Remember the Dec. 29, 2015, “clarifying letter” that CFPB Director Richard Cordray sent to the Mortgage Bankers Association? Initially, the letter relieved industry anxiety regarding TRID errors, at least to some degree. But over the past few weeks, certain lenders have once again grown nervous and are reporting resistance by secondary market investors that are turning down their mortgages because of TRID errors. For loan buyers, the issue is assignee liability. The MBA is believed to be a key player trying to persuade the bureau to publish the letter in the Federal Register. An industry lobbyist noted that one week after the clarifying letter came to light, MBA “applied immediate pressure to get the letter into Register form. The CFPB ...

Last month’s issuance by the CFPB of a request for information (RFI) regarding its Home Mortgage Disclosure Act resubmission guidelines likely reflects the bureau’s recognition of the additional workload the pending new rule represents, as well as a willingness to hear what the industry has to say about it.In October 2015, the bureau finalized its rule updating the reporting requirements under its HMDA rule, which will significantly expand the amount of information lenders will submit to the agency. “Given these changes, the current resubmission guidelines may need to be updated, and the bureau is seeking feedback on what modifications may be appropriate,” the agency said in early January. But in a recent online blog post, Brooks Bossong, a member ...

A complaint has recently been filed in U.S. District Court for the Central District of California in an attempt to initiate a class-action case against PHH Corp. and Realogy Holdings Corp. and some of their subsidiaries and affiliates for allegedly deceptive and collusive practices in violation of the Real Estate Settlement Procedures Act. The case references and appears to be inspired, at least in part, by the enforcement action the CFPB brought against PHH in 2014 in which the bureau alleged the lender violated RESPA by illegally referring borrowers to mortgage insurance companies in exchange for kickbacks. In that case, PHH Corp. v. CFPB, the U.S. Court of Appeals for the District of Columbia is set to hear oral arguments on ...

Will TRID Errors Crimp Earnings? Market observers have been hearing reports that TRID errors and closing delays definitely will be affecting first quarter 2016 earnings, at least for certain nonbanks. The big test for nonbank mortgage stocks is expected to come later this month when PHH Corp., the parent of PHH Mortgage, the nation’s ninth largest servicer, reports 4Q15 results. PHH, which is battling the CFPB over RESPA issues, also has been smacked around by servicing write-downs. It likely got some relief on that score in 4Q15. Stay tuned... CFPB Tries to Clear the TRID Air on Construction Loans. Not only has the CFPB’s TRID rule delayed closings in the conventional market, but it’s being reported that the regulation has ...

DocMagic Software Product Certified for TRID. DocMagic, a provider of document preparation, compliance, eSign and eDelivery solutions, recently received certification for its SmartCLOSE software product by the Mortgage Industry Standards Maintenance Organization, a nonprofit subsidiary of the Mortgage Bankers Association. Specifically, SmartCLOSE has been awarded what is known as a Standard Level Certification for the TILA/RESPA Integrated Disclosure (TRID) rule. According to the MBA, the objective behind SmartCLOSE is to bring lenders, settlement service providers, and other relevant entities together inside a secure environment to share, edit, validate, audit, track and collaborate on documents, data and fees. SmartCLOSE received Standard Level certification for MISMO Version 3.3 within the TRID business domain. “With the Uniform Mortgage Data Program (UMDP) quality initiatives ...

TRID Webinar to Focus on Construction Lending Issues. The Federal Reserve next month plans to host officials from the CFPB to present a webinar on questions related to the bureau’s integrated disclosure rule in the context of construction lending. The event is to be held Tuesday, March 1, 2016, from 2 p.m. to 3 p.m. Eastern time. Those interested in viewing the live event may register online at https://www.webcaster4 .com/Webcast/Page/577/13246. Additional information and resources related to the TRID rule may be accessed at the CFPB’s website. CFPB the Target of House Republicans Again This Week. The House Financial Services Committee’s Subcommittee on Financial Institutions and Consumer Credit plans to examine the CFPB’s “assault on access to credit and trampling of ...

Wells Fargo Settles with FHA for a Record $1.2 Billion. Wells Fargo, the largest player in the Ginnie Mae market, last week agreed to pay the Department of Justice and Department of Housing and Urban Development $1.2 billion to settle FHA underwriting claims. In a filing with the Securities and Exchange Commission, Wells noted that the agreement “resolves certain civil claims that the federal government had pending” against the lender tied to FHA lending from 2001 to 2010. But it also covers “other potential civil claims relating” to the megabank’s government production in other time periods as well. The megabank, which also is the nation’s largest overall home lender and servicer, saw the settlement coming and booked an additional “legal ...

In the fourth quarter, 20.3 percent of refi loans sold to the GSEs were in the low-score category, the highest level for the year.

In November, Judge Sweeney denied Fannie Mae’s motion to quash or invalidate a subpoena issued by the plaintiff’s counsel…

During the subprime boom, HSBC owned Household Finance, a once-top ranked subprime lender and servicer that was later cited for lending and servicing violations.