NAR Comments on Know Before You Owe Rulemaking
On October 18, 2016, NAR sent a letter to the Consumer Financial Protection Bureau (CFPB) commenting on its recent proposed rule amending the Know Before You Owe (KBYO) regulation, or “TRID.”
While KBYO has resulted in more transparency for consumers and better accountability of financial institutions, ongoing compliance issues remain, costing time and money for consumers and the industry. As a result of these concerns, NAR urged the CFPB to:
- emphasize that lenders and title agents should share the CD with real estate agents, in accordance with existing privacy law and regulation;
- ensure lenders are able to revise the CD to reflect valid changes in circumstances;
- extend post-consummation timelines to correct minor KBYO errors; and
- implement additional modifications to decrease consumer and industry uncertainty.
In requesting expedited rulemaking, NAR explained how consumers remain largely optimistic about attaining the benefits of homeownership and advocated that the CFPB implement thoughtful and effective regulation that does not unnecessarily burden the home buying process.