This story appeared in Bank Digest.
In an April 28, 2016, letter, the Consumer Financial Protection Bureau has informed a number of trade groups of its efforts to address the groups' concerns regarding compliance with the "Know Before You Owe" mortgage disclosure forms. The CFPB's Know Before You Owe initiative culminated in a final rule that integrated a number of disclosure forms required by the Real Estate Settlement Procedures Act and the Truth and Lending Act. The mortgage lending industry commonly refers to the integrated disclosure requirements as TRID.
In its letter, the CFPB recognized that "the implementation of the Know Before You Owe rule poses many operational challenges" and said it wants to "continue the collaboration and engagement toward solutions and provide guidance where we have to the ability to do so." The bureau also noted that it has begun to draft a Notice of Proposed Rulemaking on the Know Before You Owe rule to provide "greater certainty and clarity" and hopes to issue the proposal in late July. As part of this process, the bureau intends to have one or two meetings before the proposal is issued.
Senator Bob Corker (R-Tenn), who had previously written to CFPB Director Richard Cordray requesting increased clarity regarding the TRID rule, said he commended Cordray "for taking this important step to provide more clarity. The TRID rule is impacting millions of Americans, and we must ensure it is implemented in the most transparent and effective manner possible."
Representative French Hill (R-Ark) said he was "glad Director Cordray acknowledges the problems with implementing TRID, but it should not have taken 7 months to do so."