Mitch Kider Interview “What to expect after TRID”
Mitch Kider was our special guest at the MMLA conference this year. I just want to say thank you to Mitch for spending sometime with me. (I apologize for the lighting.)
Mitch Kider Interview, Edited for read ability
Dave: Hello everyone Dave Sullivan here for the MMLA membership committee with…
Dave: Thank you for coming out to northern Michigan. This is a beautiful part of the state. We certainly like to have you out here. The October third TRID implementation date is coming up, what kind of things can we anticipate when TRID comes to fruition?
Mitch: TRID comes to fruition October third, lenders need to be ready for it. I think that it will take some time to get used to it, quite frankly but I think the regulators at The CFPB as long as the lender is acting in good faith, and making good faith effort, I think they will be fine. I think it will be quite some time before the CFPB begins to really scrutinize it and audit for it.
Dave: What advice would you give mortgage lenders to survive this craziness that is going on with the CFPB?
Mitch: There is a lot of craziness going on with the CFPB. They certainly have a bent that leans away from lenders they think that mortgage servicers for example are not fully doing their job and originators have some origination problems as well. To survive in today’s environment you have to have an excellent compliance management system and you need to make compliance your number one priority.
Dave: It really comes back to how much of an effort, how much time and resources lenders are dedicating to their compliance effort.
Mitch: That’s absolutely right, it is the effort, the resources. It is making sure that everyone in the company is a part of that as well.
Dave: I think many times as lenders go through their day they forget that everyone in the organization needs to know what the compliance policies are.
Mitch: That’s absolutely right, but believe me when the CFPB does a supervisory examination, they talk to everyone from the top to the bottom. They need to be sure everyone understand their role in compliance.
Dave: One of the things we talked about today was the RESPA interpretation by the CFPB and their interpretation the 40 year old RESPA laws. What should lenders be concerned about?
Mitch: It comes down to this, for a period of 40 years RESPA section 8 has been interpreted the same way. That is 8c especially 8c2 is an exemption to 8a, as long as you are paying someone that is referring business to you. If you are paying them for the value of other goods or facilities or if you are paying them for bonafide compensation for services they provide, then you are ok. The CFPB says no. If in fact you are getting referrals the CFPB says that you cannot be in a business relationship with that party. One has to tread very lightly over here, and recognize that the CFPB believes that any payments you make, even if they are legitimate payments, for other services rendered that they are being made to parties that are referring business to you, it violates section 8 of RESPA.
Dave: Thank you for coming out Mitch, how can people reach out to you or follow you?
Dave: Are you on Twitter?
Mitch: I am on twitter, my handle is @mitchkider
Dave: Thank you.
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