1. Mortgage Industry Changes That May Impact Closing
37th Annual Business Meeting & Education Conference
Mortgage Industry Changes That May Impact Closing
Rick Hill - Mortgage Bankers Association
Penny Reed - Wells Fargo
May 20, 2017
Rick introduce speakers
This session will discuss activities that may affect the lending community and possibly the closing process

2. Mortgage Industry Activities
Know Before You Owe (KBYO)/TILA-RESPA Integrated Disclosure (TRID) Rule Update
CFPB Home Mortgage Disclosure Act (HMDA)
GSE Uniform Residential Loan Application
Digital/Electronic Mortgages
Electronic and Remote Notary
Cybersecurity
State Level Activities
Rick cover the agenda

3. Adding tolerances for total payments Uniform rule on coops
Know Before You Owe (KBYO)/TILA-RESPA Integrated Disclosure (TRID) Rule Update
Adding tolerances for total payments
Uniform rule on coops
Guidance on sharing disclosures
CFPB is not proposing to change the disclosure requirements regarding title insurance
Rick cover this slide
We are not sure when the revised rule proposal will be issued.

4. CFPB Home Mortgage Disclosure Act
Need to report a lot more information about the mortgage transaction
New/changed Government Monitoring Information (GMI)
Now called Demographic Information
New identifiers for lender and loan
New supplemental URLA
New form to sign
Marked out section on old form
Not exactly sure when lenders will utilize the new supplementation form
New URLA coming – see next slide
Rick do introduction that indicates that there is interaction between HMDA and the URLA.
Penny lead on this slide, with comments from Rick
Lenders are sensitive to the new data points. Not sure what it may indicate about Fair Lending. Not sure if publicly disclosed information will provide business sensitive information to competitors.

5. Mortgage Bankers Association
10/29/2017
HMDA Data Points
Application/ Loan Information
Applicant Information
Underwriting Information
Loan Features/Pricing
Property Information
Identifiers
Unchanged
Application Date
Loan Type
Income
HOEPA Status
Property Location
Updated
Loan Purpose
Preapproval
Loan Amount
Reason for Denial
Action Taken/Date
Ethnicity
Race
Sex
Rate Spread
Type of Purchaser
Lien Status
Construction Method,
Occupancy Type
New
Application Channel
Reverse Mortgage
Open-end Line of Credit
Business or Commercial Purpose
Age
Credit Score
DTI Ratio
Combined LTV Ratio
AUS
Loan Term
Total Loan Costs or Total Points and Fees
Origination Charges
Discount Points
Lender Credits
Interest Rate
Prepayment Penalty Term
Introductory Rate Period
Non-Amortizing Features
Property Address
Property Value
Manufactured Home Info (Secured Property Type and Land Property Interest)
Total Units
Multifamily Affordable Units
MLO NMLS Identifier
Legal Entity Identifier
Universal Loan Identifier
Rick can quickly cover.
Table provided by MISMO
Mortgage Bankers Association

6. GSE Uniform Residential Loan Application
New format
Lots of new data
New demographic data points
Must sign at closing
No implementation date announced for full URLA
Supplemental URLA will need to be used in 2018
Not sure if Housing Agencies (e.g. FHA) will coordinate on implementation
Include link to website.
Include copy of URLA in presentation?
Rick lead, with comments from Penny
Borrowers may have questions about why the GMI data is collected on the URLA
They may have questions about the marked out section of the Old URLA
Lenders are sensitive to the new data points. Not sure what it may indicated about Fair Lending. Not sure if publicly disclosed information will provide business sensitive information to competitors.
Escrow agents may see the old URLA, supplemental URLA or the new ULRA for different loans during the same period of time.

7. Digital/Electronic Mortgages
Consumers are demanding a better experience
Focus on designing the process for the consumer
Not requesting documents from borrower that can be obtained directly from trusted sources (e.g. income, assets, employment)
Mobile
Omni-channel – use PC, phone, & tablet to complete a single loan transaction
Portals for lender, closing agent and borrower communications
Integrated education
Electronic closing
Electronic/Remote Notary
Penny lead with comments from Rick

8. Electronic and Remote Notary
Electronic notary vs. Remote notary
Status of electronic notary adoption
Status of remote notary adoption
Penny lead with comments from Rick

9. Joint Agency (OCC, FDIC, Federal Reserve) Cybersecurity RFI
NY DFS
Joint Agency (OCC, FDIC, Federal Reserve) Cybersecurity RFI
FFIEC Cybersecurity Risk Assessment
Rick lead on this – is tied to the 3rd party oversight issue
Important because requirements trickle down. Creates additional reasons for 3rd party oversight.
NYDFS requires a lot – encryption, etc.
Joint agency effort hopefully will result in less divergence among regulators regarding requirements. We are trying to get states to participate with the federal effort.
We are trying to get regulators to stop blaming the victims.

10. State Level Activity
Penny lead on this

11. What Else?