(Originally published in the June 2015 issue of The National Notary. For more details, see the cover story on the impact of TILA-RESPA.)
When the Consumer Financial Protection Bureau (CFPB) was born in July 2011, it was charged with overhauling the mortgage industry to implement greater protections and clarity for borrowers.
When Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which created the CFPB, the agency was directed to integrate the various disclosures borrowers receive during the origination process. The goal was to make the disclosures more transparent while eliminating the potential confusion caused by overlapping forms.
For more than two years, the CFPB conducted extensive research, testing and review to find out how to create mortgage disclosures to help consumers understand their options, choose the best loan and avoid costly surprises at the closing table.
The resulting TILA-RESPA Integrated Disclosure (TRID) rule was announced in November 2013.
“Taking out a mortgage is one of the biggest financial decisions a consumer will ever make,” CFPB Director Richard Cordray said at the time. The new mortgage forms are “an important step toward the consumer having greater control over the mortgage loan process.”
While the industry has expressed concern that it will not be ready to implement the final rule when it is scheduled to take effect October 3, 2015, the CFPB remains committed to the effective date.