CFPB issues new TRID proposals

While the implementation of the TILA-RESPA Integrated Disclosure Rule (otherwise known as TRID) began nearly a year ago, the questions  haven’t stopped rolling in since.

Many of you have expressed your frustrations with not being able to receive a copy of your client’s Closing Disclosure directly from the lender. While your clients are permitted to provide you with a copy, it was difficult to know whether you would receive it quickly enough to review it for potential errors.

The good news is that the Consumer Financial Protection Bureau has heard your concerns – expressed by many individual Realtors® and by NAR – and is proposing changes to the TRID regulations which would permit this to happen.

The CFPB has pointed out to lenders that certain exceptions to the general privacy requirements are permitted when it is usual or appropriate to provide the customer’s agent with a record of the transaction. “Based on its understanding of the real estate settlement process, the [CFPB] understands that it is usual, appropriate and accepted for creditors and settlement agents to provide the combined or separate Closing Disclosure as a confirmation, statement, or other record of the transaction, to consumers, sellers, and their agents…” The proposal, if adopted, will give more formal instruction to lenders on how to modify the Closing Disclosure, so that it can be provided to third parties involved in the transaction without revealing the consumer’s non-public personal information, or to provide separate Closing Disclosures to each party.

Other proposed amendments to the current regulations are pending, including the creation of tolerances for the total payments and a uniform rule with regard to cooperative units.

It’s important to remember that these are proposals that haven’t yet been formally adopted. The proposals are currently in the public comment period; your comments should be given to the CFPB, preferably electronically, by emailing [email protected], and in the subject line of the email, put CFPB-2016-0037 , by Oct. 18, 2016. It’s possible that lenders will loosen their rules in the meantime, but some may choose to be extra careful until any changes are fully implemented, so continue to review the provisions of PAR’s Listing Contract and Agreement of Sale that direct clients to share those documents with you.