The National Association of Realtors (NAR) has called on the Consumer Financial Protection Bureau (CFPB) to be more cognizant of the problems that consumers have experienced since the implementation of the TRID rule last October.
In a letter to CFPB Director Richard Cordray’s recent Notice of Proposed Rulemaking relating to a potential TRID rewrite, 2016 NAR President Tom Salomone stated that consumers have responded poorly to the TRID-induced changes in the origination process, expressing increased frustration over increased costs and negative impacts on credit access. Salomone urged the CFPB to offer a clarification on how lenders share the Closing Disclosure (CD) with third parties if the lender receives a consent form from the consumer, and he also requested additional guidance on revising the CD to reflect changes in circumstances while extending post-consummation timelines to correct minor TRID errors.
“Since the rule was implemented, 54.5 percent of real estate professionals who were surveyed now have problems getting access to the Closing Disclosure,” Salomone wrote. “Real estate professionals are even more likely to have issues getting access to the Closing Disclosure when settlement is delayed. When real estate professionals do get access to Closing Disclosures, 50 percent have reported finding missing concessions and incorrect names or addresses, incorrect fees, commissions, and taxes. While consumer financial privacy issues fall under Regulation P and did not change with Know Before You Owe, NAR has heard that lenders feel the new rule exposes them to additional liability under the Truth and Lending Act if they provide real estate professionals with copies of the Closing Disclosure. This is an unintended consequence of the rule that needs clarification from the CFPB.”
