In just a few short weeks, the TILA-RESPA Integrated Disclosure, or TRID, goes into effect.
In advance of these changes – which are part of the Consumer Financial Protection Bureau’s Know Before You Owe initiative – CFPB Director Richard Cordray joined National Association of Realtors® 2015 First Vice President-Elect Elizabeth Mendenhall to unveil a new set of online tools to guide consumers through the home-buying process.
NAR hosted Director Cordray at an event at NAR’s Washington, DC offices to showcase the new online toolset before a packed room full of industry experts and real estate professionals.
“Our new mortgage forms reduce the information gap between lenders and consumers, shedding light on a process that often feels like a mystery,” said Director Cordray. “It is time consumers have more power in the mortgage process, and our new forms and online tools will help make that a reality.”
The online tools offer mortgage closing forms, a closing factsheet, a disclosure timeline and educational videos, and are part of a broader campaign to promote financial literacy around home mortgages.
NAR’s Elizabeth Mendenhall called the Know Before You Owe tools “a great resource for agents” as they assist clients with shopping for a mortgage.
“The journey to homeownership begins with Realtors®,” Mendenhall said. “We look forward to working with CFPB in the months ahead to ensure Realtor® concerns are considered throughout implementation and thank them for their continued attention to our issues.”
As part of the event, a panel of experts discussed the new toolset as well as upcoming changes related to the Know Before You Owe initiative. Panelists included:
- Patricia McClung, Assistant Director, Mortgage Markets, CFPB
- Nick D’Ambrosia, Senior Vice President and Managing Broker, Long and Foster Real Estate
- Joe Gormley, Assistant Vice President, Regulatory Counsel, Independent Community Bankers Association
- Andrew Pizor, Attorney, National Consumer Law Center
Realtors® and other real estate professionals worked through the summer to prepare for TRID. When the new rule goes into effect, Realtors® and their clients will encounter new forms and procedures at the closing table.
NAR worked closely with CFPB to address Realtor® concerns in advance of TRID implementation. NAR President Chris Polychron testified before Congress in May that a proposed August 1 TRID start-date presented a challenge to Realtors® during the busy summer buying and selling season. The CFPB later moved implementation in recognition of these concerns.
“CFPB’s cooperation is important to ensuring Realtors® have what they need to educate clients on what’s ahead,” said Mendenhall. “NAR is pleased that CFPB Director Richard Cordray could join us for this important event.”
TRID goes into effect on October 3.