CFPB Seeks Input on Mortgage Disclosures and TRID Rules

The Consumer Financial Protection Bureau (CFPB) initiated a request for information (RFI) on Thursday, seeking public input regarding potential revisions to mortgage disclosure requirements and other lending regulations. The bureau aims to reduce compliance burdens and enhance access to mortgage credit. This initiative aligns with President Donald Trump's Executive Order 14393, which directs federal agencies to review regulations that might increase mortgage lending costs or restrict credit access.

The CFPB is specifically soliciting comments on three key areas: integrated mortgage disclosures under the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA), collectively known as TRID; the right of rescission for certain refinance transactions; and disclosure requirements for reverse mortgages. The bureau is evaluating whether current rules impose unnecessary burdens on lenders and borrowers while still ensuring adequate consumer protections.

Areas under consideration include the timing of disclosures, tolerance thresholds, the use of electronic disclosures, and the potential for more tailored rules for smaller financial institutions. For reverse mortgages, the CFPB noted that current disclosures involve multiple documents, such as TILA disclosures, Good Faith Estimates, and HUD-1 settlement statements. The agency is inquiring if a single, integrated disclosure set designed for reverse mortgages would benefit borrowers.

Furthermore, the CFPB is reviewing the Total Annual Loan Cost (TALC) disclosure used for reverse mortgages. The bureau is seeking feedback on whether TALC calculations require updates and if projected loan balances should be presented. The RFI was filed by CFPB acting director Russell Vought and is scheduled for publication in the Federal Register.