May 5: Sales & risk jobs; what compliance officers want builders & Realtors to know about TRID; plethora of CFPB updates; the real story of Cinco de Mayo

Rob Chrisman

Rob Chrisman began his career in mortgage banking – primarily capital markets – 31 years ago in 1985 with First California Mortgage, assisting in Secondary Marketing until 1988, when he joined Tuttle & Co., a leading mortgage pipeline risk management firm. He was an account manager and partner at Tuttle & Co. until 1996, when he moved to Scotland with his family for 9 months. Read more...

I grew up with a lock on my locker in school. Every once in a while someone would have their combination stolen and locker broken into. Or at least shaving cream shot through the air vents. (Yes, I went to a pansy high school.) Now we learn that all it takes is two minutes to figure out the combination of a Master Lock. I hope they’re doing something about it.  Speaking of doing things, I received this note. “Rob, what do you hear about the NAR & Move versus Zillow lawsuit? Is one of them going to take a fall?” Darned if I know enough to weigh in on that – but here is a relatively recent article on where things stand.

 

For jobs Certified Credit Reporting, a nationwide information firm, has openings in Texas, Illinois, and Utah for qualified sales people. Headquartered in Ontario, California, “we are 30 years and going strong. With a forward looking focus, a wide range of products to sell, and a positive, stable corporate culture, Certified Credit is well positioned for immediate and long term growth. Our customers love us and you will too. The ideal candidates will have extensive industry connections and a background in selling credit and related products, or, at minimum, an extensive mortgage background with a desire to learn another side of the business. Enthusiastic, energetic and driven to succeed? Send your resume to John Labriola.”

 

Weichert Financial Services, “historically a top 100 Fannie Mae originator and one of the largest privately owned mortgage banks in the Northeast, is currently seeking to hire a seasoned Chief Risk Officer to manage Risk/ Compliance and Quality Control oversight. The job is located in Morris Plains, New Jersey. Weichert offers a competitive compensation and benefits package which includes comprehensive health care coverage and an employee 401(k) plan. Weichert Financial Services is an Equal Opportunity Employer:  All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, national origin, disability or protected veteran status. Additionally, we are recruiting for experienced DE Underwriters and Processors.” For more information or confidential inquiries contact Paige Palmisano.

 

And under the company of “company expansion” private money lender Wildcat Lending continues its growth and is looking for Realtor and lender clients. “We’re creating relationships, word of mouth is spreading, we’re getting repeat business, we’re seeing the overall quality of the investors is improving and for the most part we’re hearing positive feedback in our space of lending pertaining to Wildcat. Need a bridge loan or can’t approve a ‘subject to’ appraised value?  Hard money will be the next ‘big’ thing in terms of demand in residential lending and Wildcat is willing to educate and show you how we do business. We lend on the After Repaired Value, or ARV, and our loans include both purchase and rehab funds. This is for investment properties only, where generally an investor acquires, rehabs and either flips or keeps the property as a rental.” Please email Jeremy Rehwald or Kai Chandler to learn more about Wildcat Lending’s loan products and terms.

 

There are some upcoming events of note.

 

And many are watching the Quicken set of lawsuits with great interest. Eileen O’Grady is offering a free brief, 30 minute solo webinar to help lenders understand some of the very important details behind the DOJ/Quicken and other DE lawsuits that have been filed by the DOJ.  The free webinar, hosted by LoanScoreCard, will be next Thursday, May 7, from 10:30 – 11:00 AM EDT.  Lenders can register here.  Lending Operations Managers and Executives, DE Underwriters, FHA Insurance Managers and FHA Servicers are encouraged to register.

 

Arch MI is hosting what’s going on in the nation’s housing market with its Housing Update Webinar. Ph.D. Economist Ralph DeFranco, author of Housing and Mortgage Market Review, will lead two special sessions in May to share the latest data, trends and predictions on what mortgage lenders can expect as we move further into 2015. As space is limited, register now for either Arch MI May 5 webinar or Arch MI May 6 webinar.

