Following a letter from the National Association of REALTORS® (NAR), the Consumer Financial Protection Bureau (CFPB) has announced several proposed changes to the TILA-RESPA Integrated Disclosure rules that became effective last October.
The proposed changes includes clarification that lenders may share the Closing Disclosure (CD) with third parties, such as REALTORS®.
As an unintended consequence of the new TRID rules, REALTORS® who wished to review the CD with their clients to answer common questions regarding concessions, escrows, commissions and shares of prorated taxes were met with reluctance and refusal of lenders.
“The rule requires creditors to provide certain mortgage disclosures to the consumer,” CFPB’s release reads. “The Bureau has received many questions about sharing the disclosures provided to consumers with third parties to the transaction, including the seller and real estate brokers. The Bureau understands that it is usual, accepted and appropriate for creditors and settlement agents to provide a closing disclosure to consumers, sellers and their real estate brokers or other agents. The Bureau is proposing additional commentary to clarify how a creditor may provide separate disclosure forms to the consumer and the seller.”
NAR President Tom Salomone hails this as a “significant victory that will help REALTORS® continue to provide the expert service their clients have come to expect.”