Two attorneys from the law firm of BuckleySandler LLP, Benjamin K. Olson and Brandy A. Hood, published an article yesterday on Law360.com regarding TRID liability. If your bank makes mortgage loans, it is worth reading. Olson formerly the Deputy Assistant Director for the Office of Regulations at CFPB, is a partner in the Washington, DC office of BuckleySandler LLP. According to his bio, he led the CFPB's TRID Rule.
Oct. 3, 2015, was a watershed moment for the mortgage origination industry and the Consumer Financial Protection Bureau. On that date, the CFPB’s long-awaited Know Before You Owe: TILA-RESPA Integrated Disclosure (TRID) rule finally became effective, marking the end — for most mortgages — of 30 years of separate, overlapping disclosures under the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), and the beginning of TRID’s loan estimate and closing disclosure.
Measured against their predecessors, the new TRID forms are a marked improvement in terms of prioritizing and explaining the cost information that consumers care most about when selecting a mortgage. But the first round of loans closed under TRID is troubled. The quality control vendors that assess compliance are reporting extraordinary levels of errors, and private investors are rejecting loans at seemingly unprecedented rates, citing violations of the rule’s requirements.
Deputy General Counsel