CFPB Officially Releases Finalized Updates to TRID

On July 7, 2017, the Consumer Financial Protection Bureau (CFPB) issued a final rule regarding mortgage disclosure requirements. Known as the “Know Before You Owe” rule, and referred to within the industry as TRID (TILA-RESPA Integrated Disclosure), the final rule responds to requests for clarity since TRID went into effect in October 2015.

The updates, in addition to formalizing guidance and providing clarity, cover several areas including tolerances for the total of payments and privacy and the sharing of information. Along with the final rule, the CFPB also released proposed amendments to the disclosure requirements. The proposed amendments relate to good faith disclosures of estimated closing costs, and would specifically permit creditors to “compare charges paid by or imposed on the consumer to amounts disclosed on a Closing Disclosure, instead of a Loan Estimate…regardless of when the Closing Disclosure is provided relative to consummation.”

“A mortgage is one of the largest financial decisions a consumer will ever make, and CFPB’s rules help ensure consumers have the easy-to-understand information they need before making a decision that will significantly impact their financial lives,” noted CFPB Director Richard Cordray regarding the rules. “Our updates will clarify parts of our mortgage disclosure rule to make for a smoother implementation process for lenders and consumers.”

The final rule is scheduled to take effect 60 days after it is published in the Federal Register. Mandatory compliance with the rule is currently scheduled for October 1, 2018.

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