are liable for lender errors in calculating the finance charge, the annual percentage rate (APR) and certain other disclosures required by the Truth in Lending Act. However, they are not liable for errors on itemized settlement charges and other disclosures required by the Real Estate Settlement Procedures Act. Further, under the current regime, TILA and RESPA each require lenders to deliver both an initial and a final disclosure to consumers. “Whether an assignee can be liable for lender errors ...
The latest wave in the tsunami of rulemakings from the CFPB is the pending integrated disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. And just the timing aspects related to providing the consumer the loan estimate and the closing disclosure could cause havoc, a top industry attorney warned recently. According to Phillip Schulman, a partner in the Washington, DC, office of the K&L Gates law firm, the biggest problem with the TILA/RESPA Integrated Disclosure (TRID) rule has to do with the timing requirements. “You have to give the loan estimate to the borrower within three business days of receiving the application, and no sooner than seven days before consummation or closing of the ...
Yet another industry concern about the CFPB’s pending TILA/RESPA Integrated Disclosure (TRID) rule has emerged. Technology vendor eLynx, based in Cincinnati, has determined that many lenders will be relying at least in part on manually entered data to create the CFPB-mandated Closing Disclosure (CD) after the Aug. 1, 2015, implementation of the new rule. According to the vendor, lenders are concerned that manual data re-entry will be a major cause of disclosure mistakes when the agency’s TRID rule takes effect. eLynx conducted a survey of the hundreds of lenders and settlement professionals currently using its services. “The results are alarming,” the company said. “Only 6 percent have a fully automated process for collecting property-related data from settlement service providers (SSPs).” ...
More than 250 members of the House of Representatives have signed onto a letter to Consumer Financial Protection Bureau Director Richard Cordray, urging he institute a “grace period” of enforcement with the bureau’s pending integrated disclosure rule that takes effect Aug. 1, 2015. The lawmakers have joined the mortgage lending industry in calling for an ease on tight enforcement of the TILA/RESPA Integrated Disclosure (TRID) rule from the Aug. 1 effective date through the end of the year. “[T]his complicated and extensive rule is likely to cause challenges during implementation, which is currently scheduled for Aug. 1, 2015, that could negatively impact consumers,” said the lawmakers. “As you know, the housing market is highly seasonal, with August, September and October ...
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