Just one year ago, the CFPB’s monumental regulation change – Know Before You Owe, or TRID (the TILA-RESPA Integrated Disclosure rule), went into effect and the mortgage industry has struggled to successfully navigate through the adoption and implementation changes the Loan Estimate and Closing Disclosure have presented. As we approached the one-year mark, TENA saw a significant decrease in the breadth of the issues lenders are working through. For example, in March of 2016, TENA published a whitepaper Do Your TRID Disclosures Have The Right Stuff? and identified the top five findings related to TRID for loans audited prior to March 2016. A comparison of these top five items between then and loans audited in the third quarter of 2016 reflected that these issues were cited 50% to 67% less frequently. For the most part, issues relating to timing problems have been resolved, tracking and documenting issuance and receipt has become commonplace, and the need for tolerance cures has declined. The few minor items that are still common findings, such as labeling fees and providing complete contact information were discussed in the second quarter Analysis of Production Audit Findings.
The CFPB has issued proposed changes and clarifications which will address tolerances for the Total of Payments calculation, disclosures for construction to permanent financing, and coverage of co-operatives, among other things; however, it appears that some of the common issues were not included. What has remained are uncertainties regarding redisclosure of the Closing Disclosure after it has been initially issued and specifically, when a borrower makes a request to delay the closing after the Closing Disclosure has been made, but more than seven business days before the new closing date … there is no apparent legal way for the lender to disclose an increase in costs; for example, in conjunction with a loan lock extension fee. Perhaps as the comment period comes to a close, these additional items will be addressed in the near future.
