The Consumer Financial Protection Bureau (CFPB), has proposed changes to the Know Before You Owe mortgage disclosure rule that went into effect on October 3, 2015. The proposed updates are intended to clarify parts of the mortgage disclosure rule to make for a smoother implementation process.

Also known as TRID, the Know Before You Owe disclosure rule created two streamlined disclosure forms: The Loan Estimate and the Closing Disclosure. The Loan Estimate is provided by the lender within 3 business days of the loan application. The Closing Disclosure contains the actual terms and costs of the transaction and must be provided to the purchaser 3 business days before the closing date.

Most of the initial concern for the Real Estate Industry was centered on delayed closings, potentially causing problems for clients with a tight deadline. And, after having full access to HUD-1 prior to the implementation of TRID, a significant number of REALTORS® have reported that they have not been provided with access to the Closing Disclosure –  making it difficult for them to appropriately advise and represent their clients.

Good news for Realtors® and their clients:

Among the proposed amendments is a change to the Privacy and sharing of information:

“The rule requires creditors to provide certain mortgage disclosures to the consumer. 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.

 What happens now:

The bureau is proposing additional commentary to clarify how a creditor may provide separate disclosure forms to the consumer and the seller and real estate brokers or agents. This may come in the form of a signed consent form.

 As part of the rulemaking process, CFPB is asking for input from all stakeholders. Written comments on the proposal may be submitted on or before October 18, 2016, and will be given careful consideration before the final regulations are issued later this year.

For more information regarding CFPB and a full list of the proposed amendments, click here.