CFPB Director Richard Cordray has promised to take another look at industry concerns over the controversial rule, as well as clarify some of the organization’s informal guidance
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.”
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.”
