CFPB Issues Final TRID Rule Amendments
The CFPB has issued the final revisions to the TRID rule, along with a new proposal to address the black hole. Required for applications received on or after October 1, 2018, the new rule amends and clarifies several provisions which have long been cloudy and open for interpretation. Of particular significance, the new rule:
• Provides additional guidance and clarity regarding the disclosure of construction and construction-permanent loans, including specific requirements regarding the allocation of fees, disclosure of construction proceeds, and disclosure of fees collected post-closing
• Includes a tolerance for the total of payments disclosure
• Revises the calculation of certain fields in the “Calculating Cash to Close” table
• Clarifies the applicability of the rule to certain trusts established for tax or estate purposes and loans secured by cooperatives
• Revises the exemption for certain housing assistance loans
• Includes an optional compliance period, which begins 60 days after the rule’s publication in the Federal Register. Compliance is required beginning October 1, 2018.
Also significant is what the final rule does not include – changes to the requirements for re-setting fee tolerances using a closing disclosure (the Black Hole). The CFPB issued a revised proposal which eliminates the four-business day limit in the commentary altogether, and simply provides that fee tolerances may be reset by providing a revised loan estimate or a closing disclosure within three business days of establishing the reason for revision. The new proposal requests comment on several specific issues, including whether the proposed change may result in closing disclosures being provided very early in the loan process and the potential for consumer harm.