Recently, the Consumer Financial Protection Bureau (CFPB) made an announcement regarding ‘sensitivity’ to those companies making a good-faith effort to comply with the 1,888 pages of TILA-RESPA Integrated Disclosure (TRID) regulation. The announcement stirred up quite a response from the mortgage-lending community, both positive and negative, from those who wish the CFPB would delay the act to allow a lengthier transition period for lenders, service providers, and the like.
“The action announced by the CFPB is a welcome first step toward clarifying the changes coming to real estate closings August 1,” says National Association of REALTORS® President Chris Polychron. “NAR appreciates the ‘sensitivity’ offered by the CFPB to companies making a good-faith effort to comply with the new TILA-RESPA Integrated Disclosure regulation.
“While NAR appreciates the CFPB’s understanding of the difficulties involved in making a change of this magnitude, we hope that continued dialog with U.S. Senate and House leaders will result in a solution that allows the lending industry and CFPB to address any implementation issues and minimize costly closing delays for home buyers and sellers,” Polychron continued.
The announcement wasn’t received as readily by all.
“ALTA members were looking to the Bureau to announce a specific hold-harmless period for those working to comply in good-faith with the new mortgage disclosures,” says Michelle Korsmo, The American Land Title Association (ALTA) chief executive officer. “We appreciate the Bureau addressing the challenges with compliance with the new integrated mortgage disclosures once we are in live transactions. Unfortunately, the blog post from the CFPB does not give mortgage lenders or settlement service providers any more certainty as they work to comply with this complex regulation that will affect millions of homebuyers in the United States.”
“ALTA and its members wish to continue our discussions with Director Cordray as we request that the Bureau continue to publish more clarifications on this massive regulation,” Korsmo adds. “Because of the CFPB’s ambiguity, ALTA encourages Congress to pass H.R. 2213 sponsored by Congressmen Pearce (R-NM) and Sherman (D-CA) and that would mandate a definitive hold-harmless period.”
“We appreciate the CFPB’s statement that it will be sensitive to industry compliance efforts with regard to TRID implementation,” says Frank Keating, president and CEO of the American Bankers Association. “However, we are disappointed that the statement falls well short of a ‘hold harmless’ period, which ABA and nearly 300 members of Congress asked for. While the bureau acknowledged the implementation challenges of this rule, CFPB’s decision will only provide limited assurances to bankers in their efforts to comply.”
Check www.rismedia.com regularly for breaking news regarding TRID implementation.