Earlier this month, the CFPB’s controversial TILA/RESPA Integrated Disclosure rule – TRID – turned one year old. In an email exchange with Inside the CFPB, former bureau official and TRID architect Richard Horn, who now heads his own law firm in Washington, DC, addressed the progress the industry has made in adopting the rule, and the challenges that remain. Horn began by saying he thinks the industry has generally done a great job with the extremely difficult task of implementing TRID. Also, “I am very pleased that some of the recent industry surveys of consumers after TRID have shown that consumers are experiencing the intended benefits,” he said. “There are challenges still, but it’s a good sign that the CFPB issued the ...

One year into the TRID rule, the mortgage industry has gotten used to the new disclosure landscape. But until consistent legal precedents are established by the courts, true certainty will be elusive, and that likely means years will have to transpire before the rule’s full impact will be known. “I think the industry as a whole has met the challenge and settled into the TRID process, which everyone knows was radically different than what it replaced,” said Donald Lampe, a partner in the financial services group in the Washington, DC, office of the Morrison & Foerster law firm. “And so I see the industry settling in to the use of these new forms and the changes that these disclosures imposed ...

Now that mortgage lenders have had a year to digest the CFPB’s controversial TILA/RESPA Integrated Disclosure Rule, smaller financial institutions have learned to cope to a certain degree, but there are still challenges and costs. That’s the perspective of Ron Haynie, senior vice president of mortgage finance policy and executive vice president of mortgage services for the Independent Community Bankers of America. “I guess the good news is the market didn’t seize up and mortgage closings didn’t come to a screeching halt or average turn times didn’t get out to 60 days plus,” he told Inside the CFPB recently. “While things slowed down in the beginning, average turn times seemed to have settled around 46 days. And while that’s still ...

Comments on TRID 2.0 Are Due Tuesday. Representatives of the mortgage industry have until 11:59 p.m. ET Tuesday, Oct. 18, 2016, to submit their comments to the CFPB regarding its TRID 2.0 clarifying proposed rule.... CFPB Issues Revised TRID Guide to CD, LE Forms. The CFPB recently published an updated guide to the TRID loan estimate and closing disclosure forms, which was last revised in July 2015.... Bureau Releases Updated TRID Compliance Guide for Small Entities. Earlier this month, the CFPB put out a revised small entity compliance guide for the TILA/RESPA Integrated Disclosure rule, which was last updated in July 2015....

The Structured Finance Industry Group is preparing to publish standards that aim to increase transparency for representations and warranties on new non-agency MBS, according to officials at the trade group. Eric Kaplan, a managing partner at Ranieri Strategies, said SFIG will release one or two “green papers” this year as part of the group’s RMBS 3.0 effort to revive issuance of non-agency MBS. Kaplan detailed the plans along with Daniel Goodwin, director of mortgage policy at SFIG, at the recent ABS East conference produced by Information Management Network. SFIG has released...

PHH Corp. this week scored a key legal victory in its battle with the Consumer Financial Protection Bureau over captive reinsurance and the Real Estate Settlement Procedures Act. But despite this good news, there are still clouds over the nonbank. The “worst” of the recent spate of bad news for the company surrounds the early October disclosure that Merrill Lynch is breaking all ties to PHH when it comes to private-label originations and servicing. The effective date for the end of the contract is...

The traditional interpretation of Section 8 of the Real Estate Settlement Procedures Act that the mortgage industry has relied on for decades was vindicated this week when a three-judge panel of the U.S. Court of Appeals for the District of Columbia Circuit sided with most of the arguments advanced by PHH Mortgage in its dispute with the Consumer Financial Protection Bureau. The crux of the dispute has been the bureau’s assertion that PHH violated RESPA by steering business to private mortgage insurers that purchased reinsurance from a captive insurer owned by PHH. Most large lenders and all private MIs engaged in these arrangements prior to the housing market collapse. Early on in the case, an administrative judge agreed...

The Consumer Financial Protection Bureau’s integrated disclosure rule has now been in effect for a full year, and industry officials hope the potholes and speedbumps in the TRID road will continue to smooth out. Former CFPB official Benjamin Olson, now a partner with the BuckleySandler law firm in Washington, DC, noted that the first year of the TRID rule has been eventful. “In its early stages, the TRID rule proved to be far more disruptive than many envisioned, largely because of extraordinarily high rates of real and perceived errors and pervasive uncertainty over the liability associated with those errors,” he told Inside Mortgage Finance. Over time, the mortgage industry has been...

Many participants in the mortgage industry remain concerned that the Consumer Financial Protection Bureau did not address additional cure provisions in its proposed rulemaking to clarify the integrated consumer disclosure known as TRID. Lenders would love to see the bureau respond to these concerns when it finalizes its so-called TRID 2.0 rule. But that might not happen without Congress getting involved. During a webinar last week sponsored by Inside Mortgage Finance, some attendees inquired...

Rank-and-file mortgage lending industry participants continue to submit to the CFPB a range of problems and issues they are encountering with the bureau’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure Rule, commonly known as TRID, and its clarifying rulemaking.One credit union official wrote that members (and borrowers served by community banks) are being coached by loan officers to “be patient and trust” that their final fees will be lower than what is shown on the loan estimate (LE). And the larger issue is that consumers are becoming less engaged in understanding their finances due to the complexities of the rule, she said. “Somehow, in trying to make lending conditions better for the consumer, something far worse ...