Among a host of best practices and other tips lenders should consider for complying with the CFPB’s new Home Mortgage Disclosure Act rule is coordinated institutional planning, according to Ellen Costa, vice president of strategy and business capability development at Wells Fargo Home Lending. Speaking to attendees at the recent regulatory compliance conference sponsored by the American Bankers Association, Costa said, “All of the CFPB's regulatory changes – HMDA in particular – mean significant change management within your institution. It is a best practice to be very agile and proactive about coordinating a project plan that includes a strategy upfront, really understanding what the regulations are driving at.” A solid plan developed ahead of time and properly executed will allow a clear ...
During the first four months of the year, most mortgage originators seemed to do a good job complying with the CFPB’s regulations – including existing Truth in Lending Act and Real Estate Settlement Procedures Act disclosure provisions – but some appeared to be coming up short in terms of their overall compliance management systems. According to the CFPB’s latest supervisory highlights report, “Examiners found general compliance with the reviewed federal consumer financial laws, though many entities continue to have CMS deficiencies.” For example, at least one supervised institution had weak oversight of its automated systems, including inadequate testing of codes that calculate the finance charge and the amount financed when originating residential loans to consumers. In addition, at least one supervised entity ...
The CFPB’s TILA/RESPA Integrated Disclosure Rule – dubbed TRID – may have been causing mortgage lenders severe heartburn since it took effect in early October, but you wouldn’t know it by looking at consumer complaints about the mortgage application and origination process. They fell by 9.3 percent during the second quarter, according to a new analysis and ranking by Inside the CFPB – part of a larger drop off that found gripes down by 16.5 percent for the period, and off 4.5 percent year over year. The number of complaints that lenders responded to in a timely manner dropped 16.1 percent quarter over quarter, and 4.3 percent year over year. However, that could be because perhaps lenders/servicers were making more of an effort [With two exclusive charts]...
The TRID ‘Scratch & Dent’ Market is Still Humming Along, But…. The secondary market for mortgages with TRID errors is still alive and well with more product hitting the market in June than May, according to one active investor. Michael Lima, managing director of whole loan trades for Mid America Mortgage, reported his firm was involved in 82 TRID bids in June compared to 35 in May. Mid America has been one of the most active buyers of such product. But Mid America is quick to point out that even though there were more auctions, it won a smaller percentage of the bids: a 78 percent win rate in May compared to just 32 percent in June. “This could imply ...
Recently, rumors were making the rounds in Washington that Fannie and Freddie might be pondering an increase in their net worth minimums for seller/servicers...
Mortgage lenders delivered a hefty $218.29 billion of single-family mortgages into Fannie Mae and Freddie Mac mortgage-backed securities during the second quarter of 2016, according to a new Inside Mortgage Trends analysis of MBS disclosures made by the two government-sponsored enterprises. That was an increase of $45.32 billion over the first quarter, and 30.2 percent of the gain came from California, where total GSE loan sales jumped ... [Includes two data charts]
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