The Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure rule, the Home Mortgage Disclosure Act rule, and recent updates to mortgage service rules were presented to Congress. These rules were thoroughly explained in the CFPB’s report to the House and Senate Committees on Appropriations.
CFPB Clarifies the TRID Rule
The TILA-RESPA Integrated Disclosure was introduced in October 2015, and it increased uncertainty and anxiety for mortgage lenders and investors. In an effort to clarify to the implementation process and some obscure aspects of the rule, the CFPB has released plain language guides and illustrated instructions that explain how to complete the Loan Estimate and Closing Disclosure forms. The CFPB also offers webinars that show mortgage lenders how to comply with the TRID rule.
The CFPB will continue to monitor the mortgage industry to determine if further efforts for clarification are necessary.
HMDA Guides Are Now Available
During October 2015, the CFPB also updated its Home Mortgage Disclosure Act rule. As expected, this rule shook the market for home loans. The CFPB responded with several resources and guides to help mortgage industry stakeholders understand compliance requirements. The basic guide includes a summary of the HMDA rule and a timeline of the rule’s implementation. The CFPB also offers a coverage chart that explains the kind of financial institutions that need to comply with the HMDA rule. A full guide on data and reporting is also available for mortgage lenders and other stakeholders.
CFPB Plans to Expedite the Rules With Outreach Operations
To support the implementation of the HMDA rule updates, the CFPB plans to conduct extensive outreach operations to financial institutions that will be affected. Through webinars, informal oral guidance, and market analysis, the Bureau is ready to assist any stakeholders who are having trouble with compliance requirements.
If you have questions about how these new rules may affect your business, reach out to us today!