Compliance Updates

September: Weekly Compliance Updates

TRID Hot Topic Series: MBA’s List of Top 20 Issues

September 26th, 2014

The short answer is “No.” Here’s why: RESPA itself does not go away just because certain transactions are now covered by the TILA-RESPA Integrated Disclosures. Rather than replace RESPA, transactions covered by TRID fulfill RESPA. And as for the GFE and HUD-1, there are certain transactions like reverse mortgages that are not covered by TRID, but are still covered by RESPA. For example, if a mortgage company would like to originate a reverse mortgage, the mortgage company would need to provide a GFE and a HUD1 even if it chooses to use the LE and CD. Page 20 of the CFPB’s Small Entity Compliance Guide provides the following further clarification:

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Did You Know Series: HUD changes FHA prepayments requirement

September 19th, 2014

The Department of Housing and Urban Development recently published in Federal Register, Vol. 79, No. 165, on Tuesday, August 26, 2014, changes to the Federal Housing Administration (FHA) handling of post-payment interest charges. Effective, January 21, 2015, post-payment interest charges (from the date a mortgage is paid off through the end of the month) will no longer be allowed on FHA loans.

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TRID Hot Topic Series: IDS TRID Implementation Plan Update

September 12th, 2014

IDS Compliance is putting the final touches on details of the "software required changes" portion of its implementation plan. Beginning first quarter of 2015, the IDS Development department (15 members strong) will make the look, feel, and functionality changes to the flagship idsDoc system required to support the new disclosures. Here is an updated version of IDS' Implementation Timeline:

  • Sep 31, 2014: Issue requirements for Development team (IDS Compliance)
  • Jan-Mar, 2015: Release updates to IDS Software (IDS Development)
  • Apr 2015: Test all affected disclosures in system (IDS Service Staff)
  • May 2015: Test interaction with client systems (IDS Imports/IDS Customers)
  • Jun 2015: Complete implementation and review (IDS Compliance)
  • Jul 2015: Test and review during fail-safe period
  • Aug 1, 2015: Make forms live

Note that IDS is making a concerted effort to have IDS Customer testing available, even if in a limited environment, by the middle of the month of April, 2015.

TRID Hot Topic Series: Good Faith Determination for Estimates

September 5th, 2014

A few interesting changes were made to the new good faith determination for estimates in TRID that "vary" from the definition of current Regulation X. One change is that "tolerances" are now called "variances." Another is that there is a general rule that states that an "estimated closing cost... is in good faith if the charge imposed on the consumer does not exceed the amount originally disclosed" on the Loan Estimate. (Emphasis added).

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