'Know Before You Owe' Changes Finalized: CFPB Amends TRID to Clarify Loan Estimate and Closing Disclosure Requirements
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'Know Before You Owe' Changes Finalized: CFPB Amends TRID to Clarify Loan Estimate and Closing Disclosure Requirements (MLBO71E)
Understand Significant Changes in the TRID Final Rule and the Proposal on Free Tolerance Issues
Mortgage lenders continue to fear violating the disclosure requirements of the TILA-RESPA Integrated Disclosure Rule (TRID). While the Consumer Financial Protection Bureau (CFPB) provided informal guidance on certain issues prior to the October 2015 effective date of the rule, ambiguities remain that impact accurate delivery of the Loan Estimate (LE) and Closing Disclosure (CD) in connection with applications for closed-end, real estate-secured mortgage loans.
The CFPB recognized that regulatory amendments were necessary to memorialize this informal guidance regarding the LE and CD to reduce the risk to lenders of TRID violations. On July 29, 2016, the CFPB issued a Notice of Proposed Rulemaking (NPRM) to propose a number of amendments to TRID that would formalize certain of its informal guidance points and make other technical changes to the rule. Nearly a year later, on July 7, 2017, the CFPB announced its final rule to amend TRID regulations and Official Interpretations. For the most part, the CFPB has finalized its proposals with modifications on certain issues in response to public comments. The CFPB has also declined to finalize certain proposals and is offering a new proposal with a 60-day comment period on the unresolved “black hole” issue.
Join this session with attorney Holly Bunting and gain a strong working knowledge of the significant changes in this final regulation, understand how these changes will improve on the challenges that lenders currently face in providing accurate LEs and CDs to consumers, and become familiar with a new proposal to address fee tolerance issues.
This session will cover:
How the CFPB is addressing the “black hole” for resetting tolerances
Clarification regarding the sharing of borrower and seller CDs with parties to the transaction
Guidance on completion of the disclosures for construction-to-permanent mortgage loans
Tolerances applicable to closing costs where a written list of settlement service providers is required
Changes to certain disclosures on the CFPB’s LE and CD forms, including changes to the Cash to Close table and the disclosure of rounded numbers and percentages
Effective date and mandatory compliance date
Issues not addressed in the final regulation
A summary of other significant clarifications to address ambiguities and resulting challenges under TRID
Holly Spencer Bunting is a partner in Mayer Brown’s Washington, DC office and a member of its Consumer Financial Services group. She practices in the areas of residential mortgage banking and consumer finance and concentrates on issues of federal and state regulatory compliance and enforcement...
Disclaimer: The content herein does not represent any association between CFPB and Eli Financial LLC. CFPB neither endorses any product of Eli Financial LLC nor warrants accuracy of the content hereto.