Since the Oct. 3, 2015, implementation of the CFPB’s integrated disclosure rule – TRID – attorney Daniella Casseres, an associate in the financial institutions regulatory practice at the Offit Kurman law firm in New York City, has received hundreds of questions concerning the new disclosure requirements.In a recent blog post, she provided answers to some of the most frequent and most pressing. Many have asked if they need to send all required three-day disclosures if the individual is just shopping. “The TRID rules require that you send a Loan Estimate and the home loan toolkit, when applicable, within three business days of receiving an application. An application for purposes of this rule, means the receipt of the following six pieces of ...

Mortgage lenders have had a little more than three months to get used to the CFPB’s integrated disclosure rule, but many are still squirming with uncertainty about civil liability and enforcement, particularly when it comes to errors in the Loan Estimate and the Closing Disclosure. Much of the problem stems from ambiguity in the wording of the rule itself. “Although TRID implements portions of the Truth in Lending Act and the Real Estate Settlement Procedures Act, the text of the regulation does not state which statutory liability applies to the various parts of the rule or forms,” K&L Gates attorneys Holly Spencer Bunting and Charles Weinstein said in a recent review. Instead, civil liability under TRID is a matter that ...

The CFPB issued a compliance bulletin recently that spells out the Fair Credit Reporting Act’s requirement that furnishers of information to credit reporting agencies (CRAs) institute reasonable written policies and procedures that ensure the accuracy and integrity of such information, including specialty CRAs. “The supervisory experience of the bureau suggests that some financial institutions are not compliant with their obligations under Regulation V with regard to furnishing to specialty CRAs,” said the bulletin. “Furnishers’ establishment and implementation of reasonable policies and procedures regarding the accuracy and integrity of information are essential components of a fair and accurate credit reporting system.” Further, “Such policies and procedures protect against the furnishing of inaccurate information that could potentially cause adverse consequences for consumers ...

Consumers complained to the CFPB about debt collection issues at a substantially reduced level during the fourth quarter of 2015, according to a new analysis and ranking by Inside the CFPB. During the period ending Dec. 31, 2015, consumer gripes were down 27.5 percent versus the previous quarter.Among the top 50 companies as ranked by consumer criticisms, 45 saw a double-digit percentage decline. Year over year, the story is less inspirational, with consumer kvetching down a mere 0.6 percent. Six companies saw complaints leap by triple digit percentages. To put some anecdotal flesh on these empirical bones, in the CFPB’s most recent supervisory highlights report, the bureau pointed out that during its examination of at least one debt collector, ...

RamQuest-eLynx Integration Enhances TRID Compliance with Automated Data Flow Between Lenders and Settlement Agents. Texas-based RamQuest, a provider of comprehensive title and settlement services solutions, and Ohio-based eLynx, a provider of on-demand web-based compliance services, recently announced a product/service synchronization to help lender and settlement agent clients comply with the CFPB’s integrated disclosure rule known as TRID. “The integration enables lenders utilizing eLynx’s Expedite ID compliance solution to exchange property, fee and loan data electronically with thousands of settlement service providers using RamQuest,” the companies said. “This bi-directional exchange of data simplifies the collaboration required for lenders to generate the Closing Disclosure mandated by the TILA-RESPA Integrated Disclosure rule.” ...

Candidate Clinton Wants to Defend the CFPB. Former Secretary of State Hillary Clinton, in a neck-and-neck race for the Democratic Party’s nomination for the White House with independent Vermont Sen. Bernie Sanders, vowed recently to defend the CFPB. In a package of proposals dubbed “Breaking Every Barrier Agenda: Revitalizing the Economy in Communities Left Behind,” the candidate said she believes “we must never again allow borrowers to be taken advantage of in the rush for corporate profits.” Clinton also pointed out that prior to the financial crisis, she pledged to create a Financial Product Safety Commission, as a counterpart to the CFPB, to crack down on abusive and predatory lenders and to protect consumers. ...

House Approves Legislation Streamlining FHA Condo Rules, Allowing DE Lenders for USDA. Housing reform legislation that would ease FHA restrictions on condominium financing and allow delegation of loan approval authority to qualified lenders under the U.S. Department of Agriculture’s rural housing programs passed the House last week by a vote of 427-0. Described as an FHA reform bill, H.R. 3700, the “Housing Opportunity Through Modernization Act,” would modify FHA requirements for condo mortgages by streamlining FHA’s project certification requirements to qualify condominiums for FHA financing as well as making recertification less burdensome. H.R. 3700 would also expand the USDA’s Section 502 Guaranteed Rural Housing Loan Program for single families by delegating loan-approval authority to certain participating lenders. FHA and VA loan programs already ...

Normally during this time of year, the mergers and acquisitions game is somewhat quiet in the mortgage industry, but concerns over compliance with the CFPB’s integrated disclosure rule known as TRID are sparking some lenders to consider selling and getting out. That’s the opinion of Chuck Klein, managing partner of Mortgage Banking Solutions, who said, “I’m as busy as I’ve ever been this time of year.” Speaking on the Internet radio program “Lykken on Lending” recently, the M&A advisor noted that mortgage company owners are “disturbed about the cost and risk of noncompliance.” He added that the TRID rule promulgated by the CFPB “has gotten everyone’s attention,” in particular, owners of nonbanks who have all their personal net worth tied ...

Remember the Dec. 29, 2015, “clarifying letter” that CFPB Director Richard Cordray sent to the Mortgage Bankers Association? Initially, the letter relieved industry anxiety regarding TRID errors, at least to some degree. But over the past few weeks, certain lenders have once again grown nervous and are reporting resistance by secondary market investors that are turning down their mortgages because of TRID errors. For loan buyers, the issue is assignee liability. The MBA is believed to be a key player trying to persuade the bureau to publish the letter in the Federal Register. An industry lobbyist noted that one week after the clarifying letter came to light, MBA “applied immediate pressure to get the letter into Register form. The CFPB ...

Last month’s issuance by the CFPB of a request for information (RFI) regarding its Home Mortgage Disclosure Act resubmission guidelines likely reflects the bureau’s recognition of the additional workload the pending new rule represents, as well as a willingness to hear what the industry has to say about it.In October 2015, the bureau finalized its rule updating the reporting requirements under its HMDA rule, which will significantly expand the amount of information lenders will submit to the agency. “Given these changes, the current resubmission guidelines may need to be updated, and the bureau is seeking feedback on what modifications may be appropriate,” the agency said in early January. But in a recent online blog post, Brooks Bossong, a member ...