Since TRID came into effect last October, all areas of the real estate industry have been scrambling to meet compliance according to the new rules. Now, the Consumer Financial Protection Bureau has released a notice to many banking and financial trade groups regarding changes they plan to make on TRID, which they refer to as the “Know Before You Owe” rule.
In the notice, the CFPB acknowledges the challenges that businesses have faced in adapting to TRID. They also acknowledge that they may not have offered enough support or clarity to assist in meeting compliance. The new changes will serve to do just that. This should be seen as a positive thing. Many in the industry have feared that the CFPB would mainly be regulating the changes to TRID through fines and punishment. This is a response to criticism that the CFPB does not care about feedback from the industry and is slow to respond to problems.
The CFPB is asking for feedback from stakeholders in the industry as they organize meetings over the spring to determine exactly what changes will be made. There are resources available on their website for the various problems that companies have been experiencing regarding TRID and suggestions to improve it.
As of yet, we do not know what changes will be made, or what kind of impact they will have on the operations of mortgage transactions. Once they have collected input from those working in the real estate industry, they will determine what they believe is the right course of action.
If changes are made in accordance with the issues that the industry has with TRID, we can expect the Closing Disclosure to be adapted. The biggest problem that real estate agents and brokers have been experiencing involves getting access to the CD. Agents need access to the CD, but many lenders have been reluctant to provide it because they are worried about protecting their customers’ private information. As a result, this has caused discrepancies on TRID loans, leading to them being rejected, and the closing process as a whole to be delayed.
What we do know is that over the next few months the CFPB will be meeting to get feedback. In the summer they will release a notice of potential changes they will make to TRID, followed by another period of public commentary. After this, another draft will be drawn up, which may or may not be subject to more feedback from industry stakeholders. Ultimately a final draft will emerge and be put into effect sometime in 2017.
No matter what happens in regards to TRID, Legend Title will be here to support Denver’s realtors and lenders with streamlined title and escrow services. To find out more about how our services increase CFPB compliance and streamline closings, please visit our homepage.