The Mortgage Bankers Association last week indicated it plans to press the CFPB for relief on a handful of fronts this year, most notably, the integrated disclosure rule known as TRID, the pending new reporting regime under the Home Mortgage Disclosure Act, and the broader “regulation by enforcement” approach the bureau seems to have taken. “Since the TRID rule’s implementation, a significant number of issues have emerged – mostly due to lingering misperceptions, differing interpretations, and technical ambiguities in the regulation,” the trade group said during a recent press briefing about its priorities for 2016. “It also has become clear that, while the vast majority of lenders were educated about the rule, many other important actors in the real estate transaction ...

Mortgage industry groups continue to rail against the disruptions they insist are being caused by the Consumer Financial Protection Bureau’s integrated disclosure rule known as TRID. Respondents to a February survey by the American Bankers Association indicated that TRID compliance is still a relevant problem, continues to impose a heavy compliance burden, and causes customer dissatisfaction through delayed closings and increased fees and costs, the trade group ...

The Consumer Financial Protection Bureau plans to host a call-in with a handful of trade groups shortly regarding delays and secondary market snafus caused by its integrated disclosure rule, but whether any true regulatory relief will be offered remains to be seen. In the meantime, industry officials continue to complain about delays in loan closings caused by the so-called TRID rule and the losses incurred by some nonbanks because loans are sitting on warehouse lines longer, especially non-agency jumbo loans. Late this week, Dave Stevens, president and CEO of the Mortgage Bankers Association, told...

Following up on limited guidance the Consumer Financial Protection Bureau issued in January on the disclosure of construction-to-permanent loans under the TRID integrated disclosure rule, CFPB officials this week participated in a webinar and provided some specific answers to a number of detailed questions they have received from the industry on the topic. A number of industry participants inquired, first of all, as to the kinds of options available to a lender for disclosing construction loans. Lenders have several possible ways to disclose construction loans under the integrated disclosure rule, according to Nick Hluchyj, senior counsel in the bureau’s office of regulations. “Regulation Z and Appendix D have...

It’s no secret that the secondary market for TRID “scratch-and-dent” loans has blossomed the past few weeks – albeit at niche levels – but dealmakers are now trying to figure out how much longer it can last and whether more buyers will step up. To date, Mid America Mortgage Corp., Addison, TX, appears to be the predominant purchaser of the product, which is being offered by at least three firms: Mortgage Delivery Specialists, Rincon Loan Trading and Spurs Capital. Jeffrey Bode, president, CEO and owner of Mid America, told...

Many small and medium-sized nonbanks have been earning steady profits the past three years, but all that ended in the fourth quarter of 2015, thanks to the integrated disclosure rule known as TRID. At least that’s what some warehouse managers told Inside Mortgage Finance. These credit executives, who spoke under the condition their names not be used, were somewhat surprised by the development, but were quick to caution that about a third of their clients posted losses. The managers also noted...

Comments from real estate agents across the country are largely negative regarding the CFPB’s integrated disclosure rule known as TRID, according to the latest HousingPulse survey sponsored by Inside Mortgage Finance Publications. However, the data suggest a nuanced interpretation is necessary, as the damage from TRID is far from universal. For instance, the data collected in January represent the first time since TRID took effect that the share of on-time closings has diverged between FHA loans and Fannie Mae/Freddie Mac loans. That suggests TRID isn’t necessarily the sole culprit causing delays. If TRID was a major problem, loan types across the board would likely have a lower share of on-time closings. The survey also revealed that more than half of ...

The sale of jumbo mortgages – and even agency loans – by nonbanks continues to be problematic because of the CFPB’s integrated disclosure rule known as TRID. One mortgage official cited an example of a mortgage with TRID errors that was sold to one of the government-sponsored enterprises. “The lender self-reported the problems and was immediately asked to repurchase the loan,” this official said. Speaking of the GSEs, Fannie Mae and Freddie Mac issued $56.56 billion of single-family mortgage-backed securities in January, a modest 5.6 percent decline from the previous month, according to a new ranking and analysis by Inside The GSEs, an affiliated publication. December, however, may have been an anomaly. Many mortgage originators reported delays in loan closings in October ...

Since the Oct. 3, 2015, implementation of the CFPB’s integrated disclosure rule – TRID – attorney Daniella Casseres, an associate in the financial institutions regulatory practice at the Offit Kurman law firm in New York City, has received hundreds of questions concerning the new disclosure requirements.In a recent blog post, she provided answers to some of the most frequent and most pressing. Many have asked if they need to send all required three-day disclosures if the individual is just shopping. “The TRID rules require that you send a Loan Estimate and the home loan toolkit, when applicable, within three business days of receiving an application. An application for purposes of this rule, means the receipt of the following six pieces of ...

Mortgage lenders have had a little more than three months to get used to the CFPB’s integrated disclosure rule, but many are still squirming with uncertainty about civil liability and enforcement, particularly when it comes to errors in the Loan Estimate and the Closing Disclosure. Much of the problem stems from ambiguity in the wording of the rule itself. “Although TRID implements portions of the Truth in Lending Act and the Real Estate Settlement Procedures Act, the text of the regulation does not state which statutory liability applies to the various parts of the rule or forms,” K&L Gates attorneys Holly Spencer Bunting and Charles Weinstein said in a recent review. Instead, civil liability under TRID is a matter that ...