A group of 21 Democrats in the U.S. House of Representatives has written a letter to President-elect Donald Trump asking him not to remove Richard Cordray as Director of the Consumer Financial Protection Bureau. Meanwhile, republican senators Ben Sasse of Nebraska and Mike Lee of Utah are both asking president elect Donald Trump to immediately fire Cordray. To read more click on the links below.
Two GOP seantors want Cordray removed ASAP
Democrats to Trump – Do Not Fire Cordray
With less than two weeks before Donald Trump’s inauguration, the Consumer Financial Protection Bureau has released five changes to its senior leadership lineup. This leadership changeup comes at a time of uncertainty as the CFPB faces an unknown future under a Trump administration.
To read further click on the link below:
CFPB Announces Leadership Changes
No one knows…not really. President-elect Donald Trump didn’t say much over the past 18 months regarding the mortgage industry and housing reform. What this means is we don’t really know what to expect. We do know that the GOP has control of the House and Senate. The Senate is fairly evenly divided though, which would lead one to believe that it will be tough to make any major housing reform changes without bipartisan support. There would need to be a lot of negotiating to make anything happen. Some other areas to watch would be the future of GSE’s and the CFPB. Stay tuned.
The CFPB created a resource for settlement agents called “The Settlement Professional’s Guide”. This guide was designed to help settlement professionals navigate through TRID. It highlights what hasn’t changed, what has changed and how to move through a transaction under TRID regulations. This is a great training tool you can use within your office. Click on the link below to view the guide.
Settlement Professional’s Guide
Recently the CFPB released proposed amendments to TRID. While the majority of the 293 page document consisted of clarification on existing TRID rules and regulations within the Final Rule there were also some notable sections that stood out:
The first would create a tolerance for the total of payment calculation. Before the Know Before You Owe mortgage disclosure rule, the total of payments disclosure was determined using the finance charge as part of the calculation. TRID changed the total of payments calculation so that it did not make specific use of the finance charge. The Bureau is now proposing to include tolerance provisions for the total of payments that parallel existing tolerances for the finance charge and disclosures affected by the finance charge.
The second would exclude recording fees and transfer taxes from the one percent fee limit that applies to the TRID rule exemption for down payment assistance and similar subordinate lien loans often made by housing finance agencies, non-profits, and similar entities. The Bureau’s proposed update would promote housing assistance lending by clarifying that recording fees and transfer taxes may be charged in connection with those transactions without losing eligibility for the partial exemption, and would exclude recording fees and transfer taxes from the exemption’s limits on costs.
The third looks to include units in a cooperative under TRID. Currently, the rule only covers transactions secured by real property, as defined under state law. Co-ops are sometimes treated as personal property under state law and sometimes as real property. By including all cooperatives in the rule, the Bureau would simplify compliance.
Lastly, the fourth clarifies how a creditor may provide separate Closing Disclosures to the consumer and the seller through the removal of information that raises privacy concerns. “The Bureau understands that it is usual, accepted, and appropriate for creditors and settlement agents to provide a closing disclosure to consumers, sellers, and their real estate brokers or other agents. The Bureau is proposing additional commentary to clarify how a creditor may provide separate disclosure forms to the consumer and the seller.”
Today, the Consumer Financial Protection Bureau (CFPB) released several proposed amendments to the TILA-RESPA Integrated Disclosure (TRID) rule. The CFPB will be accepting comments to the amendments until October 2016, before final regulations are issued. Click the link below to read the CFPB’s press release and view the amendment document:
While the CFPB still has not released any updates to TRID it looks like when they do it won’t include changes to the title insurance premiums disclosure rules.
In a recent July 14th letter, Director Cordray said that fixing the title insurance premium disclosure is improbable.
“As reflected in the Know Before Your Owe mortgage disclosure rule, the Bureau believes that the application of any simultaneous issuance discount to the owner’s title policy, as mandated by some states, is the most transparent method of disclosing the costs of the required lender’s title policy and the optional owner’s policy,” Cordray wrote.
While Director Cordray stated no changes are currently planned it’s important that as an industry that we continue to provide the CFPB with data regarding the issues this requirement is causing.
While we are seeing all time low interest rates, we aren’t seeing the expected increase in loan volume. The tighter rules and regulations tied around obtaining a loan is making it more difficult for a consumer to take advantage of the lower interest rates. Below is an interesting article on the lack of credit being issued to consumers.
Low interest rates don’t equal more loans
Posted in CFPB, Lending, Mortage, TRID
Tagged Banks, CFPB, Consumer Financial Protection Bureau, Final Rule, interest rates, Mortage Disclosure, SoftPro, TRID
With investors worried about the consequence of errors on the CDF it is expected that the CFPB will address the secondary market concerns in their clarifications expected this July. To read more click below.
The CFPB has published annotated versions of the Loan Estimate (LE) and Closing Disclosure (CD). The have noted the sections of chapter 2 (Part B) of TILA that the CFPB says were “referenced in the Integrated Mortgage Disclosure final rule.” Provisions of the rule that are implemented under authority in Part B of TILA will likely be subject to civil liability under TILA section 130. Click the links below to view the annotated documents: