Lawmaker demands more TRID transparency from CFPB

by Ryan Smith18 May 2016
A Republican congressman is demanding more transparency on the TRID rule from the Consumer Financial Protection Bureau, according to a Marketwired report.

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.


  • by Mortgage Banker | 5/18/2016 2:34:30 PM

    On every file the borrower gets conflicting information on the LE vs. the details of transaction on the mortgage application. The LE does not take into account the aggregate adjustment, which is a congressionally mandated credit given to borrowers who have escrow accounts, so the amount of cash to close is always inaccurate on the LE. Additionally, on the new LE the gift funds are shown in a ridiculous location since the funds are not the borrower's yet. Again, creating an incorrect figure/impression of what is needed as the cash to close.

  • by Soonerpepa | 5/18/2016 3:07:22 PM

    The methodology for determining the simultaneous issuance of the owner's title insurance is absurd. Title companies in our area charge $50 for this, period! Using an amount equal to a stand alone OTP, adding the $50 simultaneous issue fee and then subtracting the LTP to come up with the simultaneous OTP amount for disclosure is moronic (at best). Another case where we are required to literally over-disclose a known fee, just like escrow setup due to not being able to disclose the aggregate adjustment. Not only are we being required to provide an inaccurate disclosure, it results in having to verify funds for closing that won't be needed. Know before you know? No!


Should CFPB have more supervision over credit agencies?