Gov’t Watchdog Opens Public Comment of TRID Rule

November 21, 2019

The Consumer Financial Protection Bureau is collecting public comments as it assesses a sweeping rule that first overhauled mortgage disclosures nearly five years ago. The bureau is opening up public discussion of the TRID Integrated Disclosure Rule (also known as TILA-RESPA, the Truth in Lending Act and Real Estate Settlement Procedures Act) and includes questions over whether it should be modified, expanded, or even eliminated as part of a statutory obligation to review major regulations.

The CFPB wants to address the TRID rule’s effectiveness and how it’s meeting the objectives outlined in the Dodd-Frank Act. TRID went into effect Oct. 3, 2015, to improve transparency of mortgage disclosures to consumers through standardized forms in transactions. The rule merged the HUD-1 Settlement Statement, the Good Faith Estimate, and the Truth-in-Lending disclosure form into two new closing forms: a Loan Estimate and a Closing Disclosure. Under the new rule, lenders are required to provide the loan estimates and closing disclosures within strict timelines to consumers to help with understanding the application for and closing on a mortgage loan.

When it first took effect, TRID caused a ripple through the housing industry and was blamed for the delay of some transactions and for some uncertainty in the lending industry over its implementation.

The public is invited to comment on TRID’s effectiveness at consumerfinance.gov or may contact NAR staff with feedback to provide to the CFPB.