Regulatory compliance professionals at community banks will most likely spend a significant amount of their time meeting Truth-in-Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) requirements during the next 12 months, according to a recent Wolters Kluwer Financial Services survey.
Concerns tied to meeting TILA and RESPA requirements are likely to grow at community banks given a resurgence of mortgage lending at these institutions. Lower interest rates, less competition and an enhanced Federal Housing Administration (FHA) loan program have led to a spike in mortgage lending activity at community banks in the past year.
In fact, the Wolters Kluwer Financial Services survey found that 43 percent of respondents said mortgage lending was one of the three areas of their business they planned to grow the most in the next 12 months. The others were commercial lending at 49 percent and consumer lending at 37 percent.
“The survey results confirm that recent changes to TILA and RESPA will indeed place a significant compliance and operational risk management burden on community banks in the months to come,” said Ken Newton, executive vice president of Banking for Wolters Kluwer Financial Services. “As these banks increase their presence in the mortgage space, they’ll face a number of challenges in efficiently complying with these regulations. Those who will succeed will embrace their new obligations and be proactive in their compliance, making it a critical part of their overall lending workflow.”
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Hello I have two questions I'm hoping you can answer.
ReplyDelete1. Is a SELLER required to sign a revised HUD-1 due to a technical error?
2. Is a SELLER required to receive a revised HUD-1 due to a technical error?
Long story short, the wrong property, loan, and payoff amounts are on the original HUD-1 Settlement paperwork signed by all parties at the closing. It has taken 8 months for the bank to reverse their error and pay off the correct property, but neither I (the seller) nor the buyers have been asked to sign nor have we received non-signed revised HUD-1 paperwork. No one - not even the CFPB or HUD themselves can answer these two questions.
Any help is MUCH appreciated.