And other large lenders are expected to follow suit.
“Where Wells goes, the rest of the industry usually follows,” Joshua Weinberg, the senior vice president for compliance at First Choice Loan Services, a national lender told the New York Times.
The Bank said it has axed the program preparation for the new changes, according to the Times.
The CFPB is preparing to implement the Know Before You Owe disclosure rule.
The new rule will consolidate the TILA-RESPA mortgage disclosure forms into two new forms: the Loan Estimate and the Closing Disclosure.
The Bureau issued a proposed amendment last week that would once again push back the effective date of the Know Before You Owe disclosure rule by two days.
It was the second change it has made to the effective date.
The CFPB’s proposed amendment would push effective date to Oct. 3. The amendment comes just a week after the agency announced it would push the rule back to Oct. 1 from its original effective date of Aug. 1.
Originators are already preparing for the eventual rule change – and it is one that smaller players believe will benefit them.
“The TRID fallout will be interesting – smaller lenders will be able to better handle the changes; we’ve collaborated with an attorney firm and they have developed a portal that allows for collaboration between the firm, the lender and the title company to work on closing disclosure,” Robert Poe, vice president of Inwood Bank told MPA last week. “They can go into the portal and approve each other’s changes.”
Wells Fargo announced earlier this month it will no longer purchase single-close construction loans effective August 1, citing the upcoming disclosure rule changes.