RiskTech Forum

CFPB Releases Amendments To TRID Rule

Posted: 1 August 2016  |  Source: CFPB


The Consumer Financial Protection Bureau (CFPB) today proposed updates to its Know Before You Owe mortgage disclosure rule. The proposed amendments are intended to formalize guidance in the rule, and provide greater clarity and certainty. The changes proposed today would augment implementation of the Know Before You Owe rule, which took effect last year, and help facilitate compliance within the mortgage industry.

“Getting a mortgage is one of the most important financial choices a consumer will ever make. The Bureau’s rules are designed to make sure consumers have the information they need, in a form they can easily understand and use, before making the decision,” said CFPB Director Richard Cordray. “Our proposed updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process.”

The Know Before You Owe mortgage disclosure rule took effect Oct. 3, 2015. The CFPB’s rule created new, streamlined forms that consumers receive when applying for and closing on a mortgage. The rule put in place requirements about when the new forms are given to the consumer and limits to changes on the original loan estimate. In addition to clarifications and technical corrections, the proposed amendments address a handful of other issues within the rule. Proposed changes include:

The CFPB seeks input from a wide range of stakeholders and invites the public to submit written comments on the proposal. Comments are due Oct. 18, 2016 and will be weighed carefully before final regulations are issued.