On April 28, 2016, the Consumer Financial Protection Bureau (CFPB) announced that it is drafting a notice of proposed rulemaking on the Know Before You Owe rule, also known as “TRID.” Since the Know Before You Owe rule went into effect on October 3, 2015, the industry has been working hard to understand and implement the rule which replaced the Good Faith Estimate and the HUD-1 with a Loan Estimate (LE) and a Closing Disclosure (CD). While the CFPB has provided informal guidance to the industry through webinars and phone calls, NAR has urged the CFPB to provide additional clarification in writing.
NAR President Salomone’s statement:
“The real estate industry has responded well to the implementation of “Know Before You Owe,” but there’s still work ahead. Today’s announcement from the CFPB is a recognition that there are lingering challenges to address, and I appreciate Director Cordray’s commitment to hearing those concerns.
“Realtors® continue to report issues in the post-TRID environment with gaining access to the Closing Disclosure, despite years of access to the substantively similar HUD-1. NAR remains committed to ensuring Realtors® have access to the CD so they can put their expert advice to work guiding clients throughout the homebuying process uninterrupted from beginning to end.
“We look forward to addressing remaining TRID-related concerns as part of the rulemaking process in the months ahead and thank the CFPB for an opportunity make the Realtor® voice heard on this issue.”
For further information and updates on the Know Before You Owe/TRID rules go to www.realtors.org/respa.