Official regulatory reviews for compliance with the CFPB’s TILA/RESPA Integrated Disclosure Rule are now underway at the bureau and among the prudential regulators, according to top industry attorneys. Speaking during a webinar last week sponsored by Inside Mortgage Finance, former CFPB official Benjamin Olson, now a partner with the BuckleySandler law firm in Washington, DC, stated, “We can confirm that, yes, the CFPB and the other regulators, as part of their mortgage origination exams, are including TRID modules and looking at TRID compliance.” He reminded the audience that the bureau has been emphatic that these will be diagnostic reviews. “I haven’t seen anything inconsistent with that with respect to the reviews of our clients out of the CFPB,” Olson said...

SFIG Meets With CFPB Officials to Discuss TRID. Staff and key members of the Structured Finance Industry Group, a securitization trade group, recently met with regulators at the CFPB to discuss the bureau’s integrated disclosure rule known in as TRID and reviewed the trade group’s RMBS (residential mortgage-backed securities) 3.0 TRID Compliance Review Scope document.... CFPB Releases Updated Exam Procedures for the Military Lending Act. Late last week, the bureau issued the revised procedures its examiners will use in identifying consumer harm and risks related to the Military Lending Act rule, which was updated in July 2015...

The scratch-and-dent market for residential loans that have TRID-related errors is still alive and (mostly) well, even though originators have had almost a year to adjust to the new disclosure regime introduced by the Consumer Financial Protection Bureau. “This market will never be exhausted,” said Jeff Bode, chairman and CEO of Mid America Mortgage, Addison, TX, one of the most active buyers of mortgages that have errors related to consumer disclosures tied to the Truth in Lending Act and the Real Estate Settlement Procedures Act. Of course, it’s...

The inherent complexity and ambiguity of many of the provisions of the Consumer Financial Protection Bureau’s integrated disclosure rule are stymying the ability of technology to aid in lender compliance, top industry experts said this week. Speaking during a webinar sponsored earlier this week by Inside Mortgage Finance, former CFPB official Benjamin Olson, now a partner with the BuckleySandler law firm in Washington, DC, detailed the obstacles that lenders are confronted with ...

Some residential mortgage-backed securities loan originators are moving away from performing internal post-acquisition quality control loan reviews in lieu of obtaining feedback from their whole loan investors, according to a new report from Moody’s Investors Service. “Some aggregators are relying more on their investors for quality control feedback,” said Moody’s. The ratings service identified in particular Redwood Residential Acquisition Corp. and JPMorgan Mortgage Acquisition Corp., which it said “are relying more on feedback from whole loan investors to monitor the quality of due diligence firm loan reviews, as opposed to conducting their own internal reviews, since a large portion of their acquisitions are sold in whole-loan trades.” Moody’s noted...

Industry trade groups have yet to weigh in on the CFPB’s TRID clarifying rulemaking, but the grassroots rank-and-file have, and many of them are raising more concerns and questions. For instance, Ross Miller, president of Miller Home Mortgage in Metairie, LA, complained that there are no exceptions for the three-day waiting period when there is an emergency. “I had a client whose father was quickly scheduled for open heart surgery,” he said in a comment letter. “The client was ...

The CFPB’s Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (TRID) rule has been blamed for a lot, including, most recently, producing more defects in mortgage loans. According to a new industry trends report from ACES Risk Management Corp. (ARMCO), a provider of web-based audit technology solutions for the mortgage industry based in Pompano Beach, FL, the industry experienced “a significant decrease in defects” through the second quarter of 2015. However, ...

It’s been almost a year now since the CFPB’s integrated disclosure rule went into effect, and industry participants across the credit spectrum appear increasingly comfortable with the new disclosure regime. But when it first came out, the rule took all the oxygen from the room and caused more fear and anxiety that, in retrospect, appears to be have been justified, according to a handful of experts in the non-prime mortgage origination space. Speaking during ...

H.R. 5983, the Financial CHOICE (Creating Hope and Opportunity for Investors, Consumers and Entrepreneurs) Act by Rep. Jeb Hensarling, R-TX, chairman of the House Financial Services Committee, has incorporated the provisions of a number of bills that have either already passed the committee or the full House of Representatives and that would affect ...

The CFPB recently provided some written guidance on its mortgage rules to the Conference of State Bank Supervisors. The guidance, in the form of a letter, highlights some of the important changes to the mortgage rules that likely apply to many of the small lenders that CSBS members supervise. The letter, a copy of which was obtained by Inside the CFPB, came in response to a meeting this spring between Texas Department of Banking Commissioner and CSBS Chairman Charles Cooper, members of the ...