The Consumer Financial Protection Bureau plans to provide more certainty to mortgage bankers and service providers about the TILA-RESPA integrated disclosure rule.
In order to help the industry with TRID, the CFPB implemented a support web page that includes resources such as archived webinars, a compliance guide
and fact sheets.
In addition, a cross-bureau team meets on a weekly basis to discuss feedback from the mortgage industry and other related industries to identify appropriate responses.
That was according to a letter to various trade groups Thursday from CFPB Director Richard Cordray.
While he recognized industry concerns, the director cited data from Ellie Mae Inc.’s Origination Insight report indicating that closing are now shorter than they’ve been for the past year, while closing rates are the highest on record since at least August 2011.
“We recognize that the implementation of the Know Before You Owe rule poses many operational challenges,” the letter stated. “We also recognize that implementation is particularly challenging because of the diversity of participants, from small to large financial institutions, mortgage brokers, real estate brokers, and title companies, through warehouse lenders, investors, due diligence firms and ratings agencies, whose perspectives may vary as to what compliance under the rule requires.”
Cordray acknowledged the benefit of incorporating some of the CFPB’s informal guidance — including webinars and the compliance guide — into the regulation text along with commentary.
He also indicated that the bureau believes that certain parts of the text of the regulation could use adjustments to provide greater certainty and clarity.
So the CFPB is drafting a notice of proposed
rule making on the Know Before You Owe rule that it plans to issue by the end of July.
The Mortgage Bankers Association
seems happy with Cordray’s letter.
“MBA is very pleased with CFPB’s letter and believes the approach laid out should provide a swift path to issuing a final rule that will give lenders, the secondary market and consumers the clarity and consistency of disclosures the market needs,” MBA Senior Vice President of Residential Policy and Member Services Pete Mills said in a written statement. “In the meantime we appreciate that the bureau’s ‘diagnostic period’ for the Know Before You Owe rule will continue to accommodate good faith compliance efforts.”
Also applauding Cordray’s letter was the American Bankers Association.
“The agency’s interim steps and guidance efforts are welcome, and we agree that several issues will be best resolved in the rule-making process that is being initiated,” ABA President and Chief Executive Officer Rob Nichols said in a written statement. “We are particularly pleased that the notice of proposed rule making is on a fast track, which will accelerate and strengthen strong compliance regimes.”
Another statement from the American Land Title Association indicated that the group considers the Closing Disclosure to fall short when it comes to title insurance costs and to be inconsistent with the CFPB’s mission to enlighten consumers about closing costs.
“ALTA appreciates Director Cordray and the CFPB stepping up to the plate and committing to provide more clarity on TRID,” ALTA CEO Michelle Korsmo said in the statement.
