CFPB Makes Clear Lenders' Ability to Share CD
On July 29, 2016, the Consumer Financial Protection Bureau (CFPB) announced a proposed rule amending TRID, the TILA-RESPA Integrated Disclosure rule, which requires most transactions involving a mortgage to use new CFPB disclosure forms as of October 3, 2015. In this rulemaking, the CFPB clarified NAR’s primary concern with TRID – lenders’ reluctance to share the new required Closing Disclosure (CD) with real estate professionals out of fear of liability for disclosing clients’ nonpublic personal information.
As fought for by NAR, CFPB included language in the proposed rule highlighting an existing exception within the Gramm-Leach-Bliley Act (GLBA) and implementing Regulation P that allows lenders to share the CD with third parties (sections 502(e)(1) and 509(7)(A)).
The comment period for the proposed rule will remain open until October 18, 2016. NAR will submit a comment reiterating support of CFPB’s language regarding the GLBA exception giving CD access to real estate professionals, as well as, address any other concerns that may arise with this latest proposed rulemaking.
See the CFPB’s rulemaking announcement, which links to the proposed rule.
Read NAR’s statement on the proposed rule.
See NAR’s latest letter to the CFPB, sent on June 7, 2016.