Before getting too far down the road, lenders should remember that compliance with new social media regulations imposes unique constraints on individuals involved with the lending business. Click below to read Debbie’s article or Mortgage Compliance Magazine: (Page 28 )
Regulators Have Overdone it on Banks … Or Have They?
July 28, 2015
Regulators have gone a bit too far in cracking down on banks to make them safer, says Debbie Hoffman, chief legal officer at Digital Risk.
“Excessive regulation runs the risk of leaving a fragile economy starved of the capital it needs to grow,” she writes in USA Today.
“It is critical that regulatory policy encourages banks to get back into the business of lending again, something they have been reluctant to do in the wake of the financial crisis.”
Lenders may have 48 extra hours to prepare for the TRID deadline on October 3, but it’s still crunch time. Worried? You’re not alone. A recently released STRATMOR survey found that as of the end of March, many TRID requirements had not even been considered by a high proportion of lenders. For example, only 13.5% of lenders had considered who will create and transmit the closing disclosure. So what are the major factors you need to be solving for now? Here are Digital Risk’s top five steps you need to cross off of your last-minute TRID checklist:
New Credit Rating Agency Rules Target Due Diligence Transparency
National Mortgage News
June 16, 2015
New regulations for credit rating agencies that took effect this week are expected to make mortgage and other asset-backed securities more transparent by requiring broader disclosure of certain due diligence reports.
Under the rules, which were mandated under the Dodd-Frank Act and issued by the Securities and Exchange Commission, reviews and reports that due diligence providers previously delivered to investment bankers and rating agencies must be shared directly with the public, said Jeff Taylor, co-founder and managing partner of Digital Risk.
By now most of us are aware that the rumors surrounding a possible delay of TRID’s August 1st deadline are false, and some of us are rejoicing in the enforcement leniency alluded to in the CFPB’s June 3rd letter to members of Congress. Yet, could this notion of a “grace period” also be false? Mortgage industry professionals must come to terms with the fact that the deadline is not changing, and that this “grace period” may not be all that helpful to financial institutions. Read more to learn why mortgage industry professionals may not be able to breathe a sigh of relief just yet.
The CFPB finalized the Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure Rule (TRID) in November 2013. The Rule includes over 1,800 pages and represents a major change for the mortgage industry. Implementing the two new disclosure forms required by the regulation will have a trickle-down effect that creates complexities across the mortgage value chain, from lenders to servicers to investors. Integrating these new forms into their compliance management system and daily business activities will require lenders to significantly update technology platforms and redesign key aspects of their operations through new policies and procedures.
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