November 21, 2019

CFPB begins TRID assessment

CFPBThe CFPB Wednesday issued a request for information to assess the Truth in Lending Act (TILA)/Real Estate Settlement Procedures Act (RESPA) Integrated Disclosure (TRID) rule. NAFCU met with the bureau earlier this year to discuss the costs and benefits of implementing the rule, as well as credit unions' concerns and recommendations for more guidance.

The Dodd-Frank Act requires the CFPB to review certain rules within five years after they take effect. The bureau will consider relevant comments and other information received as it conducts the assessment and prepares the report. In January, the bureau released two assessment reports: one on its ability-to-repay (ATR)/qualified mortgage (QM) rule and another on its RESPA mortgage servicing rule.

TRID was among credit unions' top compliance issues last year, leading NAFCU to work with the bureau to obtain more clarity and assistance for credit unions on various aspects, including:

  • cure provisions and error corrections;
  • negative owner's title insurance premium;
  • calculating cash to close;
  • second lien loans;
  • pre-approvals/pre-qualifications; and
  • payoff in a purchase money loan.

As a result of NAFCU's advocacy efforts, the bureau has released FAQs addressing corrected closing disclosures and the three business-day waiting period before consummation, model forms, construction loans, and providing loan estimates to consumers.

NAFCU has various resources available on TRID, including two popular blogs: One that explains the bureau's fix to the TRID "black hole," and another detailing "TRID 2.0" compliance deadline related to statutory damages and errors in loan estimate or closing disclosure.

The association will review the request for information and seek credit union feedback to provide the CFPB with comments. The comment period will be open for 60 days once published in the Federal Register.