CFPB reconsidering TRID

by Ryan Smith02 May 2016
Industry activism may have paid off. The Consumer Financial Protection Bureau is reconsidering the Know Before You Owe Rule, according to a letter by CFPB Director Richard Cordray.

According to a HousingWire report, the letter, addressed to eight industry groups, acknowledged their worries about TRID compliance and informed them that the CFPB has begun drafting a Notice of Proposed Rulemaking, which would make some of the agency’s informal guidance official. The very vagueness of that unofficial guidance has long been a sore spot with industry groups.

“We do recognize that incorporating some of the bureau’s existing informal guidance, whether provided through webinar, compliance guide, or otherwise, into the regulation text and commentary, would be helpful,” Cordray wrote. “We also believe that there are places in the regulation text and commentary where adjustments would be useful for greater certainty and clarity. Accordingly, we have begun drafting a Notice of Proposed Rulemaking on the Know Before You Owe rule.”

Cordray wrote that the CFPB hoped to issue the notice in late July, and planned one or two meetings before the notice was issued to allow industry comment.

Rob Nichols, president and CEO of the American Bankers Association, applauded the steps outlined in Cordray’s letter.

We appreciate Director Cordray’s responsiveness to our concerns about the CFPB’s Know Before You Owe rule,” Nichols said in a statement. “The agency’s interim steps and guidance efforts are welcome, and we agree that several issues will be best resolved in the rule-making process that is being initiated. We are particularly pleased that the notice of proposed rulemaking is on a fast track, which will accelerate and strengthen strong compliance regimes.”


  • by Time to break this chain! | 5/2/2016 12:00:08 PM

    Yet the greedy lenders and real estate Broker still manipulates the system with these shady unethical kick backs called marketing agreements. The unknowing borrower then goes to the so-called in-house lender and gets taken to the cleaners with a higher rate. This to me is a bigger issue in our industry versus crying about trid. Our industry will continue to be sleazy as long as these are allowed. What a joke!

  • by Anonymous | 5/2/2016 1:55:56 PM

    Exactly. MSA and also builder "incentives" to use their in house lender and title company. I have had borrowers proudly tell me about the special $20k incentive they got from the builder for using the in-house lender, only to be horrified when they learn that they paid upfront fees they would not have paid with me, their rate was almost half a point higher than mine (which over 30 years is 4x the value of the incentive), AND the kicker is those incentives are available by law to every single buyer of those homes no matter who they use, even if they pay cash!! It is so bad that our state commerce dept is actively urging us brokers to report builders here in MN whenever we learn about these examples. None of these builders will tell the buyers that they have the right to these incentives no matter what, yet we all have to over disclose pennies on our transactions with TRID. This needs to stop. It has to be in bold print like the rest of our disclosures.

  • by Anonymous | 5/2/2016 2:03:33 PM

    There definitely needs to be some Movement on that front.


Should CFPB have more supervision over credit agencies?