Addressing what is commonly known as the “black hole” issue, the Consumer Financial Protection Bureau (CFPB) has finalized a rule amending to its TILA-RESPA Integrated Disclosure (TRID) mortgage rule, also known as “Know Before You Owe,” clarifying when lenders may pass on increased closing costs to borrowers and disclose them on a Closing Disclosure.
Richard Horn, principal attorney at Garris Horn Legal, PLLC, told Dodd Frank Update that the amendment effectively has fixed the black hole issue, but noted that creditors still will need to pay close attention to TRID’s “due diligence” standard for compliance purposes.
Find out more details about the newly finalized TRID fix.