Plurality Finds No Delays Because of TRID. The most recent online poll by Inside Mortgage Finance, an affiliated publication, posed the following to respondents: “A lot has been written lately regarding loan closing delays tied to the new TRID rule. What’s been the average delay at your lending shop, if at all. (Report in business days, not calendar.)” Thirty percent selected “TRID has caused no delays because we were prepared.” Another 27 percent chose 1 to 4 days, 13 percent checked 5 to 10 days, and 11 percent selected “11 to 15 days. It’s been a nightmare.” Interestingly, 20 percent chose the final option: “We’re too embarrassed to tell you.” Uh-oh. ...

RamQuest-eLynx Integration Enhances TRID Compliance with Automated Data Flow Between Lenders and Settlement Agents. Texas-based RamQuest, a provider of comprehensive title and settlement services solutions, and Ohio-based eLynx, a provider of on-demand web-based compliance services, recently announced a product/service synchronization to help lender and settlement agent clients comply with the CFPB’s integrated disclosure rule known as TRID. “The integration enables lenders utilizing eLynx’s Expedite ID compliance solution to exchange property, fee and loan data electronically with thousands of settlement service providers using RamQuest,” the companies said. “This bi-directional exchange of data simplifies the collaboration required for lenders to generate the Closing Disclosure mandated by the TILA-RESPA Integrated Disclosure rule.” ...

Although lenders like to complain about the new integrated disclosure rule known as TRID, there has been one major benefit for people looking for employment in the mortgage industry: the controversial rule has created jobs at many lending shops. According to managers interviewed by Inside Mortgage Trends the past two weeks, almost across the board, originators have hired new staff to deal with compliance paperwork, the processes and the technology ...

Although residential originations fell by roughly 15 percent in the fourth quarter on a sequential basis, warehouse lenders saw their commitments inch up slightly, according to new figures compiled by Inside Mortgage Finance. At Dec. 31, warehouse banks had extended an estimated $49.0 billion of commitments to non-depository lenders, a 2.1 percent sequential gain. Compared to yearend 2014, commitment levels rose a handsome 28.9 percent. Part of the reason for the increase in activity – especially year-over-year – can be explained...[Includes one data table]

Investors in the secondary market are continuing to shy away from mortgages with so-called TRID errors – even minor ones – taking the advice of legal counsel and due diligence providers who are telling them to stay clear because of assignee liability issues. Late last week, senior executives from the Structured Finance Industry Group traveled to Washington to meet CFPB Director Richard Cordray, but one official familiar with the get-together said the regulator conveyed a message of “Thanks for coming in, but we don’t think there’s a problem.” For now, most of the concern about a stalled secondary market has focused...

The Consumer Financial Protection Bureau’s disclosure rule has caused some disruptions in the non-agency market, but a number of lenders suggest that they’ve made adjustments to TRID and expect to return to business as usual. TRID disclosure requirements took effect for loan applications submitted on Oct. 3 and beyond. In the weeks after, many lenders reported longer closing timelines along with issues involving sales of non-agency mortgages due to ...

While they are effective, the VA’s Frequently-Asked-Questions on the qualified mortgage interim final rule provide helpful guidance on certain aspects of Interest Rate Reduction Refinance Loans (IRRRLs) origination as they relate to the VA QM rule, according to an analysis by the Washington, DC, law firm K&L Gates. The intricacies of IRRRL treatment under the interim final rule suggest the product may continue to be subject to ambiguities disproportionate to its limited role in the mortgage marketplace, wrote authors Kristie Kully and Eric Mitzenmacher, attorneys with the firm. VA’s interim final rule provides that all VA loans are QMs. The authors note that while most VA loans are safe harbor QMs under the rule, certain streamlined refinance loans (IRRRLs) are entitled only to a rebuttable presumption. Under the VA interim final rule, an IRRRL is deemed to have safe harbor QM status if the ...

The Department of Housing and Urban Development has updated guidance regarding its requirement for lenders to utilize loss mitigation options on a distressed loan or initiate foreclosure within six months of the default date. Specifically, guidance issued earlier this month reiterates the existing eight automatic extensions available to mortgagees when they are unable to initiate foreclosure within the allotted timeframe. In addition, the guidance introduces two new automatic extensions that would align with the Consumer Financial Protection Bureau’s Real Estate Settlement Procedures Act regulations. The guidance is effective for all FHA-insured mortgages in default on or after Oct. 1, 2015. The CFPB RESPA regulations require an appeals process for borrowers when their request for loan modification is denied. Through this guidance, HUD provides an automatic 90-day extension to the ...

Normally during this time of year, the mergers and acquisitions game is somewhat quiet in the mortgage industry, but concerns over compliance with the CFPB’s integrated disclosure rule known as TRID are sparking some lenders to consider selling and getting out. That’s the opinion of Chuck Klein, managing partner of Mortgage Banking Solutions, who said, “I’m as busy as I’ve ever been this time of year.” Speaking on the Internet radio program “Lykken on Lending” recently, the M&A advisor noted that mortgage company owners are “disturbed about the cost and risk of noncompliance.” He added that the TRID rule promulgated by the CFPB “has gotten everyone’s attention,” in particular, owners of nonbanks who have all their personal net worth tied ...

Remember the Dec. 29, 2015, “clarifying letter” that CFPB Director Richard Cordray sent to the Mortgage Bankers Association? Initially, the letter relieved industry anxiety regarding TRID errors, at least to some degree. But over the past few weeks, certain lenders have once again grown nervous and are reporting resistance by secondary market investors that are turning down their mortgages because of TRID errors. For loan buyers, the issue is assignee liability. The MBA is believed to be a key player trying to persuade the bureau to publish the letter in the Federal Register. An industry lobbyist noted that one week after the clarifying letter came to light, MBA “applied immediate pressure to get the letter into Register form. The CFPB ...