Mortgage originators, securitizers and investors are no closer to getting any additional formal guidance from the Consumer Financial Protection Bureau when it comes to industry compliance with the agency’s controversial integrated disclosure rule. The rule, which took effect Oct. 3, 2015, combines the consumer disclosures required under the Truth in Lending Act and the Real Estate Settlement Procedures Act. During a hearing late last week before the Senate Banking, Housing and Urban Affairs Committee, CFPB Director Richard Cordray and Sen. Bob Corker, R-TN, briefly referenced...
Over the past year, The Blackstone Group has been aggressively expanding into many facets of the mortgage business and is now ready to make what might be considered a bold move: investing and originating in residential loans that don’t meet the qualified-mortgage test. But just how big might Blackstone get? That’s hard to say at this point. A source inside the company, who spoke under the condition his name not be used, confirmed...
Wells Fargo last week reached an agreement to pay $1.2 billion to the federal government to resolve certification and reporting violations in connection with FHA-insured loans. The settlement is the largest recovery for loan-origination violations in FHA history, according to Housing and Urban Development Secretary Julian Castro. The April 8 court filing details an agreement in principle, which Wells Fargo announced in February, that resolves not only a pending lawsuit filed by the U.S. Attorney for the Southern District of New York, but also a number of potential claims dating as far back as 15 years in some cases, according to a statement issued by Wells Fargo. According to the settlement, Wells Fargo “admitted...
With steady growth over the past four years, nonbank mortgage servicers should have more regulatory oversight, according to a recently released study by the U.S. Government Accountability Office. Several agencies, including the Conference of State Bank Supervisors and the Federal Housing Finance Agency, agreed with that recommendation. The share of home mortgages serviced by nonbanks tripled from 2012 to midyear 2015, growing from approximately 6.8 percent to 24.2 percent, the GAO said. The GAO recommended...
The source continued: “Fannie and Freddie have the right to put non-compliant loans back to the originator. Eventually, someone will ask whether they knowingly bought loans that had TRID violations…"
To date, the CFPB has declined to issue formal guidance on assignee liability and TRID. Instead, the regulator has held several informational webinars on the rule.
Because of continuing problems in implementing the TRID integrated disclosure rule, lenders have not been able to focus on the new HMDA requirements...
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