 

The CFPB is conducting a webinar titled “Know Before You Owe mortgage disclosures”.  On Tuesday, May 26 at 2PM EDT this 60 minute webinar will answer some frequently asked questions about the Integrated Disclosure rule. The webinar will be hosted by the Federal Reserve. Register now for CFPB’s May 26 webinar “know before you owe”. Also available, CFPB’s previous 4 webinar recordings.

 

On May 20th, California’s North Bay CAMP is providing an NMLS Continuing Education event at the Petaluma Community Center with speaker David Luna, President of Mortgage Educators; an NMLS approved provider. Register now for North Bay CAMP continuing education event on May 20.

 

As mentioned above, on May 26, 2015, the CFPB and Federal Reserve will be co-hosting the fifth and final webinar in their series on the TILA-RESPA integrated disclosures (TRID) rule.  Presumably, the reference to this webinar being the “final” webinar is intended to mean that it is the final TRID webinar before the rule becomes effective on August 1, 2015.

The description of the fifth webinar indicates that it “will address specific questions related to rule interpretation and implementation challenges that have been raised to the CFPB by creditors, mortgage brokers, settlement agents, software developers, and other stakeholders.  In particular, the session will cover industry questions relating to operations and technology challenges, particularly new questions that have arisen as the industry is further into implementation.” A link to register is available here but summaries of previous TRID related webinars are available at these links: Overview of the Rule, FAQ, Completing the Loan Estimate, and Completing the Closing Disclosure

 

On May 21, 2015, from 2:00pm to 3:30pm, the FDIC’s Division of Depositor and Consumer Protection will host a teleconference as part of its periodic series of events for bankers on important bank regulatory and emerging issues in the compliance and consumer protection area.  According to the announcement, the upcoming teleconference will focus on the implementation of the CFPB’s mortgage rules.  Specifically, the FDIC will share observations that FDIC examiners have noted during initial examinations and highlight a number of practices currently used by some institutions that might be useful to bank compliance officers.  The announcement provides no indication whether the CFPB staff will participate in the call.

The session is free, but registration is required.

 

Speaking of compliance and education, if you were a compliance person, and wanted to tell all the real estate agents and builders about what is going to change with TRID, what would you tell them? Here are some solid comments and “tips to the wise” that LOs can forward to their counterparties!

 

Tracy Sanderson with Washington’s Banner Bank writes, “You need to understand that the government has stepped in to slow down the process of financing real estate. There will be no more ‘rush closings.’ This is the biggest transaction most people make… they need time to review the details. RESPA has been around since 1974.  Kickbacks have been illegal since that time, but HUD didn’t really enforce.  There’s a new sheriff in town (The CFPB) who is dead-serious about putting a stop to it.  Nothing is free. Not everything may make sense to you come August 1… but the stakes are too high for lenders to bend any rules to try to make you happy by doing anything other than providing stellar service to your clients.”

 

Peoples Bank’s Chief Compliance Officer Charles Everson writes, “All parties who partner with banks and mortgage companies as part of the mortgage loan process – including realtors, title agents, and builders – need to be aware that certain construction loans that are currently exempt from RESPA will be covered by the new TRID rules and will thus be subject to the required waiting periods.  Secondly, bridge loans used to finance the purchase of a new home using funds secured by the buyer’s existing home pending its sale will be covered by the new rules. And finally, raw land loans are subject to TRID and its waiting periods.  This means a longer mortgage loan cycle on these loan types resulting in delayed closings, just like vanilla purchase and refinance loans.”

