CFPB Proposes TRID Updates

The Consumer Financial Protection Bureau (CFPB) is offering proposed updates to its TILA-RESPA Integrated Disclosures (TRID) mandate, also known as the “Know Before You Owe” mortgage disclosure rule that took effect last October.

In announcing the proposed changes, CFPB Director Richard Cordray did not admit any error in the initial TRID language. Instead, he insisted that the proposed changes would merely “clarify parts of our mortgage disclosure rule to make for a smoother implementation process.”

The CFPB is offering four specific changes to TRID: proposed tolerance provisions for the total of payments that parallel existing tolerances for the finance charge and disclosures affected by the finance charge; a partial exemption from disclosure requirements to certain housing assistance loans originated primarily by housing finance agencies; the extension of TRID’s coverage to include all cooperative units; and additional commentary to clarify how a creditor may provide separate disclosure forms to the consumer and the seller.

“Realtors have reported challenges gaining access to the Closing Disclosure (CD) ever since TRID went into effect, despite a long history of access to the substantively similar HUD-1," said National Association of Realtors (NAR) President Tom Salomone. "Today, the CFPB acknowledged that concern by making it clear that it is appropriate and accepted for creditors and settlement agents to share the CD with consumers, sellers, and their agents. That’s a significant victory that will help Realtors continue to provide the expert service their clients have come to expect. We appreciate the CFPB’s willingness to reconsider the TRID-related challenges our members face and will continue to monitor the progress on this important issue in the months ahead.”

“MBA appreciates the CFPB’s efforts to update and clarify certain aspects of the 'Know Before You Owe' rule," said MBA President & CEO David H. Stevens. "This particular regulation has a big impact on both borrowers and lenders, so it’s important that the Bureau and stakeholders continually reassess the implementation process to ensure its effectiveness. We look forward to commenting on the rule, and continuing to work with the CFPB to gain further clarity in order to improve this and other rules and regulations.”

The CFPB is seeking comments on its proposed changes by Oct. 18 and is promising that all input “will be weighed carefully before final regulations are issued.”