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NAR Voices TRID Concerns in Comment Letter to CFPB

Jul 07, 2015
Comment Letter Pic

The National Association of Realtors (NAR) has submitted a comment letter to the Consumer Financial Protection Bureau (CFPB) regarding the TILA-RESPA Final Rule (TRID). The CFPB proposed extending implementation of the TILA-RESPA Final Rule until Oct. 3, 2015, and the comment letter praises the CFPB’s proposal and the Bureau’s acknowledgment of the circumstances that make the original implementation date of Aug. 1 an impractical start date.

Earlier this year, NAR urged the CFPB to implement a grace period for those seeking to comply in good faith with the new rules, noting that the Aug. 1 deadline originally set forward came in the midst of a busy homebuying and selling season and the confusion with the transition could negatively impact the process.

“Written guidance is important for effective implementation of any regulation,” said Chris Polychron, NAR president, in the letter. “NAR is generally supportive of efforts by the Bureau to provide additional guidance on any number of issues including RESPA and other regulatory issues; but more official, written guidance is needed in especially sensitive areas of the mortgage closing process.”

The letter was filed with the Federal Register, and the comment period on CFPB’s proposal ends July 7.

In addition, NAR raised additional issues with TRID, issues the association needs feels need to be addressed in order to reduce confusion and additional paperwork, including:

►Clarifying where RESPA and TILA liability apply.
Clarifying whether real estate agents can receive copies of the closing disclosure directly from the lender in order to explain and advance the transaction with their clients.
Resolving conflicts with “simultaneous issue.”
Ensuring that consumers can still choose the agent that closes their transaction without lender interference the same way one chooses their lawyer to represent them and not their opponent.
More information and flexibility on “bona fide financial emergency” and waivers.

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Jul 07, 2015
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