 

And Eddie Rodriguez, Chief Compliance Officer with California’s First Mortgage, contributed, “Although the TRID Rule includes various monumental changes, some of the more critical involve time-sensitive delivery requirements for the Closing Disclosure. More specifically, the consumer must receive the Closing Disclosure not later than three business days prior to consummation (in most cases, the date the Note is signed). Additionally, certain changes require re-disclosure thereby triggering a new waiting period prior to consummation. Changes of this magnitude may create unexpected delays and a ripple effect across the industry not only for loan originators and consumers, but for all settlement and real estate professionals. That being said, knowledge and readiness are fundamental, and it is imperative that real estate professionals familiarize themselves with the TRID Rule and participate in TRID training, which is readily available from various reputable organizations including NAR. Equally important, the new requirements will necessitate careful workflow planning as part of each organization’s settlement coordination to ensure a smooth transition.”

 

Last week the CFPB issued its third Fair Lending Report, highlighting fair lending developments from calendar year 2014. The CFPB reports that in 2014, its fair lending supervisory and public enforcement actions resulted in $224 million in remediation to approximately 303,000 consumers. The CFPB referred 15 matters to the Department of Justice in the areas of mortgage lending, auto finance, unsecured consumer lending and credit cards, and student lending. DOJ declined to open an independent investigation in five of those matters. The report emphasizes the CFPB’s “risk-based prioritization.” Law firm K&L Gates has a nice write-up.

 

As a reminder the CFPB has issued a final rule to assist lender compliance with RESPA and TILA homeownership counseling requirements. Under RESPA, a lender must provide applicants for a federally related mortgage loan with a list of certified homeownership counselors. TILA prohibits a creditor from making a high-cost mortgage loan unless it receives written certification that the borrower has obtained mortgage counseling from an approved counselor. The final rule updates a 2013 CFPB interpretative rule regarding the list requirement. Regulation X gives lenders two methods for generating the required list – for details click on the link.

 

And CliftonLarsonAllen released, “May 4, 2015, the Consumer Financial Protection Bureau (CFPB) released an update to the bureau’s Mortgage Origination examination procedures. The update offers financial institutions and other industry participants valuable guidance on how the CFPB will conduct examinations for compliance with the TILA-RESPA Integrated Disclosure Rule which will become effective August 1, 2015. The procedures have also been re-organized for consistency and clarity.  Click on the following links to view the CFPB’s examination manuals: CFPB Mortgage Origination Examination Manual, CFPB TILA Examination Manual, CFPB RESPA Examination Manual.

 

“The CFPB Supervision and Examination Manuals are guides for examiners to use in overseeing companies that provide consumer financial products and services. The manuals describe how the CFPB supervises and examines these providers and gives the bureau’s examiners direction on how to determine if companies are complying with consumer financial protection laws. Examination manuals provide internal guidance to supervisory staff of the CFPB. It does not bind the CFPB and does not create any rights, benefits, or defenses, substantive or procedural, that are enforceable by any party in any manner. While every effort has been made to ensure accuracy, examination procedures should not be relied on as a legal reference.” So, CFPB, then what can lenders actually use as legal reference besides enforcement actions?

 

On Monday the markets didn’t do much, and there was no news, so I am not going to waste your time analyzing the fact that interest rates were pretty much where they were at the end of Friday. (The 10-year closed at 2.13%.) This morning we’ve had the Trade Balance figures (widened to $51.4 billion due to record imports) which typically don’t move rates either, and later we’ll see the ISM Non-manufacturing Index. Early on we’re still at 2.13% and agency MBS prices roughly unchanged.

 

 

Most people don’t know that in 1912, Hellmann’s mayonnaise was manufactured in England. In fact, the Titanic was carrying 12,000 jars of the condiment scheduled for delivery in Vera Cruz, Mexico, which was to have been the next port of call for the great ship after its stop in New York. This would have been the largest single shipment of mayonnaise ever delivered to Mexico. But as we know, the great ship did not make it to New York. The ship hit an iceberg and sank, and the cargo was lost forever. The people of Mexico, who were crazy about mayonnaise, and were eagerly awaiting its delivery, were disconsolate at the loss. Their anguish was so great that they declared a National Day of Mourning, which they still observe to this day. The National Day of Mourning occurs each year on May 5th and is known, of course, as Sinko de Mayo.

 

 

Rob

 

(Copyright 2015 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)