According to what nationalmortgagenews tells MHProNews, many lenders are still waiting for updates on their loan origination systems, said Robert Davis, a senior vice president of the ABA. “As we anticipated, our bankers are struggling to comply in part because the systems being provided by vendors are incomplete or inaccurate,” Davis said in a statement. “The causes of many of these systems problems are ambiguities in the TRID rule that require resolution.” In the survey of 548 banks, more than three-fourths are still awaiting updates to their loan origination systems (LOS).
Lenders had requested the Consumer Financial Protection Bureau (CFPB) delay implementation a second time beyond Oct. 3, but the agency declined. Now, Davis said the CFPB needs to resolve some of the issues and questions lenders have in order to smooth out the LOS delivery problems.
The ABA discovered many banks quit making construction loans, home equity loans and adjustable-rate mortgages because of a lack of “adequate compliance direction.” ##
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