ALTA Submits Letter to CFPB on TRID ‘Black Hole’

October 13, 2017

ALTA submitted a letter to the Consumer Financial Protection Bureau (CFPB) urging for the removal of the four-business day limit for resetting tolerances with both initial and corrected Closing Disclosures.

Currently, the rule states that once a lender issues a Closing Disclosure, they are prohibited from issuing any further Loan Estimates. Once the initial Closing Disclosure is sent, the rule proceeds to set out a complex set of timing requirements for issuing updated Closing Disclosures. When a closing delay occurs, some creditors believe they can send the consumer an updated disclosure to reset tolerances while others believe they cannot. The rule states that an updated Closing Disclosure can be used to reset good-faith baselines after a valid changed circumstance in any situation in which a Closing Disclosure has already been issued.

ALTA supports removing this supports the removal of the so called “Black Hole” four-business day limit for resetting tolerances. This change should help creditors comply with the rule’s timing requirements.

“At the same time, we believe simple changes are needed to prevent any degradation the rule’s strong good faith and advance disclosure requirements,” ALTA said in the letter.

Additionally, ALTA believes the rule should require creditors to provide the settlement agent with a copy of any Closing Disclosure at the same time it is provided to the consumer.

“As the authority in real estate transactions, buyers and sellers rely on settlement agents to answer questions about their transaction,” the letter states. “This is made difficult when creditors update disclosures without providing copies to the settlement agent and without giving agents information to answer consumers’ questions about why costs estimates changed.”

Contact ALTA at 202-296-3671 or