National Association of REALTORS® News
CFPB Reiterates it will Focus on Good Faith Efforts for TRID Process…On December 29, 2015, Richard Cordray, Director of the Consumer Financial Protection Bureau (CFPB), sent a letter to the Mortgage Bankers Association to reiterate that CFPB examiners will focus on good faith efforts with the new “TRID” or “Know Before You Owe” process. Loans with minor technical errors should not hold up the mortgage process. The CFPB notes that existing law allows lenders the right to cure mistakes after settlement. It also states that secondary market participants that buy loans from originating lenders will not take on additional liability. Fannie Mae, Freddie Mac, and FHA, which make up a large percentage of the market, have all acknowledged that they will not hold originators responsible for minor errors under TRID, for the time being, in order to ensure a smooth implementation.
NAR Introduces New Report: Housing Opportunities and Market Experience Survey…The new Housing Opportunities and Market Experience (HOME) report was created to monitor consumer sentiment about the housing market. This new quarterly report covers core topics that will be tracked on a monthly basis such as views on housing as a good financial investment, whether homeownership is part of the American Dream, if now is a good time to buy or sell a home and perception of home price changes. Additionally, current topical trends are covered in the HOME survey. Renters are asked about their experience in the mortgage market and difficulties obtaining a home loan and when they will be ready to purchase a home. Each quarter new questions will be added to the survey that reflect timely topics in an ever changing residential real estate marketplace. Lastly, on a monthly basis renters and homeowners are asked about their personal financial outlook which is indexed on a scale of 0 to 100. Data will be reported not only on ownership status, but by age, income, and type of geographic location.
NAR & Treasury Meet About Anti-Money Laundering Efforts…In an effort to combat money laundering in the real estate sector, the Financial Crimes Enforcement Network (FinCEN) at the Treasury Department issued a Geographic Targeting Order (GTO) that will temporarily require certain U.S. title insurance companies to identify the natural persons behind companies used to pay “all cash” for high-end residential real estate in Manhattan and Miami-Dade County. On February 3, NAR General Counsel Katie Johnson will meet with representatives of the Treasury Department and the Financial Action Task Force (FATF), an international body established by treaty to assess member states efforts to combat money laundering and terrorist financing. NAR has argued, and Treasury agrees, that real estate agents and brokers are not in a position to detect money laundering since the funds involved in real estate transactions are handled through regulated financial institutions. NAR has worked closely with FINCEN and Treasury to develop voluntary guidelines for real estate professionals to identify signs of money laundering. NAR has promoted this information among its members through numerous website links, workshops at national meetings and various publications.