Press Releases

Today marks four months since the Consumer Financial Protection Bureau’s (CFPB) TILA-RESPA Integrated Disclosure (TRID), or “Know Before You Owe, rule became effective. Since then, numerous reports, news stories, and first-hand accounts from the industry have indicated that there are many problems and confusion stemming from TRID implementation, and as a result, a disruption in home sales.

In October, by an overwhelming bipartisan majority, the House passed H.R. 3192, the Homebuyers Assistance Act, which was introduced by Congressman French Hill (AR-02) and would have created a temporary legal safe harbor for those making a good faith effort to comply with TRID, which would have enabled the real estate industry to more effectively navigate the transition to this new, complex closing regime.

Since implementation, the CFPB has offered very little guidance to industry on issues that have arisen during implementation, and instead, has doubled-down on enforcement.

In response to CFPB’s inaction in assisting the industry effectively transition to TRID, Congressman Hill, Arkansas Bankers Association (ABA) President and CEO Bill Holmes, and American Land Title Association (ALTA) CEO Michelle Korsmo released the following statements:

“CFPB’s lack of interest in rectifying the problem that it caused speaks volumes about its true commitment to helping consumers. Despite numerous reports of the TRID rule delaying the home-buying process for American families, CFPB is sitting on its hands and has done virtually nothing to help consumers, title companies, lenders, and realtors navigate this new closing regime since. Moving forward, CFPB must work with Congress and the real estate industry to provide guidance and eliminate confusion and uncertainty to best serve those hoping to achieve the American dream of home ownership.” – Congressman French Hill

“The new TRID regime has been in effect since October 2015, and despite inconsistencies in the interpretation of the regulations, we are still seeking clarification from the CFPB.” – ABA President and CEO Bill Holmes

"Four months in, we are still working thought significant questions and uncertainty around the ‘Know Before You Owe’ rule. This is causing lenders, investors, vendors and due diligence companies to be overly cautious leading to in part longer closing timelines for consumers. Many of these issues could be addressed by more guidance from the CFPB and tweaks to address the consumer confusion caused by the regulation’s title insurance calculations. Mortgage lending will continue, but added guidance for the industry will help consumers that the CFPB seeks to help and protect." – ALTA CEO Michelle Korsmo