The good news is the CFPB is proposing updates to its integrated disclosure final rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. The bad news is the CFPB is proposing updates to its integrated disclosure final rule under the Truth in Lending Act and the Real Estate Settlement Procedures Act. The final rule – commonly known as the “TRID” – has been high on the mortgage lending industry’s list of concerns ever since it came out nearly a year ago. And with every rule issued, there are calls from one segment of the industry or another for various additions, deletions or modifications. As happy as industry representatives are when the CFPB makes such a concession, they ...

In another bid to help mortgage bankers better assess their compliance capabilities, the CFPB has updated its mortgage rules readiness guide to include the Truth in Lending Act and Real Estate Settlement Procedures Act integrated mortgage disclosures, otherwise known as “TRID.” Version 3.0 of the guide, dated September 2014, summarizes the mortgage rules finalized by the CFPB as of Aug. 1, 2014, but it is not a substitute for the rules. “Only the rules and their official interpretations can provide complete and definitive information regarding their requirements,” the bureau reminds. Each rule description includes a hyperlink with additional information, including Small Entity Compliance Guides, which may make the rule easier to digest. The guide consists of four parts: a summary of the rules ...

Most of the mortgage finance trade associations wrote to the CFPB recently with a handful of suggestions to improve implementation of the bureau’s TRID – the pending Truth in Lending Act/Real Estate Settlement Procedures Act integrated disclosure rule. At the top of the list: more written guidance, please.“We appreciate the bureau offering oral guidance through webinars and other channels,” said the groups in a joint letter. However, due to the complexity of the rule, “we strongly recommend that the bureau also provide reliable, written guidance on issues.” Such input is “essential for lenders, settlement service providers, insurers, investors and other secondary market entities, regulators and ultimately, consumers themselves.” The groups also encouraged the CFPB to deepen its engagement in industry ...

Among the many challenges associated with the Consumer Financial Protection Bureau’s pending integrated disclosure rule is expanded legal liability for lenders based on the more threatening Truth in Lending Act, as opposed to the more palatable liability framework of the Real Estate Settlement Procedures Act. During a webinar sponsored last week by Inside Mortgage Finance, Rich Horn, a partner with the Dentons law firm and one of the architects of the rule while a regulator at the CFPB, noted there is no private right of action for integrated disclosures under RESPA. On the other hand, with TILA liability, “there is...

CFPB Deputy Director Steve Antonakes told attendees at the North Carolina Bankers Association’s mortgage conference last week that lenders need to start prepping for the bureau’s impending TILA/RESPA Integrated Disclosure rule, known in bureau-speak these days as the “TRID.” While the use of the TRID’s new Loan Estimate and Closing Disclosure forms is not required until August 2015, “mortgage lenders should already be working on the new rule and getting ready now,” Antonakes urged. “Significant changes to business operations and technology platforms will require close collaboration with third-party service providers. “While many mortgage institutions are already deep into implementing these changes, we want to make sure that everyone understands the need to be focusing on August 2015 now,” Antonakes emphasized...

The CFPB’s integrated disclosure rule will be “treacherous” for mortgage lenders and will likely be as challenging to comply with as its massive size and complexity suggests, according to top industry experts. Speaking to attendees of an Inside Mortgage Finance webinar last week on the CFPB’s TILA/RESPA Integrated Disclosure rule – known as “TRID” – Rod Alba, senior regulatory counsel for the American Bankers Association, rattled off a number of concerns that mortgage lenders still have with the new rule, which is set to take effect Aug. 1, 2015. “The regulation is enormously voluminous in length. The sheer size of this rule, we think, makes this regulation treacherous for banks in terms of liability, in terms of enforcement, in terms of understanding ...

Officials from the CFPB jumped into the mortgage compliance weeds during a webinar last week to answer some industry questions about its Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure rule, otherwise known as “TRID,” which takes effect in August of next year. Among the questions bureau staff discussed were a handful related to disclosure and re-disclosure timing. For instance, a number of industry representatives asked whether the seven-day waiting period before consummation that applies to loan estimates also applies to revised disclosures. “No, the seven-day waiting period is a Truth in Lending Act statutory waiting period that applies today to the initial TILA disclosures, and after August of next year, to the loan estimate provided after application ...

The Federal Reserve’s latest senior loan officer survey found the CFPB’s ability-to-repay/qualified mortgage rule is not having much of an effect on the conforming mortgage market but is being felt in the jumbo and nontraditional spaces. The July survey included a set of three special questions on the effects on the approval rates for home-purchase loans of the ATR and QM standards under the Truth in Lending Act, which came into effect early this year. The first question asks respondents to indicate the extent to which the ATR/QM rule is affecting the likelihood of their banks approving applications from individuals for mortgage loans to purchase homes for each of four categories of residential real estate loans. [includes one exclusive data chart] ...

CFPB Making Its Presence Felt Among Fannie Mae and Freddie Mac Servicers. Fannie Mae’s latest earning filing indicates the CFPB and/or the New York State Department of Financial Services have been reviewing the activities of Fannie Mae’s three largest non-depository servicers (which would be Nationstar, Ocwen and possibly Quicken Loans, according to the latest ranking by Inside Mortgage Finance, an affiliated publication). The scrutiny of Quicken Loans seems to be a new development. The bureau would not comment. Meanwhile, during the first half of 2014, Freddie Mac said in its second quarter earnings announcement that it implemented requirements for its seller/ servicers in response to some final rules from the CFPB, including rules concerning the requirements for borrowers’ ability to ...

The CFPB and 25 states filed amicus briefs in a case pending before the Supreme Court of the United States, Jesinoski v. Countrywide Home Loans Inc., that could resolve a circuit split over the recession of a mortgage under the Truth in Lending Act. The Truth in Lending Act provides that a borrower “shall have the right to rescind the transaction until midnight of the third business day following ... the delivery of the information and rescission forms required under this section ... by notifying the creditor ... of his intention to do so.” TILA further creates a time limit for the exercise of this right, providing that the borrower’s “right of rescission shall expire three years after the date ...