Last week, the Consumer Financial Protection Bureau (CFPB) released its proposed amendments to the “Know Before You Owe” mortgage disclosure rule, commonly known as the Truth in Lending Act-Real Estate Settlement Procedures Act Integrated Disclosure rule (TRID). While the proposed rules certainly do not address all of the industry’s concerns, they do clarify a number of issues—primarily by formalizing prior guidance issued by the CFPB through its webinars and compliance guides. Of note, the CFPB has proposed amending the TRID rules as follows:
- Permitting a tolerance for the Total of Payments calculation
- Expansion of the partial exemption for housing finance agencies and nonprofits
- Requiring the provision of the integrated disclosures to all transactions involving cooperative units
- Additional guidance on sharing the integrated disclosures with third parties involved in the origination process
In addition, the CFPB made several other notable changes in a number of areas, including affiliate charges, the calculating cash to close table, construction loans, decimal places and rounding, escrow account disclosures, escrow cancellation notices, lender and seller credits, the list of service providers, payment ranges on the projected payments table, post-consummation fees, disclosure and good faith determination of property taxes and property value, the total interest percentage calculation, and informational updates to the disclosures required by the Loan Estimate.
As the CFPB seeks comments regarding its proposed rules, it is important that those continuing to struggle with implementation of the mortgage disclosure rules provide comments on or before the October 18, 2016 deadline.