TRID – Understanding the TILA-RESPA Integrated Disclosure (“TRID”) Volume 8

1 Feb

We will pass along a number of questions and clarifications of TRID every day for the next several days.

The information provided is for informational purposes only and should not be used or relied upon for any other purpose. This information is not intended nor should it be construed as providing legal advice. Tradition Title Agency does not guarantee, and assumes no responsibility for, the accuracy, timeliness, correctness, or completeness of the information. Always seek the advice of competent counsel with any questions you may have regarding any legal issue.

Volume 8

CFPB TRID Rule Implementation Date Finalized: October 3, 2015

On July 21, the Consumer Financial Protection Bureau (CFPB) released its Final Rule regarding the delayed implementation date. The TILA-RESPA Integrated Disclosure (TRID) Rule will take effect on October 3, 2015.

Summary

In addition to finalizing the implementation date, the CFPB made technical corrections to two provisions. The Final Rule is amended so that the Calculating Cash to Close table on the Closing Disclosure (CD) accurately reflects the total amount of cash or other funds the consumer must provide at closing or consummation. The CFPB feels this will facilitate the alignment of the disclosure of Adjustments and Other Credits between the CD and the Loan Estimate (LE). The Final Rule also includes an amendment regarding the requirement for creditors to disclose the basis for any difference between the Adjustments and Other Credits disclosed on the LE to the Adjustments and Other Credits disclosed as “Final” on the CD (only exception is rounding).

In its Final Rule, the Bureau said it received feedback on a number of issues outside the scope of rulemaking and did not address those comments. The CFPB explained why it decided to keep the October 3, 2015 implementation date vs. changing to later in the year, citing it would “impose unnecessary costs on both those segments of industry that have worked hardest to implement on time and on consumers and would be inconsistent with the underlying intent to aid consumer understanding of mortgage loan transactions.”

The CFPB further explained in the Final Rule that a Saturday effective date ““may allow for smoother implementation by affording industry time over the weekend to launch new systems configurations and to test systems. A Saturday launch is also consistent with existing industry plans tied to the Saturday August 1 effective date.”

Relaxed Enforcement Not Addressed

A grace period or relaxed enforcement was not addressed in the Final Rule; however, Director Cordray provided more clarity regarding the “sensitivity” that the CFPB will give lenders for several months on TRID compliance in his recent semi-annual report to the Senate Banking Committee, when he noted that early examinations of the rule “will be diagnostic and corrective,” and that “if we see errors, we will point out what they are and how they should be corrected. We will not be looking to be punitive to people.”

What Does This Mean?

Stay the course! Continue to develop and execute on a plan including:

• be a true partner in change,

• communicate not only with your staff but with your business partners about your level of preparedness, questions you may have for your lender(s), real estate agent(s) and others in the transaction, and

• help find ways in which you can all work through any process

 

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