Months of complaints by the numerous stakeholders within the finance industry
have finally resulted in a response from the Consumer Financial Protection
Bureau (CFPB) regarding the implementation of the TILA-RESPA Integrated
Disclosure (TRID) Rule.
Seven months after the initial implementation of TRID, the CFPB announced
that rulemaking would be reopened, with a goal of releasing a notice of
the proposed rule by the end of July.
The rulemaking, which is also known by some as the “Know Before You
Owe” disclosures, will provide adjustments to the text and commentary
of the rule, as well as the incorporation of some of the guidance the
CFPB has already provided. CFPB Director Richard Cordray issued a letter
in which he emphasized that by including the informal educational materials
regarding TRID already provided by the CFPB into the actual text of the
rule, confusion surrounding the new regulations would decrease.
Some members of the House Financial Services Committee, which oversees
the CFPB and is responsible for reviewing TRID implementation all along,
have expressed support for the CFPB’s decision, arguing that it
is necessary after the consequences of introducing the original rule.
While some support the revision of the TRID rule, others argue that it
should not have taken so long to acknowledge the issues arising from the
new law. Detractors claimed that problems with implementation were not
unseen. On the contrary, many anticipated difficulties with the regulation
and as a result, it should not have taken seven months to begin the revision
process for the rule.
Still, others heaped praise on the CFPB for working to provide clarity
to a rule that affects millions of Americans, lauding the Bureau for providing
an explanation in the most efficient and transparent manner possible.
Director Cordray was sure to acknowledge the difficulties caused within
the industry by the implementation of the new TRID rule, specifically
citing the diverse challenges faced by financial institutions of different
sizes. While Cordray admitted that many participants in the industry had
contacted the CFPB and requested answers to their inquiries in writing,
the Bureau was working as hard as possible to ensure all questions presented