TRID – the TILA/RESPA Integrated Disclosures – Consumer Financial Services Watch

The CFPB’s TILA-RESPA Integrated Disclosures Rule

Feb 19 2016

From the January 2016 issue of The Review of Banking and Financial Services, with permission.

On October 3, 2015, the Consumer Financial Protection Bureau’s (“CFPB”) final rule integrating certain mortgage disclosures under the Truth in Lending Act (“TILA”) and the Real Estate Settlement Procedures Act (“RESPA”) went into effect. While potentially simplifying the mortgage disclosure obligations of creditors by bringing together two separate disclosure regimes, the text of the regulation, along with its Preamble and Official Interpretations (the “Commentary”), impose significant changes on the disclosures required in the residential mortgage loan origination process. Creditors have been grappling with these requirements since the regulations were finalized in November 2013, and have devoted substantial resources to updating technology, working through legal and compliance issues, testing the production of the disclosures, and training employees on the requirements of the TILA-RESPA Integrated Disclosures (“TRID”). But challenges remain, and many questions are still unanswered about how certain disclosures should be made on the forms in specific loan-level scenarios. Inevitably, themes have emerged as to the issues that continue to cause concern. After providing a brief introduction to TRID, this article highlights several of these “hot” topics that are keeping compliance officers awake at night.

CFPB Publishes Major Changes to HDMA

Oct 15 2015

By: Melanie Brody, Christopher Shelton

Today, the Consumer Financial Protection Bureau issued a final rule that makes significant amendments to its Home Mortgage Disclosure Act (“HMDA”) regulations. The final rule is available here.

At 797 double-spaced pages, the final rule is almost half the length of the TILA-RESPA Integrated Disclosure rule, which came into effect earlier this month. Institutions will have to devote significant attention to digesting and implementing all the new HMDA requirements. The new requirements come into effect in three phases, starting in January 2018, January 2019, and January 2020.

K&L Gates will be circulating a client alert shortly, followed by a webinar, to help institutions navigate this complex final rule.

Tweaks to TRID – CFPB Issues Final Rule Amending Integrated RESPA/TILA Disclosure

Feb 04 2015

By: Kristie D. Kully

The Consumer Financial Protection Bureau recently issued a final rule amending certain aspects of its integrated disclosure requirements under the Real Estate Settlement Procedures Act and the Truth in Lending Act. The CFPB gave the mortgage lending and settlement industries over 18 months—until August 1, 2015—to prepare for the comprehensive overhaul of the disclosures provided to consumers upon application for and settlement of most residential mortgage loans. (Some have called that overhaul effort “TRID”—the TILA/RESPA Integrated Disclosures.) During that preparation time, the CFPB has learned of the need for corrections or improvements to those complex requirements. In its latest rulemaking, the CFPB attempts to fix certain issues related to providing a revised Loan Estimate disclosure (the first part of TRID) when a creditor and consumer decide to lock in the interest rate or other charges, and when the creditor expects a long construction period prior to settlement. The new rule also requires loan originators to include their names and identification numbers on the Loan Estimate and the Closing Disclosure (the second part of TRID), and clarifies how creditors must disclose per diem interest. Below, is a description of the changes that the CFPB’s most recent rulemaking makes to the disclosure requirements under the original TRID rule.

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