Speaking to more than 250 attendees at the Federal Conference & Lobby Day Monday, Rep. French Hill (R-Arkansas) said that the CFPB needs to improve its guidance on the Know Before You Owe rule. Hill was specifically concerned about inaccurate disclosure of title insurance fees when policies are issued simultaneously, Marketwired reported.
The regulation has led consumers in more than half of the United States to receive confusing information about their title insurance costs, Hill said.
“Informal guidance is of no value,” he said. “The lack of formal direction from the CFPB has resulted in uncertainty on how to interpret the rules. We need transparency so we can ensure consumers receive the peace of mind they deserve when buying a home or refinancing a mortgage. The CFPB needs to make sure it provides the detail before going retail with Know Before You Owe.”
Hill warned last year that TRID could have unintended negative consequences, Marketwire reported. After several months of those consequences, the CFPB announced earlier this month that it plans to reopen TRID rulemaking this summer.
A Republican congressman is demanding more transparency on the TRID rule from the Consumer Financial Protection Bureau, according to a Marketwired report.