For those of you that have been living under the HMDA rock, it is probably a good time to point out that the CFPB recently finalized a few amendments to the TRID rule. Just when you thought we were getting the process down…BAM! Now a lot of these changes are not earth shattering, but they are requirements that we will have to pay attention to none the less. Here are a few key changes:
- Tolerances for the total of payments: Under the finalized amendments the CFPB has added a new tolerance to pay attention to. The “Total of Payments” amount that is disclosed on your Closing Disclosure will now be subject to the same tolerance levels that apply to your finance charge for the purposes of rescission. So under this change the total of payments amount will be considered accurate if it is overstated, or understated by no more than $100.
- Housing assistance lending: Under the original rule there were certain housing assistance programs that were partially exempt from the TRID disclosure requirements, but there was some confusion on if you lost that exemption if the member paid for recording fees and transfer taxes. The recent amendments clarify that those charges can be passed to the member without losing the partial exemptions.
- Cooperatives: The current rule only covers transactions secured by real property, as defined under state law. Cooperatives are sometimes treated as personal property under state law and sometimes as real property. By including all cooperatives in the rule, the Bureau is simplifying compliance and ensuring that more consumers benefit from the rule (their words, not mine).
- Privacy and sharing of information: The original rule also created some confusion on what could and could not be shared with third parties. The have included amendments that clarify how you can share certain information in regards to the disclosures to sellers and agents. Long story short, any information that is shared would have to be modified. You may also have impacts at the state level that you need to be aware of. Think Reg P when you think of sharing.
Other amendments have also been included around construction lending, calculating cash-to-close, rounding, etc. I highly recommend you go out to the CFPB’s announcement to see the full details. These changes go into effect officially October 1, 2018. There will be an “optional” compliance period where you can make these changes 60 days after the amendments have been published in the Federal Register, but mandatory compliance is the October 1, 2018 date.
The mothership also threw out a proposed amendment to the infamous “Blackhole” on if you can use a Closing Disclosure to issue a change circumstance to increase a fee. Since this is a proposal I won’t dive into it right now, but I highly recommend that you go through that and send in comments if you feel the need.
There is never a dull moment when it comes to compliance!