Speaking at MBA’s Legal and Regulatory Conference in Washington, DC, Peggy Twohig, CFPB’s Assistant Director, said that the CFPB is generally pleased with what lenders have done to comply with the new Dodd-Frank rules. Interestingly, she mentioned ability to repay and LO comp, but not TRID. I guess it’s a little too soon to tell.
With some exceptions, they also found through their examinations that lenders are not violating unfair and deceptive practices when originating loans. It’s kind of a left-handed compliment to those lenders who having been doing business the right way all along. It’s as if they expected to find numerous violations.
Maybe, I’m just being defensive. However, just because I’m paranoid, doesn’t mean that someone isn’t out to get me.
Ms. Twohig’s statement, “We now have the regulatory structure and oversight in place that will be better for consumers and the mortgage industry in the long run,” gives me pause for concern. Is she saying that now with big brother watching, lenders will stay in line? Oops, there goes my paranoia again…
With all that lenders were hit with after the crash, they came out still standing tall and doing the right thing; but not without a lot of pain and expense. However, there’s still more to come. We haven’t gone through the TRID exams yet and are looking down the barrel of increased HMDA reporting requirements. Who knows what lurks is those shadows?
Regardless, Lenders will keep doing what they do best; servicing the consumers by providing and delivering financing to needy homebuyers and in servicing their loans. They are a resilient and innovative group and the consumers, the country, and our economy are all better off for it.
Unfortunately, it looks as though there are still some challenges on the horizon from CFPB and from HUD and DOJ. Read the rest of the story. (FHA Concerns)
For now Lender’s, take a bow. According to CFPB, so far you’re passing the tests.