JPMorgan Chase has released an expansive look into third-party due diligence findings on a pending jumbo MBS under new disclosure requirements from the Securities and Exchange Commission. The increased loan-level disclosures could boost investor confidence in new non-agency MBS. Documents filed through the SEC’s electronic system and posted on the agency’s website include detailed, loan-level reports from three due diligence firms that examined mortgages set to be included in JPMorgan Mortgage Trust 2015-4. American Mortgage Consultants, a due diligence provider, said...

Consumer Financial Protection Bureau Director Richard Cordray tried to sooth industry concerns about regulatory enforcement of the controversial integrated disclosure rule immediately following its implementation on Oct. 3. Appearing before the Senate Banking, Housing and Urban Affairs Committee, Cordray amplified previous statements regarding compliance with the so-called TRID rule, which makes major changes to consumer disclosures under the Truth in Lending Act and the Real Estate Settlement Procedures Act. “We worked...

The mortgage lending industry widely supports the Consumer Financial Protection Bureau’s proposal to extend to Oct. 3, 2015, the effective date of its transformative integrated-disclosure rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. But more needs to be done, say those who have commented on the planned delay. The American Bankers Association, for example, said, “Given the unique circumstances posed by the TRID rulemaking, the only way to realistically ensure an orderly transition to the new regulatory framework – and to guarantee uninterrupted service to consumers – is to institute a subsequent supervisory transition period that restrains enforcement and liability during a three-month period following the proposed effective date.” For a variety of reasons, the ABA urged...

Mortgage lenders told the CFPB they support the bureau’s recent proposal to extend the effective date of its integrated disclosure rule to Oct. 3, but urged the agency to do yet more to help the industry cope. The Mortgage Bankers Association, for example, in its comment letter said the so-called TRID rule –promulgated under the Truth in Lending Act and the Real Estate Settlement Procedures Act – when finally implemented “will make the mortgage process considerably more understandable and navigable for consumers, an objective we have long shared.” However, “experience has shown that the TRID rule is far more complicated and wide ranging than any other rule previously issued by the CFPB,” the trade group added. “It is causing significant implementation ...

The mortgage lending industry, fresh off a successful appeal to the CFPB for an extension of the effective date of the pending integrated disclosure rule, has secured the introduction of another piece of legislation in the U.S. Congress that would provide lenders a “hold harmless” enforcement period under the new rule. S. 1711, a bipartisan bill sponsored by Sens. Tim Scott, R-SC, Joe Donnelly, D-IN, and others, would provide for a temporary safe harbor from the enforcement of the rule, from the effective date through Dec. 31, 2015, providing lenders are making good-faith efforts to comply with the rule. The measure is identical to H.R. 2213 introduced in May by Reps. Steve Pearce, R-NM, and Brad Sherman, D-CA. “This bill ...

The CFPB’s integrated disclosure rule under the Truth in Lending Act and Real Estate Settlement Procedures Act – dubbed TRID – is a “once in a generation transformational event for the industry,” according to Franklin Codel, executive vice president of Wells Fargo Mortgage. Even with the recently extended effective date of Oct. 3, 2015, TRID was still at the forefront of topics at a real estate conference in Miami in late June. The pending rule prompted a discussion by panelists who emphasized the magnitude of the upcoming changes. Codel said he thinks the industry is prepared but said it’s going to require strong cooperation among lenders, real estate professionals, settlement agents and consumers to get this right. “Many of the things that ...

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 ...