CFPB Makes Annual Threshold Adjustments Per HMDA, TILA Regulations. Late last month, the CFPB issued two final rules regarding annual threshold adjustments under the implementing regulations for the Home Mortgage Disclosure Act and the Truth in Lending Act. Under the HMDA regulation, Reg. C, the asset-size exemption for banks, savings associations and credit unions will remain at $44 million. As a result, such institutions with assets of $44 million or less as of Dec. 31, 2015, are exempt from collecting HMDA data in 2016. “An institution’s exemption from collecting data in 2016 does not affect its responsibility to report the data it was required to collect in 2015,” the CFPB said. The rule became effective Jan. 1, 2016, and applies ...

Although the Consumer Financial Protection Bureau recently issued a “clarifying” letter on errors tied to the so-called TRID integrated disclosure rule, deep concerns remain among originators that fund non-agency product for sale into the secondary market. Moreover, according to interviews conducted by Inside Mortgage Finance over the past week, some nonbank lenders are seeing noticeable increases in origination costs because loans are taking longer to close and therefore remain on warehouse lines for an extended period of time. Because nonbanks fund almost all of their production using warehouse credit, the implication boils down...

Mortgage industry representatives are meeting this week with Consumer Financial Protection Bureau Director Richard Cordray in another attempt to squeeze out additional clarification to help lenders comply with the bureau’s integrated disclosure rule, which took effect Oct. 3, 2015. The ambiguity and confusion engendered by the rule continues to contribute to mortgage closing delays throughout the country, according to many top industry officials. Executives of the Independent Community Bankers of America were scheduled...

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 ...