KEY POINTS OF TRID’S FINAL AMENDMENT
On July 7, 2017, the Consumer Financial Protection Bureau published its final amendment to the TILA-RESPA Integrated Disclosure (TRID) rule. The effective date of the changes is 60 days after publication in the Federal Register; however, the date of publication is still not stated. The amendment requires a mandatory compliance date of Oct. 1, 2018, and it is likely that Lenders may phase in their related compliance changes. The final amendment is over 550 pages and thus contains quite a bit of detail for Lenders. The final amendment clarifies certain mortgage disclosure provisions implemented in Regulation Z. To support implementation of the 2017 TRID rule, the CFPB has issued an Executive Summary. The CFPB has also issued a notice of proposed rulemaking regarding when a creditor may use a Closing Disclosure, instead of a Loan Estimate, to determine if an estimated closing cost was disclosed in good faith and within tolerance. The 2017 TRID rule does not make changes or clarifications related to this issue. Comments on the proposal are due 60 days after it is published in the Federal Register. KEY POINTS OF THE AMENDMENT • Does not contain any changes to the disclosure of simultaneous issuance title premiums nor does it contain any changes to the word “optional” shown on the borrower’s Closing Disclosure for the payment of the owner’s title insurance premium. • Clarifies that the settlement agent may provide the Creditor with a copy of the Seller’s CD. • While providing guidance that no regulation or requirement existed which prohibits the Lender or settlement agent from providing a copy of the Closing Disclosure to parties other than the borrower (e.g., real estate agents), the amendment provides no affirmative direction to provide such copies. Therefore, settlement agents should continue to look to Lenders for authorization/guidance on whether providing copies of the CD to persons other than the borrower is permitted. • Expands the scope of the consumer finance law to cover loans secured by cooperative units. • Does not address major policy issues in CFPB’s rulemaking, including liability and/or cures.