Government-sponsored enterprise Fannie Mae recently issued some additional guidance to its mortgage lender partners about self-reporting deficiencies in complying with the Consumer Financial Protection Bureau’s integrated disclosure rule known as TRID. In a new selling-guide announcement, Fannie said, “Lenders are not obligated to self-report any matters related to possible TRID non-compliance, regardless of the number of loans involved, except in two limited circumstances where a repurchase demand is an authorized remedy.” The first circumstance is...

A coalition of multi-sectoral groups is urging the Consumer Financial Protection Bureau to work with other federal agencies to provide strong protections for mortgage applicants and homeowners who have limited English proficiency (LEP). The Americans for Financial Reform, an umbrella organization for more than 200 civil rights, consumer, labor, business, investors, faith-based, and civic and community groups, said that while the CFPB has taken steps to assist LEP consumers, the agency and federal banking regulators should go further to make the mortgage marketplace fully and fairly accessible to these consumers. “Mortgage origination and servicing must be...

A new jumbo MBS from Redwood Trust will mark the second non-agency MBS to include mortgages subject to the TRID mortgage disclosure rule. The real estate investment trust plans to issue a $344.89 million deal next week, according to a presale report from Kroll Bond Rating Agency. The rating service said 366 mortgages, accounting for 74.8 percent of the loan pool, are subject to the combined Truth in Lending Act/Real Estate Settlement Procedures Act rule. Redwood will issue...

Wells Fargo, the nation’s top-ranked mortgage lender, appears to have escaped unscathed from the scrutiny the Consumer Financial Protection Bureau directed toward a former loan officer, an investigation which resulted in an $85,000 fine and a one-year ban from working in the mortgage industry. Last week, the CFPB announced a consent order with David Eghbali, formerly an LO for Wells’ Wilshire Crescent branch in Beverly Hills, CA, from November 2007 through July 2015. The bureau accused him of referring a substantial number of loan closings to a single escrow company, New Millennium Escrow, Inc., which allegedly shifted its fees from some customers to others at his request. “In exchange for the flexibility to shift fees from some loans to others, respondent [Eghbali] referred...

Maybe it’s just a matter of semantics. But mortgage lending trade group officials, industry attorneys and compliance professionals seem to be sending mixed signals as to whether the CFPB is now examining lenders for compliance with the controversial integrated disclosure rule, TRID. Rod Alba, senior vice president of mortgage markets, financial management and public policy for the American Bankers Association, told Inside the CFPB that his organization is not hearing that the bureau has started TRID compliance reviews. “Although our members report that examiners are inquiring about TRID implementations, and may be looking at one or another disclosure packet, they are generally assuring that the bank is engaged in active TRID implementation and trouble-shooting,” Alba said. “The banks we heard ...

The CFPB last week filed an administrative consent order against a former Wells Fargo employee, for running an alleged illegal mortgage “fee-shifting” scheme, fining him $85,000 and banning him from working in the mortgage industry for a year. The bureau accused David Eghbali, formerly a loan officer for the Wilshire Crescent Wells Fargo branch in Beverly Hills, CA, of referring a substantial number of loan closings to a single escrow company, New Millennium Escrow, Inc., which allegedly shifted its fees from some customers to others at his request. “While employed by Wells Fargo from November 2007 through July 2015, in connection with originating federally related mortgage loans to consumers primarily for personal, family or household purposes, respondent provided real-estate settlement ...

The CFPB deserves a lot of credit for successfully taking on so many challenges simultaneously when it was created by the Dodd-Frank Act, a former bureau official said. Yet, numerous challenges continue to confront the bureau. “I think, from an accomplishment perspective, it’s been amazing for the bureau to be able to establish the infrastructure for a brand new federal agency at the same time that it’s been very active in evolving new rules and also pursuing supervision and enforcement and consumer response activities,” said Quyen Truong. She is a former assistant director and deputy general counsel of the CFPB from 2012-2016 (right after the Elizabeth Warren era), having joined Stroock & Stroock & Lavan LLP as a partner in ...

More Gripes About TRID Dribble In. After what seemed like a lull in hearing complaints from lenders regarding the integrated disclosure rule known as TRID, the gripes are picking up again. At least that’s what we detected from some originators a few days ago. One loan broker who works the southern California market said she’s been telling some clients that it will take an extra seven days to close. “It was 15 before wholesale caught up, but now they’re behind again due to heavy sales volume.” Broker Slams Bureau’s Complaint Database. While he was running for a House seat in West Virginia, mortgage trade group president Marc Savitt was mostly quiet on issues tied to the CFPB. But now that ...

The share of new home mortgage originations packaged into MBS drifted slightly lower in the first quarter of 2016, a new Inside MBS & ABS analysis reveals. Some $255.7 billion of newly originated mortgages were pooled in MBS in the first three months of the year, representing a paltry 67.3 percent of the estimated $380 billion of first-lien originations in the primary market. For the purposes of calculating securitization rates, loans aged more than three months and modified loans are excluded from agency MBS issuance figures. Fannie Mae and Freddie Mac securitized...[Includes one data table]

It was thought that with the Consumer Financial Protection Bureau working on a new regulation to clarify key portions of the TRID integrated-disclosure rule and assignee liability that the scratch-and-dent market in TRID-defective loans would grind to a halt. But that’s not how it’s turned out. According to investors in “S&D” TRID mortgages and traders who play in the space, auctions of mortgages with errors (of all sorts) have continued...