Rescission rights and closing timelines are under review following Trump's executive order
The Consumer Financial Protection Bureau (CFPB) closed a public comment period Monday on potential changes to mortgage disclosure rules that govern how brokers deliver loan estimates and closing documents. The 30-day request for information (RFI) had received 303 responses as of 5:30 p.m. EDT on the day it closed, with many respondents focused on the TILA-RESPA Integrated Disclosure (TRID) rule.
The CFPB is seeking information on industry and consumer burdens tied to the integrated mortgage disclosures required under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), the right of rescission, and reverse mortgage disclosures. The request stems from Executive Order 14393, "Promoting Access to Mortgage Credit," signed March 13, which directs the CFPB to consider replacing TRID timing rules with a materiality-based standard intended to reduce closing delays.
What could change for loan files
The CFPB has flagged TRID's timing requirements and tolerance thresholds as sources of operational complexity that may delay closings, and it is seeking comment on how those requirements could be reformed. Current rules require a three-business-day delivery window for the loan estimate after application, a seven-business-day waiting period before consummation, and delivery of the closing disclosure no later than three business days before consummation.
Tolerance calculations remain one of the more technically challenging aspects of TRID compliance, affecting disclosure accuracy, revised estimates, cure payments, quality control reviews and post-closing compliance. Certain charges, including those paid to creditors or mortgage brokers and transfer taxes, are subject to zero tolerance, while recording fees and certain unaffiliated third-party charges fall under a 10% aggregate tolerance when the consumer selects a provider identified by the creditor.
Mortgage attorney Peter Idziak, principal at Polunsky Beitel Green, said the questions posed in the RFI carry direct implications for broker workflow. For brokers, the questions being asked suggest meaningful changes to closing timelines, disclosure tolerances, and potentially the theory of consumer protection that underpins the entire TRID framework. "This is sort of the first item that's being addressed because there are other sections of that order that deal with, for example, ability to repay and the qualified mortgage rule and appraisal modernization which, you know, perhaps arguably might have a greater impact on affordability," Idziak told Mortgage Professional America. "The TRID revisions could be helpful, but probably more at the margins."
Industry and consumer groups split on direction
The Independent Community Bankers of America called on the CFPB to tailor requirements "where appropriate" for small and mid-sized banks, with Tim Roy, the group's vice president of housing finance, saying this would let community banks meet local financing needs while maintaining strong consumer protections. Roy said the ICBA appreciated that the CFPB specifically sought input on whether certain construction-loan disclosure requirements should be modified or waived.
Consumer advocates warned against loosening the framework. Andrew Pizor, senior attorney at the National Consumer Law Center, said mortgage transactions are too complex to digest at the closing table at the last minute. "The pre-consummation disclosures and the right of rescission complement each other," Pizor said. "Consumers deserve to see the final loan terms before closing, and they need a chance to cancel if they have been pressured into signing."
Former CFPB senior counsel Richard Horn, who led the original TRID rulemaking and now serves as managing partner at Garris Horn, said the RFI indicates a willingness to amend TRID's timing and tolerance requirements. Horn said he expects both critics and consumer groups favoring current tolerances to respond, and that the CFPB "should weigh all sides."
A full TRID rewrite is unlikely in the near term given the cost of retooling compliance systems during a period of low volumes and tight margins, according to industry analysis cited by HousingWire. The RFI's 22 questions are organized into four sections covering TRID and rescission timing, other TRID requirements including electronic signatures and construction loans, tailored small-bank requirements, and reverse mortgage disclosures.
No rule change has been proposed. The CFPB has not proposed changes to TRID itself, though the RFI's questions signal areas where the bureau may consider amendments. Any changes to the disclosure forms could take longer to implement, since Horn said such changes have historically required consumer testing.
