Special Alert: CFPB Finalizes Amendments to Know Before You Owe/TRID Rule and Proposes Additional Changes to Address “Black Hole”
Buckley Sandler Special Alert
On Friday, the CFPB issued amendments to the KBYO/TRID rule. The Bureau billed the changes as clarifying and technical in nature but stated that the final rule “also makes a limited number of additional substantive changes where the Bureau has identified discrete solutions to specific implementation challenges.” The rule becomes effective 60 days after it is published in the Federal Register, but compliance is not mandatory until October 1, 2018.
Importantly, however, instead of finalizing proposed amendments to address the “black hole” that prevents creditors from resetting tolerances using the Closing Disclosure except in very limited circumstances, the Bureau issued a concurrent proposal to address the issue. The proposal would close the black hole by allowing creditors to reset tolerances using the Closing Disclosure regardless of when closing is scheduled to occur, although the Bureau sought comment on whether doing so would have unintended consequences. Comments on the proposal must be received 60 days after it is published in the Federal Register.
If you have questions about the rule or other related issues, please visit our TRID Resource Center, Consumer Financial Protection Bureau practice page, or contact a Buckley Sandler attorney with whom you have worked in the past.