Industry Vendors Roll Out TRID-Compliant LOS in 50 Days. Three industry vendors, Open Mortgage, LendingQB and International Document Services, partnered to successfully implement a TRID-compliant loan origination system in just 50 days, exceeding their own projections, the companies announced recently. “We knew that our implementation timeline was aggressive, wanting to both implement a new LOS and prepare for TRID within 60 days,” said James Howard, chief technology officer of Open Mortgage, a multi-channel mortgage lender. "Our success was due to having clear implementation plans with our vendors and a team at Open Mortgage that was dedicated to the project,” he added...

State regulators focused much of their mortgage-related supervisory efforts in 2015 on servicing examinations enforcement, according to the Multi-State Mortgage Committee. State regulators also continue to work on capital requirements for state-licensed nonbank servicers, but there’s no timeline for when further action might occur. ....

Although still in its infancy, the number of mortgage loans originated by online marketplace lenders is growing and should be monitored, according to a white paper released by the U.S. Treasury Department this week. The paper, which includes research and industry recommendations in the online lending space, including mortgage loans, was based on responses to Treasury’s request for information on the topic. Acknowledging the benefits and risks of online lending, the study emphasized the need for…

Senate appropriators have opted to set aside fiscal 2017 funding for FHA information technology upgrades rather than authorize the agency to charge lenders an administrative fee to pay for improvements. The committee approved the funding as part of its proposed Housing and Urban Development-Transportation budget for FY 2017. Appropriators set aside $13 million in specific funds for FHA IT improvements. HUD proposed that up to $30 million in fees would be charged to lenders on endorsements through Sept. 30, 2019. Collections from such fees would be credited as offsetting collections to the Mutual Mortgage Insurance Fund. Specifically, HUD sought to use the collections to partially offset a requested $160 million funding for improvements to administrative contract support, FHA staffing and information technology. Congress has rejected the ...

After months of public and private criticism and pressure – and perhaps some behind-the-scenes button holing – the Consumer Financial Protection Bureau has decided to yield to the clamoring about its integrated disclosure rule and come out with another rulemaking perhaps as early as late July that will provide “greater certainty and clarity.” Late last week, in a letter to various industry trade groups, CFPB Director Richard Cordray acknowledged that the implementation of the TRID rule poses many operational challenges and is “particularly challenging because of the diversity of the participants” in the industry. He also said...

After months of hearing mortgage banking and real estate executives gripe about problems tied to the TRID integrated disclosure rule, the CFPB last week signaled its intention to clarify the controversial measure, which became effective in early October. According to a letter from CFPB Director Richard Cordray to industry trade groups, the agency will issue new rulemaking tied to the TRID disclosure regime that will provide greater certainty and clarity. Cordray – who has been lambasted by the industry about the integrated disclosure rule for months – noted in the letter: “We recognize that the implementation of the Know Before You Owe rule poses many operational challenges. We also recognize that implementation is particularly challenging because of the diversity of the participants ...

Both the mortgage industry and the CFPB itself may have been caught a bit flat-footed when it came to fully grasping the significance and complexity of the bureau’s TRID integrated disclosure rule, according to one of the individuals intimately associated with drafting the controversial regulation. “TRID is a huge rule, about 1,900 pages of extremely detailed twists and turns. It affects every single aspect of the origination and closing process, as well as liability for lenders and the secondary market,” former bureau official Richard Horn, now an attorney in private practice, told Inside the CFPB. “I think many in the industry had to play catch up these past seven months, trying to grasp the far reaches and complexity of this ...

The secondary market for mortgages with TRID errors has yet to lose any steam, even though it was anticipated that the action would fade by now. That’s the assessment of Jeff Bode, CEO of Mid America Mortgage, Addison, TX, one of the largest investors in loans with TRID problems. “It’s still pretty solid,” Bode told IMFnews, an affiliated publication. “But I don’t see how much longer it can last.” Bode noted that some of the mortgages he’s reviewing have errors that are so minor he’s surprised that secondary market investors are balking at them in the first place. Mid America buys such mortgages and “makes the cures” itself, the CEO noted. A secondary market for mortgages with TRID errors – jumbos ...

In the continuing wake of industry concerns about the TRID disclosure rule and worries about large retroactive fines, the Community Home Lenders Association says the CFPB should provide more balanced regulatory and enforcement policies toward smaller nonbank mortgage lenders and improve compliance guidance and due process. Asserting that nonbank mortgage lenders, including community-based lenders, have recently “led the way” in providing access to mortgage credit and providing more personalized loan servicing, the CHLA said “any regulatory policies that have the effect of imposing a disproportionate compliance burden on smaller lender/servicers can accelerate industry consolidation – which in turn can result in fewer consumer choices and less personalized service.” The trade group had three main recommendations for the bureau, the first of ...

It should come as no surprise to mortgage originators and servicers that the CFPB has significantly ramped up its examination activity of their operations over the last year. Data provided exclusively to Inside the CFPB from the bureau per a Freedom of Information Act request reveal there was a 70 percent increase in mortgage-related exams in 2015 from the prior year. As the accompanying chart illustrates, nonbanks have been having an even more active degree of scrutiny from the bureau than have depository institutions. Nonbank originators have seen an 85.7 percent increase in exam activity year over year, versus depositories, which have seen a rise of “only” 42.9 percent during that period. And it is even worse for nonbank servicers. ...