Since TRID was implemented in 2015, the CFPB has dealt with a deluge of complaints and suggestions from the housing industry on the disclosures (Loan Estimate and Closing Disclosure.) After working with industry professionals, the CFPB recently released a 283-page proposal of amendments to the law, pleasing some and exasperating others.
The National Association of Realtors got what they wanted most – to allow lenders to share the Closing Disclosure with “third parties” after receiving consumer consent. The implementation of TRID created problems for real estate agents who couldn’t get access to the CD, an issue they hadn’t dealt with before TRID.
Alternately, lenders were disappointed that the proposal didn’t include some of the amendments they lobbied for. Lenders were looking for an amendment that would allow them to correct errors after a loan closing, and a release from liability for technical violations. Additionally, title companies were denied an amendment that would require the calculation for title insurance fees on mortgage disclosures to be more accurate. They say TRID is causing consumers to receive unclear information about their title insurance costs.
Also included in the proposal:
- An amendment to extend the rule’s coverage to co-op units so lenders don’t have to defer to state law. It also adds tolerance provisions of total payment that potentially help lenders reduce liability.
- Proposal also addresses “black hole” problem – when a borrower pushes back a loan’s closing date after the Closing Disclosure is made, forcing the lender to absorb increased costs. Under the proposal, lenders would be able to use the CD to reflect changes in costs that would otherwise trigger issuing a revised estimate.
- Exempting down payment assistance programs from a 1% limit for recording fees and transfer taxes, solving compliance issues for housing finance agencies.
- Technical corrections to affiliate charges
- Calculating cash to close
- Amendments on construction loans
- Clarification on decimal places and rounding issues that have caused headaches
The CFPB has opened the public comment period on the proposal until October 18th.
What do you think of the proposed changes? Let us know in the comments!