ATS Secured hosted a webinar today, “TRID Buyback Risk: Involve Investors Early,” featuring Richard Horn, Former CFPB Senior Council.
TRID Buyback Risk Liability
Horn began by speaking on the different TILA and RESPA requirements, and the liability for the mortgage lender if those requirements aren’t met. Under RESPA, there is no private right of action for integrated disclosures, though there is administrative enforcement. Under TILA the liability list gets much longer, including:
- Potential civil liability/private right of action (borrower lawsuits)
- Civil Liability applies to disclosure requirements under TILA Part B
- Statutory damages for certain disclosure requirements under TILA Part B
- Actual damages for others
- Potential assignee liability for investors
- Violations apparent on the face of the disclosures
- Difference between TILA general interpretive authority under TILA Part A and specific statutory provisions under Part B
The CFPB states that determination of liability is up to the courts, and that the preamble discussion of the statutory authority used for each provision provides sufficient guidance for industry, consumers, and the courts regarding liability.
That’s not all, however, after October 3rd, there is a whole new host of potential disclosure violations subject to TILA assignee liability. All of these potential liabilities are making real estate investors nervous about buying mortgages on the secondary market.
What do investors expect from technology and data? Do they want GSE’s Uniform Closing Dataset? What about the dataset for the Loan Estimate, the title software data, compliance data or MISMO 3.3? It is essential to start communicating with investors now in order to understand their interpretations of these disclosures.
Interested in learning more from this webinar? Download the full webinar, complete with Q&As, today!
Want to make your mortgage process easier and more accurate? Contact ATS Secured today.