The CFPB issued a proposed rule which amends and clarifies various provisions of TRID. Comments on the proposal are due by October 18, 2016.
The proposal addresses several concerns regarding TRID which have been ongoing since the rule’s implementation. The proposal also incorporates some of the informal guidance provided by the CFPB over the last year.
The proposal includes, among other changes, the following revisions:
• An accuracy tolerance for the Total of Payments on the CD for rescission purposes
• Clarification that loan costs designated as seller-paid or paid by others on the CD may be excluded from the Total of Payments calculation
• Addresses the “black hole” issue by eliminating the timing restrictions if a CD has already been provided
• Provides additional guidance regarding the sharing of disclosures with sellers and other parties, including real estate agents
• Inclusion of co-op secured transactions, whether or not the co-op is treated as real property under applicable law
• Clarification that prepaid property taxes are subject to the unlimited tolerance, provided that the estimate is consistent with the best information reasonably available to the creditor at the time of disclosure
• Clarification regarding disclosure requirements if the interest rate is locked at or after the time a CD is provided
• Numerous clarifications applicable to construction or construction to permanent loans
Please feel free to contact Loretta Salzano at (770) 248-2881 or Jenny Dozier at (770) 248-2885 ext. 241 with any questions regarding the proposed rule or TRID in general.