Industry insiders have long criticized the Consumer Financial Protection Bureau (CFPB) for failing to provide formal guidance about TRID.
But that’s about to change now that the bureau has issued the long-awaited request for information (RFI) seeking industry feedback on potential changes to the rule.
Section 1022(d) of The Dodd-Frank Act requires the CFPB to conduct an assessment addressing the effectiveness of the rule and publish a report of the assessment within five years of its effective date. The CFPB announced the report would be released no later than Oct. 3 – exactly five years of when the original TRID rule was implemented.
Before publishing a report of its assessment, the bureau shall invite public comment on recommendations for modifying, expanding, or eliminating the newly adopted significant rule or order.
“I hope people take the time to comment in a really substantial manner,” Richard Horn, partner at Garris Horn PLLC and the former CFPB senior official who led the original TRID rule, previously told RESPA News. “Not just say, ‘Hey, I hate TRID,’ but actually give the CFPB information on how TRID is working or not working, because a lot of that information might be news to the CFPB, and result in positive changes to the rule.”
Only rules that are not statutory requirements in the Dodd-Frank Act may be eliminated, such as debt collection. The CFPB is required to under law to create an integrated mortgage disclosure rule. However, it is not required to promulgate a rule or amendments to the Fair Debt Collection Practices Act (FDCPA).
The deadline for submissions is Jan. 21. Comments should be identified by Docket No. CFPB-2019-0055, and can be submitted by:
- Website: http://www.regulations.gov. Follow the instructions for submitting comments.
- Email: 2019-RFI-TRID@cfpb.gov. Include Docket No. CFPB-2019-0055 in the subject line of the email.
- Mail/Hand Delivery/Courier: Comment Intake – TRID Assessment, Consumer Financial Protection Bureau, 1700 G Street, NW, Washington, DC 20552.
The CFPB said it encourage commenters to submit early, and encouraged electronic submissions because “paper mail in the Washington, DC area and at the Bureau is subject to delay.” Finally, it reminded commenters that all submissions must include the document title and docket number.
In its request for information filed with the Federal Register, the bureau invites the public, including consumers and their advocates, housing counselors, mortgage creditors, settlement agents, and other industry participant, industry analysts, and other interested persons to submit comments on any or all of the following:
- Comments on the feasibility and effectiveness of the assessment plan, the objectives of the TRID Rule that the bureau intends to use in the assessment, and the outcomes, metrics, baselines, and analytical methods for assessing the effectiveness of the rule;
- Data and other factual information that the bureau may find useful in executing its assessment plan and answering related research questions, particularly research questions that may be difficult to address with the data currently available to the bureau;
- Recommendations to improve the assessment plan, as well as data, other factual information, and sources of data that would be useful and available to the bureau to execute any recommended improvements to the assessment plan;
- Data and other factual information about the benefits and costs of the TRID rule for consumers, creditors, or other stakeholders;
- Data and other factual information about the effects of the rule on transparency, efficiency, access, and innovation in the mortgage market;
- Data and other factual information about the rule’s effectiveness in meeting the purposes and objectives of Title X of the Dodd-Frank Act (section 1021);
- Data and other factual information on the disclosure dataset specified in the Assessing Firm Effects section;
- Comments on any aspects of the TRID Rule that were or are confusing or on which more guidance was or is needed during implementation including whether the issues have been resolved or remain unresolved; and
- Recommendations for modifying, expanding, or eliminating the TRID rule.
The bureau’s assessment plan states that the bureau’s objectives are to provide consumers with timely and understandable information to make responsible decisions about financial transactions and protect consumers from unfair, deceptive, or abusive acts and practices. Other goals are to regularly identify and address discrimination and get rid of outdated, unnecessary, or unduly burdensome regulations; enforce federal consumer financial law consistently, without regard to the status of a person as a depository institution, in order to promote fair competition; and make sure markets for consumer financial products and services operate transparently and efficiently to facilitate access and innovation.
In January 2018, the bureau published a series of requests for information (RFIs) seeking comment on enforcement, supervision, rulemaking, market monitoring, complaint handling, and education activities. Altogether, more than 88,000 comments were received. Commenters reported many creditors have been hesitant to offer more complex mortgage products – including, among others, construction loans – for fear of misinterpreting TRID requirements. Most of these commenters requested additional guidance or simpler disclosures for construction loans, the bureau said.
The bureau also issued an RFI to help assess the overall effectiveness and accessibility of its guidance materials and activities to members of the general public and regulated entities.
“The bureau is interested in learning more about any aspects of the rule that were confusing or on which more guidance was needed, whether at the time the rule took effect or afterwards, and the effects of this confusion,” the CFPB stated.