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CFPB reconsidering TRID

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Mortgage Professional America | 02 May 2016, 06:30 AM Agree 0
CFPB Director Richard Cordray has promised to take another look at industry concerns over the controversial rule, as well as clarify some of the organization’s informal guidance
  • Time to break this chain! | | 02 May 2016, 12:00 PM Agree 0
    Yet the greedy lenders and real estate Broker still manipulates the system with these shady unethical kick backs called marketing agreements. The unknowing borrower then goes to the so-called in-house lender and gets taken to the cleaners with a higher rate. This to me is a bigger issue in our industry versus crying about trid. Our industry will continue to be sleazy as long as these are allowed. What a joke!
  • Anonymous | | 02 May 2016, 01:55 PM Agree 0
    Exactly. MSA and also builder "incentives" to use their in house lender and title company. I have had borrowers proudly tell me about the special $20k incentive they got from the builder for using the in-house lender, only to be horrified when they learn that they paid upfront fees they would not have paid with me, their rate was almost half a point higher than mine (which over 30 years is 4x the value of the incentive), AND the kicker is those incentives are available by law to every single buyer of those homes no matter who they use, even if they pay cash!! It is so bad that our state commerce dept is actively urging us brokers to report builders here in MN whenever we learn about these examples. None of these builders will tell the buyers that they have the right to these incentives no matter what, yet we all have to over disclose pennies on our transactions with TRID. This needs to stop. It has to be in bold print like the rest of our disclosures.
  • Anonymous | | 02 May 2016, 02:03 PM Agree 0
    There definitely needs to be some Movement on that front.
  • Mortgage Banker | | 03 May 2016, 05:01 PM Agree 0
    Agreed, MSA's need to be on the top of the CFPB's list. Some very large lenders out there taking advantage of the CFPB's ignorance on how to isolate this problem. Bottom line is the lenders are paying huge MSA agreements and the real estate offices taking them are just as guilty. All the CFPB needs to do is ask a simple question, if the marketing agreement to the real estate firm is for $10,000 please show me the invoices for $20,000 in joint advertising. crickets.....

    There needs to be some Movement by the CFPB on this matter.
  • Voice or Reason | | 03 May 2016, 07:01 PM Agree 0
    What we need is to get rid of the CFPB as it is nothing more than a name that sounds good to the public while in reality the organization through Richard Cordray protects the mega-to-big to fail lenders and as said above the greedy real estate brokers and builders. This disaster known as TRID has done nothing but confuse and enrage the consumer who then vent their anger on the mortgage officer trying to earn an honest living. Something that has become damn hard to do with all these regulations on what I can earn per file. The CFPB has greatly increase's my costs to produce a quality mortgage for sale to secondary market while cutting my income to what was already razor thin margins. In fact, that's why the big banks are leaving the business. No ability to make a profit combined with devastating risk if the CFPB decides you broke a rule. Does anyone remember back in 2010 when the CFPB essentially told the lending industry, "we don't know what the exact rules are going to be yet, but when we do, we reserve the right to retroactively prosecute! That's when the money dried up completely for over 18 months. Dealing with them is, "heads they win - tails you lose". We need to get rid of Dodds - Franks. Shut down the banking system over a 3 day weekend so that the US Treasury can do a fair and complete audit. Then we need to re-enact Glass-Steagal that served this country since 1933 until Bill Clinton and his buddies Robert Ruben and Allen Greenspan killed it for good during his term. Shortly thereafter was the Savings and Loan Crisis. We should have learned from that but it took two more for ordinary citizens to finally pay attention and see something is grievously wrong. The same people that are going to try to put another Clinton in the White House again...God Help US!
  • Anonymous | | 04 May 2016, 12:01 PM Agree 0
    As a licensed Title Agent in southeast Florida, I can assure you the TRID law clearly is not helping the consumer understand their mortgage and/or closing costs. I had one client exclaim when he received the Closing Disclosure from the lender, "I need to be a lawyer to read this thing". I think that says it all.
  • Anonymous | | 07 May 2016, 02:22 PM Agree 0
    I agree for the most part with what all of you are saying. However we as the officers/agents are the educators. What the consumer chooses to do with that knowledge is up to them. If the consumer is looking to buy a new house and get $20k incentive and spend an additional $60k over the life of the mortgage. That's on them, we can't protect everyone and especially those who don't want to listen. The response we will get is, "well that's like $30 more a month" The consumers that were alive in the last 15 years are much more educated now because of the crash. The new buyers, not so much. Its the same with buying a car (I can put less down, go longer term, and have a nice payment) They either understand and don't care or understand and don't care. I agree there should be regulations on mortgages. At the same time though, these regulations need explanations that the average every day person can understand. I could go on for hours about this but I won't. I just hope that at some point there is a solid set of guidelines that everyone understands and follows.
  • Lm | | 15 Oct 2016, 06:42 AM Agree 0
    So correct on these MSA. In my town they are blatantly obvious. The builders/agents only bring up their preferred lenders who by the way charge high fees that gets passed on to the sellers and buyers. Smart buyers realize the cost get passed on to the purchase by increasing sales price. If the buyers choose their own lenders they are penalized by lowering seller contributions, taking incentives away from buyers. (Usually new homes). This industry is full of fraud.
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