It is safe to say that in 2015 the most prominent topic concerning the bank and nonbank lending industry was the implementation of the TILA-RESPA Integrated Disclosure (TRID) rules, which went into effect Oct. 3, 2015. Despite the amount of “doom and gloom” talks surrounding TRID there have not been major disruptions for most community bankers, according to Joe Gormley, assistant vice president and regulatory counsel at the Independent Community Bankers of America (ICBA).
“There have been hiccups,” Gormley said. “But for the most part, loans are closing and things are moving along.” Gormley added that many of the problems ICBA saw with TRID were because of issues with software lenders depend on to originate loans.
For instance, some technology vendors – as pointed out by Consumer Financial Protection Bureau (CFPB) Director Richard Cordray at the Mortgage Bankers Association’s (MBA) annual conference – had issues rolling out their technology in a timely manner, while others simply chose to not support certain loan products, such as construction-to-permanent mortgage loans, because of the legal uncertainty and varying interpretations about how such loans needed to be disclosed.
In the meantime, as the lending industry continues to adjust to TRID, the CFPB will continue to address its Dodd-Frank-mandated and discretionary rulemakings.
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