Joint civil fraud initiatives have resulted in $558.5 million in recoveries and receivables to the Department of Housing and Urban Development in FY 2015, according to the HUD inspector general’s semiannual report to Congress. The amount includes civil settlements of $212.5 million from First Tennessee Bank, $29.6 million from Reverse Mortgage Solutions, and $1.8 million from three other settlements. The settlements resolved enforcement actions brought by the Department of Justice on behalf of HUD in pursuit of civil remedies under a variety of statutes, including the False Claims Act, Program Fraud Civil Remedies Act, and the Financial Institutions Reform, Recovery and Enforcement Act. Recoveries and receivables for other entities during the reporting period – April 1 to Sept. 30, 2015 – totaled $86.9 million and $268.2 million for the entire fiscal year. Some of the payments were made to the ...

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 ...

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...

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...

There is limited good news to report for lenders in terms of industry efforts to secure regulatory relief from a variety of rules from the CFPB. Among the good news is that the transportation funding legislation that President Obama is expected to sign shortly includes language that will grant the CFPB greater flexibility to treat a balloon loan as a “qualified mortgage” if it was extended by a community bank or creditor operating in rural or underserved areas. Other language will institute a process for banks and other stakeholders to petition the bureau to designate an area as “rural” or “underserved” for the purposes of the CFPB’s ability-to-repay rule. Another provision will expand the bureau’s ability to exempt creditors serving ...

New information provided to Moody’s Investors Service suggests nearly every lender reviewed in a limited sample has violated the CFPB’s so-called TRID, the Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, at the start of the implementation period, which began Oct. 3, 2015. “Several third-party review (TPR) firms have revealed to us that their reviews of more than 90 percent of the first pipeline of residential mortgage loans subject to the CFPB’s recently enacted TRID had TRID compliance violations, although many of them were only technical in nature,” said Moody’s in a new credit outlook. “These results suggest that some lenders are having difficulty complying with the rules, a credit negative because it increases the likelihood that ...

Do TRID-Related Loan Delays Bolster Warehouse Profits? It Looks That Way. Thanks to loan closing delays caused by the new “TRID” integrated disclosure rule, mortgages are staying on warehouse lines longer, increasing profits for banks that play in that space. David Frase, president of warehouse lending for Southwest Bank, Dallas, told IMFnews, an affiliated email newsletter, that “loans are staying on lines longer so we make more money.” Frase, however, said he expects that, in time, the TRID kinks will be worked out and that loan closing times will become more normalized. Southwest’s specialty entails mini-correspondent or “broker to banker” lines of credit. “Turn times are slower and processing times are longer,” said Frase. According to figures compiled by Inside ...

Compliance issues involving disclosure requirements that took effect in October could be delaying the issuance of jumbo mortgage-backed securities, according to a report this week from Moody’s Investors Service. The rating service said several third-party review firms found compliance violations on more than 90 percent of a sample of 300 mortgages reviewed for compliance with the TILA-RESPA Integrated Disclosure rule. Many of the TRID violations were ... [Includes three briefs]

The mortgage industry has notched one modest victory on Capitol Hill and continues to hope for more as lawmakers try to wrap up a spending bill for the government’s 2016 fiscal year. The victory is a new process for banks and others to petition the Consumer Financial Protection Bureau to designate an area as “rural” or underserved for the purposes of the CFPB’s ability-to-repay rule. More flexible mortgage products, such as balloon loans, are permitted in such markets. The change was included...

Warehouse banks ended the third quarter with $46.0 billion of commitments on their books, a 4.2 percent sequential decline as residential originations in the primary market slowed and nonbank customers needed less credit. According to survey figures compiled by Inside Mortgage Finance, warehouse commitments at the end of September were up 27.8 percent from the same point in 2014. The quarterly decline was...