Mortgage Lenders Earn Flexibility with New CFPB Rule
Thanks to the Consumer Financial Protection Bureau, mortgage lenders now have a bit more flexibility when adjusting to closing cost estimates for borrowers, according to a new report.
Rules outlined in the new TRID rework created what the media is calling a "black hole" for lenders. Mortgage lenders became responsible for an increases in closing costs. The new law is a patch for the "black hole" and it will relieve must of the stress lenders were feeling.
"Creditors may use Closing Disclosures to reflect changes in costs for purposed of determining if an estimated closing cost was disclosed in good faith, regardless of when the Closing Disclosure is provided relative to consummation," according to National Mortgage News.
"The Dodd-Frank Act directed the CFPB to integrate the loan disclosures required by the Truth in Lending Act and Real Estate Settlement Procedures Act, known as TRID. The disclosure rule took effect on Oct. 3, 2015."
To learn more about the official patch for the TRID "black hole," click on the image above.