Posts Tagged ‘TRID’

CFPB Contemplating Clarifying TRID

May 3rd, 2016 Comments off

question_mark_houses__fotosearchDirector Richard Cordray, of the Consumer Financial Protection Bureau (CFPB), responding to complaints regarding complying with the so-called Know Before You Owe rule for homebuyers —formally, the TILA-RESPA Integrated Disclosure (TRID) rule implemented Oct. 3, 2015 –wrote a letter to financial trades members stating the bureau is considering making “adjustments” to provide more clarity in the regulation text.

Terming them “operational challenges,” he wrote, “We also recognize that implementation is particularly challenging because of the diversity of participants, from small to large financial institutions, mortgage brokers, real estate brokers, and title companies, through warehouse lenders, investors, due diligence firms, and ratings agencies, whose perspectives may vary as to what compliance under the rule requires.”

He said the CFPB is drafting a Notice of Proposed Rulemaking (NPRM) on the Know Before You Owe rule which should be issued by July, at which time the bureau will take comment.

MHPronews understands there have also been problems with software designed for the TRID rule. With this uncertainty, lenders in some cases may have opted to not issue a loan if they were not sure of compliance.

Cordray said, “We will continue to work with industry, consumers, and other stakeholders to support a smooth transition for the mortgage market.” ##

(Image credit: fotosearch–question mark houses)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Sunday Morning Recap-Manufactured Housing Industry News Oct. 18-Oct. 25, 2015

October 25th, 2015 Comments off

mhpronews_sunday_morningWhat’s New in public focused Manufactured

Retired Realtor ® and Conventional Housing Pro on Why they Bought a Manufactured Home

Comparing Quality to Quality – Conventional On-Site Building vs. Manufactured Homes

What’s New in Manufactured Housing Industry Professional News

Duty to Serve” Rule Planned by FHFA, as cost of MHC site rises sharply. FEMA manufactured homes house wildfire survivors. UMH finalizes acquisitions. Insider trading at Skyline, UFPI. New rules at MHC grate residents. TRID implementation hits rocky road. Ohio legislature removes objectionable wording. Modular homes: Housing homeless in Ireland and Hawaii, challenged in Florida. RV/MH Hall saves $600k. Tornado shelter protects community. And much, much more news for you to peruse……..

Saturday, Oct. 24

Insider Trading at Skyline Corp.

Friday, Oct. 23

500 Modular Units to be Deployed in Dublin for the Homeless

MHCV Gains 1.62%; Skyline Advances 6.5%; NASDAQ Gains over 100 Points

Manufactured Homes Arrive for Wildfire Survivors

Existing-home Sales Continue Climbing

Semi-annual Dividend at UFPI Rises, as Insider Sells Shares

Passages: Dick Lance

Thursday, Oct. 22

RV/MH Hall of Fame Head saves over $600,000

Several Manufactured Housing Stocks Rise Three Figures; Dow Gains 320 Points

Final “Duty to Serve” Rule Planned; Average MHC Site Cost Nearly Doubles in 18 Months

Residents React to New rules for Manufactured Home Community

New Horizon Hits Record Levels in Manufactured Home Lending

UMH Acquires Ohio Manufactured Home Community

Wednesday, Oct. 21

Drew to Release Q3 Results

Implementation of TRID Rough; Charges Fly

Skyline Corp. Rises 8.62%; MHCV Slips -0.65%

Australia’s Ingenia Acquires Land Lease Community

Equity LifeStyle Properties Hits New High

Tuesday, Oct. 20

Ohio MHA Succeeds in Removing Objectionable Legislative Language

Manufactured Housing Composite Value Gains Sharply

Homebuilder Confidence Hits Ten-year High

Manufactured Home Damaged in Crash

Land Lease Community Sells for $1 Million in Arizona

Modular Homes Challenged in Cape Coral, Florida

Monday, Oct. 19

UMH Closes on Second Half of Acquisition

Skyline Gains Sharply; Strong Dollar Increases Overseas Travel

Patrick to Release Q3 Financials

Land Lease Community has Steel Tornado Shelter

First Modular Homes Arrive for Homeless in Hawaii

Sunday Morning Recap-Manufactured Housing Industry News Oct. 11-Oct. 18, 2015 ##

(Photo credit: MHProNews)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Implementation of TRID Rough; Charges Fly

October 21st, 2015 Comments off

mortgage    andyenstallblog  creditThe new disclosure rule which combines the previous Truth in Lending Act (TILA) requirements with the Real Estate Settlement Practices Act (RESPA) into one Integrated Disclosure, called TRID, has not rolled out well due to mortgage software problems and Congressional inaction, said CFPB Director Richard Cordray to the Mortgage Bankers Association (MBA).

The “Know Before You Owe” rule gives borrowers three days to examine loan documents before closing, but has drawn the ire of some lenders for potentially slowing down loan closings, and requiring borrowers to pay more for the lender to hold an agreed-upon interest rate longer. This is called a loan lock, because it locks in the interest rate during the closing of a loan transaction, but for a fee, as marketwatch tells MHProNews.

