There has long been a concern in the market that if either GSE has a negative net worth, that investors will stop buying their MBS, which would cause the home buying process in America to crumble.
In a recent letter to HUD Secretary Julian Castro, 69 House members called for policy changes that would relax FHA restrictions to facilitate the purchase and sale of condominiums.
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."
In an apparent confirmation of the fears of some industry representatives, CFPB Director Richard Cordray seemed to blame technology vendors for some of the failures the mortgage industry might have in complying with the bureau’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule. “Quite frankly, I have been disturbed by reports I have been hearing about the vendors on whom so many of you rely,” Cordray said in a speech at the Mortgage Bankers Association’s annual convention in San Diego recently. “Some vendors performed poorly in getting their work done in a timely manner, and they unfairly put many of you on the spot with changes at the last minute or even past the due date,” ...
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,” ...
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 ...
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