CFPB Says TRID Clarifications Are Imminent

On April 28, 2016, the Consumer Financial Protection Bureau (CFPB) issued a letter to industry trade members announcing its plan to issue a Notice of Proposed Rulemaking (NPRM) to provide further clarification of the Truth in Lending Disclosure Rule (TRID). Since TRID went into effect on October 3, 2015, various industry groups have asked the CFPB for clarification regarding various implementation issues such as the scope and applicability of TRID's cure mechanisms, liability under TRID, rate lock extension issues, and lender credits, to name a few.

This announcement marks the most significant step in the TRID implementation process since it went into effect seven months ago. While the industry reaction to TRID has been mixed, the CFPB notes that according to recent data from Ellie Mae, "closing times are now shorter than they have been for the past year, and closing rates are rising to their highest levels since the data was first monitored in August 2011."