Mortgage Professional America forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Hensarling: Dodd-Frank amounts to ‘regulatory waterboarding’

Notify me of new replies via email
Mortgage Professional America | 18 Mar 2016, 06:30 AM Agree 0
The chairman of the House Financial Services committee had harsh words for the Dodd-Frank Act, which he called ‘a monument to the arrogance and hubris of man’
  • Geoff | | 18 Mar 2016, 12:15 PM Agree 0
    Would love to see it go, but a government replacement does not sound too promising based on past experience.

    If we do get new rules then the pain of adoption, change and compliance begins anew. But I suppose it is worth it, the customer is getting screwed on this deal with the compliance fees.
  • Sue Cutchall | | 18 Mar 2016, 12:18 PM Agree 0
    I agree with the article. I work for a community bank. The cost for us to do business since Dodd-Frank has escalated tremendously. We strive to do everything to serve our customer base. We have branches in a lot of small rural communities. We are one of the few that still service our mortgages and sell directly to the secondary market.
    It is almost overwhelming to try to understand and stay in compliance with all of the regulatory changes. We have had to hire additional compliance staff and our third party QC costs have tripled from previous years.
    I understand the importance of changes that needed to be made. I understand the need for regulations, however I believe the current regulations are too cumbersome. The current regulations penalize lenders that are trying to do it right and have been. There are still gaps and loopholes for the lenders that prey on consumers and the regulations do not stop them. They are still out there and continuing to open new shops everyday.
    I definitely believe changes need to be made to the current Act and the regulatory burden eased.
  • John Lasko | | 18 Mar 2016, 12:54 PM Agree 0
    The process for preparing a CD closing disclosure varies by institution. I've been closed mortgages with lenders where the process that is transparent and barely adds additional preparation time.

    Most lenders have various departments cannot reach an agreement on what needs to be included, when and how, subjecting the borrower to unnecessary delays and costs. I have been penalized as a broker for their misunderstanding of the process.

    The latter is more the norm with this new process. Getting a home mortgage is a big step for most borrowers and with TRID it turns into a nightmare of delays and emotional outbursts. Some borrowers are so frustrated ready to walk away from first time purchases.

    The increased frustration and anxiety is driven by regulations designed to protect them. There needs to be a better way!



  • | | 18 Mar 2016, 01:06 PM Agree 0
    Amen!!!
  • mlo | | 18 Mar 2016, 01:09 PM Agree 0
    The better way is to trash TRID and the CFPB .. this combination was created for only one purpose ... generate revenue from penalties and fines. It does not help the consumer one bit .. only hurts them as it now costs more due to the need to increase closing fees.

    the original GFE .. now know as the cost estimate was the perfect document ..every thing on one page .. costs of mortgage .. prepaids .. transaction details ... and PITI payment .. all there .. easy to understand easy to follow easy to read .. and there lays the problem .. to easy .. typical government approach to complicate way beyond necessary
  • CHRIS C | | 18 Mar 2016, 01:27 PM Agree 0
    GOOD LUCK.
    EVERDAY I SEE WHAT A DISASTER THIS IS. I OWN A REAL ESTETE COMPANY IN GROSSE POINTE MICH WITH 25 AGENTS. NOT ONE TRANSACTION HAS HELPED ANY PARTY INVOLVED AND CERTAINLY HAS NOT SAVED THE CONSUMER AND OR PROTECTED ANY PARTY.
    WHAT MOST OF THESE REGULATIONS HAVE CREATED IS BASICALLY WAY TO MUCH PAPERWORK ALL WITH THE INTENT TO COVER DECISION MAKERS ASSES. JUST HOW BIG ARE THEIR ASSES?
  • Pol Pott | | 18 Mar 2016, 01:33 PM Agree 0
    It's easier to buy/transport uranium than close a residential mortgage today. Thanks to incompetent government there are more moving parts than in the Apollo Space program now in order to close a mortgage.
  • Cheryl M | | 18 Mar 2016, 01:35 PM Agree 0
    Then make sure you don't vote for Hillary (Elizabeth Warren) come election day!!!
  • Joshua Stevens | | 18 Mar 2016, 08:20 PM Agree 0
    This is a train wreck.
    I can't afford to do a small mortgage to help someone.
    My production has suffered, and my income and the income of the community I used to stimulate.
    Years ago the laws were not enforced but were in place. I tried to report fraud and was on hold for hours and gave up.
    The taxpayer didn't want to pay to have enough people to enforce the laws and later suffered.
    Now to protect the public with stricter procedures they are charged so much more by the AMC's and the appraisers make less.
    Frank Dodd was flawed and didn't apply to the two that wrote it.
    There is no one in government to answer and give legal advice about the very laws that have been put in place that we must try to interpret and follow. Investors are unhappy with how the banks try to interpret these laws and don't want to buy the closed mortgages
    and the consumer suffers.
    The paper work is difficult to actually comply with depending on how you interpret it. Mortgage brokers could have designed a better system than law makers. The whole system is so wrong and un American. Many good people have left. You can't pay more for a rush fee. How is it correct to always have to charge the same amount of Lender paid points, when the mortgage size varies on each mortgage?
  • Bill | | 21 Mar 2016, 12:03 PM Agree 0
    Rep. Hensarling is one of the GOP Leaders that cannot find a way nor an desire to amend the areas of Dodd-Frank that he may believe require amending. He only wants to burn down the law so that the same issues that assaulted all of us during the 2000-2007 period can be revived.
  • Gail Duchetta | | 15 Apr 2016, 12:47 PM Agree 0
    I believe Dodd-Frank should definitely go away and should have never been passed in the first way. How in the world they ever got so powerful to change the mortgage industry to protect the consumer is unconscionable. All they did was confuse he consumer more and no consumer reads the information they are presented anyway because it's way too confusing. All TRID did was prevent consumers from getting into their new homes in a timely manner and it cost them more money.
  • Nan | | 02 May 2016, 05:28 PM Agree 0
    TRID is crushing me. It's cost me thousands to re-fit for TRID with new computers, programs, training. I've been in the title and settlement business for 37 years. Back in the '70s, you had a 2 page settlement statement that was clear and concise and maybe about another 15-20 documents total. Now we have to prepare these ridiculous CD's that show the subtotals at the top of the column, don't indicate when the first payment is, have this idiotic "TIP" number that doesn't mean anything and doesn't flow smoothly when you try to go over it with the customer. I had a mortgage closer today tell me on a VA mortgage that the borrower couldn't get back more than their EMD, but in reality the borrower was coming out of pocket with cash at closing. You can't tell that easily in looking at the CD. Then there's the foolishness of the buyer and seller not signing the same CD - some title companies don't even allow the sellers and buyers to be in the same room for closing. Ridiculous guff! Closings used to be enjoyable and the buyers and sellers have always met together at the same table exchanging information about the property, etc. - we can't do that anymore. They're trying to break the backs of the big banks, but they're running the small title shops and local reputable mortgage brokers out of business. And the big banks continue to violate the TRID rules - they release the CD's 3 days prior, but right on up until the closing day they're tweaking the numbers. Very frustrating - makes me want to leave the business.
Post a reply