Posted On July 11, 2017
In April 2016, the Consumer Financial Protection Bureau (CFPB) opened discussion on updates to the TILA-RESPA Integrated Disclosure (TRID) rule or the “Know Before You Owe” rule, after the mortgage industry called for further clarity. In July 2016, the CFPB released the proposed updates and gave the industry roughly three months to submit comments on the proposal. The CFPB also released a limited follow-up proposal to address when a creditor may use a Closing Disclosure instead of a Loan Estimate.
Last week, the CFPB officially released the finalized updates to the rule. CFPB Director Richard Cordray explained in a statement, “our updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process for lenders and consumers.”
Among the updates to the 560-page TRID rule are amendments to tolerances for the total of payments, housing assistance lending, cooperatives, and privacy and sharing of information. The final rule will be effective 60 days after it is published in the Federal Register. Mandatory compliance date is set to be October 1, 2018. In regards to the limited follow-up proposal to address when a creditor may use a Closing Disclosure instead of a Loan Estimate, comments are due 60 days after its publication in the Federal Register.
To review all of the details of the proposed changes, please visit consumerfinance.gov.