More than two months into the Consumer Financial Protection Bureau’s integrated disclosure rule, known as TRID, many lenders apparently are still at the mercy of their technology vendors to get fully and finally up to speed. “Our members report that problems and glitches are still prevalent everywhere,” said Rodrigo Alba, senior regulatory counsel at the American Bankers Association, during a webinar this week sponsored by Inside Mortgage Finance, an affiliated publication ...
Wells Fargo is close to reaching a $25.75 million settlement of a class-action lawsuit involving delinquent borrowers who were charged fees for property inspections. The settlement would resolve allegations of violations of the Racketeer Influenced and Corrupt Organizations Act, among other issues. The bank has denied the allegations while noting that it desires to settle the lawsuit to avoid “the burden, expense and uncertainty of continuing litigation.” The lawsuit, Young v. Wells Fargo ...
There was a flurry of activity, including a call for an investigation by the Department of Justice of Mortgage Bankers Association President David Stevens and two others, following a Dec. 7 New York Times piece criticizing the Obama administration and MBA for looking to shut down the GSEs. Stevens, along with Michael Berman, a former MBA chair, and Jim Parrott, senior fellow at the Urban Institute, all former government officials turned private-sector employees, each met with housing policy officials at the White House after leaving their government posts, according to a guest log review by the New York Times.
Congress looks poised to enact its second piece of legislation involving the two government-sponsored enterprises that have been in conservatorship for over seven years. Lawmakers included the “Jumpstart GSE Reform Act” in a fiscal 2016 omnibus spending bill that is expected to be approved late this week. The first piece of GSE legislation enacted by Congress affected just two people, rolling back pay raises awarded to the CEOs of Fannie Mae and Freddie Mac early in 2015. The “Jumpstart” language is more daring by barring the Treasury Department from doing something it has no intention of doing: selling its preferred stock in the GSEs without Congressional approval. The original Jumpstart legislation, sponsored by Sens. Bob Corker, R-TN, Mark Warner, D-VA, and Elizabeth Warren, D-MA, also would have blocked...
The second month of operations under the new integrated disclosure rule showed some divergence in closing trends for home-purchase mortgage financing compared with all-cash transactions. In November, there was an increase in the share of purchase mortgages that missed their scheduled closing dates and a slight increase in closing times compared with October, according to the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. Some real estate agents responding to the survey pointed...
Seven years to the day after the Federal Reserve began its so-called ZIRP – or zero interest rate policy – the Fed’s Open Market Committee, as widely expected, finally voted this week to begin raising interest rates, opting for a modest 25 basis point rise in the federal funds rate. “This action marks the end of an extraordinary seven-year period during which the federal funds rate was held near zero to support the recovery of the economy from the worst financial crisis and recession since the Great Depression,” said Fed chief Janet Yellen. “It also recognizes the considerable progress that has been made toward restoring jobs, raising incomes and easing the economic hardship of millions of Americans. And it reflects the committee’s confidence that the economy will continue to strengthen.” However, the Fed also implied...
Don’t believe press accounts that the Consumer Financial Protection Bureau’s integrated disclosure rule isn’t causing headaches throughout the mortgage lending industry, top industry representatives said this week. The good news for lenders is: It’s not just your shop that is having problems. Experts detailed the ongoing industry compliance problems with the CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Integrated Disclosure Act rule – the so-called TRID rule – during a webinar this week sponsored by Inside Mortgage Finance. “Surely, the rule is...
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