Why community banks should urge updates to TRID mortgage disclosures: blog

ICBA encourages community bankers to submit comments urging the Consumer Financial Protection Bureau to test and ultimately adopt an ICBA proposal to update mortgage disclosures, ICBA’s Ron Haynie writes in a new blog post.

Proposal Details: On Main Street Matters, Haynie details ICBA’s proposal—which the CFPB recently released publicly—for the bureau to test modified disclosures required under TILA-RESPA Integrated Disclosure rules. The proposal would modify the current Loan Estimate and Closing Disclosure to account for consumer construction and construction-to-permanent loans, which are a core offering of community banks in many local communities.

Key Benefits: “Streamlining the TRID mortgage disclosure process for single-close construction-to-permanent loans—as ICBA has proposed—would support the use of these loans, save time for the lenders, and create enormous cost savings for consumers,” Haynie writes.

How to Act: The blog post contains additional details on ICBA’s proposal, why the change is needed, and how community bankers who support the updates can weigh in via the CFPB website before the March 29 comment deadline.

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