Do TRID Changes Go Far Enough?

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The comment period for the changes to the CFPB “Know before You Owe” rule, better known to the industry as TRID, was up October 18^th. The industry groups, i.e. MBA, ABA, CBA, etc. all submitted their comments. Did you?

CFPB proposed several changes to the TRID rules based on issues raised by the industry and others. One key element they avoided was any additional relief offered lenders through expanded cure provisions. They chose to stay away from such provisions, although the industry is still clamoring for some clarifications. Maybe, next time.

Among other things, the proposal addresses:

• The “Black Hole”; adjustments to charges when a closing gets delayed(did it go far enough?)
• Retroactive and Prospective effective dates
• New tolerance for the Total of Payments (TOP)
• Tolerance limits when no List of Service Providers is given to the consumer. (Zero tolerance)
• Disclosure of information to the buyer and seller. (Who should get what?)

For more information, you can read the MBA Comments and those of the ABA . You may find these very informative and interesting. These associations put in quite a bit of effort and work on behalf of their members and the industry. Thanks, to both organizations.

What this means, for better or worse (I believe better), is that the TRID rules will be changing. You know that means more programming. Included in the changes are adjustments to how information may be disclosed for the payment streams, construction loans, payoffs, and rounding.  These are things that will require additional programming to many LOS and closing systems.

I suggest you take the time to review the proposed rule (TRID Updates) to get an idea of what might change and how it may affect your current systems and operations. Don’t sit on the sideline until the last minute; get prepared.

Even though the comment period is over, CFPB is always willing to accept input on the rule and its effects on lenders and consumers. Be proactive, get involved, and have your voice heard. You may provide support for the comments and suggestions made by either MBA or ABA, or both. You can also add your input as well.

This is the industry’s chance to make some needed changes and get some important clarifications. Don’t let it pass. It’s your industry; speak up!

About the Author

Michael Vitali

Michael L. Vitali – Independent Consultant to the Mortgage Industry Mike Vitali is an independent consultant to the mortgage industry on matters concerning compliance and mortgage lending. He most recently served as the Senior Vice President and Chief Compliance Officer for LoanLogics, monitoring regulatory developments and their practical implications for the mortgage lending industry. His duties included research, interpretation, and analysis of existing and proposed legislation related to the industry in support of recommendations for policy and/or procedure changes to maintain continued quality and compliance with all applicable laws, rules and regulations, investor requirements, and standard mortgage practices. In his more than 40 years in the mortgage industry, in senior level management, he has gained experience in all areas of mortgage lending, risk management, and compliance. Mike is a past President of the MBA of Greater Philadelphia, is a charter member and was the second Chairman of the MBA of Pennsylvania, and a past board member and Legislative Chair of both associations. He is a recipient of the 1998 Mortgage Banker of the Year Award from the MBA of Greater Philadelphia, and the 2003 Chairman's Award from the MBA of PA, and currently serves on several compliance related task forces for MBA.