The Consumer Financial Protection Bureau's final rule to formalize guidance on a number of TILA-RESPA Integrated Disclosures compliance points omits an originally proposed fix for the
The TRID changes were
Instead, the CFPB published a proposal for a new round of comments that attempts to clarify the circumstances that a creditor can use the Closing Disclosure form, instead of the upfront Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance.
Still, as advertised, the new rule made official some of the informal guidance the agency gave since issuing the original rule, but it did not "reopen any major policy decisions."
"MBA appreciates the CFPB’s efforts in amending the Know Before You Owe rule to address several significant questions that have been raised for some time by our industry," Mortgage Bankers Association President and CEO David Stevens said in a statement.
The update did not include additional cure provisions for violations
"As the only financial services trade to
The new rule makes clear that all loans used to purchase a co-operative apartment are covered by the Know Before You Owe disclosures. Until now, the TRID disclosures only had to be given in states where co-ops are considered to be real estate; some states consider co-ops to be personal property because the owner has shares in a legal entity and does not own a physical property.
With this update, the total of payments calculation did not change. However, the agency created a new tolerance provision similar to the existing statutory tolerance provisions for the finance charge and other disclosures affected by the finance charge.
The final rule also included a clarification that makes more loans from housing assistance programs eligible for a partial exemption from the regulation, which in turn should increase the number of these loans, the CFPB said.
The rule does address issues around privacy and the
"Consumers depend on their real estate agent to help guide them from pre-approval to closing, but that job is significantly harder when an agent is denied access to the closing disclosure."
"The CFPB has again made clear that lenders may share disclosures with third parties, including real estate agents," National Association of Realtors President William Brown said in a statement. "This was common practice for years in advance of Know Before You Owe, and Realtors are eager to see that cooperative atmosphere take hold once again."