The Biggest Stories in Mortgage in 2015
December 30, 2015 12:00 PM
From the rollercoaster ride toward the TILA-RESPA implementation deadline to concerns about other areas the Consumer Financial Protection Bureau would zero in on for scrutiny, these seven stories dominated National Mortgage News during 2015. Following are both the stories and an update on where the situation stands now.
The CFPB Is Watching
The CFPB isn't the only agency with an eagle-eye on lenders. Enforcement actions by the Department of Justice have spurred big banks into backing out of Federal Housing Administration loans. Others are requiring higher minimum credit scores from borrowers. The DOJ continues to level fines for originating loans below the Department of Housing and Urban Development's standards, but at the moment it seems their attention has turned to nonbank lenders.
Appraiser Shortage Could Gum Up the Works
An aging appraiser demographic and overly-stringent, outdated certification requirements are widely blamed for a persistent shortage in property valuation experts. The outlook for 2016 isn't promising, with the biggest hits being felt in rural areas, but industry advocates lobbying for changes to certification requirements hope for appraiser numbers to start growing by 2017.
TRID Delayed
Thanks to an "administrative error," the CFPB pushed TRID's implementation date back from August 1, 2015 to Oct. 3, while maintaining the move had nothing to do with the heavy lobbying from industry advocacy groups. While it's unclear whether there will be significant delays at the closing table, at least one significant user group the National Association of Realtors says their preparations paid off.
No Doubt About It, MSAs Must Go
Marketing Services Agreements are a thorn in the side for much of the industry, and after a number of enforcement actions from the CFPB, many have begun calling for their demise. However, the agency recently clarified that the agreements are not intrinsically illegal, and that they would not be the main focus of agency exams during 2016.
Loan Officer Comp Tops CFPB's 2016 Exam Agenda
After a year of heated debates and enforcement actions surrounding loan officer compensation, 2015 closed with the promise of more regulatory attention in the coming year. Calvin Hagins, deputy assistant director for originations at the CFPB, went on the record at a conference in November with word that the agency would zero in compensation in the new year, opening the potential for clarified policy in place of governing through enforcement.
TRID Invites Scrutiny for Vendors
News that borrowers could bring suit against lenders based on a poor referral or experience with a third-party vendor brought yet more trepidation about any relationship potentially viewed as being part of a marketing services agreement. CFPB Director Richard Cordray also made clear that tech vendors impeding successful implementation of TRID would be on the agency's watch list.
Tough Choices for Servicers After Tenant Foreclosure Law Expires
Housing groups predicted a steep rise in foreclosures and evictions after the Protecting Tenants at Foreclosure Act expired at the end of 2014. At yearend, however, the number of foreclosures was in decline, year-over-year, owing to improved economic conditions.
