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CFPB head stays mum on TRID, says credit unions undersell mortgage success

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Mortgage Professional America | 17 Mar 2016, 06:30 AM Agree 0
Appearing before a House committee, CFPB head Richard Cordray wouldn’t give a definite answer on extending the TRID grace period, and insisted that credit unions are undervaluing their own success
  • mlo | | 17 Mar 2016, 12:49 PM Agree 0
    Bottom line .. get rid of TRID .. it does not benefit the consumer one bit .. a pack of lies that the intent of TRID is to protect the consumer .. it is designed for one thing .. create fines and fees .. being a mortgage originator, I have found that my clients only have suffered from the barrage of LE's and CD's .. it actually makes them feel that if something is being pulled over their eyes. The result of TRID has only caused increased closing costs to the consumer. TRID is a waste and a total joke .. it needs to be canned and remembered as a part of history that was a mistake
  • Soonepepa | | 17 Mar 2016, 12:59 PM Agree 0
    As usual, Cordray is incorrect. Credit Union market share increases are not an indicator that the heavy handed regulation by the CFPB isn't having an impact. The fact that credit unions are exempt from paying taxes affords them the ability to offer better interest rates and pricing than the "big banks," and even better than most community banks... which all have to pay taxes. Membership increases will also naturally cause and increase in mortgage volume. What the CFPB has done, via Dodd-Frank, is cause everyone to absorb significant costs, increase time to closing and, most importantly, remove about 20% of homebuyers from the market. Once upon a time, Congress had the desire to make homeownership more readily available and more affordable. What they have done via the CFPB, is make homeownership more expensive and more difficult. Congress, by their actions, has moved this country toward a population of renters.
  • sbharkness | | 17 Mar 2016, 01:21 PM Agree 0
    TRID is costing the consumers plenty! One lender after another is heading toward the door choosing to no longer be involved with lending money to consumers for the purpose of obtaining a mortgage. Wells Fargo who was just hit with a record 1.2 billion dollar fine while admitting no wrong doing was the 1st to announce they would be greatly cutting back on the number of mortgage's they bought/serviced. Yesterday W.J. Bradly announced they were leaving the mortgage business. It appears they have perfectly good mortgages on their books that they can not sell into secondary market. The secondary market is scared to death Corduroy and his jack booted thugs will find a period missing at the end of a sentence or some other trivial mistake. If W.J. Bradley can't sell the mortgages on its warehouse lines of credit they can't make new mortgages to consumers. Less choices for consumers equals higher costs. Has anyone noticed that lenders admin fee's have gone up as have their underwriting fee's? These are being passed directly to the consumer all because of the over zealousness of this rogue agency known as the C.F.P.B that needs to be dumped into the rubbish bin of history. The fiasco known as Dodds- Franks had one positive but short lived benefit to the consumer and that was that the consumer would never again be put on the hook to bail out the to big to fail/to big to prosecute banks. However, on a Novembers eve when a lazy Congress had all but left for Washington D.C for home an earmark was placed in a temporary spending bill to keep the government operating into the next year. It was just a few short sentences but what it did was remove the protection Dodd's-Franks provided the tax payer. So this means that the CEO's & CFO's of the mega-banks will once again take chances for big pay outs with little worry about the risks...after all, they have the American citizen to bail them out of any financial hot water they find themselves in. Yes, I am sticking up for the banks and at the same time slamming them. The truth is they own us. Make trouble for them and they make trouble for the country by shutting down the money supply. This causes the same effects as the U.N. placing sanctions against a Country like Iran and North Korea. The ordinary citizens suffer while those in power are still able to enjoy their extravagant lifestyle.
  • Tmislansky | | 17 Mar 2016, 01:53 PM Agree 0
    Credit unions are succeeding in spite of TRID and heavy regulation because they are member-owned cooperatives, and as such, they profits and purpose of the entity are controlled by the membership. And that's why they enjoy the tax exempt status. Any community bank that wants to achieve the same tax status can do so by converting to a credit union. But that would create a democratic process for board elections among all members, eliminate board member compensation in most cases, eliminate the ability to raise secondary capital and so many more advantages that the banks seem to ignore when they complain about the tax status.
  • tired&retired | | 21 Mar 2016, 12:35 AM Agree 0
    Getting tired of the big banks sniveling to the politicians! Vote for the outsiders.
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