CFPB Posts Fact Sheet On Assumptions And TRID

On May 1, 2019, the Consumer Financial Protection Bureau (CFPB) released a Fact Sheet on the application of the TILA-RESPA Integrated Disclosure Rule (TRID) to assumptions of residential mortgage loans. The Fact Sheet appears to be another CFPB effort, following its release of TRID FAQs in March 2019, to provide the industry with written guidance without the time delay involved in advance notice and-comment processes. We summarize below the Fact Sheet’s clarifications. All citations are to Regulation Z, 12 C.F.R. part 1026, unless otherwise noted.

• A Loan Estimate and Closing Disclosure must be provided if a transaction that is an assumption of a residential mortgage loan is covered by TRID and is an “assumption” as defined in § 1026.20(b).
  • First, the assumption must be a closed-end consumer credit transaction that is not a reverse mortgage under § 1026.33 and that is secured by real property or a cooperative unit. §§ 1026.19(e) and (f). Further, the