CFPB Publishes Final Rule Amending TRID
On April 26, 2018, the Consumer Financial Protection Bureau (CFPB) published a final rule adopting changes proposed in 2017. The new rule takes effect 30 days after publication of the final rule in the Federal Register.
The mortgage industry has long awaited this rule to address what has been referred to as the “black hole” in the TILA-RESPA Integrated Disclosure Rule (TRID). The issue, an intersection of timing rules regarding providing Loan Estimates and the initial Closing Disclosure (CD), caused uncertainty in the marketplace which has led to increased costs for all consumers and, in some circumstances resulted in loans being denied that would have otherwise been approved.
This final rule specifies that creditors may use CDs to reflect changes in costs for purposes of determining if an estimated closing cost was disclosed in good faith, regardless of when the CD is provided relative to consummation. The rule also reiterates a valid justification must exist in order for the increased closing cost to be passed on to the consumer.
The rule can be viewed in its entirety here: https://files.consumerfinance.gov/f/documents/cfpb_tila-respa_final-rule_amendments-to-federal-mortgage-disclosure-requirements.pdf
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