TRID updates and latest proposal published in Federal Register

Updates effective Oct. 10

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, will officially take effect on Oct. 10, 2017.

The Federal Register published the rule on Friday, marking the 60-day period until the amendments take effect.

But, it’s important to note that, despite the effective date, the CFPB set a mandatory compliance date for Oct. 1, 2018.

The bureau released the updates back in July, answering industry calls asked for greater clarity and certainty on the controversial rule.

The new amendments are intended to formalize guidance in the rule, and provide greater clarity and certainty.

“A mortgage is one of the largest financial decisions a consumer will ever make, and CFPB’s rules help ensure consumers have the easy-to-understand information they need before making a decision that will significantly impact their financial lives,” CFPB Director Richard Cordray said at the time the updates were finalized. “Our updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process for lenders and consumers.”

The Federal Register also published the bureau’s follow-up proposal, setting the deadline for comments on Oct. 10.

The CFPB is looking into when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance.

The CFPB will weigh comments carefully before the final regulation is issued.

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