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Politics & MoneyMortgage

Industry responds to updated TRID rule

MBA, NAFCU, NAR weigh in on updates

After much anticipation, industry associations weighed in on the Consumer Financial Protection Bureau’s finalized updates to the Know Before You Owe mortgage disclosure rule, also known as the TILA-RESPA Integrated Disclosure rule.

The new updates, after all, were meant to answer cries from the same associations for more clarity and certainty around TRID.

Up until this finalized update, the industry was continuously told that examiners would be squarely focused on whether companies made good faith efforts to come into compliance with the rule.

But, the industry urged the CFPB that it needed more clarification in order to properly and safely implement the major new rule.

Assessing this new 560-page updated rule will take time though.

“MBA appreciates the CFPB’s efforts in amending the Know Before You Owe rule to address several significant questions that have been raised for some time by our industry. This is an extensive rule and we intend to review it closely with our members,” said David Stevens, president and CEO of the Mortgage Bankers Association. “MBA looks forward to continuing to work with the CFPB on rules and guidance to provide greater clarity to better protect consumers.”

And as far as the new proposal on the table over the Closing Disclosure form, the MBA stated, “We note that CFPB has proposed a new rule to deal with issues concerning needed revisions to the Closing Disclosure during the mortgage process that we will carefully review and comment on as well.”

Meanwhile, the National Association of Realtors President William E. Brown, gave particular attention to the new proposal since they’ve been focused on the issue. When the bureau first released the proposed changes TRID, NAR considered the updates on the Closing Disclosure form a significant victory.

Now, on the new proposal, Brown said, “Consumers depend on their real estate agent to help guide them from pre-approval to closing, but that job is significantly harder when an agent is denied access to the closing disclosure. The CFPB has again made clear that lenders may share disclosures with third parties, including real estate agents. This was common practice for years in advance of Know Before You Owe, and Realtors are eager to see that cooperative atmosphere take hold once again.” 

The National Association of Federally-Insured Credit Unions took a slightly different tone on the new updates to TRID. "As the only financial services trade to oppose any CFPB authority over credit unions, NAFCU has long pressed the bureau to improve the TRID rule and related guidance," said NAFCU Vice President of Regulatory Compliance Brandy Bruyere. "NAFCU will continue to push for more clarity and transparency wherever possible in the CFPB's approach to TRID compliance."

As it stands, the final rule is effective 60 days after it is published in the Federal Register. However, the mandatory compliance date is Oct. 1, 2018.

And for the limited follow-up proposal, comments are due 60 days after its publication in the Federal Register and will be weighed carefully before a final regulation is issued.

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