CFPB to Review Effectiveness of TRID Rule

November 26, 2019

The Consumer Financial Protection Bureau (CFPB) is requesting public comment on an assessment it will conduct on the TRID Integrated Disclosure Rule (TRID).

As part of its assessment, the CFPB intends to address the TRID Rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd-Frank Act, the specific goals of the rule and other relevant factors. 

The CFPB seeks comments on the feasibility and effectiveness of the assessment plan, recommendations to improve the assessment plan and recommendations for modifying, expanding or eliminating the TRID Rule, among other questions. 

The TRID Rule implemented the Dodd-Frank Act’s directive to combine certain mortgage disclosures that consumers receive under TILA and RESPA and requires that all creditors use standardized forms for most transactions. Creditors are also required to provide Loan Estimates and Closing Disclosures within three business days.

The assessment is being conducted in accordance with Section 1022(d) of the Dodd-Frank Act that requires the bureau to assess significant rules or orders adopted under Federal consumer financial law.

Deadline to submit comments is Jan. 21, 2020.

Specifically, the bureau seeks:

  • Comments on the feasibility and effectiveness of the assessment plan, the objectives of the TRID Rule that the bureau intends to use in the assessment, and the outcomes, metrics, baselines, and analytical methods for assessing the effectiveness of the Rule
  • Data and other factual information that the bureau may find useful in executing its assessment plan and answering related research questions, particularly research questions that may be difficult to address with the data currently available
  • Recommendations to improve the assessment plan, as well as data, other factual information, and sources of data that would be useful and available to the bureau to execute any recommended improvements to the assessment plan
  • Data and other factual information about the benefits and costs of the TRID Rule for consumers, creditors or other stakeholders
  • Data and other factual information about the effects of the Rule on transparency, efficiency, access and innovation in the mortgage market
  • Data and other factual information about the Rule’s effectiveness in meeting the purposes and objectives of title X of the Dodd-Frank Act (section 1021)
  • Comments on any aspects of the TRID Rule that were or are confusing or on which more guidance was or is needed during implementation including whether the issues have been resolved or remain unresolved
  • Recommendations for modifying, expanding or eliminating the TRID Rule.

ALTA’s goal is to help the CFPB create disclosures that accurately and effectively disclose the costs of a product or service. Among ALTA’s areas of opportunity for TRID improvements are to:

  • Correct title insurance fee disclosures
  • Include the ALTA ID on page five of the Closing Disclosure
  • Consider the benefits of adding a page six to the Closing Disclosure to be used as a disbursement document
  • Examine the three-day waiting period

Earlier this year, The Federal Deposit Insurance Corp.’s Office of the Ombudsman issued it’s 2018 annual report, which included key regulatory issued highlighted by the industry. In 2018, the Ombudsman Office handled 142 industry cases, many of which were able to be resolved by providing information and assistance for bank-specific questions or issues. The office also conducted outreach visits to nearly 500 external stakeholders, including banks, trade associations, and state banking authorities.

According to the report, the Ombudsman Office found that the top issues were regulatory burdens (26 percent) and TRID (16 percent). Feedback and complaints regarding TRID were as follows:

  • Disclosure requirements are time consuming and costly and impact mortgage profitability.
  • Qualified Mortgage rule restrictions (debt-to-income limitation) make it challenging to fund purchase money residential mortgages.
  • Compliance training is a major undertaking and ensuring consistency in application among staff is challenging.
  • Disclosure requirements result in a large volume of paperwork and information that confuses customers.

Contact ALTA at 202-296-3671 or