Lingering Confusion Over 2017 TRID Rule | What We Know
The Consumer Financial Protection Bureau published a modified TRID rule on August 11, 2017. Despite an open comment period during which industry participants were able to seek clarification on specific provisions of the new rule, many compliance stakeholders have been left with few answers and a growing dissatisfaction with the explanation of key aspects of the TRID updates. With the rule taking effect October 10, the industry is scrambling to meet compliance requirements.
In an article published September 14, Jennifer Nagle of Consumer Financial Services Watch highlights what the new TRID rule covers and what it fails to address. According to Nagle, “the 2017 Rule puts a finer point on what information must be disclosed on Loan Estimates and Closing Disclosures, clarifies how certain figures and dates should be calculated for those disclosures, confirms that TRID applies to all cooperative housing units (regardless of whether the state in which the housing unit is located treats cooperatives as real property or personal property), and sets out adjusted exemption criteria for certain housing assistance loans.”
While these clarifications offer valuable information, compliance professionals are trying to piece together information for aspects of TRID which were not addressed in the updates from the Consumer Financial Protection Bureau. Nagle specifically identifies the “standard for assignee liability for TRID violations and specific TRID cure provisions and bona fide error defenses” as looming threats due to lack of clarity.
On September 7 Congress discussed the TRID Improvement Act of 2017, which “takes direct aim at the cure and liability issues raised during the comment period that ultimately went unaddressed in the 2017 TRID Rule.” This bill has not yet been formally introduced, however industry stakeholders are hopeful that it will resolve issues of ambiguity within the 2017 TRID Rule.
Janus AMC is closely following discussions and modifications of TRID regulations and will be posting updates as they develop. Check back soon for more information regarding TRID compliance.