Prior to the new rule, the rate was good for 30 days, for which the consumer did not pay. However, some mortgage lenders fear with an extended closing period, the loan lock may have to go as long as 45 or 60 days, with consumers possibly incurring hundreds or thousands in additional costs to hold an interest rate.

Cordray denies closings have been longer or that consumers are incurring higher costs, saying, “These claims reflect a failure or perhaps a refusal to understand what the rule actually says.

Closing delays will not show up until sometime in November when the loans made after the Oct. 3 implementation date will start closing.

TRID was enacted in response to lenders during the housing boom of the last decade who would increase the interest rate, add fees or change loan products at the last minute. Under TRID, mortgage lenders have to give consumers more time to understand any changes to the transaction.

Cordray blamed vendors of the software for the problems. “Some vendors performed poorly in getting their work done in a timely manner, and they unfairly put many of you (lenders) on the spot with changes at the last minute or even past the due date,” Cordray said. He said the CFPB will focus on how these vendors ae affecting the marketplace.

Jonathan Corr, president and CEO of Ellie Mae, which distributes about a third of the TRID compliant software, said while some lenders were not adequately prepared, they are dealing with loans made before and after the new rules took effect, which requires two sets of software. “This is the biggest change to the mortgage industry in 40 years,” said Corr, noting the process will likely iron out by mid-2016.

Still, the MBA wants Congress to provide a grace period until Feb. 2016 so that errors made in the TRID rules will not lead to enforcement sanctions. However, the White House says the mortgage industry has had enough time to understand the disclosure rule and it would veto any legislation to extend the deadline. ##

(Image credit: andyenstallblog)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Mortgage Industry Pushing for Four-month Grace Period from TRID

October 12th, 2015 Comments off

mortgage  housingwire creditAs the TRID (Truth in Lending Act, or TILA) and the Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure rules went into effect last week–also known as “Know Before you Owe”– mortgage industry groups continue to ask for a grace period of four months from enforcement actions and private lawsuits.

A survey of 71 Mortgage Bankers Association members revealed about one-third of them had not tested their new systems, and half of the respondents believe the new rules will lengthen the home-buying process and perhaps add costs to consumers, neither of which would be healthy for the industry.

The American Bankers Association (ABA) is concerned about the clarity of the rules, and that banks find it difficult to comply with these reforms. As scotmanguide tells MHProNews, a bill in the House of Representatives would extend the grace period until Feb. 1, 2016.

The industry has to produce new forms and change the way it discloses information to the buyer. It is also unclear where the trigger is that will unleash the might of the CFPB, or what might constitute a good faith effort to comply with the regs.

At the same time, two-thirds of the MBA respondents said they are ready and do not expect problems.

Tim Anderson, director of eServices at DocMagic, a document and compliance vendor, said, “It is just typical of this industry to push back on anything that is new. They don’t adapt well, especially if it is technology, and then [there is] the mistrust of this agency.

He stated the problems will not come until late next year when the CFPB starts auditing and possibly imposes hefty fines for non-compliance, which could mount up at the rate of $1,000. per day. However, CFPB Director Cordray said at a Senate hearing the agency’s approach will be more corrective than punitive, and that federal regulators will issue a letter explaining their policy.

CFPB spokesman Samuel Gilford reiterated the agency is seeking good-faith compliance. ##

(Image credit: housingwire)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Title Company Head says Mortgage Disclosure Rules will Delay Home Sales

August 28th, 2015 Comments off

ted_c_jones__newsokTed C. Jones, chief economist and senior vice president for Stewart Title Guaranty Co. in Houston, says financing the buying and selling of houses will be much more difficult when the mortgage disclosure rules go in to effect Oct. 1, as newsok tells MHProNews. We’re going to continue to have more renters than owners than normal, and part of that, almost all of that, is a function of our government — Dodd-Frank and the CFPB,” he said at the Oklahoma Building Summit & Expo at Cox Convention Center.

He says reform of the mortgage disclosure rules were supposed to be implemented Aug. 1 but have been delayed until Oct. 1, but that will not change the delays written into the new rules. Noting it will not be a smooth transition at all, Jones said it will bring some transactions to an abrupt stop: Some critics say it could could closings 10 to 15 days.

If you go to a closing and there is a material change in that dollar amount, you have to delay the closing another three days,” he said. “Just prepare yourself for some extra interest carried (forward on the seller’s or builder’s own loan). And just pity the poor homeowner that thinks they’re moving into a house that day and that moving truck’s there, because they may not get the keys that day.

The TRID form–TILA-RESPA Integrated Disclosure—has no line numbers, making it difficult to understand for reconciling changes. Any transaction that involves a mortgage will use the new disclosure forms. He noted the last time HUD made a change to the main loan disclosure document–the HUD-1 settlement statement in 2010—homebuyers, real estate agents and title people came to closings before lenders had funded the transactions.

CFPB is a four-letter word as far as I’m concerned,” Jones said. “It is a dog that’s out of control.” ##

(Photo credit: newsok–Ted C. Jones)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.