CFPB Proposes Updates to ‘Know Before You Owe’ Rule

Filed in Housing Finance by on August 1, 2016 1 Comment

HousingFinanceThe Consumer Financial Protection Bureau (CFPB) on July 29 released proposed updates to its “Know Before You Owe” mortgage disclosure rule, also known as the TILA/RESPA Integrated Disclosure rule or TRID.

The rule, which was enacted last fall, stipulates that the closing disclosure must be provided to the consumer a full three days prior to closing, and if there are certain changes during that 72-hour period, the closing could be delayed. The three-day period is designed to give consumers more time to review their loan documents.

The proposed amendments are intended to provide greater clarity and certainty to the rule, which became effective on Oct.  3, 2015.

The mortgage lending rules eliminated the Good Faith Estimate, the Truth in Lending and HUD-1 Settlement Statements and replaced them with the CFPB’s new integrated disclosure forms: the loan estimate and the closing disclosure.

The CFPB proposes to:

  • Provide a tolerance for the total of payments
  • Give a partial exemption from disclosure requirements to certain housing assistance loans originated by housing finance agencies
  • Extend the rule’s coverage to include all cooperative units
  • Clarify privacy and sharing of information including how a creditor may provide separate disclosure forms to the consumer and the seller

The proposed amendments also include clarifications to various issues that the CFPB has provided in informal guidance. Of particular interest to NAHB, the CFPB proposes to add commentary regarding additional disclosures for construction and construction to permanent loans.

NAHB Housing Finance staff are reviewing the proposal and will submit comments before the Oct. 18 deadline. For more information, contact Curtis Milton at 800-368-5242 x8597.


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  1. Instruct all of your employees and contractors about these new legal points. Set the expectation early with proper disclosure prior to signing the agreement and remind your buyers and team a month before closing in order to disclose properly so there are no surprises for the buyer prior to closing.
    ONwards and UPwards!

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