CFPB Compiles List of Top TRID Gaffes

September 21, 2017

The Consumer Financial Protection Bureau (CFPB) released a list of common mistakes following the first round of mortgage origination examinations for compliance with the TILA-RESPA Integrated Disclosures (TRID) rule.

Referred to by the CFPB as Know Before You Owe, the bureau reported the findings in its summer edition of its Supervisory Highlights.

While the CFPB failed to provide a formal hold-harmless period, the bureau did state that it would be sensitive during these early examinations.

In the report, the bureau noted that supervised entities “were able to effectively implement and comply with the Know Before You Owe mortgage disclosure rule changes.”

However, the CFPB did compile a list of most common mistakes relating to the content and timing of Loan Estimates and Closing Disclosures:

  • Amounts paid by the consumer at closing exceeded the amount disclosed on the Loan Estimate beyond the applicable tolerance threshold.
  • The entity or entities failed to retain evidence of compliance with the requirements associated with the Loan Estimate.
  • The entity or entities failed to obtain and/or document the consumer's intent to proceed with the transaction prior to imposing a fee in connection with the consumer's application.
  • Waivers of the three-day review period did not contain a bona fide personal financial emergency.
  • The entity or entities failed to provide consumers with a list identifying at least one available settlement service provider, if the creditor permits the consumer to shop for a settlement service.
  • The entity or entities failed to disclose the amount payable into an escrow account on the Loan Estimate and Closing Disclosure when the consumer elected to escrow taxes and insurance.
  • Loan Estimates did not include the date and time at which estimated closings cost expire.
  • The entity or entities failed to properly disclose on the Closing Disclosure the fees the consumer paid prior to closing.

The reports states that, "Examiners worked in a collaborative manner with one or more entities to identify the root cause of these violations and determine appropriate corrective actions, including reimbursement to consumers where tolerance violations occurred."

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