Hill Introduces Bill to Improve Mortgage Disclosures
Today, Congressman French Hill (AR-02) introduced the TRID (TILA-RESPA Integrated Disclosure) Improvement Act of 2017, which modifies requirements related to mortgage disclosures and offers clarification to consumers and regulatory relief to financial institutions. Rep. Hill issued the following statement:
“Consumers deserve to know the costs of their title insurance premiums when they purchase a home. As TRID has become a massive, complex rule, it is hindering financial institutions’ ability to share accurate information to consumers during the mortgage closing process. This legislation seeks to correct this error by ensuring that consumers know the exact cost of their title insurance – not the number reported as one price on a lending estimate and another price on a closing document. I am proud to work with my colleague, Representative Ruben Kihuen (D-NV), to take the first step in undoing this compliance nightmare.”
In October 2015, the Consumer Financial Protection Bureau (CFPB) implemented the Know Before You Owe (KBYO) or TRID mortgage disclosure rule. This rule integrated a series of mortgage forms and was designed to assist consumers with better understanding the home closing process, but it has had the opposite effect. In the majority of states, consumers are not receiving an accurate disclosure of their title insurance premiums.
In these states, the CFPB does not allow the calculation of a discounted rate known as “simultaneous issue,” which is a rate title insurance companies provide to consumers when they purchase a lenders and owners title insurance policy simultaneously. This rate provides consumers with an effective discount on their owners title insurance policy in order to protect their property rights for as long as they own their home. The CFPB is unwilling to fix this problem on its own, calling on Congress to act.