Now that we are in the post-TRID world, financial institutions have made the formal conversion to the combined TILA-RESPA Integrated Disclosure (“TRID”) and are working through the implementation steps for new loans. The TRID Rule implementation date was formally delayed from August to October 3, 2015, but there is still a significant learning curve for real estate, lending, and servicing professionals.
In the days prior to TRID implementation, the Consumer Financial Protection Bureau (“CFPB”) sent a letter to mortgage industry trade groups regarding the TRID Rule and the Know-Before-You-Owe disclosures. The CFPB has confirmed that despite the absence of any safe harbor, during initial examinations for compliance with the TRID Rule, examiners will evaluate the institutional compliance management system and efforts to come into compliance with the rule. Additionally, the letter explained that “examiners will consider: the institution’s implementation plan, including actions taken to update policies, procedures, and processes; its training of appropriate staff; and, its handling of early technical problems or other implementation challenges.”
This approach is not a surprise, as previously reported here and widely through industry publications. However, any formal statement from the CFPB that it will consider the big picture of an institution’s compliance efforts is certainly helpful.
Meanwhile, Congress has considered legislation to provide a safe harbor from the new TRID Rule for a period of five months. Although the House of Representatives passed the bill with bipartisan support, it is unclear whether the legislation will receive similar support in the Senate. The White House has indicated it will veto a hold harmless bill. Despite the possibility of formal relief through legislation, we are now living in a post-TRID Rule world, and institutions should continue their best efforts to comply with the rule and its impact.
If you have any questions, please contact Spilman.