Participants in the non-agency market are concerned that the Consumer Financial Protection Bureau hasn’t done enough to provide lenders and investors with certainty regarding the liability associated with the TILA-RESPA Integrated Disclosure rule. The CFPB issued a proposed rule in August that would clarify a number of concerns regarding TRID. But the bureau’s proposed rule didn’t include guidance CFPB Director Richard Cordray had detailed in a Dec. 29 letter to the Mortgage ...

After hearing lenders’ concerns about the increased reporting burden they would face from some of the changes that Fannie Mae and Freddie Mac want to make to their Uniform Closing Dataset requirements, the two government-sponsored enterprises agreed to postpone the requirement to provide the seller closing data for one year. “The GSEs understand the difficulties that acquiring the seller data presents, particularly as many lenders are still working through their processes to obtain the seller closing disclosure and data from settlement companies,” the pair said late last month in letters to the Mortgage Bankers Association. “In recognition of these challenges, the GSEs have agreed...

Top mortgage industry representatives urged the CFPB to do more to facilitate the curing of loans with errors under the agency’s controversial Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, otherwise known as TRID. One such organization was the Housing Policy Council of the Financial Services Roundtable. In its comment letter to the CFPB, the HPC said providing more formal guidance on when and how lenders may correct or cure errors is not just a question of potential liability for lenders; it’s also important in reducing the uncertainty of customers if they experience varying interpretations by different lenders. “We recognize that it is difficult to anticipate all types of potential errors in advance,” said the HPC. “There ...

In the weeks leading up to the effective date of the CFPB’s integrated disclosure rule, the agency’s director, Richard Cordray, made clear that, from a supervisory perspective, the bureau would view enforcement of the rule as more diagnostic than punitive – an approach many industry officials believe should continue. In commenting on the CFPB’s proposed rule to clarify a number of aspects of TRID, the Mortgage Bankers Association strongly urged the current diagnostic examination approach be formally extended until the changes necessitated by a final rule have been fully implemented and it is clear that the compliance difficulties with such a complex rule have been largely resolved. “With this policy and the bureau’s and industry’s active engagement as compliance moves forward ...

Many elements of the mortgage finance industry took up the primary concern that real estate agents have had with the CFPB’s integrated disclosure rule since it first took effect: the sharing of the closing disclosure with third parties. In their recent comments to the bureau on its TRID clarifying proposal, multiple industry players said they were glad to see the agency addressed this issue somewhat; however, more must be done. The National Association of Realtors, for instance, told the bureau that one of the unintended consequences of the integrated disclosure rule has been lenders’ reluctance to share the new required CD with real estate professionals out of fear of liability for disclosing clients’ nonpublic personal information.“Regulation P, which governs ...

A number of industry software and technology vendors told the CFPB they must have a minimum of one year to fully test and comply with all the changes the agency wants to implement with its TRID clarifying proposed rule. Computer systems and software vendor Jack Henry & Associates said that due to the nature of these proposed changes (which will require revisions to forms, calculations and logic in the software), the industry needs an absolute minimum of 12 months for its implementation period. “Software providers such as Jack Henry & Associates work with multiple business partners and need lead time to analyze, plan, design, develop, test, document and distribute software changes to our financial institution clients prior to the implementation ...

Comments by CFPB Director Richard Cordray at last week’s Mortgage Bankers Association conference in Boston indicate that the industry can expect the bureau’s diagnostic approach to enforcing the TRID rule will continue, apparently until further notice. “As I told you last year, in our examination work around compliance with this rule, we and the other regulators have pledged to be sensitive to the progress made by lenders that are squarely focused on making good faith efforts to come into compliance with the rule on time,” Cordray said. “We have also said that our approach would be diagnostic and corrective, not punitive. That is precisely what we are doing.” This means that the regulators will evaluate a company’s compliance management system ...

TRID Implementation Inconsistency Among Lenders Continues to Drive Title Agent Costs. The First American Real Estate Sentiment Index for the third quarter of 2016 found that lenders are inconsistently implementing the CPFB’s integrated disclosure rule, and that is driving up costs for title agents.... Mortgage Complaints Still High, But Drop Noticeably in 3Q16 From Year-Ago Levels. The latest monthly consumer complaint report from the CFPB found that mortgages remain among the top three sore spots for borrowers, but had a noticeable drop from the third quarter of 2015 to the same period this year....

The Consumer Financial Protection Bureau’s proposal to clarify a number of aspects of its TRID disclosure rule does not adequately resolve most of the non-agency secondary mortgage market’s concerns about legal liability, Pacific Investment Management Company said in a recent comment letter to the CFPB. The regulation was designed to harmonize consumer mortgage disclosures, but its unintended consequences have caused big problems in the non-agency secondary market. “The [TRID] rules have raised...

Some leading mortgage technology vendors told the Consumer Financial Protection Bureau they are concerned about the resources that will be required to implement the changes the bureau wants to make to its integrated disclosure rule known as TRID. In a comment letter to the CFPB regarding its proposed rule to clarify a number of aspects of the TRID regulation, the Mortgage Vendor Regulatory Work Group raised concerns about software implementation resources, including ...