Lawmakers and banking trade groups have weighed in on the Consumer Financial Protection Bureau’s decision to reopen for public comments the Truth in Lending Act/Real Estate Settlement Procedures Act integrated mortgage disclosures rule commonly known as TRID, or “Know Before You Owe” rule, and most of the reactions expressed are favorable for the most part.
In a letter dated April 28, 2016, the CFPB informed banking trade groups of the bureau’s efforts to address concerns about compliance with TRID. The CFPB wrote that it recognizes “that “the implementation of the Know Before You Owe rule poses many operational challenges” and will “continue the collaboration and engagement toward solutions and provide guidance where we have to the ability to do so.” The bureau added that its regulatory implementation page is “designed to be responsive to industry concerns.”
Corker response. Senator Bob Corker (R-Tenn), a member of the Senate Banking Committee, commended CFPB Director Richard Cordray for opening the rule up for comments. “These new mortgage disclosure requirements have created some challenges for consumers and institutions,” the lawmaker said. In March, Corker sent a letter to CFPB Director Richard Cordray requesting increased clarity regarding the TRID rule.
Hill comments. Representative French Hill (R-Ark) stated that he was pleased about the CFPB’s move, “but it should not have taken 7 months to do so. Implementation issues were not unforeseen, which is why the House overwhelmingly passed my bill, the Homebuyers Assistance Act, last October.” He added that he is “committed” to ensuring that the CFPB works with the real-estate industry to provide “much-needed” guidance.
MBA statement. Pete Mills, Senior Vice President of Residential Policy and Member Services for the Mortgage Bankers Association, issued a statement following the release of the CFPB’s letter. He said that the MBA is pleased by the CFPB’s action and “believes the approach laid out should provide a swift path to issuing a final rule that will give lenders, the secondary market and consumers the clarity and consistency of disclosures the market needs.” Further, the MBA appreciates “that the Bureau's "diagnostic period" for the Know Before You Owe rule will continue to accommodate good faith compliance efforts.”
Companies: Mortgage Bankers Association
MainStory: TopStory CFPB Loans Mortgages RESPA TruthInLending
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