Mortgage industry consultants at Lenders Compliance Group have received some client questions lately having to do with the seven-day waiting period under the CFPB’s integrated disclosure rule. “We know about the seven-day waiting period requirement between providing the initial disclosures and consummation,” according to a new TRID-related blog from Lenders Compliance Group that summarizes the concerns. “We need to know what criteria to use in order to determine if the consumer may waive the waiting period based on a personal emergency. And if a consumer can waive the waiting period, how is this done?” Jonathan Foxx, president and managing director at the consultancy, replied that, “For a closed-end credit transaction that is secured by the consumer’s dwelling and subject to ...

The pending implementation of the integrated disclosures rule is driving a sea change in at least two critical areas: technology innovation and regulatory expectation. Competency with the former will facilitate the fulfillment of the Consumer Financial Protection Bureau’s so-called TRID rule, according to speakers at the American Bankers Association’s recent regulatory compliance conference in Washington, DC. The rule, now scheduled to take effect Oct. 3, requires new consumer disclosures under the Truth in Lending Act and…

The CFPB last week formally proposed amending its integrated mortgage disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act – the so-called TRID – to move the rule’s effective date to October 3, 2015, which would give the industry a two-month delay. Although the TILA-RESPA final rule was published on December 31, 2013, and received widespread public and Congressional attention, the bureau said it “recently discovered that it inadvertently had not submitted the rule report to Congress as required.” The bureau’s oversight came despite having 18 months to anticipate and plan for the submission. “Immediately upon discovering its error, the bureau submitted the rule report to both Houses of Congress and the Government Accountability Office on ...

DocMagic Says It Will be Ready for TRID, Delay or No Delay. Industry vendor DocMagic, Inc., based in Torrance, CA, announced recently that the CFPB’s proposed delay in implementing the TILA-RESPA Integrated Disclosure (TRID) rule will have no bearing on its plans to be ready to meet the bureau’s originally planned Aug. 1 due date. “The CFPB only stated that they will be issuing a ‘proposed amendment’ to delay the rule to Oct. 1, which means it could possibly finalize a shorter time period,” said Rich Horn, TRID legal advisor to DocMagic and former senior counsel and special advisor at the CFPB. Horn led the production of the 1,888 page final TRID rule and the design and consumer testing of ...

The frequently-asked-questions guidance to using the FHA’s consolidated Single Family Policy Handbook is good to have though it shows just how complicated the FHA’s mortgage origination process is, according to lenders. In fact, the updated FHA handbook could still be confusing to borrowers simply because a lot more information is concentrated in one source, lenders said. According to the FHA, the more than 290 FAQs will enable lenders to make operation adjustments before the handbook goes into effect on Sept. 14, 2015. The FAQs are for information purposes only and do not apply to current FHA policies. They do not establish or modify policy contained in the handbook. The FAQs reiterate information in the handbook under headings such as Credit Underwriting, Closing and Insuring, FHA System Support and Consumer Information. Industry observers noted that the FAQs did not ...

Most segments of the mortgage industry were relieved to get a two-month reprieve from the effective date of the Consumer Financial Protection Bureau’s integrated disclosures rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. The bureau this week formally proposed to move the effective date of the controversial new rule from Aug. 1 to Oct. 3. The CFPB said some delay is necessary because it was late in notifying Congress and the Government Accountability Office within 60 days of the rule’s effective date, as is required by the Congressional Review Act. Many in the mortgage industry still want...

There is a surprising number of smaller mortgage lenders who think they can comply with the Consumer Financial Protection Bureau’s pending integrated-disclosure rule with a substantial amount of manual practices and processes – as opposed to technological automation – and they may well be in for a rude awakening when the new rule kicks in. According to Rod Alba, senior regulatory counsel at the American Bankers Association, approximately one quarter of ...

Despite having more than 21 months to admire its new integrated disclosure rule before it went into effect, the Consumer Financial Protection Bureau this week found an “administrative error” that would require a two-week delay for the scheduled Aug. 1 launch date. The agency decided to add another six weeks to the delay, making the new effective date Oct. 1, 2015. The CFPB said the additional time is to “accommodate the interests of many consumers and providers whose families will be busy with the transition to the new school year.” What about getting ready...

The CFPB took an ominous administrative action against PHH Corp. earlier this month over its captive reinsurance activities. Industry critics cried foul and warned of a potentially ominous legal precedent that threatens long-standing legal interpretations that have shaped the mortgage lending landscape for years.“The CFPB is trying to rewrite the Real Estate Settlement Procedures Act retroactively. It is stunning,” said one long-time industry lobbyist. “If the CFPB can illegally rewrite RESPA, they can attempt to rewrite TILA and other laws they choose.” The crux of the dispute is the bureau’s assertion that PHH violated RESPA by illegally referring borrowers to mortgage insurance companies in exchange for kickbacks.Back in January 2014, the CFPB initiated an administrative proceeding against PHH ...

RPM Mortgage of Alamo, CA, recently agreed to pay the CFPB $19 million to settle allegations that it incentivized loan officers to steer borrowers into higher cost mortgages by “illegally” paying bonuses to them. Overall, RPM wound up paying “millions of dollars” in such bonuses, the CFPB said. (In 2011, the bureau banned such incentive payments under its loan originator compensation rule.) According to a civil complaint filed in Federal District Court for the Northern District of California, the privately held nonbank allowed LOs to use expense accounts to pay for pricing incentives to close the loans. “From April 2011 through December 2013, RPM allowed loan originators to use their expense accounts to finance thousands of pricing concessions that enabled ...