A ruling last week by the Supreme Court of the United States was viewed by the Mortgage Bankers Association as potentially making it harder for plaintiffs to win class-action certifications. Spokeo, Inc. v. Robins involves alleged violations of the Fair Credit Reporting Act. Thomas Robins filed a class-action lawsuit against Spokeo, alleging that his profile on the firm’s website contained inaccurate information. Spokeo is an online aggregator of individuals’ contact- and credit-information. The case was initially dismissed...

The Consumer Financial Protection Bureau last week issued annotated versions of the loan estimate and closing disclosure forms that provide citations to the disclosure provisions in Chapter 2 of the Truth in Lending Act referenced in the integrated disclosure rule. However, neither of the two documents appear to go anywhere near providing the kind of clarity the industry hopes to get from the agency’s recently announced new TRID rulemaking. In fact, the documents are more notable for what they do not provide than for what they do. “This document does not include...

Fannie Mae’s Economic & Strategic Research Group surveyed senior mortgage executives earlier this year and confirmed that lenders are still facing challenges in complying with the CFPB’s integrated disclosure rule known as TRID, according to new findings released by the government-sponsored enterprise last week. The controversial rule integrates the consumer disclosure requirements under the Truth in Lending Act and the Real Estate Settlement Procedures Act. According to Sheila Teimourian, vice president and deputy counsel at Fannie, more than three-quarters of the lenders surveyed indicated that the two biggest challenges were managing or coordinating with third-party technology vendors and communicating with key players, such as the buyer, seller and loan officer. About eight in 10 of those who cited coordinating with ...

Analysts at Moody’s Investors Service believe that the Structured Finance Industry Group’s draft proposal on the CFPB’s integrated disclosure rule, otherwise known as TRID, generally is up to the task of addressing the relevant risks for U.S. residential mortgage-backed securities (RMBS), notwithstanding the uncertainty associated with the pending clarifying rulemaking from the bureau. The rule merges the mortgage disclosures mandated by the Truth in Lending Act and the Real Estate Settlement Procedures Act. “SFIG’s draft proposal to standardize the framework for reviewing and grading loans for TILA-RESPA Integrated Disclosure (TRID) rule compliance is adequate to identify those compliance risks that are likely to cause losses to RMBS trusts, aside from one grading provision with which we disagree,” said Moody’s Credit ...

Last week, in another apparent attempt to provide the mortgage lending industry with a bit more clarity when it comes to its TRID rule, the CFPB published on its website annotated versions of the Loan Estimate and Closing Disclosure that provide citations to the disclosure provisions in Chapter 2 of TILA referenced in the rule. However, neither of the two documents, which only number 14 pages between the two of them, appear to go anywhere near providing the kind of clarity the industry continues to hope for.According to Kristie Kully and David Tallman, both partners at the Mayer Brown law firm, these so-called “mapping forms” are unfortunately hamstrung by such extensive disclaimers that the bureau might as well have ...

More homebuyers are reviewing their mortgage documents prior to their real estate closing under the new disclosure regime brought into the marketplace by the CFPB’s integrated disclosure rule, according to the results of a new closing survey by the American Land Title Association. However, there are still issues related to better educating consumers and in terms of the industry’s compliance. “While there remain challenges to complying with the regulation, title and settlement agents went to great lengths to prepare and train staff about the new process,” said Michelle Korsmo, ALTA’s chief executive officer. “The hard work of these professionals paid off as our survey found that 92 percent of surveyed homebuyers are taking time to review their mortgage documents before ...

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...

Angel Oak Capital Advisors is working on what should turn out to be its second nonprime mortgage securitization of the past six months, a deal that should be similar in size to its first offering of roughly $150 million, Inside MBS & ABS has learned. A source close to the company, who spoke under the condition his name not be used, could not commit to an exact issuance date except to say the security could be issued “soon.” To date, investor interest in the small amount of nonprime/non-qualified mortgage deals that have come to market has been...

Although the Consumer Financial Protection Bureau is still months away from officially clarifying certain parts of its complicated integrated disclosure rule known as TRID, the secondary market – and some attorneys – are already breathing a sigh of relief. But the big question remains: how far will the agency go? And will it provide enough clarity to ease the fears of buyers about being sued for monetary errors? The rule, which integrated consumer disclosures under the Truth in Lending Act and Real Estate Settlement Procedures Act, became...

After months of pleading by participants in the non-agency market, Consumer Financial Protection Bureau Director Richard Cordray said the agency will issue formal guidance regarding the TRID mortgage disclosure rule. The announcement last week regarding issues involving requirements under the Truth in Lending Act and the Real Estate Settlement Procedures Act prompted relief and apprehension among industry participants. And help for the non-agency market doesn’t appear to be moving quickly, as Cordray said the effort will start with a notice of proposed rulemaking in late July. Cordray revealed...