Analyzing Strategic Regulatory Policy Shifts
The Consumer Financial Protection Bureau (CFPB or Bureau) recently proposed amendments to the Federal mortgage disclosure requirements under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) that are implemented in Regulation Z and commonly referred to as the TILA-RESPA Integrated Disclosure Rules or TRID. In addition to clarifications and technical amendments, the proposed changes include: i) tolerance provisions for the total of payments, ii) an adjustment to a partial exemption mainly affecting housing finance agencies and nonprofits, iii) extension of the integrated disclosure requirements to all cooperative units, and iv) guidance on sharing the disclosures with various parties involved in the mortgage origination process.
The CFPB is targeting an October 1, 2017 effective date for this proposal based on an assumption the final rules will be promulgated on or before April 1, 2017. A timing delay is possible, however, as the proposal was released ahead of the recent presidential election and the new Administration has called for a temporary freeze on new regulations. Institutions are encouraged to “stay the course,” recognizing that the amendments and clarifications address compliance issues identified by the industry regarding the existing TRID rules. The Bureau and other regulators have made it clear that they are “sensitive to the progress industry has made” and will focus on “good faith efforts” by financial institutions to comply with TRID.
This Point of View outlines the CFPB’s proposed TRID amendments. We would be pleased to discuss any questions you might have regarding these proposals or TRID compliance more broadly, including compliance program architecture and regulatory change management.