Ben Olson Quoted in National Mortgage News Article, "CFPB Punts on TRID Errors, but Offers Plenty More for Lenders"Benjamin K. Olson
Ben Olson was quoted in Kate Berry's National Mortgage News article, "CFPB Punts on TRID Errors, but Offers Plenty More for Lenders," on July 29, 2016.
The Consumer Financial Protection Bureau's proposal to update its mortgage disclosure rule did not give lenders what they most wanted: the ability to correct errors after a loan has closed and a release from liability for technical violations.
But the 293-page plan did provide a number of critical revisions to the CFPB's "Know Before You Owe" mortgage disclosure rule that will aid in compliance and allow the industry to close more loans.
Importantly, the proposal would also address what lenders have called the "black hole" problem, when a borrower pushes back a loan's closing date after the final Closing Disclosure has been made, potentially forcing a lender to absorb increased costs through no fault of its own. Under the plan, a lender could use the closing disclosure to reflect changes in costs that would otherwise justify issuing a revised estimate.
"That's a big win for the industry," said Ben Olson, a partner at Buckley Sandler and a former CFPB deputy assistant director in the Office of Regulations.
"From a policy perspective, changing things after all documents have been signed is not where the bureau wants to be," Olson said. "I don't think the bureau has any desire to increase litigation but they do worry a lot about the extent to which the industry prioritizes compliance."